Closing Costs in Guaranteed Purchase Contract

B-203413: Apr 13, 1982

Additional Materials:

Contact:

Shirley Jones
(202) 512-8156
jonessa@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

A General Services Administration (GSA) employee claimed reimbursement for closing costs paid to a real estate agency pursuant to a guaranteed purchase agreement for sale of the employee's residence in connection with his official transfer. The terms of the agreement required the employee to reimburse the realtor for certain closing costs. Federal regulations provide for reimbursement of brokerage fees to the amount ordinarily charged for the selling of a residence in the locality where that residence is situated. GSA found that the brokerage fees to be in excess of ordinary closing costs charged to sellers in the employee's locality; therefore, they were not considered reimbursable closing costs. GAO concurred with this finding. Accordingly, the employee could be reimbursed for the charges to the extent that they were ordinarily paid by a seller in that locality.

Jan 21, 2021

Jan 19, 2021

Jan 14, 2021

Looking for more? Browse all our products here