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[Claim for Real Estate Expenses, Including Broker's Commission]

B-214555 Aug 28, 1984
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Highlights

An advance decision was requested as to whether a transferred Veterans Administration (VA) employee was entitled to reimbursement of a 7-percent real estate commission incident to the sale of his former residence. VA reimbursed the employee at a 6-percent rate based on its determination of the usual and customary rate for the area. The employee contended that the reimbursement rate was incorrect based on: (1) fluctuating commission rates in that area due to economic conditions and property marketability; (2) information it obtained from the Department of Housing and Urban Development (HUD) and certain brokers that 7 percent was the national average; and (3) his inability to obtain a broker at a lower rate. Federal travel regulations state that reimbursement for brokerage fees may not exceed those customarily charged in the locality where the residence is located, and GAO obtained information from a HUD area office that 6 percent was the rate generally charged in that locality. GAO held that, since the protester failed to show that any other rate was dominant, VA reimbursed the employee at the proper rate. Accordingly, the claim for additional reimbursement may not be paid.

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