[Entitlement to Reimbursement for Certain Real Estate Expenses]

The Navy requested a decision concerning an employee's entitlement to reimbursement for certain real estate expenses he paid in connection with the sale of his residence. The Department of Housing and Urban Development (HUD) stated that: (1) although the fees were not customary, lenders were charging them more frequently than in the past; and (2) because the financing was through the Veterans Administration, the lender could not charge the fees to the buyer. GAO held that reimbursement of the expenses an employee incurs in selling a residence is limited to the customary amount charged in the locality of the residence. GAO found that, although the original HUD report stated that the fees were not customary in the area, supplementary information showed that more than 50 percent of the lenders paid the fees. Accordingly, the claim may be paid in an amount not to exceed the customary charge for the area.