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B-190902 1 (1978-02-14)

handle is hein.gao/gaobadfry0001 and id is 1 raw text is: I1 DECISIC FILE: B-190 MATTER O DHGIEL T: I 2. Since FT precludes reimbursement of insurance expenses, except for mortgag3 title insurance, employee may not be reimbursed for portion of real estate broker's fee attributable to insurance premium protecting purchaser. This matter arises from a request for an advance decision sub- mitted Uy Donald C. Osttehr, an authorizcd certifying officer of the Department of Energy (DOE), regarding the propriety of reimburs- ing an additional 1 percent real estate broker's commission to a transferred employee. Mr. Donald J. Jolovich was transferred from Las Vegas, Nevada, to Germantown, Maryland, 3s autho.ttzed on form HQ-279, Request and Authorization for Official Thavel, dated June 14, 1974. Incident to the transfer, Mr. Jolovich sold his residence in Las Vegas, Nevada. He paid his broker a 7 percent commission of $2,625, but was reimbursed for only 6 percent or $2,250. He has claimed reim- bursement for $375, representing the additional 1 percent commission. The DOE's refusal to reimburse in excess of 6 percent was based on a determination by the Department of Housing and Urban Development (HUD) regarding the customary and normal real estate commission charged by brokers in the Las Vegas area. By letter dated August 13, 1974, HUD stated it had found 6 percent to bp the W 4rpp A - L. J j 4------- pop Lynn Caylor THIE Cr'lPTRoLLE AAL IN .OP TwO UNITEr ..M WABMINOTON. D.D0 0 4 OB4 902 DATE: ftbruary 14, 1978 Donald J. Jolovich - Real Estate Broker's Commission 1. Transferred employee seeks reimbursement of full amount of 7 percent real estate broker's commission paid when he sold hia residence at his former duty station. Local HUD office states that 6 percent was prevailing rate. Although employen contends he was belatedly advised of HUD determination, he wan on constructive notice of FTR provision that reimburse- ment of broker's fees may not exceed the prevailing rate which mey be deter- mined on basis of HUD statement. Claim is denied.

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