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B-214555 1 (1984-08-28)

handle is hein.gao/gaobadlwk0001 and id is 1 raw text is: THE COMPTINOLLEN UENENUAL ODCISION OP THU UNITED STATES WAGHINGTON. 0.0. 2064U FILE: B-214555 DATE: August 28, 1984 MATTER OF: Raymond L. Hipsher -- Real Estate Expenses -- Broker's Commission OIGEST: Transferred employee of the Veterans Admin- istration (VA) seeks reimbursement of 7 percent real estate broker's commission he paid in connection with the July 1983 sale of his residence in Gulfport, Mississippi, near former permanent duty station. The VA determined that 6 percent was the prevailing rate customarily charged in Gulfport, Mississippi, and reimbursed the employee at that rate. The Federal Travel Regulations in paragraph 2-6.2a require that the applicable rate is the rate generally charged by real estate brokers in the area, not the rate charged by the particular broker used by the employee. If employee, to expedite sale, pays commission greater than that usually charged, he cannot be reimbursed for the extra commission. The issue presented in this case is whether a transferred employee is entitled to reimbursement of the 7 percent real estate broker's commission instead of a 6 percent commission reimbursed by the agency. For the following reasons, we hold that he is not entitled to reimbursement of the broker's commission of 7 percent. At the request of Mr. Conrad R. Hoffman, Director, Office of Budget and Finance, Veterans Administration (VA), Washington, D.C., we are providing an advance deci- sion on the claim of Mr. Raymond L. Hipsher, a VA employee, for reimbursement of the full real estate broker's commission he paid when he was officially trans- ferred from Biloxi, Mississippi, to Washington, D.C., effective April 4, 1983. In connection with this trans- fer, Mr. Hipsher sold his old residence in Gulfport, Mississippi, on July 23, 1983. Only one expense item from this sale is at issue here, namely, the real estate broker's commission.

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