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                            January 20, 1998
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                            GSBCA 14336-RELO
 
 
                 In the Matter of CHRISTOPHER P. KNEIB
 
 
        Christopher P. Kneib, San Diego, CA, Claimant.
 
        Lou  Pohlenz, Office of  the General Counsel,  Department of
   the Navy, Naval  Command, Control and Ocean  Surveillance Center,
   San Diego, CA, appearing for Department of Defense.
 
   VERGILIO, Board Judge.
 
             The approving official for the paying activity was
        the appropriate individual to determine the real estate
        commissions generally  charged in  the  area where  the
        residence  was sold.   This official concluded  that 6%
        was the generally  charged rate.  Such  a determination
        was reasonable  and rationally based--it  was supported
        by  statements  from  the office  manager  of  the real
        estate  agent used  in the  sale  and from  individuals
        employed  by  the  Department   of  Housing  and  Urban
        Development (HUD).  Although, prior to entering into an
        agreement  with the real estate agent, the claimant had
        been  assured by an  experienced individual at  the old
        duty station that he considered the 7% commission to be
        reimbursable, that  conclusion is  not dispositive  and
        does  not entitle the  claimant to reimbursement.   The
        claimant  has not demonstrated that 7% is the generally
        charged rate.
 
        The claimant, Christopher  P. Kneib, a civilian  employee of
   the Department of  Defense, changed permanent duty  stations with
   the Navy.  The agency authorized reimbursement of expenses in the
   sale of his residence.  The claimant inquired of an individual in
   charge of approving real estate expenses at the old duty station.
   The individual related that the claimant would get reimbursed for
   commissions up  to 7% because that was  the customary fee for the
   area.  Thereafter, the claimant signed a listing agreement with a
   7%   commission,  and   incurred  that   expense.     He   sought
   reimbursement  at that  rate, with  the support  of his  old duty
   station.  The agency, through  the approving official for the new
   duty  station, authorized reimbursement  at 6%, as  the generally
   charged  rate, instead  of the  7% incurred,  which the  claimant
   seeks.
 
 
        The Joint  Travel Regulations (JTR)  applicable to  civilian
   personnel of the Department of Defense specify that a real estate
   commission  paid by  the  employee for  services  in selling  his
   residence is reimbursable, but not  in excess of rates  generally
   charged for  such services  by the  broker or  by brokers  in the
   locality  of  the  old  duty  station.    JTR  C14002-A.1.    The
   regulations  applicable  at  the  time  expressly  provided  that
   technical  assistance in  determining  the reasonableness  of  an
   expense may  be obtained  from the local  insuring office  of HUD
   serving the  area in which  the expense occurred.   JTR 14004-C.2
   (the  office will furnish information concerning local custom and
   practices with respect to the  charging of closing costs).  Costs
   are to  be borne by the gaining department.   JTR C1052-B.2.  The
   ultimate responsibility for  approving reimbursement rested  with
   an individual at the new duty station.  JTR C14004-D.
 
        The  approving official, who had seen several hundred claims
   pass through  his office, did  not view  the 7%  commission as  a
   normal  charge.   He contacted  the  office manager  of the  real
   estate agent used in the sale, who is said to have stated that 6%
   is  the  normal  fee collected  by  the  office for  the  sale of
   residential real  estate in the  area.  The official  also sought
   the assistance of HUD, which orally responded, and then stated in
   writing: "The normal and customary real estate commission paid in
   the [applicable] area is 6% of the sales price and is  a seller's
   expense."    The  approving official  concluded  that  6% is  the
   generally charged rate.
 
        At the old duty station, an agency director of a real estate
   division   determined  that  the   7%  rate  was   regularly  and
   customarily  charged  for  the  area,  and  was reasonable.    He
   recommended that 7% be reimbursed.  However, that individual  was
   not charged with making the determination regarding the claimant.
 
        The  approving  official,  while aware  of  the  conclusions
   reached at the old  duty station, relied upon the  input from the
   office manager of the real estate  agent and HUD in reaching  his
   conclusion   that  6%  is  the   generally  charged  rate.    The
   determination by the  approving official is rationally  based and
   does  not reflect  an  abuse  of discretion.    The claimant  has
   demonstrated no error in the agency's payment of 6%, but not  7%,
   of the sale price.
 
                                       ____________________________
                                       JOSEPH A. VERGILIO
                                       Board Judge