[Federal Register Volume 89, Number 215 (Wednesday, November 6, 2024)]
[Rules and Regulations]
[Page 87977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25815]
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GENERAL SERVICES ADMINISTRATION
41 CFR Chapter 302
[Notice-MA-2025-01; Docket No. 2024-0002; Sequence No. 50]
Federal Travel Regulation (FTR); Relocation Allowances--Waiver of
Certain Federal Travel Regulation (FTR) Provisions Regarding
Reimbursement of Relocation Expenses for Residential Realtor Broker
Fees or Real Estate Commissions
AGENCY: Office of Government-wide Policy (OGP), General Services
Administration (GSA).
ACTION: Notification of GSA Bulletin FTR 25-03.
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SUMMARY: GSA Bulletin FTR 25-03 informs Federal agencies that certain
provisions of the FTR governing official relocation entitlements for
residence transactions are temporarily waived in light of practice
changes in the residential real estate industry that affect broker
compensation.
DATES: Applicability Date: This notification is effective upon the date
of signature and retroactively applies to buyer broker fees/real estate
commissions incurred by an employee on and after August 17, 2024, in
connection with the purchase of a residence at the new official station
incident to their relocation. This bulletin will remain in effect until
explicitly canceled or superseded.
FOR FURTHER INFORMATION CONTACT: Mr. Rick Miller at 202-501-3822, or
Ms. Jill Denning at 202-208-7642, Office of Government-wide Policy,
Office of Asset and Transportation Management, or by email at
[email protected]. Please cite Notice of GSA Bulletin FTR 25-03.
SUPPLEMENTARY INFORMATION:
Background
Prior to August 17, 2024, the customary practice in residential
real estate transactions was for only the seller to pay a broker fee or
commission. The seller's agent would then split the fee/commission with
the buyer's agent upon sale of the home. As a result of changes to the
residential real estate industry that went into effect on August 17,
2024, homebuyers now sign an agreement with their agent specifying the
amount or rate of compensation the agent will receive, or how this
amount will be determined. While sellers and their agents can still
offer to pay a buyer's agent fee/commission, that exchange must be
separately bargained for. This means that in some transactions,
homebuyers will be required to pay the full buyer's agent fee/
commission.
At present, eligible relocating Federal employees are reimbursed
for the broker's fee or real estate commission they paid in the sale of
their residence at the last official station pursuant to 41 CFR 302-
11.200(a). However, 41 CFR 302-11.202(b) prohibits reimbursement for
broker fees or commissions paid in connection with the purchase of a
home at the new official station. Accordingly, OGP is temporarily
waiving language in 41 CFR 302-11.200(a) and 302-11.202(b) to allow
agencies to retroactively reimburse eligible relocating employees for
buyer broker fees/real estate commissions incurred by an employee on
and after August 17, 2024, in connection with the purchase of a
residence at the new official station incident to their relocation.
GSA Bulletin FTR 25-03 can be viewed at https://www.gsa.gov/ftrbulletins.
Mehul Parekh,
Acting Associate Administrator, Office of Government-wide Policy.
[FR Doc. 2024-25815 Filed 11-5-24; 8:45 am]
BILLING CODE 6820-14-P