B-291947: Aug 15, 2003
GSA explains that this method of paying brokers directly and not allowing brokers to receive commissions from landlords or owners is not common practice in the real estate industry. GSA advises that real estate brokers are customarily considered the agents of sellers and landlords. The payment is usually in the form of a commission for finding a suitable and willing buyer or tenant for the property in question. The commission is typically a percentage of the value of the lease. Is typically regulated by State regulatory bodies and governed by various state laws that may require disclaimers to the purchaser. DISCUSSION The main issue presented is whether GSA will improperly augment its appropriation if it receives the benefit of the brokers' services without paying for that benefit.