# 2021-128 Pay and Benefits, Relocation benefits

Case summary

F&R Date: 2021-08-24

The grievor was informed that he would be reimbursed if he hired a real estate broker to buy a home with respect to his deployment, but the Director Compensation Benefits Administration denied his request for reimbursement.

The Director General Compensation and Benefits, acting as Initial Authority, explained that the Canadian Forces Integrated Relocation Program (CFIRP) Directive provides for reimbursement for brokerage fees only when a home is sold and, as a result, denied the request for reimbursement.

The Committee determined that although the grievor was not eligible to receive a reimbursement under the CFIRP, the Canadian Armed Forces had misled him by making a negligent misrepresentation. The Committee recommended that the Final Authority (FA) refer the case to the Director claims and civil litigation for review. 

FA decision summary

The FA agreed with the Committee's finding that the CFIRP Directive did not provide for reimbursement of the real estate commission for the purchase of a residence. However, the FA was of the opinion that the BGRS advisor had informed the grievor to select a real estate broker from the list of third-party service providers to help him in his house hunt and that, as long as the costs were less than the pre-established rate, he should be reimbursed. BGRS fulfilled its obligation to provide information in its field of expertise and according to the information provided. BGRS was not informed that the grievor was purchasing a home from a seller who was not represented by a broker. By releasing the seller from the broker's fee, the plaintiff was responsible for paying his broker directly according to the contract, and it was up to him and his broker to develop a strategy for negotiating the purchase price accordingly. The FA therefore found that the grievor was not harmed and the FA did not support the Committee's recommendation to refer his file to the Director Claims and Civil Litigation for review.