No worries, even French people don't know everything about notary fees system.
Whether you are a first-time buyer or a seasoned investor, you might don't know everything about the way notary fees are made of.
Acquisition fees are not intended for the notary
True and false. The notary fees are made up of these items :
taxes and duties
the notary's remuneration
expenses and disbursements
Taxes, which make up 80% of the total, are paid to the Treasury on behalf of the buyer. The fees and disbursements are used to pay for the services of external parties or to pay the fees for consulting the land registry and other official registers. The public officer keeps only the sum corresponding to his remuneration. The amount of his emoluments is fixed by law and represents approximately 10% of the acquisition costs.
It is always the buyer who pays the notary fees
False. It is customary for the buyer to pay the acquisition costs but this is not an obligation. Some sellers, who wish to find a buyer quickly or to stand out from the competition, offer to pay the notary fees. Be careful, however, that this expense is not passed on to the selling price!
The acquisition costs are the same everywhere
False. If the professional's fees are the same throughout the country, the same is not true for registration fees.
The law has set a minimum and maximum rate for the land registration tax (TPF), the main tax paid when buying real estate. But the departments are free to adjust this rate for a transaction in the former. For example, in Indre, Isère, Morbihan and Mayotte, the TPF is 3.80% compared to 4.50% in the rest of the country.
Some departments and municipalities go even further by granting abatements on the TPF calculation base and an exemption from transfer duties for certain transactions.
Notary fees are less expensive in new homes
True. When you buy an apartment from a professional, you benefit from a reduced rate for the TPF and you do not have to pay the communal part of the TPF. The maximum overall rate of TPF for new properties is 0.71% and 5.81% for old properties.
The real estate security contribution (CSI) remains the same: 0.10% of the price of the property.
Thanks to this advantage, the acquisition costs represent 2 to 3% of the value of the property in the new against 7 to 8% in the old.
It is possible to obtain a reduction on the notary fees
True. The law allows notaries to apply a reduction on the amount of their fees. They can proceed to a 20% reduction of their remuneration calculated on the part of the transaction higher than 100 000 euros. This practice must be applied to all acts performed by the notary's office and clients must be informed of it.
Call me now to arrange a personalized study.
Jean-Christophe DIMINO, agent kw - +33 6 16 95 70 83 - jc.dimino@kwfrance.com
