What are notary fees?

Notary fees, or more precisely acquisition fees, are the amounts that the buyer must pay when purchasing a property. These fees include several types of expenses, which are mainly divided between taxes paid to the state and remuneration for the notary's services.

 

In the context of a real estate transaction in the old, these fees represent approximately 7 to 8% of the purchase price of the property. This proportion may seem high, but it is important to understand that only a small portion of this amount goes directly to the notary, the majority being made up of taxes and duties.

 

When the sale involves a new property, the notary fees are reduced by 2 to 3%. In fact, the reduced notary fees are applicable under two conditions:

 

- The selling owner must be a real estate professional, subject to VAT.

 

- The new character concerns housing completed less than five years ago, i.e. those that are under construction or in a state of future completion (VEFA), and those that are renovated to the point of being assimilated to a new property.

 

Clarification: since January 1, 2013, housing resold in less than 5 years after its completion can no longer be considered as new property. The seller, then subject to Real estate VAT, paid by the seller, replaces the transfer taxes which amount to 5.80% of the sale price for old properties, and will be reduced to 0.71% of the sale price excluding tax for new properties. Hence the reduction of 2 to 3% of the sale price, since the notary fees include transfer taxes as seen above. The notary's remuneration hardly varies between new and old housing, the major difference in notary fees lies in the transfer tax rate.

The composition of notary fees

Notary fees are broken down into several categories:

 

- Transfer fees: This is the largest part of the fees. These fees, also called "land publicity tax" or "registration fees", are paid to the state and local authorities.

 

- Notary fees: This is the notary's actual remuneration. It is regulated and proportional to the sale price. These fees are calculated according to a sliding scale set by decree and represent approximately 1% of the price of the property.

 

- Formalities fees and miscellaneous costs: These are additional costs paid to the notary for carrying out the various administrative procedures related to the sale, such as verifying the authenticity of the property. documents, drafting the deed of sale and managing formalities subsequent to the transaction (publication of the deed in the land registry service).

 

- The real estate security contribution: It is due to the state for the completion of formalities related to the registration of the sale and land registry.

How are notary fees calculated?

The calculation of notary fees for old properties is mainly based on the sale price of the property. To estimate the amount of the fees, simply multiply the price of the property by the percentage of notary fees.

 

Let's take the example of buying an old property for 1,000,000 €. The notary fees would be calculated as follows:

 

- Transfer tax (land publicity tax): 5% of 1,000,000 euros, or 50,000 euros.

 

- Notary's remuneration: 1.5% of 1,000,000 euros, or 15,000 euros.

 

- Formalities fees: approximately 1,000 euros.

 

- Contribution of real estate security: 0.10% of 1,000,000 €, or 1,000 €.

 

Thus, the notary fees for the purchase of this property would be approximately 67,000 €.

 

For the purchase of a new apartment at the price of 800,000 € Including VAT, the notary fees will be calculated as follows:

 

- Transfer tax: 0.715% of the sale price excluding VAT of 800,000 €, or 4,766 €.

 

- Security contribution real estate: 0.1% of 800,000 euros, or 800 euros.

 

- Notary's fee: in our example, this will be approximately 0.86% of the sale price including tax, or an amount of 6,917 euros.

 

That is a total of 12,432 euros for a new property priced at 800,000 euros.

Who pays notary fees?

In a real estate transaction, notary fees are generally the responsibility of the purchaser. However, in the context of an inheritance, the heirs must also pay these fees. In these cases, the fees are proportional to the value of the assets transferred, and the applicable regulations differ slightly. In addition, notary fees are payable on the day the deed of sale is signed, but their planning must be done before the final decision to purchase.

When are notary fees paid?

Notary fees must be paid at the time of signing the authentic deed of sale, which also marks the transfer of ownership between the seller and the buyer. The notary, as guarantor of the legal security of the transaction, receives the full fee via bank transfer at the time of signing.

 

Upstream, the notary can intervene during the signing of the sales agreement, even if this is not mandatory. After signing the deed of sale, he takes care of all the administrative formalities, which can take around three months. During this period, the notary finalizes the registration of the transaction with the authorities and ensures land publicity, that is to say the updating of the official registers.

Simulate notary fees

It is entirely possible to simulate notary fees using online tools. Many platforms, such as that of the Paris Chamber of Notaries, offer simulators that allow you to obtain a precise estimate of the fees based on the price of the property and the nature of the transaction.

Conclusion

Notary fees for old properties may seem high, but they are essential to ensure the legal security of the transaction and to settle the taxes owed to the state. The calculation of the fees, although regulated and decreasing, depends mainly on the purchase price of the property and can be easily anticipated thanks to online simulation tools.

 

Sources:  

https://www.economie.gouv.fr/particuliers/frais-notaire-achat-immobilier

https://www.notaires.fr/fr/immobilier-fiscalite/financement/les-frais-dacquisition

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Economie.gouv.fr Notaires.fr