An extra cost is to be provided for during any real estate transaction
The Notary is a key player in your adventure: all funds that concern the purchase of real estate constructed or not, actually pass through his/her hands and he/she is also in charge of collecting the taxes due to the government and local authorities.
If you buy an older home (built more than 5 years ago or already sold at least once), what we usually call " Notary fees" will amount to almost 10% of the sale price.
They include very different items:
- The actual payment for the services of this specialist who plays a very important role: he/she drafts the deeds, verifies the transaction is lawful, etc. His/her fees are set by decree and are proportional to the sale price (digressive percentages per price range). VAT at 19.60% is added. You will pay them the day you sign the sales agreement.
- The "disbursements", that is, amounts paid on behalf of the client: cost of papers, mortgage registrar’s salary, postage expenses, etc.
- The fees and taxes due to the Treasury. These are essentially registration fees called “duty on transfer for valuable consideration”. They include the commune tax, the department tax, and a "collection cost" equal to 2.5% of the department tax. On a positive note, the purchase of an older home is not subject to VAT.
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