Is it possible to negotiate notary fees?
With our real estate agency in Paris's 16th arrondissement, at our CENTURY 21 Auteuil Immobilier and Auteuil Seine offices, find out everything you need to know about notary fees and how to reduce them.
Why are notary fees so high?
Contrary to what their name suggests, the notary fees do not primarily serve to compensate the legal professional. In reality, these are acquisition costs, the majority of which consist of taxes paid to the federal government and local governments.
The notary essentially acts as a tax intermediary, collecting these taxes and then remitting them to the Treasury on behalf of the buyer. Its own fee represents only a small fraction of the total amount you pay it.
Is it possible to negotiate notary fees?
Negotiating notary fees is particularly complex because they are regulated by law. The included taxes, which constitute the largest portion, are paid to the government and local authorities according to fixed rates.
How can notary fees be reduced depending on the type of property purchased?
Notary fees vary depending on the type of property purchased. For a new property, the fees are reduced to about 2–3% of the sale price. In contrast, for an older property, the fees are higher, amounting to between 7–8% of the purchase price due to the transfer taxes.
What amounts can be deducted from the sale price to reduce expenses?
It is possible to reduce notary fees by deducting certain items from the purchase price. For example, the value of the furniture and appliances in the purchased home can be subtracted from the purchase price, which will reduce the base on which the notary fees are calculated. However, this deduction is limited; the value of the furniture cannot exceed 5% of the property’s price.
For example, for an apartment sold for €150,000, you can deduct up to €7,500 for furniture, thereby reducing the tax base of Calculation of Notary Fees at €142,500.
