What are the notary fees when purchasing real estate?
Our real estate agency in Paris's 16th arrondissement, CENTURY 21 Auteuil Immobilier helps you understand what notary fees are, why they are mandatory, and how they are calculated
What are notary fees, and why are they mandatory?
Notary fees include all mandatory administrative costs that must be paid when transferring ownership of a new or existing property. They must be paid upon signing the deed of sale. They are an essential formality for finalizing the transaction.
The notary drafts the deed of sale, ensures the legality of the transaction, and guarantees the legal certainty of the transaction. This way, buyers and sellers can be certain that the transaction complies with applicable regulations and that the transfer of ownership is carried out properly.
Who pays the notary fees in a real estate transaction?
In a real estate transaction, the buyer is responsible for the notary fees. Although the seller may have to pay certain costs related to the sale, the notary fees are the sole responsibility of the buyer. This situation may seem counterintuitive to some, but it is explained by the fact that the buyer benefits from the legal safeguards provided by the notary, which justifies the buyer bearing these costs.
What do notary fees consist of?
Notary fees are often viewed as simply an amount to be paid, but in reality, they consist of several distinct components. These fees cover administrative costs, taxes, and the notary’s own compensation.
- Notary fees: These are the notary’s fees for their services, primarily the drafting of the deed of sale. The fees are governed by a fixed schedule, which varies depending on the price of the property. They account for approximately 10% of the total notary fees;
- The transfer taxes (or registration fees) : These fees are payable to the government and local authorities. They are calculated as a percentage of the property’s sale price, generally between 5 and 6 percent. This portion of the notary fees accounts for the bulk of the total costs;
- Out-of-pocket expenses: These are the amounts the notary pays to complete certain administrative procedures, such as obtaining zoning documents, fees for land registry, or a surveyor's fees;
- The Real Estate Security Fee: This is a tax equal to 0.1% of the property’s price (with a minimum of €15), intended to cover the costs associated with registering the transfer of ownership and land registry filings.
How are notary fees calculated?
For Calculate notary fees, let’s take the specific example of a purchase of an older property in Paris valued at 300,000 euros. The costs break down as follows:
- 3,353 euros in notary fees, including tax;
- 17,419 euros in duties and taxes;
- 1,360 euros in fees for administrative procedures and out-of-pocket expenses;
- A 300-euro property security fee.
The total therefore comes to 22,433 euros, or about 7.5% of the purchase price.
What are the notary fees for new and existing homes?
Notary fees vary significantly depending on the type of property. For existing properties, these fees generally amount to 7 to 8% of the sale price. In contrast, for new properties, these fees are significantly lower, ranging from 2 to 3% of the purchase price, mainly due to the absence of transfer taxes.
