WHAT ARE NOTARY FEES?
Notary fees are amounts paid by the client to the notary for any notarized act. These fees include duties and taxes, disbursements, and notary fees or professional fees.
WHAT DO NOTARY FEES INCLUDE?
Using a notary entails costs that break down as follows:
- Duties and Taxes: These are amounts collected on behalf of the state and local authorities (such as registration fees). The notary collects these taxes and transfers them to the Treasury.
- Disbursements and Ancillary Costs: For each service provided, the notary may need to advance certain costs on behalf of the client, such as travel expenses, fees for various third parties (like land registry and surveyors), or payment for necessary administrative documents. The client reimburses these expenses incurred by the notary in the course of providing their service.
- Notary Fees: Only this portion of the total cost is retained by the notary and their office staff as remuneration.
REDUCED NOTARY FEES: When purchasing a new property, buyers are eligible for reduced notary fees (around 2–3% of the purchase price, compared to 7–8% for the purchase of an existing property).
Notary fees, also known as "acquisition costs" in France, are fees associated with purchasing real estate or carrying out certain legal transactions. Generally, these fees are paid by the buyer, although in some cases the seller may also incur notary fees. The notary fees consist of several elements, including:
- Transfer Duties (or Registration Fees): These are taxes collected by the state during the sale of a property. The amount varies depending on the property’s value, location, and the nature of the transaction. These fees are paid by the buyer and make up a substantial part of the total notary fees.
- Notary’s Fees: These are the notary’s professional fees for handling the transaction. These fees are regulated by the state and vary according to the property’s value. The fees are progressive, meaning the percentage decreases as the property value increases.
- Disbursements: These are the costs incurred by the notary on behalf of the buyer as part of the transaction, such as document reproduction fees, land registration fees, postal fees, etc.
- VAT: VAT applies to the notary’s fees and disbursements and is calculated at the prevailing rate at the time of the transaction.
- Mortgage Fees: If a mortgage loan is taken out to finance the property purchase, mortgage fees may apply to register the mortgage at the land registry. These fees are typically paid by the buyer.
- Guarantee Fees: If a warranty is taken out as part of the transaction (such as a ten-year warranty), additional fees may apply.
It’s essential to note that notary fees differ from one country to another and can vary by region within the same country. In France, notary fees are regulated but can represent a significant portion of the total cost of acquiring a property. Therefore, it’s crucial to account for these fees when buying real estate and to include them in your budget.