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What costs do you need to plan for when making your future purchase?

What costs do you need to plan for when making your future purchase?

You intend to buy a property. Let us go over what expenses you need to plan for.
In addition to the sale price, the buyer has to pay what are erroneously called “notarial fees”. They should really be called purchase costs. On the basis of a property costing €200,000, in all these costs total around 8% of the price.
What do the purchase costs include?

  1. Property purchase costs include the registration fees
When registering the deed with the land registry service, the notary pays the registration fees on your behalf. These fees are divided up as follows: In all, taxes therefore total 5.90665% of the sale price.
Since 2014, the departmental councils have been allowed to raise the registration fees to 4.50% (instead of 3.80% previously). Currently, only the Indre, Isère, Morbihan and Mayotte departments have not used this power.
  1. The purchase costs include fees and disbursements
These are amounts paid by the notary on your behalf. These fees and disbursements are used to pay the various organisations responsible for producing the documents needed for the change of ownership (mortgage copies and documents required by the land registry service, town planning documents, cadastral excerpt). Certain other costs incurred, at the buyer’s request also need to be planned for, such as travel expenses.
These disbursements on average can be estimated at €400.
  1. The purchase costs include the fees for the notarial office
Strictly speaking the fees for the notarial office are called emoluments. The sale gives rise to the collection of a proportional emolument, according to the scale set by the State as follows:
BANDS RATES APPLICABLE
From € 0 to €6,500 3.945%
From €6,500 to €17,000 1.627%
From €17,000 to €60,000 1.085%
More than €60,000 0.814%
For a sale price of €200,000, the proportional emoluments for the office amount to €2,033 exclusive of VAT to which emoluments for formalities estimated at €850 exclusive of VAT must be added. The office will therefore receive € 2,883 exclusive of VAT. The 20% VAT on the emoluments totals € 577.
 

 
Are there any other costs or fees?
Payment of the estate agent who negotiated the sale will, in principle, be included in the sale price. This commission is charged to the seller. However, the buyer may have to pay the estate agent if he/she commissioned him/her to find a property. In this case, the commission will be in addition to the sale price.
For a bank loan, you will have to pay fees for the guarantees requested by the bank. These guarantees may be a contribution paid to a mutual guarantee organisation or fees for a mortgage registration. The bank will be able to inform you about the cost of these.
You will have to refund the seller the amount pro rata of the co-ownership property charges and the land tax that he/she has paid in advance.
 
 
 
 

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