The notary guarantees the legal value of a transaction. The presence of this professional is necessary during a real estate acquisition, which generates costs. Find out how the sum collected by the notary breaks down, and how to reduce costs when buying real estate. All our tips for paying less for notary fees and saving money.
Composition of notary fees
These fees are calculated on the basis of a regulated scale. This takes into account the amount of the property, in addition to VAT. Generally, notary fees are around 1.2% for property over 100,000 euros.
When buying real estate, all the supporting documents (cadastre, surveyor’s plan, etc.) must be presented. in their original form. It is the notary who establishes the formalities with the administrations to obtain them. This approach generates costs of up to 600 euros, including approximately 200 euros for the file.
Some taxes go directly into state coffers. The buyer must pay VAT at 19.6% as well as a land registration tax when acquiring a new home that is less than 5 years old and has never been resold.
For homes over five years old, the taxes are 5.09%.
How to reduce notary fees?
Negotiate notary fees
Since it is impossible to exempt yourself from taxes due to the State, you can try to reduce the notary’s costs by reducing his fees. Admittedly, they are governed by the administration, but it is always possible to negotiate as long as no deed has been established.
Do not pay agency fees
If you went through a real estate agency to purchase your house or apartment, the agency fees can be deducted from the notary fees.
Notary fees will be calculated on the seller’s net sum. It is not the overall cost of the transaction that will be taken into account.
This will allow you to make a small saving on the total sum.
Deduct the amount of equipment
There is a completely legal trick to reduce your notary fees. Simply separate the purchase of furniture from the acquisition of real estate. Indeed, when you buy an old house, it often includes interior equipment (fitted kitchen, equipped bathroom, household appliances, etc.). Normally, notary fees relate only to the purchase of the property. You are therefore entitled to demand the deduction of the sale price of the equipment from the amount of the acquisition of the property.
On the sales agreement, include the purchase amount of the accommodation as well as the purchase amount of the equipment. Thus, only the first price will be taken into account by the notary.
Depending on the layout of the house, you can save a lot of money. This is particularly interesting if you become the owner of a furnished property.
Be aware, however, that the deduction cannot exceed 5% of the price of the good.