Mon Podcast Immo receives Bruno Rouleau, spokesperson for the broker IN&FI Crédits.
In this exclusive series Mon Podcast Immo, find the answers to practical questions about real estate.
19th episode: What are notary fees? Our expert Bruno Rouleau, spokesperson for the broker IN&FI Credits, answers Fred Haffner.
Mon Podcast Immo: What are these notary fees made of?
Bruno Roll: Notary fees are commonly called so because they are collected during the transaction by the notary. But he perceives them only partly in his favour, the essential being collected on behalf of the State and the Territorial Collectivities, in his capacity as a ministerial officer.
These notary fees are broken down into 3 parts.
The largest part, about 80% of the fees collected, is collected for the State. This is part of the registration fees which are broken down between the transfer duties for the State itself, but also under the departmental tax and the municipal tax. There is also the TPF, Property Advertising Tax. A law at the end of 2013 authorized local authorities to modulate this TPF to help them finance their budget. This provision, originally temporary, was then extended during the 2015 Finance Law. .50 per thousand.
the 2th part corresponds to the costs and disbursements collected by the notary to carry out the various formalities inherent in the operation. The conservation of mortgages, to check before the transaction that there is no creditor registered on the property or if there is to be able to question them in order to obtain the exact amount of their claim. And then to inform the change of owner of the property. It is also with this body that the real guarantees taken on the property are registered as part of the loan granted, if it is a loan accompanied by this type of guarantee. It is also in these costs that we find requests for information from the Town Planning services, from the co-ownership trustees, etc.
Finally, the last part corresponds to the emoluments of the notary, that is to say the invoicing of his services as adviser to the parties involved in the transaction. They are regulated by law and the last revision dates from February 2020. This is calculated on a decreasing rate in stages. The total fees cannot exceed 10% of the gross value of the property subject to the transaction.
And the whole thing represents about 8% of the value of the property purchased.
Mon Podcast Immo: These fees have been reduced recently, haven’t they?
Bruno Roll: You are right. For 2021 the notary fees have fallen, but it is the emoluments of notaries that have fallen. This represented a drop of 1.9% on average across the entire grid. This decision should have taken place in 2020 but due to the Covid crisis, there was a one-year moratorium.
It should be noted that this drop in fees has affected other types of acts, such as mortgage release costs, registration of PACS contracts, etc.
There had been a sharp drop in duties and taxes at the time of the financial crisis, but since the Finance Laws have given more latitude to local authorities, this drop has been completely reduced, and even an average rate is now applied. around 8% higher than at the end of the 2000s.
Mon Podcast Immo: are these costs the same regardless of the property?
Bruno Roll: When it comes to old real estate, it is the calculation that takes place. But it’s true that new or assimilated new goods have a different method of calculation. Indeed, the State collects VAT from construction professionals and passes it on to buyers of new goods. Notary fees on this type of property are said to be “reduced”, and only amount to around 2-3% of the amount of the deliverable transaction.
And then certain other goods, falling within the category of real estate, such as land, plots of forest or vines, are subject to specific calculations.
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