While the French real estate market is experiencing serious turbulence, property aspirants are seeking to optimize their budgets. There is a position deemed to be incompressible but which, however, includes some slight room for maneuver… These are notary fees. How are they calculated; can they be reduced? Here’s what you need to know on the subject.
How to reduce notary fees when purchasing real estate? -pexels-mikhail-nilov-pexels-mikhail-nilov
What do notary fees consist of?
Also called “acquisition costs”, notary fees correspond to all the sums requested by the notary in charge of drawing up the deed of a real estate transaction. However, although he collects these sums, not all of them come back to him! Indeed, if certain items correspond to services carried out by him, the majority of the amount he receives corresponds to the taxes he pays to the State. In detail, here is what the Man of Law charges: Fees: their amount is regulated; it corresponds to a percentage of the sale price defined according to a scale set by the State. Fees: their amount is freely set by the notary, because it remunerates a service provided by him (e.g. legal consultation), Disbursements: these are costs which correspond to the sums advanced by the notary as part of his mission ( e.g. travel costs, photocopying costs, registered mailings, etc.), Duties and taxes: they are also called “transfer duties”. This is the highest part of the so-called “notary” fees (around 80%). They correspond to fixed taxes, levied by the State and local authorities.
Can we reduce them?
Against all odds, the answer is YES! If the “duties and taxes” set by the State cannot be reduced, the other positions can be the subject of discussion with the notary, or even competitive bidding. There is quite little room for maneuver regarding disbursements, because they correspond to costs actually incurred by the study. On the other hand, the fees being “free”, they can absolutely be subject to negotiation. As for emoluments, although based on an official scale, the Macron law of 2016 setting the regulated rates for notaries opened the door to negotiations. Thus, since January 2021, notaries have been able to grant a reduction in their fees of up to 20%, if the cost of the sale exceeds €100,000. The only constraint: if he grants a discount once, the notary will have to apply it to all other clients whose property is also valued at more than €100,000. Furthermore, it is also possible to save money by declaring as “furniture” the equipment transferred with the property (kitchen, wardrobes, etc.). Listed and valued, this equipment will be extracted from the tax base and therefore generate savings. Finally, if the agency fees payable by the buyer are paid separately from the main transaction, the seller’s net sale price will be reduced, thus leading to a reduction in notary fees.
