If high notaire fees is one of your reasons for delaying purchase of a luxury French villa that has caught your eye, good news is around the corner.
From May 1st 2016, new reforms permit notaires to reduce their fees (fee is capped at 10% of the sale price). Hence, depending on the sale value of the French house you are buying, you can save up to 70% on notaire fees, a huge cost-saving indeed and one which is attracting international investors.
Note: Generally notaires charge 7% of the sale price (3.5% is notaire fees and 3.5% is purchase costs/taxes) however, there have been incidents where buyers have been billed exorbitant notaire fees. The legal imposition of a cap on fees charged takes care of this.
In addition, the notaire can offer discretionary discounts of:
- Up to 10% for sales over €150,000.
- Up to 40% for sales of residential and commercial French property over €10,000,000 (ten million), applicable if the property is for social purposes.
Be aware that there is no legal requirement for the notaire to mention these discretionary discounts, so make sure you ask the notary about these and, if any apply, obtain written confirmation.
From 1 May the maximum fee a notaire will be able to charge is 10% of the sale price with a minimum fee of €90. This could result in huge savings of up to 70% on low-vale purchases – for example, buying a piece of land for €3,000 will now only incur a notaire’s fee of €300 instead of the previous €920."