Going to the notary involves the payment of fees, which can be included in a real estate financing or be paid as a personal contribution, especially when the loan is accompanied by a real estate credit.
Notarization fees to be paid
The borrower will have to pay notarization fees, which are estimated to average 8% of the property value. It is therefore understandable that the amount is substantial when the borrower makes no specific contribution.
It is possible to pay these fees necessary for the release of capital to apply for a loan at 110% whose financing includes the purchase of the property and related costs.
The borrower will then have the necessary funds to pay the fees and authorize the real estate financing if it is the case, the notary fees will therefore be included in the real estate loan, allowing for a lighter approach and the classic notarized visit and then exit of the fund.
Note that some notaries charge different fees, so costs may be higher depending on the city and region. Registration fees are set at the national level and are therefore non-negotiable.
Inclusion of notarization fees
The inclusion of notary fees would require the borrower not to contribute a required amount greater than the price of the mortgage. You must take into account the amount of 110% and therefore must make a claim for the amount of the property plus 10%, this is done directly from the home loan simulator.
By following the different steps and filling in the required information, the simulator will allow you to obtain several real estate loan offers from different establishments, thus facilitating your comparison of credit offers and grants at the best conditions.
Calculation of notary fees
The notary feesalso known as redemption or acquisition feesn, are calculated from three different costs: taxes, disbursements and notarization fees.
You should know that these fees are very well defined, so you won't have any unpleasant surprises at the time of the sale. But this also means that there is no possibility of negotiation.
The notary public acts mainly as an intermediary in the sale of your property: he collects a certain amount of money, but pays a large part of it on your behalf to the Treasury. These taxes are called " registration fees "These vary depending on the type of property you are buying, its value and its location.
The taxes collected for this purpose on the prices of new goods are as follows: 0.715% of land registration tax, 0.1% of the contribution to the security of movable property.
When it comes to old properties, the taxes are much higher: from 3.80 to 4.50% depending on the area for the registration fee, 2.37% for the base tax, 1.2% for the municipal tax, 0.1% for the real estate security tax.
Expenses are amounts added to the estimate of the notary's advance, notary fees for services provided by external parties. This may be related to verification work: for example, it may be necessary to request a town planning document or contact a specialized surveyor. It may also be the documents required for a change of ownership.
In case some exceptional costs occur at your request, they are also included in the payments. It is also important to know that the security of your property may have an effect on the amount to be paid to the notary: for example, if you choose a real estate loan, you must pay this amount to the notary.
You can negotiate a discount, but it is not necessary.tricly regulated by law. The notary may therefore decide to grant you a discount on the part exceeding 150,000 euros, within the limit of 10 %.
For example, for a sale of €300,000, your notary can apply the following discount: x 0.814 % = €1,221, i.e. a discount of €122.1.
This discount must be given to all his clients and posted on the site. This means that your notary must tell you if he will apply this discount: it will not be the result of hard bargaining on your part.
The notary's remuneration
It is about notary's fees. Each of these fees is regulated. This means that the amount will be the same regardless of the notary chosen.
Here is the scale to follow: it starts from the bracket at the applicable rate
- From 0 to 6,500 €, notary fee of 3.945 %
- From 6,500 € to 17,000 € notary fee of 1.627 %
- From 17 000 € to 60 000 € notary fee of 1,085 %
- More than 60 000 € notary fee of 0.814 %
Above 300 000 €, the fees are as follows:
- 0 to 6,500 € notary fee of 3.945 % 6,500 x 3.945 % = 256.43
- 6,500 € to 17,000 € notary fee of 1.627 % (17,000 - 6,500) x 1.627 % = 170.84
- 17,000 € to 60,000 € notary fee of 1.085 % (60,000 - 17,000) x 1.085 % = 466.55
- Above 60 000 € notary fee of 0,814 % (300 000 - 60 000) x 0,814 % = 1 953,6 €.
That is to say a total of 2 847,42 €.
When the VAT of 20 % is added, we end up with a final sum of : 2 847,42 X 1,20 = 3 416,9 €
When to pay the notary's fees?
The notarization fees must be paid at the time of the final signature of the deed of sale. Although it is not a legal obligation, it is very common. Deposit of approximately 5 to 10% of the total sale price. The notary can collect the deposit and, in this case, block the money by depositing it at the Caisse des Dépôts et Consignation.