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Buy property in France. Reduce notary fees.

by Hanna Genthon on 30 March 2017
Buy property in France. Reduce notary fees.
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Reduce notary fees.

Does this seem impossible to you? And yet…

  1. Deduction of the amount of movable property and household appliances.

For example, you buy a house with a built-in kitchen and 3 bathrooms. Ask the seller to make a list of all the properties and household appliances that remain in the house.This list can be written simply by hand and evaluated as second-hand properties (at about half of the price!).

Remember that the tax inspection has the right to verify the authenticity of this information (this is done very rarely!), but penalties can be applied for false information.

The amount of this list will be deduced from the purchase amount and will not be subject to a notary rate.

To put it simpy:

We buy a house for 500 000 €. Kitchen, wardrobes and sofa according to the seller’s estimation = 10 000 €. Notary services = 7%

Without a list you will pay to a notary:

500 000 € * 7% = 35 000 €

If you made a list of properties, the services paid to a notary will cost you:

(500,000 € -10,000 €) * 7% = 34,300 €

You saved 700 €

  1. It is in the buyer’s interest to pay real estate services.

Of course, it seems that there is no logic: why should the buyer pay for the services that the realtor provided to the seller ?

Let’s look at our example: we buy a house, which costs is 500 000 € (475 000 € the price of the owner + 25 000 € real estate services). Notary service is 7% of the amount of the purchase.

If the services of a realtor are to be paid by the seller:

You pay 500 000 € to the seller. This amount is subject to a notary fee of 7%.

The owner will keep 475 000 € and will pay 25 000 € to the realtor.

The price of this operation for you:

500 000 € + 500 000 € * 7% = 535 000 €

If the services of a realtor are to be paid by the buyer:

You pay 475 000 € to the seller and 25 000 € to the realtor.

BUT!!! THE REALTOR SERVICES ARE NOT A SUBJECT TO NOTARY FEE !!!

The total amount you paid:

500 000 € + 475 000 * 7% = 533 250 €

By paying the realtor services, you saved 1,750 €!

Do you want to buy or rent a property on the French Riviera?

Hanna Logis – expert in real estate – at your service!

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