|
As part of our Help Centre, outlining some things you need to
know about buying a property in France, we explain the role of the
Notaire in the French property buying process.
A Notaire is a public official, appointed by the French Justice
department. Their role in the property buying process is similar
to that of the English solicitor, in as much as the Notaire is responsible
for the conveyancing of the property from the present owner to you.
It is the Notaires' responsibility, therefore, to ensure that the
transaction is valid and meets the legal requirements regarding
description and proof of ownership, rather than the individual interests
of each party.
As such, therefore, it is the norm in France that both the seller
and buyer use the same Notaire - as there is visibly and legally
no bias or partiality for one party or the other. Of course there
is nothing to stop you appointing a different Notaire - you are
perfectly free so to do. In which case, the Notaire fee, which you
are paying (it will be added on to the purchase price of the property),
will be split between the two Notaires.
Naturally, there is nothing to stop you appointing a French property
savvy lawyer (either here in France, or in the UK) to further protect
your interests. Just beware, that so doing can build in an extra
time delay.
The selling price for houses, flats or building land excludes the
acquisition costs. This means that the buyer pays all expenses relating
to the sale, which the Notaire collects. Detailed information of
these various acquisition costs are listed below, but you should
allow approximately 10% of the purchase cost published by the estate
agent (if the agent has not included this already).
It is also the job of the Notaire to ensure that the French Government
get their taxes due on the sale. Again, these are added by the Notaire
to your final purchase price (see below)
There is a scale of charges related to
the Notaire's remuneration. These are fixed by law. Naturally these
are subject to change, so it is worth double-checking before you
get this far in the buying process, but broadly, these charges amount
to:
1.3% of the purchase price up to €50,000 and
1% of the purchase price if over €50,000
These charges are subject to TVA (VAT) of 19.6%.
Trying to figure out exactly what you have to pay on top of the
purchase price of French property to arrive at a final price, is
extremely difficult, as some of these charge are sliding scale and/or
percentages. Hence the oft quoted "Allow approx. 10% of the
purchase price for Notaires charges and fees".
Apart from their own fee (see above),
the Notaire will collect (from you, the buyer) and pass on to the
Government, all taxes and charges relating to your purchase.
Fees - These relate to zoning documents, the mortgage
registry, the cadastral agency, etc.). Such fees account for most
of the costs related to property purchase. Some fees are calculated
as a percentage... some as set costs.
Stamp Duty - Stamp tax is assessed on each page of both
the original notarial deed and the certified copy (the buyers'
certificate of title), calculated at €6 per two-sided page
in standard format. As deeds these days are often lengthy, this
stamp tax can run into the hundreds of euros.
VAT - As has been seen above, the Notaires' remuneration
is subject to VAT. If the property is a new-build, the Notaire
will also collect the 19.6% VAT due on the purchase price - payable
by the seller, this time, as it will have been included in his
asking price).
Please note, that it is not widely known, but if you purchase
a newly renovated barn, or a house that has undergone extensive
(more than 60% of the total habitable area) renovation, the seller
will have had to include VAT in the purchase price, as the property
will have been reassessed as a new build. Similarly, if you subsequently
sell such a property on within 5 years, you too will have to 'charge'
the buyer 19.6% VAT.
<back to previous page
|
