Reduced conveyancing fees for buying your house
When buying real estate, the buyer must pay taxes and additional fees at the selling price of the property. In new real estate, these fees represent 2 to 3% of the selling price. We are talking about "reduced fees".
Genle reminder about real acquisition costs
The Notaire’s fees paid by the buyer when buying a home include :
- the cost of certain administrative documents,
- the payment of the Notaire’s office fees (largely proportional to the selling price according to a new scale applicable since 1 May 2016)
- the taxes and dues (approximately 7% to 8% of the selling price ordinarily).
In what cases can the conveyancing fees be reduced?
Notaires fees will be reduced in case of acquisitions of new housings. The article 257, I.-2. 2 ° of the General Tax Code gives a very precise definition of new housing. It may be from a new construction or some work. This will be housing sold by the developer-builder, either in a future state of completion otherwise known as "sale off plan", or just completed and not yet inhabited... In this case, the seller being be subject to VAT, the selling price stipulated TTC. Thus, the notaire's fees are lower because they are limited to the cadastral taxes and emoluments of the notaire.
What are the consequences on the acquisition costs?
The consequence of this VAT treatment on the price is that taxes and taxes payable by the buyer are not more than about 8%, but only about 2% to 3%. The other costs are unchanged. This is known as reduced fees.
Note that since 1 January 2013, a resale home for the first time within 5 years of completion is no longer considered a new home benefiting from reduced fees. The buyer must pay the notaire's fees in the former.