There are three types of legal fees associated with purchasing a property in France. Costs for all three combined will total approximately 8 – 10% of the purchase price for a second hand property and 4 – 5% for a new property.
These fees and costs are generally called frais de Notaire or notary fees as they are all paid via the notary.
A fee is charged when property in France is transferred from one owner to another. This fee, legally fixed by the authorities, is based on the agreed purchase price of the property and on whether or not it is old or new. The notary is responsible for collecting this fee and transferring it to the local or regional administrative bodies.
Whenever you take out a bank loan in France to finance your French property, the loan is secured with a charge on the property.
To encourage the purchase of old or new existing property, first charge on property fees (PPD) are based on a lower rate than those for a contractual mortgage.
The notary’s fees include the cost of various formalities as well as the performance of certain acts, such as the deed of purchase and the registration of the mortgage. These fees, called “émoluments”, are based on the purchase price and the amount borrowed. Notary fees are legally established by the Chamber of Notaries and are usually non-negotiable.
This article was written by French Mortgages Made Easy