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 31st July 2010
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 Notaire, estate agent and solicitor fees in the purchase of a property in France
Notaires are public officials of the French State. Their role is not only to advise clients on the transaction but also to ensure the proper transfer of the property and to collect taxes on behalf of the State. 1. The notaire’s fees “Notaire’s fees” (usually referred to as “Frais de Notaire” or “Frais d’acte authentique”) is a global term used to describe the legal costs of the purchase. It includes 1) taxes to be paid on the purchase, 2) the notaire’s expenses and 3) the notaire’s own remuneration. The fees are paid by the buyer and are fixed by the State. They represent an average of between 6 to 8% of the purchase price for an existing property, 3% for a new property (plus 19.6% VAT) and under 5% for a plot of land. 1.1. Taxes collected by the notaire The taxes collected by the notaire will vary depending on whether the property is an “existing property” or a “new property” but generally represent 80% of the fees paid to the notaire. In the purchase of an “existing property”, the notaire will collect various taxes, which are set out in the deed of sale, usually under the heading “Déclarations Fiscales, Impôt sur la Mutation”. Those taxes are: This tax is paid to the Département and is a percentage of the sale price. The rate is set by each Département but is usually 3.6%. With a “new property”, the purchase is subject to: In addition, the buyer will also pay the costs of the Land Registry searches carried out by the notaire and a Land Registry fee of 0.10% of the purchase price. The taxes are charged on the purchase price itself excluding any furniture and excluding estate agent’s commission. 1.2. The notaire’s expenses - “Les déboursés” The notaire will also pass on the costs of his disbursements. Déboursés - which usually represent 10% of the total amount collected – are his expenses to ensure the proper execution of the purchase. They typically include searches to ascertain whether charges and mortgages are secured on the property, requesting copies of old title deeds, planning documents, cadastral plans, etc… 1.3. The notaire’s remuneration The notaire’s remuneration - the so called “émoluments” - represents approximately 10% of the overall amount collected by the notaire. This is the notaire’s payment for the preparation of the Deed of Sale and the formalities and ancillary costs associated to the conveyance, all of which are subject to VAT. Notaires receive two types of “emoluments”: The “émoluments de formalités”: This covers all the formalities carried out either prior to or after the completion. The “émoluments proportionnels”: They depend on the type of transaction. Typically, emoluments due to the notaire on the purchase of an existing property of 200,000 Euros will be calculated on a sliding scale as follows:
Reduced emoluments apply to the purchase of new properties. If the buyer takes a mortgage out - which will be secured on the property in France - to finance the purchase, the notaire will also receive a fee for the formalities involved in registering the mortgage as a charge on the property. This is not the case if the buyer takes a mortgage out in the United Kingdom. Appointing a second notaire to assist in the conveyancing will not generate any additional costs since the fees will be split between the two notaires. Notaires may also charge “honoraires” for other activities (i.e. not property sales) they may carry out. These so-called “Article 4 Fees” include consultations and opinions, drafting of Commercial Leases, inheritance advice, marriage contracts. 2. The estate agent’s commission (“commission d’agence”) Estate agents’ fees are not fixed by Law. They are freely negotiated between the estate agent and the seller. Their calculation mode, however, must clearly be indicated in the “Mandat” signed by the client and every estate agent must display a notice visible to the public which clearly shows the cost of each of his services. As a general guideline, the estate agent’s commission is usually between 4 to 10% of the price but this will vary from estate agent to estate agent and also depend on the type and price of the property involved. The commission is subject to VAT at 19.6%. The commission may be paid by the seller - in which case it is included in the purchase price - or by the buyer in which case it will be added to the purchase price. Purchasers (and vendors) should therefore look for “FAI” (Frais d’agence inclus) when checking the price of a property. 3. Solicitors’ fees Fees charged by a UK-based lawyer when assisting clients who are purchasing a property in France vary from law firm to law firm. They are usually negotiated between the lawyer and the client and represent the lawyer’s own remuneration. A French-qualified lawyer based in the UK can offer a number of services when purchasing property in France including a preliminary meeting before you find a property. They will be able to explain the differences between the French and UK legal systems, translate documents, check contracts and see you through the whole property transfer. Being assisted by a UK based solicitor will ease the whole purchase process and ensure that the interests of UK-based purchasers are protected. There are a number of UK based legal firms who deal with purchasing property overseas. By Marie Antoinette Bassini, Kingsfords Solicitors LLP, www.kingsfords-solicitors.com See also: Why use a UK solicitor aswell as a French notaire? The role of the notaire in French property purchase  Using a French lawyer French and British Law - Vive la difference! Why use a UK solicitor as well as a French notaire? French Law Zone Home Page Looking for a property in France? Use FrenchEntrée's Property Finders to help you find your property and to help you through the buying process 
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