Notaire fees rising by 0.7%
Despite the weak state of the housing market, buying property is now more expensive in many areas of France
DESPITE the weak state of the housing market, buying property is now more expensive in many areas of France after department councils voted to increase their droits de mutation, a major part of the frais de notaire. It will mean about €700 in extra costs for the buyer for every €100,000 paid.
The extra money was agreed in the 2014 finance law to compensate councils (conseil généraux) for cuts in government funding. It sees droits de mutation rise 0.7%, from 3.8% to 4.5% of the sale price.
This, along with the 0.4% rise in VAT on the notaire’s émolument [their portion of the fee] in January, will mean fees for house purchases now average around 8-9% on top of the price paid.
Many banks do not allow the frais de notaire to be included in a property purchase loan so it is more important to have a larger deposit saved.
The measure lasts until February 29, 2016. Only a handful of councils – Isère, Mayenne, Morbihan, Paris, Yvelines and Vienne – have decided not to apply it.
Most councils brought the new fee into force on March 1 but some, such as Calvados, Charente, Manche, Savoie, Vendée and Haut- Vienne, have delayed it until April 1.
About a dozen departments including Bouches-du-Rhône, Loire-Atlantique and Seine-Maritime delayed a decision on any possible rise until after last month’s local council elections.