Notaires defend their monopoly

The Notaires’ profession is one of the possible targets for reform cited by the think-tank Commission pour la Libération de la Croissance Française (CLCF), which is advising the government on economic growth. French notaires are both freelance professionals and state officials.

Critics claim they are over-regulated and have too many privileges - for example, they must be involved in all property sales. Bernard Reynis, the President of the Conseil Supérieur du Notariat, argues that current rules provide a quality guarantee.

Mr Reynis, cites fees for property sales and restrictions on the number of notaires’ offices as the most common examples of alleged over-regulation. However, he said most of what people saw as expensive “notaire fees” when buying a house, was sent to the government. This money is known as droits d’enregistrement and is comparable to UK stamp duty. He added that fixed notaires’ tariffs give consistency. “Wherever you go, you will pay a notaire the same amount for the same type of work.”

Also, he said the fact that the fees were on a fixed scale of tariffs (which, for property work, include a set maximum percentage of the house price) meant fees for work on low-cost properties were lower than they would be at a market rate. “There is a public service element,” he said. A recent poll by survey body CSA showed 70% of French people were in favour of the existing tariffs, he added.

In comparison, (unregulated) estate agency fees were often seen as too high in France.

Mr Reynis said the fact the government ruled on where notaires could set up offices, aiming for at least one in every canton (local authority electoral ward), benefited the community. “Without this, notaires would congregate in city centres. You would no longer find a local notaire in rural areas.”

The importance of the notaires’ work, in creating legally-binding contracts, also meant close regulation was desirable. “It is vital for both businesses and individuals that their property is transferred securely.” Mr Reynis also defended the fact only French citizens can do the job. “A notaire acts as a representative of the French state,” he said. “The contracts we draw up have the same force as a legal judgement,” adding that the official nature of the job meant notaires ensured all relevant laws and regulations were followed scrupulously.

He sees no interest in combining the legal professions of notaire and avoué, a possibility raised by British academic and commission member Theodore Zeldin in a recent Connexion interview. “They perform two different areas of work,” he said. Avoués did appeal court work, he said, while notaires drew up contracts.

As to the possibility of British solicitors replacing notaires in some property transactions, Mr Reynis said in France documents for the sale of a home had to be officially “incontestable” and, therefore, must be drawn up by a notaire, who is a public official acting under the seal of the French state. This is because of the high value of property and the need to give strong guarantees to both buyers, sellers and lenders.

“The notaire’s role, in insuring the legality of the sale, cannot be undertaken by a solicitor, who does not fulfil the conditions to ensure that property is transferred in the authentic way required by French law,” he said.