When buying real estate, they always arrive like a thunderbolt. Notary fees, often estimated between 7% and 8% of the price of an older property, are among the expense items most poorly understood by buyers. Many still mistakenly believe they go directly into the notary's pocket. In reality, the majority of these fees have nothing to do with their compensation.
So what do notary fees really correspond to and how are they broken down?
Notary fees: how are they really broken down?
A misleading term
First important thing to understand: the expression "notary fees" is a misnomer. These are actually acquisition fees, composed of several distinct elements, much of which is paid to the State and local authorities.
The notary acts here as a collector. They collect funds on behalf of third parties, then redistribute them according to a strictly regulated framework.
The biggest share: transfer duties
This is the largest and also the least known share. Transfer duties with consideration, often called "registration duties," represent approximately 80% of notary fees on older properties.
They consist mainly of:
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a departmental tax,
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a municipal tax,
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a share paid to the State.
These taxes vary slightly depending on the department, but in most cases, they amount to around 5.8% of the property price. It is therefore the public administration, not the notary, that is the main beneficiary.
Notary fees: regulated compensation
The notary's compensation, called fees, generally represents approximately 10% of total fees, often around 1% of the property price.
These fees are strictly regulated by decree and calculated according to a declining scale. The higher the property price, the lower the rate applied. The notary therefore sets neither their honoraries freely nor their amount.
It should also be remembered that these fees cover:
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legal work,
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transaction security,
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the notary's professional liability,
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the collection AND disbursement of sums necessary for the purchase,
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and all verifications essential to the sale.
Disbursements and ancillary costs
Another part of the fees corresponds to disbursements. These are sums advanced by the notary on behalf of the buyer to pay various parties or administrative formalities.
Among them:
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cadastral fees,
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urban planning documents,
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copies of deeds,
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expedited procedures to obtain certain responses to preemption requests (optional),
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publication fees to the land registry office.
These amounts are generally reasonable but essential to guarantee a legally secure transaction.
New vs. old: what is the difference in notary fees?
In new real estate, notary fees are significantly lower, often between 2% and 3%. The reason is simple: transfer duties are heavily reduced because VAT is already included in the sale price.
This is an element to consider in a comprehensive approach, particularly when comparing the actual cost of buying new versus old property.
Can you reduce notary fees?
Yes, to a certain extent. For example, it is possible to:
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separate the price of furnishings (fitted kitchen, appliances, wardrobes) from the property price, provided this is justified,
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verify that fees are calculated only on the net seller price excluding agency fees when these are the buyer's responsibility.
On the other hand, it is impossible to negotiate regulated taxes or fees. Finally, drawing up a private agreement rather than a promise to sell will save a few euros. However, since the deed is not registered and published, it is not officially binding.
Does using 2 notaries cost more?
In a word: no, the price is the same; notaries will divide the fees according to the conventions of their professional body.
Is it necessary to use 2 notaries?
Again, the answer is no. The notary is not a lawyer and does not defend the interests of either party. They represent the deed. However, it is natural to want advice and therefore to have your own notary to guide you through a transaction. Obviously, if you have a prior relationship with your notary before your purchase, it will be easier for them to understand and advise you best. On our side, we have notaries in Montpellier and the surrounding areas we can recommend where we know the quality of their work and the rigor of their follow-up!
In summary
Notary fees are neither arbitrary nor excessive by nature. They are above all poorly named and misunderstood. The vast majority corresponds to mandatory taxes, and the share actually received by the notary remains minor given their central role in securing your real estate purchase.
