Fees

General fees & costs

In France if an investor purchases a property via an estate agent, the commission fees for the estate agents of 5 - 10% are normally built in to the selling price. These fees are stipulated in the Compromis and Acte de Vente. (Preliminary and Final deeds).

Notary fees which are paid on top of the purchase price

Purchasing a home in France must be done through a notary. Notaires are independent government officials. Their primary duty is to authenticate all deeds and documents and ensure that a transaction is carried out correctly. The notaire works for both parties during the sale and is obliged by law to protect the interests of the buyer. Legal fees are paid to the notaire, the costs of which will vary between 6 - 8% of the purchase price in the case of a second hand property, and 3 - 4% for a new property. The legal fees include notary fees (frais de notaire), specific taxes, stamp duties, and fees for the land registry.

Summary of costs when purchasing a property in France

• Notary fees of 3 – 4% on new property, or 7 – 8% on existing properties over (100,000 €)
• Costs for the bank loan application (on average this is 1% of the amount borrowed)

The 'total acquisition cost' for a new property is therefore = Purchase price + 5%; these costs include notary fees and relative banking costs.

The 'total acquisition cost' for an existing property is therefore = Purchase price + 9%; these costs include notary fees and relative banking costs.

Funds needed for the signing of the 'Compromis de Vente': A deposit of at least 10% of the value of the property being purchased is required.

Funds needed for the signing of the Final Deeds: The remaining balance i.e. 90% of the value of the property being purchased.