As a buyer of a property, you are not only responsible for the purchase price displayed. Indeed, you must add various fees that increase the overall amount of your purchase. To define your budget while avoiding any surprises, it is important to know all the fees that you will have to pay at the time of the sale.
Notary Fees
In addition to the purchase price, there are acquisition fees, more commonly referred to as "notary fees". These are made up of transfer duties, taxes, and are calculated based on the value of the property and its location.
If you are acquiring an old property, these fees amount to between 7% and 8% of the purchase price of the property. If you are opting for a new property, they amount to between 2% and 3% of the amount.
For example, for a property listed at 300,000 euros, the new owner will be liable for up to 24,000 euros if it is an old property and 9,000 euros for a new one. A budget that must be anticipated in your financial plan.
Real Estate Agency Fees
These are the fees paid to the professional in exchange for his work with both parties, so it can be considered that both buyer and seller may be liable for them.
Make sure that the price of the property you are considering buying is in line with the local real estate market.
Even if you have a crush on it, you risk exposing yourself to a devaluation when reselling the property. That's why going through a real estate agency will guarantee you a purchase at the right price, especially if the estimate has been made by an individual.
Mortgage & Borrower's Insurance
The vast majority of buyers finance their new home with a loan, which involves various additional costs to the amount to be repaid: insurance, application fees, cost of guarantees, etc. The total cost of a mortgage varies according to three factors: the amount of personal contribution, the duration of the loan, and its interest rate.
In principle, the insurance related to your mortgage is not mandatory. However, it is often required by institutions in order to grant you a loan. It covers the remaining credit in case of contingencies such as job loss, disability, etc. In addition to the chosen guarantees, its amount can vary depending on the age, health status, and family situation of the buyer.
Housing Tax and Property Tax
It is the owner of the property on January 1 who must pay the housing tax and property tax. It is therefore the seller who is liable for the current year. However, the two parties can come to an arrangement and pay the tax pro rata for the time spent in the housing.
The Case of Condominium Charges
The law is very clear on this subject: condominium charges are due by the person who is the owner on the due date, that is, at the beginning of each quarter. Most of the time, it is agreed between the two parties on a distribution of the charges if the transaction takes place during a quarter.
Regarding the works voted by the condominium, the rule is the same as for condominium charges. The seller is therefore liable until the signing of the final deed. However, the latter can give his voting right to the future owner who will then be liable for them
Updated date : 01/12/23Creation date : 12/07/19
