Notary fees: what do they really cover?

They always surface at the very moment the budget seems settled: « notary fees ». An additional line, often taken for some obscure formality, which can amount to several tens of thousands of euros on a purchase in Nice. Many buyers discover them late in the day, sometimes after signing an offer, and then have to revisit their financing plan.

The expression is misleading, however. These costs pay the notary only very marginally: for the most part they consist of taxes that he or she collects on behalf of the State and local authorities. Understanding how they break down allows you to plan your budget with confidence and to know, from the outset, which questions to ask. Cabinet Immobilier Nice sets out the essentials.

The term hallowed by common usage is in fact inaccurate. Professionals prefer to speak of « purchase costs »: the total sums the buyer pays to the notary on the day of signature, over and above the price of the property. The notary receives them, but retains only a small fraction. The vast majority is passed on to the Treasury, the department and the commune, or goes towards settling expenses incurred on your file.

In other words, these costs principally fund the taxation of the transaction and the legal security of your acquisition: verification of title deeds, publication of the sale in the land register, the enforceability of your ownership rights against all comers. It is the price of an incontestable authenticated deed, and it is precisely what protects your investment for decades to come.

Two orders of magnitude are worth remembering, as they shape most projects. They are the usual benchmarks, and should always be confirmed with the notary handling your file.

• On older property - the vast majority of homes sold in Nice - allow roughly 7-8% of the sale price.
• On new-build property, or a sale off-plan, the bill is markedly lighter: around 2-3% of the price.
• These costs are added to the advertised price: they are not included in the figure shown in the listing.
• Banks generally expect them to be met from your own funds, as they are not always covered by the mortgage.

In practical terms, for a period apartment in central Nice, you should therefore work on an overall budget that sits appreciably above the negotiated price. This is a point we raise systematically from the very first viewings, so that none of our buyers discovers this line at the last minute. A precise estimate can be requested from the notary as soon as the property and the price have been identified.

Purchase costs fall into three broad families, of very unequal weight.

Les droits de mutation

Transfer duties are by far the heaviest component: the predominant share of purchase costs. These are the taxes levied on the transfer of ownership, apportioned chiefly between the department and the commune, with a portion going to the State. The amount depends on the price of the property and on the department in which it is located; your notary will confirm the rate applicable in Nice on the day of signature.

Les émoluments du notaire

These scale fees are the notary's actual remuneration, and they account for only a small part of the whole. They are governed by a regulated tariff, identical throughout France: two notaries therefore cannot quote you different fees for the same deed. VAT is added on top. Formality fees may also apply for the steps carried out on your behalf.

Les débours

Disbursements are the sums advanced by the notary for your file and recharged to you to the last euro: planning documents, cadastral extracts, mortgage registry searches, publication fees, third-party interventions. The amount is modest against the total, but it varies from one file to another depending on the documents to be gathered.

Depending on circumstances, these three components may be joined by costs linked to your financing - notably the security taken by the bank over the property, which is the subject of a separate deed. Remember to build them into your financing plan.

The difference has nothing to do with the notary's work, which is identical in both cases, but with the tax regime applying to the sale. A new-build property falls under a specific tax regime and largely escapes conventional transfer duties, whereas an older property is fully subject to them. That single mechanism alone explains the shift from around 7-8% to around 2-3%.

Be careful, though, not to stop at that one criterion: the price per square metre on a new development is generally higher than on older stock, particularly in Nice, where new-build supply remains scarce. The saving made on costs does not always offset the difference in price: the calculation must be made with the overall budget in hand.

The value of the furnishings

Purchase costs are calculated on the price of the property itself. Where the sale includes furniture or separable equipment - a free-standing fitted kitchen, furnishings left in place - their value may, subject to conditions, be distinguished from the property price and fall outside that calculation base. This requires a detailed inventory, an honest valuation and the agreement of both parties. Any excessive assessment risks a tax reassessment: a lever to be handled rigorously, under the notary's supervision.

The negotiable share of the notary's fees

Because scale fees are regulated, they cannot be freely negotiated. The rules do, however, allow the notary, above a certain transaction value and within strictly defined limits, to grant a discount on his or her remuneration. The margin remains modest relative to the total costs, but the question is worth asking on the largest transactions. Your notary will tell you whether your file falls within that framework.

Unless otherwise agreed, purchase costs are borne by the buyer. The timetable, for its part, is straightforward and calls for no premature advance.

• On signature of the preliminary contract, no purchase costs are due: generally only a deposit is held in escrow.
• A provisional payment is called for a few days before the authenticated deed is signed, by transfer to the notary's account.
• The final statement is drawn up after publication of the sale, once all formalities have been completed.
• If the provision exceeded the actual cost, the balance is returned to you: the costs are accounted for to the last cent.

You may ask your notary for a costed simulation as soon as the preliminary contract is signed, or even before making your offer. This is the reflex we recommend to all our buyers: it avoids unpleasant surprises and allows you to calibrate your proposal in full knowledge of the facts.

• Build purchase costs into your budget from the very first day of your search, not once the property has been found.
• Check with your bank how much of these costs it is willing to finance and how much it expects you to contribute yourself.
• Ask the notary for a written estimate before committing to a price: it is free and without obligation.
• Do not overlook the costs tied to the mortgage security, which are separate from purchase costs.
• You are free to choose your own notary; if seller and buyer each appoint one, this does not increase the total cost, as the two professionals share the remuneration.

Are you preparing a purchase in Nice and looking to build a realistic budget, costs included? The team at Cabinet Immobilier Nice, 8 avenue Auber, will guide you from the search through to signature and put you in touch with the right people at every stage.

This article is provided for general information purposes only and constitutes neither legal nor tax advice. The applicable rules change and every situation is different: only the notary handling your file can give you a precise estimate and an opinion tailored to your project.