First-time buyers · Checklist
Ancillary costs of a property purchase: the complete list of what is paid in addition to the price
Deed costs, credit costs, property costs, installation costs: the four categories of costs added to the price, who calculates them, and who pays them.
In addition to the price, a property purchase incurs four categories of costs: the deed (transfer duties, notary’s remuneration, disbursements), the credit (file, guarantee, insurance, intermediary’s fees), the property (agency, co-ownership, current year’s council tax) and the installation (moving, works, months paid in double). Deed and guarantee costs are generally paid from the down payment, not by the loan.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- A property purchase incurs four categories of costs: those of the deed, those of the credit, those of the property, and those of the installation.
- Deed costs include transfer duties, the notary’s remuneration and disbursements, advanced on behalf of the buyer and justified line by line.
- The bank generally finances the price and the works, but expects the deed and guarantee costs to be paid from the down payment.
- The sum requested by the notary before signing is a provision calculated broadly: any excess is refunded after the deed by a final settlement.
- The most overlooked installation costs are the month’s rent paid in double, the moving costs and the first regularisation of co-ownership charges.
In addition to the price, a purchase incurs four categories of costs: the deed, the loan, the property, and the installation. Your savings, minus these costs, determine the target price. The item-by-item checklist for first-time buyers.
What costs are added to the price of a property purchase?
The deed, the loan, the property, and the installation. Each item must be quantified in writing before signing.
| Item | To whom | When | Who provides the figure |
|---|---|---|---|
| Transfer duties and taxes on the deed | To the Treasury, via the notary | On the day of the deed | The notary |
| Notary’s fees and disbursements | To the notary | On the day of the deed | The notary |
| Bank’s administrative fees | To the bank | At the release of funds | The bank, in its proposal |
| Loan guarantee | To the guarantee body, or via the notary | At the release of funds, or at the deed | The bank, then the notary |
| Borrower’s insurance | To the insurer | Monthly, from the release of funds | The insurer, in its proposal |
| Mortgage intermediary’s fees | To the intermediary | After the release of funds | The signed mandate |
| Estate agency fees | To the agency | On the day of the deed | The property listing and the preliminary sale agreement |
| Co-ownership charges and works | To the building manager | After the deed, by calls | The seller, via the co-ownership documents |
| Council tax for the current year | To the seller, pro rata | On the day of the deed | The preliminary sale agreement |
| Moving, works, and equipment | To the contractors | Around the move-in | Your quotes |
Deed fees: where the money for 'notary fees' goes
- Transfer duties and taxes: the heaviest share in the case of existing property, lower in the case of new-build property. See transfer duties in the Rhône.
- The notary's remuneration: regulated fee, with little room for negotiation.
- Disbursements, advanced on your behalf.
somme avancée pour le compte du client par le professionnel pour la réalisation d’une prestation, remboursée au COÛT RÉEL
Conséquence pratique : les débours ne sont pas une marge. Ils se justifient ligne par ligne sur le décompte définitif que l'étude vous adresse après l'acte.
- En vigueur depuis le
- Source
- Article R. 444-2 du code de commerce — Légifrance
The sum paid before the deed is a provision: any excess is refunded.
Credit fees: four lines to be quantified
- File fees: these can be discussed before the loan offer.
- Security: the guarantee is paid at the release of funds, a portion may be returned at the end of the loan; the mortgage goes through the notary, with its tax.
Elle ne concerne que les prêts garantis par une inscription. Une caution d'organisme n'y donne pas lieu : c'est l'une des raisons pour lesquelles le coût des deux garanties ne se compare pas sur le seul tarif affiché.
- En vigueur depuis le
- Source
- Légifrance
- Borrower's insurance: often the second cost after interest, and subject to free choice of insurer. See guarantee or mortgage.
- Intermediary's fees: fixed by mandate before any step is taken, due after the disbursement of funds.
Aucune provision, aucuns frais de recherche ni de dossier ne peuvent vous être demandés par un intermédiaire tant que le prêt n'est pas versé. La règle vaut pour tous.
- En vigueur depuis le
- Source
- Article L. 519-6 du code monétaire et financier — Légifrance
For comparison, everything is included in the APR. Mine: the fees page.
Does the loan cover the deed costs?
As a general rule, no: the lender finances the purchase price and the planned works, and expects the deed and guarantee costs to be covered by your own funds. Financing the costs remains an exception, depending on your profile.
Le coût de votre crédit et le coût de votre achat sont deux additions distinctes. Les frais de garantie, eux, sont dans la première ; les droits de mutation et la rémunération du notaire, dans la seconde.
- En vigueur depuis le
- Source
- Article R. 314-5 du code de la consommation — Légifrance
Property costs: agency, co-ownership, council tax
- The agency: at your expense, not always financed.
- Co-ownership: the calls for funds after the sale are for you, unless otherwise stipulated in the contract (works voted on).
- Council tax: your share of the year, pro rata (by municipality).
Setup and final calculation
Also budget for the month paid twice, the moving costs, home insurance from the deed onwards, subscriptions, and the first regularisation of charges. Do not take out a consumer loan before the funds are released.
Before the preliminary sale agreement, have the notary, the lender (fees, guarantee, insurance) and the quotes calculate the costs in writing. Deduct the total from your savings, less a precautionary amount: this is your net contribution.
As a mortgage intermediary working under mandate, I check that your plan is missing no line item and have the guarantee and insurance calculated in several forms. The documents: the page of documents to gather. Have each line item calculated by telephone, with the property listing in hand.
Create your file: a funding plan with no line item overlooked.
Sources
Read next
- How much can I borrow? Mortgage capacity in Lyon
- Transfer duties in the Rhône: the exact calculation, and the first-time buyer rule nobody displays Notary fees in the Rhône: transfer duties at the right rate, in the Metropolis or the department, and the rule exempting first-time buyers from the increase.
- Notary fees for new-build properties: what you are actually paying, and when? In new builds, the tax falls, not the notary’s share. What remains due, the cases where the reduced rate does not apply, and when everything is paid.
- Works voted on in a co-ownership before your purchase: who pays, and on what date Works voted on before the sale of an apartment: what the 1967 decree places on the seller or the buyer, and what the preliminary sale agreement can change.
- APR: How to read it and compare two loan offers without making a mistake The APR brings together interest, file fees, guarantee, required insurance and intermediary fees. What it contains, what it ignores, how to compare.
All articles on this topic: First-time buyers