First-time buyers
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.
In new-build properties, only the tax levied on the sale decreases: a reduced-rate land registration tax replaces the departmental transfer duty applicable to second-hand properties, provided that the sale is subject to VAT. The notary’s remuneration, their disbursements and the real estate security contribution remain due as in the case of second-hand properties. The total is calculated on the total price and is paid in a single instalment on the day of the deed, well before the handover of the property.
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
- In new-build properties, it is the transfer tax that decreases, not the notary’s remuneration, their disbursements or the real estate security contribution.
- The reduced rate depends on the VAT regime stated in the deed, not on the word 'new' used in the property listing or on the actual age of the building.
- The resale of a recent property by a private individual is not automatically subject to VAT: without it, the second-hand transfer duties apply.
- The fees are calculated on the total sale price and are paid in a single instalment on the day of the deed, well before the handover of the property.
- A contribution towards the fees by the developer must be written into the reservation contract, otherwise it remains a simple oral promise.
In new-build properties, only the transfer tax falls: the notary’s share remains unchanged. The reduced rate depends on the VAT regime stated in the deed, and everything is paid on the day of the deed, well before the keys are handed over. This is an item often poorly budgeted by first-time buyers.
Why are the fees lower in new-build properties?
A new-build sale subject to VAT already includes it in the price. It therefore bears a reduced-rate land registration tax, instead of the departmental transfer duty applicable to second-hand properties.
L'assiette est le prix stipulé dans l'acte. Ce taux n'est pas modulable par les départements : il est le même à Lyon, à Villeurbanne et partout ailleurs.
- En vigueur depuis le
- Source
- Article 1594 F quinquies du code général des impôts — Légifrance
To be compared with second-hand properties in the Lyon metropolitan area:
Le détail de ce taux, et le cas de l'acquéreur qui achète pour la première fois, sont traités dans l'article sur les droits de mutation dans le Rhône.
- En vigueur depuis le
- Source
- impots.gouv.fr
Second-hand properties: transfer duties in the Rhône department.
What does not fall: fees, contribution, disbursements
- En vigueur depuis le
- Source
- Article 278 du code général des impôts — Légifrance
- En vigueur depuis le
- Source
- Légifrance
somme avancée pour le compte du client par le professionnel pour la réalisation d’une prestation, remboursée au COÛT RÉEL
Dans le neuf comme dans l'ancien, 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
Beware of a single percentage “for new builds”. The full list: ancillary costs.
“New” does not always mean reduced fees
| Situation | What to read | Consequence on the duties |
|---|---|---|
| Off-plan purchase or completed property, from a developer, VAT calculated on the total price | The tax clause of the reservation agreement, then of the deed | Reduced rate |
| Sale subject to VAT calculated on the seller’s margin only | The same clause: the text expressly reserves this case | Return to the standard regime, that of second-hand properties |
| Resale of a recent property by a private individual | The tax clause of the deed: is this sale subject to VAT? | If it is not, the reduced rate does not apply: these are the duties for second-hand properties |
Request the answer in writing from the notary or the seller before the reservation or the preliminary sale agreement.
Off-plan: you pay on the day of the deed
On the total price, in a single payment, a few days before the signing.
Your own contribution must be available early; the excess of the deposit is then refunded. Intercalary interest is added: see off-plan sales and their funding calls.
Fees “offered” by the developer
Have the scope (sale only, or loan and guarantee) written down and compare the price to a unit without an offer.
The loan fees are added
The guarantee has its cost; a mortgage adds a notarial deed: see the guarantees compared.
Ce taux mesure le coût du crédit, pas le coût de l'achat. Deux offres se comparent donc à frais de notaire constants, et ces frais se budgètent à part.
- En vigueur depuis le
- Source
- Article R. 314-5 du code de la consommation — Légifrance
Quantify this item before the reservation
I am a mortgage intermediary working under mandate; the deed and the tax are the notary’s responsibility. Have the tax regime written down, request an estimate of the deeds and place the expense on the date of the deed.
Documents to gather and fees online. Have this item fitted into your plan by telephone, with the developer’s price grid in hand.
Create your file before signing the reservation.
Sources
Read next
- How much can I borrow? Mortgage capacity in Lyon
- Off-plan purchase and construction: funding calls, interim interest and amortisation deferral What you pay between the signing and the delivery of a new home: the schedule of funding calls, interim interest, deferral, insurance.
- 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.
- 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.
- Building with a CCMI: financing the land and the house in the correct order One loan for land and house: the order of signatures, the documents the bank requires before its offer, and funds released as the build progresses.
All articles on this topic: First-time buyers