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The costs of the real estate transaction in France
Real estate agency fees
During a real estate transaction in France, agency fees represent the real estate agent's remuneration for his services — from the valuation of the property to the signing at the notary. These fees, which are governed by the Hoguet law, must be presented with transparency and clarity.
Who has to pay the agency fees?
The fees may be paid by the seller, the buyer or be shared, according to the terms and conditions provided for in the sales mandate.
- Agency fees to be paid by the seller: The most common case. Fees are included in the displayed price, making the transaction more transparent for the buyer.
- Fees to be paid by the buyer: The fee is added to the net seller price. This reduces transfer taxes, calculated on the price excluding fees, but requires total transparency on the amounts.
- Shared Fees: This option, which is rarer, requires a clear and written breakdown from the beginning of the transaction.
The real estate advertisement must always specify who bears the fees, in accordance with French regulations.
How are the fees justified?
Agency fees cover a set of essential services:
- Accurate valuation of the property: Analysis of the local market to set a fair price.
- Advertisement: Publication on various channels (portals, networks, showcase).
- Organisation of visits: Selection of candidates, coordination and support.
- Negotiation: Mediation between seller and buyer to reach a fair agreement.
- Administrative and legal follow-up: Verification of diagnostics, titles, conditions precedent, etc.
These services mobilise commercial, legal and technical expertise justifying the fees charged.
Transparency and mandatory signage
The law requires total transparency on agency fees. This implies that:
- The fees are mentioned in the sales mandate.
- The ads specify who is responsible for it (seller or buyer).
- The amounts are clearly displayed (in euros or percentage) in branches and on the website.
These rules are intended to ensure clarity and avoid unpleasant surprises when closing the sale.
Practical advice
Before any transaction, it is recommended to:
- Check the sales mandate: Make sure that the breakdown of fees is clearly indicated.
- Ask for details of the services: Services may vary by agency.
- Compare multiple agencies: The fees differ depending on the location and the type of property.
Agency fees pay for real expertise and guarantee the legal and commercial security of the transaction.
Notary fees and registration fees
When transacting in France, "notary fees" include several elements: transfer taxes, fees, disbursements and various taxes. They represent a major expense item for the buyer.
Composition of notary fees
- Transfer taxes: Taxes collected by the State and local authorities, representing about 5 to 6% of the price in old buildings.
- Old property: high duties.
- New goods: reduced duties as VAT is already included.
- Notary's fees: Remuneration regulated according to a progressive scale:
- Up to €6,500: 3.870%
- €6,501 to €17,000: 1.596%
- €17,001 to €60,000: 1.064%
- Over €60,000: 0.799%
- Outlay: Fees advanced for administrative procedures (€800 to €1,200).
- Additional taxes: Including the property security contribution (0.10% of the sale price).
Notary fees in old and new buildings
Old properties: About 7 to 8% of the purchase price, due to the higher transfer taxes. Example: for a property costing €300,000, the costs reach €21,000 to €24,000.
New properties: About 2 to 3% of the purchase price, because the duties are reduced. Example: for a property costing €300,000, the costs are between €6,000 and €9,000.
Who pays the notary fees?
The costs are in principle to be borne by the buyer, unless otherwise agreed. The seller can exceptionally pay for them, but this is rare.
Reduced notary fees
Some cases allow you to benefit from reduced fees:
- Purchase of a new property or VEFA (sale in the future state of completion).
- Supervised purchase as part of a social home ownership scheme.
Practical example of calculation
Case 1: Old property at €250,000
- Transfer tax: €13,750
- Notary's fees: €2,500
- Disbursements and taxes: €1,200
- Total: approx. €18,000 (7.2% of the price)
Case 2: New property at €250,000
- Transfer tax: €2,500
- Notary's fees: €2,500
- Disbursements and taxes: €1,200
- Total: approx. €6,200 (2.5% of the price)
Useful tools
Understanding the composition and the levers for reducing notary fees allows you to anticipate this essential expense and secure your real estate project.