Thursday, January 30, 2014

Increase in 'notaire costs' in P-O (dept 66)

The Conseil Genéral of Pyrénées-Orientales (department 66) have announced an increase in the cost of registering a property that is sold - the so-called Notaire fees which are charged as a percentage of the value of the property being conveyed and are paid by they buyer.

The percentage will rise from 3.8 to 4.5 per cent of the property's sale price, adding a further €700 euros on a €100 000 property, €1 400 on a €200 000 property and so on. The changes operate from 01 March and are described as 'temporary' and are planned to last for two years. The reason given for the rise in these charges is the high cost of social benefits paid out in this region, which is one of the poorest in France with unemployment at an above-average level - currently 17 per cent.

Buyers can take certain steps to reduce (slightly) the sale price on which the percentage charge is calculated, for example by separating out any furniture and fixtures included in the sale, as well as the fees payable to the estate agent handling the transaction. These would have to be agreed with the Notaire handling the transaction. Note also that furnishing sold have to be itemises with a value attached to each individual item and not claimed using a ballpark figure covering 'furniture and furnishings' which was normally allowable some ten years ago.