TAX BENEFIT

NEGOTIATING FEES OF YOUR LAWYER DO NOT ENTER INTO THE MUTATION TAX AND DOESN’T CREATE ADDITIONAL COAST FOR YOU IF YOU BUY A PROPERTY

When an individual buys a property, the posted selling price includes:

– The net price of the property (which will affect the seller)
– The fees of the real estate agent with the mandate of sale

However, the french law  requires to indicate in the mandate the negotiation fees of the real estate agent (also called agency fees or commission).

The consequence is that as soon as a real estate agent sells a product, his fees his “seller load”: that mean that the notary tax enters into the tax base.

Example 1 :

A property is presented for sale for a value of 500,000 € including 5% agency fees or  (25,000 €).

The buyer will pay a notary tax on a sum of 500.000 €. That means the buyer will pay 35.000 €.

However, if you mandate your lawyer to buy the same property, the amount of his fees will not be included in the notary tax.

Example 2 :

A property is presented for sale for a value of 500,000 € including 5% agency fees.

Because you have your own attorney, his fees will be included into agency fees (2.5% splited between the seller and you).

The buyer will pay notary fees only on a sum of 487.500 €. That means the buyer will pay 34.135 €  even if the price of the property remains the same (500.000 €).
 
Your lawyer makes you save a benefit of 0.17% on the purchase price.