Purchase fees

[captain25]

Hi ya everyone, just thought i would ask this one, the lake house i am trying to purchase is coming unstuck at the moment, but noticed in the deed of sale, that the property price is 70.000 euro;s but i am paying 95,000 euros, i understand the notaire fee and the estate agents fee, but don't understand where roughly 25.000 euros gets charged anybody out there got some idea thanks

[Steve]

hi

I paid around 2,500 fees all in for a 36,000 euro property you should phone your agent to breakdown the costs .

[Will]

Fees can be higher in percentage terms for a comparatively low-priced house - which anything under 100,000€ is in France today. Nevertheless the fees you are paying sound too high. There are online calculators for notaire fees, which are fixed by the government and include taxes, but are generally 7-10%. Agency fees are highly variable, but are generally around 7%, subject to a minimum of around 3000€.

Are you, by any chance, buying through one of those British-based companies which adds on extra fees for so-called 'services' (which a decent French agent will include in the fees anyway)?

[captain25]

This the breakdown of the costs

euro's   7.000 deposit 63.000 vendor 4.700 agency.

5300notaire.

15.000 cash vendor

Total 95.000

See what you think, the 15.000 cash is the usual fiddle inheritance tax i suspect

[fulcrum]

[quote user="captain25"]This the breakdown of the costs

euro's   7.000 deposit 63.000 vendor 4.700 agency.

5300notaire.

15.000 cash vendor

Total 95.000

See what you think, the 15.000 cash is the usual fiddle inheritance tax i suspect

[/quote]

Captain

That sort of thing could get you cashiered

[Ron Avery]

The purchase price is actually 78,0000€.  If it isn't why have you paid this total to the vendor?  The 15,000€ cash is almost certainly under the table money and should have been queried by the Notaire and the contract signing stopped there and then.  Did the Notaire ask if there was any under the table money?  He should have or did he ask and it was denied?.  This practice of under the table money is illegal but also very common, it is normally for tax evasion.  Your fees are not actually as  high as you are claim, in reality  you have knocked 15,000€ off the official purchase price for the vendor, probably to avoid them paying tax or sharing it with the relatives, how good or naive of you.[:'(]

[Steve]

But you will have to pay tax on that 15,000 when you come to sell it unless you do the same thing.

[captain25]

I am sure you are right, i have been told by everybody this is standard practice. The only thing i don;t understand is why the estate agent wants to hold a 15000 euro cheque until the final sale, although there is no dosh in that account, he says it is just for good faith. I am sure its okay, just not norml here in the UK. I am sure everything is going to be fine, just as soon as the right of way problem has been sorted out. Bit peeved thats all that the estate agent didn't pick this up in the first place although we pointed it out to him, the bloody great big tractors tracks across our garden

[Chezstevens]

It is no longer standard practice.  If the tax authorities believe you have bought the house too cheaply then they may force the sale of the house at the original price - and you lose £10k.  Likewise when you sell the house the £10k will not be included in the Cap Gains calculations.  The old days of allowing £10k for a few sticks of furniture have gone - the only benefactor is the seller.  By the way are you sure the French Taxman does not monitor this and other sites?