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We are about to complete on our house purchase and have the choice of paying the immobilier fees in sterling to their UK bank acct, instead of sending it within the whole amount to the Notaire.

Any opinions about this would be appreciated given the drop in the exchange rate etc.

 

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This sounds a bit irregular to me. Normal practice in France is that the notaire receives all money, and distributes it accordingly, i.e. to the seller, to the agent, to the government (taxes etc) and to the notaire himself (for his fees). Any other transaction is, at best, unofficial. If you do go down this route make sure that all official documents show that the agency fee was paid by you direct to the agent, in sterling. Otherwise you could be in trouble later on, e.g. should you wish to sell the house.

We are aware of a current case in which a buyer paid a substantial sum to an agent, bypassing the notaire, and now the agent is claiming it was never paid, as it did not appear on the sales documentation.

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This "smells" a bit to me too. Nothing may happen regarding a transaction like this now but a few years down the line, the fisc could come a calling and you may end up paying out more money. Personally I would want everything up front with the notaire including all monies paid in euro so that it is above board. You have to understand that in France EVERYTHING  is accessible to the fisc if they wish to delve into your account/affairs and you cannot hide anything where large sums of money are concerned.
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Thanks for the opinions.

We were a bit suspicious about it, having never heard of it. You have echoed what we were thinking.

 

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[quote]Sounds like a "switched on" notaire to me. Check out the difference between their exchange rate and the best one you can get elsewhere. It's possible that the're not as switched on as they think they ...[/quote]

This is not the 'Notaire' I am talking about, it is the immobilier who has said we can pay their bill in sterling.

I do not know if the Notaire is even aware of this. Anyway we are not doing it. The whole amount is going to the Notaire and then we know where we are.

 

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Without wishing to restart the old debate as to who pays the estate agent, seller or buyer?, this strikes me as a bit strange.

Normally the fee is added to the asking price which reduces the element which the seller receives from the global sum paid by the purchaser. This is all specified in the contract between the vendor and the agent, but it is based on the total price inclusive of fees.

I wonder if you are in fact paying two lots of fees, one to a english based  property=finder, and another set of fees to a French agent  agent.

Either way if the property is only to be a holiday home you have a particular interest in paying the fees via the Notaire as that way they will indisputably count towards the purchase cost in any subsequent Capital Gains Tax calculations.

Incidentally I hope the agent was offering a discount if you were prepared to help his off=shoring of his profits!

 

 

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  • 2 years later...

KatieLou, if you are tying to post a message here you need to use the "reply" button in the top right hand corner of the post, and not the report link in the bottom left hand one.

This message will self destruct very shortly [:$]

 

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