Buying real estate: will you take advantage of the exemption from notary fees promised by Gabriel Attal?

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If he is re-appointed as Prime Minister, Gabriel Attal will exempt first-time buyers from “notary fees”. With big savings to start.

Capital Video: Buying a property: will you benefit from the exemption from notary fees promised by Gabriel Attal?

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How to breathe new life into household finances? Since the announcement of early parliamentary elections on June 30 and July 7, purchasing power has been the subject of several proposals. After the National Assembly and the New People’s Front, it is the executive’s turn to work out its measures. In an interview with Le Parisien, Prime Minister Gabriel Attal promised to exempt first-time buyers from notary fees if the transaction does not exceed 250,000 euros. It is clear that this measure, which aims to promote “middle class” who wants to become a home owner for the first time.

But what exactly is Gabriel Attal talking about? The very definition of “notary fees” – which amount to approximately 8.3% of the purchase price – is confusing. These fees paid by buyers are largely – at 5.8% – made up of VAT and Payment Transfer Tax (DMTO), which are financed by the departments and, to a lesser extent, municipalities. Finally, notaries are remunerated through their emoluments only up to 10% of this total, or 0.825% of the purchase price. These professionals primarily play the role of tax collectors for communities. “Therefore, the government’s idea is not to let notaries work for free, because there is no financial room for maneuver”explains Thierry Delesalle, spokesman for Notaries of Greater Paris.

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An asset for households with small savings

“For a purchase for 200,000 euros, the notary fees amount to 11,600 euros”, details Cécile Roquelaure, director of studies for brokers Empruntis. The real remuneration of a notary is around 1600 euros. This example shows that the cost of acquiring a household could be reduced by almost 12,000 euros. In addition to this profit, the expert believes that the measures will make life easier for even the most modest buyers. : “Banks will be less demanding on required savings, demand would thus strengthen”. Because without transfer tax, credit institutions bear less risk of non-payment in the event of a quick resale of the property.

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However, the scope of this measure will remain limited with respect to the annual market situation. “First-time buyers typically account for a third of acquisitions. Currently we are barely reaching 15%Thierry Delesalle shade. Knowing that we are heading for 800,000 transactions in the first instance in 2024, the measure could affect a maximum of 120,000 households. Contacted by user CapitalRenaissance did not specify the number of potential beneficiaries.

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Sellers could benefit

In addition to these pitfalls, some also fear that repealing this tax will have unintended effects. Our columnist Henry Buzy-Cazaux, founding president of the Institute of Real Estate Services Management, describes the initiative as “occasional gadget” which could lead to an increase “due competition” selling prices of goods. Understand that this tax benefit is therefore skewed in favor of sellers trying to cash in more money in a down real estate market.

The project could even be nipped in the bud as it is considered unconstitutional as it violates equality in tax matters. “Why should first-time buyers and investors be excluded from the abolition of transfer fees for consideration?”asks the expert.

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