Transaction costs range from high to very high
August 09, 2006
How high are realtors’ and lawyers’ fees in Re Union Is.? What about other property purchase costs?
|Stamp duty||6% - 7%||buyer|
|Notary fees||2% - 5%||buyer|
|Registration fees||0.6% - 7.5%||buyer|
|Mortgage Land-charge Registration Fee||0.55%||buyer|
|Realtor’s Fee||1.5% - 4%
1.5% - 4%
|Costs paid by buyer||10.65% – 24.05%|
|Costs paid by seller||1.5% – 4%|
|ROUNDTRIP TRANSACTION COSTS||12.15% – 28.05%|
| See Footnotes
Source: Global Property Guide
How difficult is the property purchase process in Re Union Is.?
As in France, there are no restrictions on foreign ownership of properties.
Once the parties have agreed on the price and what the sale relates to, the parties will be required to sign a preliminary agreement.
- The preliminary agreement usually takes the form of (in the North) an option (promesse unilatérale de vente), with a 5% to 10% penalty if the option is not exercised, usually secured by a deposit held by the notaire.
- There is a 7-day cooling-off period, in which the buyer can change his mind.
- If a mortgage is being sought, the compromise de vente must contain a clause confirming that mortgage financing is being sought, then, if the mortgage is declined, the purchaser will not lose his deposit.
- Once preliminary contracts have been exchanged, there are pre-completion searches: land registry searches, local authority searches, planning permission searches, etc. If the dwelling has been sold by a “property professional” or is less than ten years old, the seller has a statutory liability to all future owners within the ten year period for defects.
- On completion, the purchaser and vendor sign the Acte authentique de vente at the Notaire’s office. The notaire will see that the account is settled, will accept his fee, and land registry fees, if they are not included in the notaire’s fees.