Understanding the Full Range of Fees Associated with Purchasing Real Estate

Are you about to consider a real estate purchase? You have an idea of the price of the house you would like to acquire, but do you have a precise idea of the fees surrounding a real estate purchase? Few people master this subject and prefer to somewhat ignore this aspect. However, these fees can really affect your budget. You need to take them into account and face your financial situation. Simulate your loan online Follow the guide, in this article we unveil the fees you might not want to see. Also, don’t forget that you can find on our website real estate fee simulators that will give you precise figures based on the region you are in and the amount of your acquisition.

What are the fees that affect a real estate purchase?

Fees related to the purchase of a property:

1. The cost of potential work

Two situations may arise: either your future house requires renovations or repairs; or, after all, you want to make some improvements before moving in. The cost of work should therefore be taken into account.

2. Notary fees

Notary fees are of two types: the fees for the purchase deed of the house and the fees for the mortgage loan deed.

A. Purchase deed fees

• Registration fees

This is a tax set by law that the notary must pay to the State. The amount of these fees is a percentage of the purchase price of your property. They vary from one region to another. Consult a notary office to know your rate or surf on our online simulator. In the Walloon Region, the normal registration fee is 12.5% of the market value of the property. Under certain conditions, it is possible to have access to reduced rates:

• of 6% of the purchase price (for modest houses under conditions)
• of 1.50 or 0% (for housing sold by a public housing company)

• Notary fees

Notary fees are set by law. They are the same for all notaries in the country. In the case of a sales deed, the fee is proportional to the value of the property: percentages are applied in brackets of the property’s value. If several notaries are involved, this fee is shared between the notaries based on the work and responsibility of each, according to the sharing rules established by professional authorities. So if you choose another notary to follow your purchase, it will not cost you anything. The “seller” notary and the “buyer” notary will share the fees between them. Simulate your loan online

• Various fees

The various fees charged by the notary cover mortgage, urban planning, tax, and other legally required searches, stamp duties on the deed and its copy, transcription fees of the deed and mortgage registration, file fees, etc. They can vary between 650 and 1,250 euros.

B. Mortgage loan deed fees

Very often, money is borrowed to buy a home. This is financing with a mortgage guarantee on the property. This loan binds you with a credit institution. To carry out this loan, you must execute a new authentic deed with your notary: a mortgage loan deed, resulting in new fees. The deed fees for your mortgage loan include 4 items:

Registration fee:

The registration fee represents a tax paid directly to the State by the notary for the registration of the deed: it is 1% on the loan amount. The mortgage registration fee: This fee is also a tax paid to the State by the notary when registering the deed with the mortgage registry. The fee is currently set at 0.30%, calculated on the amount of the borrowed capital.

Notary fee

The notary responsible for drafting the deed must calculate a fee, established based on the rate set by law. The amount of this fee will always be the same, regardless of the notary who drafted the deed.

Various deed fees.

In addition to tax duties and their fee, the notary will claim other fees required for drafting the deed (the cost of tax searches, mortgage certificates requested before and after formalities, cadastral extracts, tax stamps, …).

3. Fees requested by the credit institution

These fees vary depending on the amount of your loan and the credit institution. They generally include fees for:

• real estate appraisal
• file creation.

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