Provision on Real Estate Purchase Act

Purchasing real estate involves a considerable cost, so the majority of Belgians are forced to apply for a mortgage loan. Nowadays, investing in a house is a wise decision. Indeed, the reason for this opportune investment is explained, on one hand, by the instability and unpredictability of various market stocks and bonds. Provision on real estate purchase deed.For example, since 1980, a 10% annual increase in real estate value has been observed. On the other hand, and historically speaking, interest rates in this field have never been as low as they are currently, with a value around 3%. Thus, real estate represents a stable and lucrative investment in the Belgian market.

What is the payment of a 10% deposit?

In order to acquire real estate, it is imperative to pay the notary a provision corresponding to 10% of the total purchase value; this is intended to reserve the property and thus block its sale to another competitor during the time needed to secure a mortgage loan. These steps take some time before obtaining a bank’s approval and last about a month.

What do the ordinary mortgage loan and the 125% mortgage loan consist of?

The ordinary mortgage loan and the 125% mortgage loan are currently the only two mortgage loan options available. The 125% mortgage loan was introduced to help people with financial difficulties. Indeed, it is not easy to cover, in cash, the costs of the property’s provision to secure its reservation. Thus, the 125% mortgage loan is established as a regular loan of the total purchase price of the property but also of the deposit value. Additionally, it includes credit deed fees and notary fees. However, if this alternative is chosen, the interest rates will be slightly higher.

Uniqueness or plurality of notaries?

An authentic deed passed before a notary is mandatory during a real estate sale. Generally, the real estate transaction requires the presence of only one notary. Consequently, the buyer’s and seller’s opinions on the choice of the notary for the authentic deed do not differ. Moreover, the buyer and the seller also agree to both go to the notary’s office where the property is sold. In other cases, the buyer and the seller have multiple notaries. This solution poses no problem since notary fees are not doubled. Indeed, a law provides for the division of these charges in case of multiple notaries. Thus, this option is not more expensive than the first.

What are the costs involved in purchasing real estate?

Purchasing real estate involves notary fees as well as credit deed fees. Notary fees consist of the purchase price of the real estate but also registration fees, which are taxes imposed by the State during the registration of the notarial purchase deed. These fees vary according to the sale price of the real estate, the region, and the cadastral income amount. Additionally, notary fees also include the notary’s fees, which are evaluated based on the property’s value and the total amount of loan deed fees. These complete the total cost of notary fees, are associated with the mortgage loan necessary for the property’s purchase, and are registered at the mortgage office. As for credit deed fees, they are lower compared to notary fees.

Simulate your fees…

To assist you as best as possible during your procedures, Crédit Populaire Européen offers you the opportunity to simulate your fees to understand the total cost to be paid for the real estate transaction. Our site includes two simulators: one calculating credit deed fees, the other evaluating sales deed fees. However, note that these calculations are indicative and other elements may modify the final amount. Regarding credit deed fees, you simply need to indicate the loan amount. The simulator will evaluate the principal amount, accessories, registration fees, mortgage registration fees, and notary fees. As for the sales deed fee simulator, it is possible to obtain a reduction on registration fees if the house to be acquired is modest (this depends on the cadastral income and the number of children).