For prospective home buyers, this is good news. From January 1, 2023, they will benefit from a reduction in notary fees which will amount to approximately 1,100 euros for the purchase of a property for 232,500 euros. This reduction results from a reform of the notarial sector by the Minister of Justice, Vincent Van Quickenborne, disclosed on Wednesday.
Under the new system, the administrative costs for the purchase of a family home will be set on a flat-rate basis at 750 euros for the act of purchase and 550 euros for the act of credit. This measure is valid for all real estate deeds and replaces the costs which in total could sometimes climb up to 2,000 euros. In addition, fees will be reduced for the purchase of family housing. For the act of credit, a fixed reduction of 20% of the fees is applicable on all the tranches, underlines a press release from the Minister of Justice. It only applies if it is the sole property of the buyer (who must also live there).
The reduction induced by the new system will decrease for housing whose price is between 300,000 and 750,000 euros. For the most expensive homes over 800,000 euros (2% of purchases), there is no longer any advantage, according to the press release from the Minister of Justice. “This reform will make 98% of housing purchases cheaper”, promises Vincent Van Quickenborne. On the Fednot side, we are more dubious about the impact on the price, recalling that the main costs (excluding purchase prices) are taxes and other registration fees.
Family acts and SRL
The reform also targets family acts such as the extrajudicial protection mandate, the settlement of succession and the acceptance of an inheritance under benefit of inventory. For these acts, a fixed fee of 195 euros is imposed. If real estate is present in the estate, 125 euros must be added per real estate. For an extrajudicial protection mandate, 100 euros will be added if there are two agents. There was no fee schedule, as these acts “did not yet exist when the legal provision for notaries’ fees was established. This database dates from 1950. Only a few details were adjusted in 1980”, recalls Fednot in its press release.
There will also be more transparency in the notary’s invoice, which will clearly distinguish fees, expenses for third parties and administrative costs.
Another good news: the cost of setting up a limited liability company (SRL) with standard articles of association will cost less: it will be around 1,000 euros (currently it is 1,500 euros).
The reform also provides for the modernization of the status of notaries. A new status of assistant notary will be created. This will be an employed notary who, however, has the option of fully assuming the role of notary.
“The reductions granted go very far, especially in the context of a purchase and a loan. For some notaries, this will have a significant impact. We will make sure to help them. A solidarity system will be set up via the notarial fund” ,commented to us the notary Katrin Roggeman, president of Fednot.