Real estate: you must buy before this date to avoid the increase in “notary fees”

Most departments should increase transfer taxes for payment in 2025, a measure proposed on November 15 by the Prime Minister. If you have a real estate purchase project, don’t delay in making it a reality…

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Transfer taxes for valuable consideration (DMTO), incorrectly called “notary fees» to the extent that they are essentially made up of local taxes, will increase from next year, for a period of three years. The Prime Minister announced, Friday, November 15, that the finance bill for 2025 (PLF) will give, to departments that so wish, the possibility of increasing the DMTO by 0.5 points. “Most departments will undoubtedly make this increase»estimates Sandrine Allonier, communications manager for the real estate loan broker Vousfinancer. Firstly because their finances are degraded after two years of real estate crisis which caused a plunge in DMTO, one of their main revenues. Then, because “the increase in DMTO represents a lesser political and communication issue than the increase in property taxeswhich weighs even more», explains Sandrine Allonier.

However, the increase in “notary fees” will not be insignificant for real estate buyers. It will amount, for example, to 1,500 euros for a purchase of 300,000 euroscalculates Youfinance. A hard blow for first-time buyers, due to their low contribution, but not only that. “For second-time buyers, who generally buy a second property between 400,000 and 600,000 euros, they will have to pay up to 3,000 euros in additional notary fees. A sum that we would prefer to allocate to the furnishing of the house…”specifies Sandrine Allonier. Let’s take the case of a purchase for 600,000 euros in an old property. The “notary fees” representing 7% to 8% of the purchase price, in this case they amount to 45,000 euros. A sum to which 3,000 euros will have to be added once the increase in DMTO comes into force. A total of almost 50,000 euros.

A little more than 7 months to avoid the increase in “notary fees”

When will this entry into force take place exactly? The finance law for 2025 must first be promulgated, in the very first days of January. The departments will then have to include the increase in DMTO in their budgets. However, according to article 1594E of the General Tax Code, “the departmental councils set, each year, for the period from June 1 of the year to May 31 of the following yearthe rates of registration fees required on transfers for consideration of buildings”. The fact remains that the last increase in DMTO, included in the finance law for 2014, came into force in March of that year. “We are waiting for details from the government”responds the Départements de France association to Capital.

Sandrine Allonier does not exclude an acceleration in the number of real estate purchases before the implementation of the increase in DMTO, “for people who have a well-advanced project. An INSEE study had in fact highlighted a 26% jump in the number of real estate transactions during the month which preceded the 0.7 point increase in DMTO in 2014, “in order to avoid this increase”. If you have found the apartment or house of your dreams, don’t wait until June 1st to sign the authentic deed of purchase… The acceleration in the number of transactions before the entry into force of the increase in DMTO in 2014 had not compensated for the drop in sales that followed.