When you are looking to buy a property, you want to buy a house that is well located, well equipped and that you feel comfortable in!

Another selection criterion is the purchase price.
In addition to this, you should not forget the costs involved in buying a property, such as notary fees or deed fees.

Many of us have already asked ourselves what this term covers. Let's shed some light on a concept that every buyer has been or will be confronted with one day!

The notary, guarantor of the quality of a property

A property sale is often preceded by a compromise.
Although it is not obligatory, this document makes it possible to fix the agreements between the 2 parties (buyer and seller), in order to concretise the purchase transaction.
It also gives the buyer the necessary guarantees to apply for bank financing.

For his part, the notary has the sales agreement at his disposal so that he can carry out the necessary mortgage searches. He will thus check the seller's status as owner, the possible existence of mortgages, easements and other charges.

It is only after this study that the buyer is certain that he is acquiring the property from the true owner and free of any mortgage charges.

Calculation of notary fees

The notary's fees are made up of 3 separate categories of fees.

The first is taxes or duties due to the Treasury.
The notary collects these fees on behalf of the state.
These are amounts related to registration fees or transfer duties, land registration tax, value added tax (VAT), etc.

The second category concerns disbursements.
This is the reimbursement of costs incurred by the notary in connection with the acquisition: extract from the land register, salary of the mortgage registrar (registration of mortgage guarantees, costs of publication of the sale), administrative documents, co-ownership syndicate, surveyor, etc.

Finally, the last category consists of the notary's fees or emoluments.
These amounts correspond to the remuneration of the latter. They are set by grand ducal regulation. There are emoluments for the negotiation of the property (if applicable), the deed of sale itself, property loans, etc.

It should be noted that only the notary's fees or emoluments correspond to the real remuneration he receives, the other two categories being collected on behalf of the Administration of Registration and Domains, or related to costs incurred by the notary.

"Bëllegen Akt
or how to reduce the costs of notarial acts (amended law of 30 July 2002)

For acquisitions for consideration (in return for payment) of real estate (house, flat, building land), the standard rate is 7 %, of which 6 % for registration fees and 1 % for transcription fees.

The government has therefore introduced the tax credit, in order to reduce the ancillary costs of purchasing a home.
This is an abatement of registration and transcription fees for all persons wishing to acquire a building (and certain built-up outbuildings) for personal habitation.

The tax credit is limited to 20,000 euros per purchaser and is doubled for a couple, as the tax credit applies to each purchaser individually.

In all cases, the Registration and Domicile Administration will charge a minimum amount of EUR 100 as registration fee.

It should be noted that the tax credit can be used up in one go, or as it is used up, if the registration and transcription fees due on an acquisition do not reach the total amount of the tax credit. The remaining balance of the credit can then be used against future payments.

A notary for every sale

As you can see, the notary is one of the main players in the purchase of a property!
He will be there to formalise the deed of sale but also to advise and assist you with the various procedures.

There are no rules for choosing your notary. You can choose your notary on the basis of proximity, reputation, recommendation or because you have already met him or her for a consultation.

The Chamber of Notaries of the Grand Duchy of Luxembourg has 36 notaries, geographically distributed over all the cantons (with the exception of Vianden) taking into account the size of the population and the volume of business.

Moreover, if you are still looking for yours, all you have to do is consult the directory available on the Chamber of Notaries website, http://www.notariat.lu/
Good research and good purchase 😉

Sources :

http://cij.lu, http://www.notariat.lu, http://www.cbanque.com, www.guichet.public.lu, http://www.cgoedert.lu/