NOTARIAL FEES IN THE PROCEDURE OF PURCHASING A PROPERTY

All real estate sales operations must be carried out before a notary under penalty of nullity. Real estate sale means any contract by which a seller, in the real estate supply and demand market, transfers ownership of real estate to a purchaser in return for payment of a specified price. As such, whether it is a purchase of land or a house, the deed of sale must take the authentic form. Obviously, having recourse to a notary for the conclusion of a real estate transfer deed incurs costs which we will clarify in the context of these developments. Therefore, the central question in law to be asked is the following: what are the notary fees in the context of a real estate sale?

While it is inevitably accepted that the notary's fees must be paid, the fact remains that other costs are necessary for the proper monitoring of the file for a final transfer of real estate ownership must be presented.

THE LEGAL FRAMEWORK OF NOTARY FEES OR EMOLUMENTS

It is important to note that apart from the price of the transaction to purchase the property that is the subject of the contract, certain fees must be paid to the notary so that the transaction takes place legally. To be truly fixed from a legal point of view, it is necessary to summon Decree N° 95/038 of February 28, 1995 fixing the rates for notarial acts that you can also read here in its article 188 which distinguishes a payment from the notary's emoluments in an over-the-counter sale of a building ... according to the following methods calculated according to the purchase price of the property, in strict compliance with the mercurial (document indicating the minimum and official price per square meter per district for the sale land):

- 4% from 1 to 3,000,000 CFA francs;

- 3% from 3,000,001 to 10,000,000 CFA francs;

- 1.5% from 10,000,001 to 25,000,000 CFA francs;

- 0.75% from 25,000,001 to 50,000,000 CFA francs;

- 0.50% above 50,000,000 CFA francs.

Note that for the specific case of the sale of land resulting from an inheritance, the mercurial is 0 FCFA; which engages an automatic payment of the tax on the capital gain according to the terms that we will see below.

OTHER FEES TO PAY FOR THE NOTARIAL STUDY

When the operation is carried out for the acquisition of real estate already registered, it is necessary, in addition to a registration of the deed, a transfer of the land title to the benefit of the buyer: these are the transfer rights. As such, if the notary has to carry out this procedure, other costs must be paid to him. It's about :

- The costs of opening the case, generally between 50,000 and 100,000 CFA francs;

- Registration fees, in this case 5% of the sale price;

- Stamp duties, ie 2,000 CFA francs;

- The tax on land ownership, ie 0.1% of the value of the property;

- Land registration fees, in this case 1% of the sale price;

- Land title, ie 2% of the purchase price of the property;

- Disbursements, that is to say the costs incurred by the notary for various steps for the implementation of the file;

- Where applicable, tax on real estate capital gains, ie 10% in rural areas and 5% in urban areas. This tax occurs in two cases: either, when the sale price is higher than the purchase price: land is therefore resold at a higher price than it was purchased several years previously; or when the owner has inherited the land. We are talking about land bought above the mercurial.

In any case, it will be necessary to pay the notary on average 8% of the sale price. It is therefore better not to commit to buying real estate on a tight budget at the selling price, in consideration of these additions.

It should also be noted that in practice, when you buy land in front of a financier (a person who has made a commitment with the beneficiaries, to establish for them, the land title in charge of ceding a plot of land to him) who does not often waste time to have a title established in his name, you will have to sign a "_ land rights surrender protocol_", written in notarial form. The fees for the establishment of this deed generally cost 150,000 FCFA, including registration. But the buyer must always require beforehand, from the financier, the minutes of demarcation duly signed by all the beneficiaries and of course a subdivision plan stamped by the head cadastre service of the location of the property after having taken the care of checking the availability of the land by a certificate of ownership. It is only after this signature that you can make your technical file conducted by a sworn surveyor and then divide your plot.

For all your advice and assistance needs, as part of a land or house purchase procedure, please contact us at the references displayed at the bottom of your screen.

Nimmo-auto, the real estate and automotive web in Cameroon