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Notary Costs: How Does it Work With Home Purchase?

Notary Costs: How Does it Work With Home Purchase? - Buying a home is an important step that can give a lot of satisfaction but that, at the same time, entails a significant expense for anyone.

Notary Costs: How Does it Work With Home Purchase?

For this reason, the purchase of a house must be done with the maximum weighting, taking into account all the various expense items that result from such operation.

In particular, it should not be overlooked that the cost of the notary, whose intervention is necessary for the purchase of a house, is very often a significant burden, because of the high fees to be recognized by the professional.

In addition, we have to calculate the costs related to taxes and taxes that, as we will see, can vary depending on certain factors, starting with the value of the house.

In this short guide, then, we will analyze these aspects to try to understand what are the running costs for buying a home:
  • In a private sale
  • When buying directly from the manufacturer
  • At a real estate auction

Why You Have to go to The Notary

As you know, to buy a property you need to enter into an act in writing and then proceed to the transcription of the same in the public records held at the offices of the conservatory real estate.

The transcript is a necessary operation to make public your purchase and protect yourself against any other person who wishes to declare that they have rights on the same property.

In order to transcribe the act of purchase, however, it is not enough that this has been stipulated in written form, but it is necessary that it be given public faith by a notary. The latter, in fact, is a public official who, through his signature, certifies the veracity of what happened and declared in his presence as a seller and buyer.

When an act is entered into at a notary office, it is referred to as a public act or, if the contract had already been concluded previously between the parties, of authenticated private writing.

The Cost of The Notary to Purchase a House

As you can see, the intervention of the notary is almost indispensable in the procedure of buying a house and, as imaginable, has a considerable cost.

Generally, the cost of the notary's fee depends on the fees charged for the performance of his professional work.

These rates may vary in relation to the complexity of the practice and the type of property being traded, as well as the prestige of the notary study and the place where the trader exercises his business.

We can roughly say that the cost of the notary to buy a house is around 2,000 euros, but this fee can vary according to the factors just listed and in any case can be accompanied by other items, such as reimbursement of expenses, the percentage fee to be paid to the notary archive and VAT(Value Added Tax).

The expense items to buy a house, however, do not end there, because it is also necessary to calculate the amount of taxes to be applied. Let us look in detail, therefore, at what the additional expenditures can be.

Taxes to Pay to Buy a House

In addition to the purchase price of a house, which is agreed by the parties, it is necessary to calculate the fixed cost of the land tax and the mortgage tax, equal to 50 euros each.

In addition, a significant expense is the register tax. The latter is calculated in relation to the land value of the property whose property is transferred.

The land value depends on the land rent, which varies depending on the type of the property. The land value is calculated by multiplying the land rent by a coefficient of 115.5, in the case of first home purchase, and equal to 126 times the land rent, in the case of a second home.

The registry tax corresponds to the 2 of the calculated value, for the purchase of the first house, and the 9 in the case of a second home.

It should be remembered, however, that when the purchase is made directly by the property builder, rather than by a private individual, the conditions change.

In this case, fixed cost items apply for both the mortgage tax and the land tax and the register tax: all three of those taxes correspond to an amount of 200 euros each. In addition, in the purchase from the manufacturer must also apply VAT, which is calculated at 4 percent of the price when buying first home, 10 for the second home and 22 for luxury homes.

How to Buy a House at Auction

From all the above, it is clear that in addition to the purchase price there are numerous other running costs to buy a house, starting with the expenditure on the notary's fee, and ending up with the various taxes to be paid to the state.

It is worth remembering, however, that there is also the possibility of buying a house at auction and that in this case the buyer can rely on much more advantageous purchasing economic conditions.

In fact, in addition to a price usually much lower than would be practiced according to normal market conditions, a property sold at auction saves on the costs of the notary.

When you want to buy a house at auction, in fact, it is not necessary the intervention of the notary, because the court's award decree is a sufficient title for the registration of the relevant formalities in public registers.

This means that the buyer, in addition to saving on the purchase price of the house, does not have to bear even the huge costs related to the legal assistance of the notary, which as we have seen before can consist, as a rule, in a few thousand euros.

Discover the Convenience of Online Auctions

If you want to buy your next property at auction, find out the variety of offers you'll find on Industrial Discount.

Industrial Discount is the online real estate auction portal that allows you to buy your home from the comfort of your PC or smartphone,

Consult the virtual catalog and choose the properties based on the type, area and characteristics. All the houses, apartments and villas that you find on the site come from procedures regularly incardinated in the relevant Italian courts: an online auction allows you not to physically attend in court, because you can comfortably consult from your PC all the details of the procedure: from the photo dossier to the appraisals, up to the cards with the details of the property.

Find out how easy and safe it is to find your new home online with Industrial Discount and continue reading our blog to stay up to date on the latest industry news. And if you want to receive the news directly in your inbox, fill out the form you find on this page, entering your email address: you will discover a newsletter full of tips and useful information.

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