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3. VEFA Contract for 'Off Plan' French Property

3.4. Fees

The notaire and legal fees for a VEFA are lower than those for an existing property. Whilst the latter come out at circa 8% the fees for a VEFA are around 3%.

Nevertheless, as it is a new property you will be paying VAT at the rate of 20%. In some cases, such as with certain investment propertiess, this VAT may later be reimbursable on the sale of the property, provided you have owned it for a minimum period, eg 9 years.

The appointment of a second notaire does not ordinarily increase the fees, which are shared between the two notaires. Only if you are seeking more detailed, specialist advice might your notaire ask for an additional fee. It is a matter of negotiation.

At the outset, ask the notaire about the likely level and type of fees, so you can be satisfied that costs which are properly the responsibility of the developer are not being passed on to you.

Under pressure from the developer some notaires adopt the practice of passing onto the buyer fees that should ordinarily fall to the seller, e.g. preparation of rules relating to the management of a block of flats, or the fees of a land surveyor. Smart developers normally include these costs within the purchase price of the property.

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