Guide to Notary Fees in the Canton of Vaud
Buying a property involves various costs that are important to know to avoid any surprises. Among these costs, notary fees are often forgotten when buyers calculate their budgets, even though they can account for up to 4% of the purchase price in the canton of Vaud. An amount you should plan for!
This article will help you understand the different notary fees, calculate them accurately, and make informed decisions throughout your property project.
Understand and calculate the costs of a real estate transaction
If you are about to buy a property, it is essential to know the components of notary fees, how they are calculated, and ways to optimize them. Goal: better anticipate and plan your overall budget for your property purchase.
Definition and importance of notary fees
Notary fees are necessary to ensure the legality of buying or selling a property. They refer to all costs associated with the notarial act, which includes drafting, registering, and certifying the legal documents related to a property transaction.
What is included in notary fees?
Notary fees cover several services provided by the notary, who guarantees the legal security of the transaction. In the canton of Vaud, they include:
- Registration or transfer duties: a tax paid directly to the State when the property is transferred. They account for around 3.3% of the sale price.
- Notarial fees: fees paid to the notary for their services. They are set by an official tariff and are proportional to the value of the property. They generally vary between 0.5% and 0.7% of the purchase price and depend on the complexity of the transaction.
- Land register fees: the official registration of property ownership. These fees represent about 0.3% of the purchase price and cover the cost of entering the property into official records.
In addition to the main fees, other ancillary costs may be added in certain situations:
- Deed publication fees: For certain transactions, it may be necessary to publish deeds in official journals or registers to inform the public of the sale. These costs are generally borne by the buyer and vary depending on the canton and the type of deed.
- Cadastral search fees: These cover the search for cadastral information, necessary to ensure the transaction’s compliance and proper identification of the property. Although not systematic, such fees may apply if additional checks are required on the property. These costs are usually modest but should be factored into the overall calculation of notary fees.
Also watch out for additional costs for specific procedures such as document verification or drafting particular deeds.
Additional costs related to a mortgage
If you are financing your purchase with a mortgage, fees will also apply for creating the mortgage certificate. This document is required by the lender to secure repayment of the loan.
Fees related to the mortgage certificate are generally 2.5% of the loan amount, broken down as follows:
- 1.365% registration duties, paid to the State
- 0.2% for land register entry, the amount of which is paid to local authorities
- Less than 1% for the notary’s remuneration, including administrative costs associated with drafting the mortgage deed
These costs are in addition to the notary fees related to the deed of sale and must be taken into account when calculating your mortgage and planning the total costs of your transaction.
Fees charged by notaries in the canton of Vaud
In the canton of Vaud, notary fees are calculated based on the property’s purchase price, the nature of the transaction (purchase, donation, etc.), the notary’s fees, and any specific services requested from the notary (for example, a complex sale deed). In general, they range from 1.5% to 3% of the sale price.
How to calculate notary fees?
Let’s take a concrete example to better understand how costs are allocated in a real estate transaction.
For the purchase of a property at 500,000 CHF:
- Transfer duties (3.3%): 16,500 CHF
- Land register entry (0.3%): 1,500 CHF
- Notary’s fees (0.6%): 3,000 CHF
- Deed publication fees: Variable, but generally around 200 to 500 CHF depending on the transaction.
- Cadastral search fees: Around 50 to 100 CHF depending on the transaction’s specific needs.
Estimated total notary fees: 21,250 CHF to 21,500 CHF, depending on ancillary costs specific to the transaction. Hence the importance of planning for them before any transaction.
Tips to reduce notary fees during a transaction
Although notary fees are largely governed by cantonal legislation and official tariffs, there are some strategies to reduce them.
Include notary fees in the mortgage
If you finance your property with a fixed-rate mortgage, a variable rate or a combination, it is sometimes possible to include notary fees in the financing. This reduces the immediate financial burden and spreads the costs over the term of your mortgage for a purchase in the canton of Vaud, avoiding a one-off payment.
You can check this option with your banker or consult a mortgage broker in Vaud, who can guide you and help you find the best solution to include these fees in your loan while optimizing your credit terms.
Compare and choose the right notary
Some notaries may offer competitive rates. It therefore makes sense to compare offers.
Negotiate the fees
Although some costs are fixed, you can negotiate certain aspects of the services provided, notably the notary’s fees.
Optimize the structure of the transaction
Depending on the situation, it may be relevant to structure the purchase to reduce certain costs (for example, through donations or purchasing via a company).
Reduce ancillary elements of the transaction
Some costs can be avoided or reduced by simplifying documents or foregoing non-essential services.
Prepare your documents in advance
Having all your documents ready and compliant can speed up the process and reduce associated administrative costs.
Check your eligibility for certain tax exemptions
In some cases, there are tax exemptions that can reduce your costs, particularly for a first purchase, an eco-friendly property project, or in specific zones. Check the eligibility criteria for these exemptions to benefit from reductions in transfer duties or other fees associated with the transaction.
Entrust multiple transactions or legal services to the same notary
If you have other legal procedures to carry out, such as a change of marital property regime or an inheritance, it may be wise to entrust them to the same notary. By consolidating requested services, you may be able to negotiate better rates or obtain discounts on notary fees.
What is the procedure and timeline for paying notary fees?
In a property transaction, the payment of notary fees follows a specific procedure. Here is an overview of the steps to follow and the time frame for paying these fees.
Signing the deed of sale
The first step is to sign the deed of sale before the notary. This document formalizes the transaction and the commitment of both parties: the buyer and the seller.
Calculation and estimation of fees
Once the deed of sale has been signed, the notary proceeds with the calculation of notary fees based on the property’s sale price. This calculation includes transfer duties, land register entry, and the notary’s fees. The buyer must also ensure that all necessary documents are available to carry out this calculation.
Invoicing of notary fees
After calculating the fees, the notary issues an invoice detailing the different costs to be paid. This invoice is sent to the buyer, who must settle the amount within the given time frame.
Payment deadline for notary fees
Payment of notary fees generally must be made before the keys are handed over or before the registration is finalized in the land register. The deadline may vary depending on the agreements between the parties and the notary, but it is often a few days to a few weeks after signing the deed of sale.
As a rule, the buyer must pay the fees before the land register entry is finalized, as this is when the State collects transfer duties. This entry, which formalizes the transaction, cannot be completed until the notary fees have been paid.
Means of payment
Fees can be paid by bank transfer, cheque, or sometimes in cash, depending on the arrangements specified by the notary. It is recommended to follow the notary’s instructions to ensure correct and timely payment.
Funds collected by the notary
Once the fees have been paid, the notary proceeds with the registration of the transaction in the land registers. This process can take a few days to a few weeks, depending on the complexity of the transaction and the workload of the land registry.
Frequently asked questions about notary fees
Why do you have to pay notary fees?
Notary fees ensure the legal validity of the transaction and the official registration of the sale in the land registers.
Which factors affect the amount of notary fees?
The property’s purchase price, the type of asset (house, apartment, land), the municipality of registration, and any additional services provided by the notary influence the fees.
How do you calculate notary fees for buying a property?
Fees are generally calculated as a percentage of the purchase price. For an accurate estimate, it is recommended to consult a notary or use online simulators.
Which documents are required to calculate notary fees?
The sale contract, tax information related to the property, and financing documents (if applicable) are required for the calculation.
What is the average amount of notary fees in Vaud?
In the canton of Vaud, notary fees generally range between 1.5% and 3% of the property’s purchase price.
Are notary fees negotiable?
Notary fees are largely determined by official schedules and are therefore not negotiable. However, certain honoraria may be negotiable depending on the services requested.
What are the remedies in case of disputes over notary fees?
In case of doubt or dispute, you can consult a lawyer specialized in real estate law or contact a competent authority to obtain mediation.
Is it possible to reduce costs related to transfer duties?
Transfer duties are set by the State and cannot be changed, but certain tax measures may help optimize them.
How do you choose a notary in the canton of Vaud?
Choose a reputable notary who is transparent about their fees and provides quality service.
What should you do in case of a dispute about notary fees?
In case of disagreement, you can ask the notary for detailed explanations and, if necessary, turn to a mediator or a cantonal authority to resolve the conflict.
Are notary fees the same in all cantons?
Notary fees can vary from one canton to another. Some cantons apply fixed rates, while others, like the canton of Vaud, use a system of free notariat where notaries set their own fees within a range determined by law. It is therefore important to find out about the specifics in each canton before proceeding with a property transaction.
