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Buying a house: Notary fees increase from August. – Home loan



Anyone who buys a house must plan the additional purchase costs in addition to the actual purchase price. These include notary fees. As of August, notary fees will increase significantly, and house purchases will become more expensive.

The reform of notary fees was urgent

The reform of notary fees was urgent

On August 1, the new Court and Notary Expenses Act (GNotKG) comes into force.  Since 1986 there had been no changes in the costs of notaries, the fee regulation itself is already 70 years old. The changes are particularly interesting for home buyers and owners, because the costs of the notary’s activities will rise sharply in many areas.

Minimum fees for certain activities now apply, for example, the cost recovery rate should be increased, and notaries in rural regions in particular should benefit. The Group of  Best bank did the math: when you buy a property that costs $ 200,000, the notary’s costs increase from $ 1,085 to $ 1,305, which corresponds to a cost increase of 17 percent.

On average, real estate buyers should expect a cost increase of 15 percent, the chamber said. However, some fees have also dropped, such as the cost of a notarial other account, in some areas of Germany all home purchases are made using such a trust account. It will also be cheaper for customers who want to have a real estate debt deleted.

If 130 USD were previously charged for a 350,000 USD land charge, it will be only 20 USD. The actual cost increase depends primarily on the purchase price, the less the property costs, the greater the higher fees will be in the future.

Buying a house only with a notary

Buying a house only with a notary

Notaries are the interface between buyers, sellers and the bank. For example, the notarial certification of the purchase contract is required by law. But the notary also becomes important when it comes to financing, since many banks require the so-called mortgage as security, the bank must be entered in the land register.

If follow-up financing is used at another bank, the land charge becomes an issue again. Now the mortgages have to be transferred to the new bank. The old, lower fees apply until the end of July. If you want to save money and have already planned the purchase of a property, you can still have the purchase contract certified in July.

In addition to the notary, home buyers have to pay additional purchase costs. Overall, home buyers should calculate between 1.5-2 percent of the purchase price for all additional costs. Additional costs arise from the real estate transfer tax, which in some regions accounts for up to 14 percent of the purchase price.