Buying real estate: extra costs

Take any monthly expenses into account ...

If you buy a condominium, find out from the condominium corporation what the shared charges are and how they are divided between owners.
In any event, you can also ask the seller to provide a statement of his shared and/or individual charges for the past two years.
Don’t forget the heating issue: the cost will vary according to the quality of insulation and the type of energy chosen.

Estimate what work will need to be done

If you buy a condominium, ask the condominium corporation or the seller what work was done over the last five years and whether any work is planned for the near future. Don’t hesitate to ask for the minutes of general meetings. You’ll have a realistic picture of what kind of investment you’ll have to make.
As a general rule, work already voted by the General Meeting of condominium owners, but not yet conducted, remains the responsibility of the former owner. This responsibility will however be transferred to you in the following two cases:

• If the work was approved but the cost has not yet been determined for each condominium owner
• If a clause in the sales agreement states that the buyer will be responsible for all charges as of the date the final deed of sale is signed (closing date).

Notary fees

These include the Notary’s professional fees, as well as disbursements, duties, and taxes paid to the Trésor Public (Treasury). Set by decree, they are non-negotiable and represent roughly 8% of the sale price for an existing property (old build).

Don’t forget local taxes!

Tax authorities bill you for them every year.

Property tax, on land and buildings (that is, whether built lots or not) is, without exception, payable by the person who owns the property as at the first of January of that year.
The taxe d'habitation (occupancy tax) is also payable by the person who resides on the property as at that same date.
To calculate these two taxes, the tax authorities assess a "rental value", which doesn’t always reflect reality. You should try to find out what the former owner, former tenant, and neighbours pay to get an idea of what to expect.
You’ll also have to pay a waste removal tax and, in some areas, a street sweeping tax.

Mortgage fees

A mortgage is a guarantee taken by the bank that approved your loan: it has the right to seize your property if you fail to make your payments. Mortgage fees vary according to loan amount and type.
You could try to either avoid or reduce them by applying to organisations that provide security to the lender by guaranteeing reimbursement.
You should however keep in mind that they don’t accept just anybody’s application, you must prepare and file a comprehensive application! Some banks have agreements with them. You can find out more from your bank or, if you are a civil servant, from your mutual insurance company.