"Solicitor's fees": allow for them

The solicitor is a key figure in the whole process: all the funds to do with buying property or land go through his hands, and it is his job to collect government and local authority taxes. If you are buying an old dwelling (one built more than 5 years ago or one which has been sold at least once before), what are commonly known as "solicitor's fees" will amount to the best part of 10% of the purchase price. In fact, these fees consist of four very different sets of costs:

• The actual payment for the services of this specialist, who plays a vital role in drafting deeds, ensuring the transaction is in line with the law, etc. His fee is fixed by order and is proportional to the sale price (the percentage decreases as the price band increases). VAT is payable, at 19.6%. For example, you should allow around F9,500 including VAT for buying an old property for F700,000. You will pay this the day you sign the sale agreement.

• The "procedure fee", where you pay the solicitor for the formalities he has completed: the zoning certificate, land registration documents, mortgage list, etc.

• "Disbursements", in other words money paid by the solicitor on behalf of the client: document costs, payment to the mortgage registrar, postal costs, etc.

• Fees and taxes paid to the Treasury: these essentially consist of a registration fee, also known as "droits de mutation à titre onéreux" (similar to stamp duty in the UK). Following an initial reduction in the autumn of 98 (1999 finance act), this was again reduced in September 1999 (2000 finance act). For dwellings the rate is now 4.89%, compared with the previous rate of between 5.40% and 6.20% depending on the department. The same rate applies to land. "Droits de mutation" is made up of the local commune tax, department tax and a "prélèvement pour frais d'assiette", charged for valuing the property for the purpose of taxation and equivalent to 2.5% of the department tax. The regional tax has been abolished. Some encouraging news is that when buying an old property you are not required to pay VAT.

For more information:

One of the most useful addresses is that of the Centre d'Information sur l'Habitat (ADIL) in your department. You can find out the address on Minitel (3615 Infologement) or by phoning 01 42 02 65 95. A free public service subsidised by the Ministry of Housing, ADIL is there to help prospective property owners with all the various aspects of house buying. It will provide information on the types of loans you are entitled to, the additional costs payable and the various steps you need to take; it will help you to draw up a finance plan using simulation software, pick apart the sale agreement, etc. But you should be aware that it has a preventive role, and will not intervene in the event of a legal dispute. Not every department has an ADIL yet, but there is bound to be one not far from you!