In the event of a separation or inheritance, one of the co-owners often wishes to keep the property. To do this, they must buy out the shares of the others. This operation, called a buyout of the share, must be done in front of a notary, which incurs fees. Who pays the bill? The answer depends on the legal context and sometimes on a simple agreement between the parties.
Sharing rights and fees: what notary fees really cover
Referring to “notary fees” as a single block is misleading. Behind this expression are several distinct items, and confusing them can distort any negotiation regarding their allocation.
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The first item, often the heaviest, is the sharing rights, a tax levied by the State. It applies as soon as a property leaves the joint ownership, whether after a divorce or an inheritance.
The second item corresponds to the notary’s fees. These are the regulated fees that the notary receives for drafting the liquidation deed. Their amount follows a scale proportional to the value of the property.
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Finally, additional costs are added: disbursements (amounts advanced by the notary to obtain administrative documents), real estate security contribution, and possible expertise fees. Understanding the issue of notary fees when buying out a share of a house requires distinguishing these three components, as their distribution method may vary.
Buyout of share in case of divorce: who pays what?
Are you getting divorced and one of you wants to keep the house? The buyout of the share is then part of the liquidation of the matrimonial regime. This procedure has its own rules for distributing costs.
The general principle
It is the buyer of the share who bears the notary fees in the majority of cases. The logic is simple: the one who obtains full ownership of the property takes on the deed that formalizes this transfer, just like in a classic real estate purchase.
The negotiated exception
Nothing prevents ex-spouses from agreeing on a different distribution. In a divorce by mutual consent, the agreement can stipulate that the costs are shared equally. This is a point of negotiation like any other, just like the amount of the buyout itself.
Be careful: the sharing rights, however, remain due regardless of the agreement. The sharing rights apply to the net value of the shared property, and this tax does not disappear because the parties have agreed on the rest.
Buyout of share in inheritance: a different mechanism
Inheritance creates a situation of joint ownership among the heirs. When one of them wants to buy out the shares of the others to become the sole owner, the legal framework is not that of divorce.
Why does this distinction matter? Because the tax rights and the calculation base are not the same. In an inheritance, the value used for calculating the buyout is that of the property at the time of the division, not that at the time of death.
- The acquiring heir generally pays all the notary fees related to the sharing deed, as they are the sole beneficiary of the transfer of ownership.
- The inheritance taxes have already been settled by each heir during the declaration of inheritance and do not overlap with the buyout fees.
- If several heirs buy out another’s share together, the fees are shared among all the buyers, proportionally to their share.
Buyout between co-purchasers outside of divorce and inheritance
The third situation, less documented: two people (partners, friends, associates) have bought a property together and one wants to buy out the other’s share. Neither divorce nor inheritance is involved. Here, no matrimonial regime liquidation procedure is required.
The joint ownership agreement, if it exists, often specifies who will bear the costs in case of exit. Without an agreement, direct negotiation decides. In practice, the buyer almost always assumes the costs, but an amicable agreement can modify this distribution.
This scenario is where there is the most room for maneuver. There is no family court judge, no notary liquidator imposed by the procedure. The parties are free to set the terms in the notarial deed.
Reducing the bill: concrete levers on notary fees
You now know the distribution. But can we act on the amount itself? There are a few avenues to explore.
- Evaluate the property at the fair price, without overvaluation. The calculation base for the fees and the sharing rights directly depends on the declared value of the property. A realistic estimate, supported by market comparisons, avoids artificially inflating the bill.
- Check if the property has an ongoing mortgage. The remaining capital owed is deducted from the net value of the property for calculating the buyout, which mechanically reduces the fee base.
- Request a detailed statement of fees from the notary before signing. Notaries are required to provide a line-by-line breakdown. Comparing this breakdown with an online estimate allows for spotting potential errors.
- In the case of an amicable divorce, combining the liquidation and the buyout into a single notarial deed can limit file fees and disbursements.
Financing the fees
Notary fees can be included in a mortgage loan taken out to finance the buyout. Most banks agree to finance the buyout and associated fees in a single loan, sometimes in the form of a mortgage loan if the amount justifies it.
The total cost of the buyout (buyout, notary fees, possible bank guarantee fees) should be estimated overall before committing. A buyer who only budgets for the buyout risks an unpleasant surprise at signing.
The one who buys out the share almost always pays the notary fees, regardless of the context. The only real variable is the possibility of negotiating a sharing of these fees with the seller, and this negotiation is only valid if it is clearly stated in the notarial deed.