Preliminary Sale Agreement Costs

Buying property is often the largest investment of a lifetime. Between signature of the preliminary sale agreement (compromis de vente) and the authentic deed before the notary, many costs accumulate, sometimes poorly anticipated by buyers. Understanding how these costs are split between seller and buyer, knowing the rates applicable in 2026, and anticipating the items of expenditure helps avoid unpleasant financial surprises. This guide sets out all the costs linked to the preliminary sale agreement and the property transaction, from signature of the preliminary contract to handover of the keys.

Nature and purpose of the preliminary sale agreement

The preliminary sale agreement, also called a bilateral promise of sale (promesse synallagmatique de vente), is a preliminary contract by which the seller undertakes to sell and the buyer to buy a specified property at an agreed price. Unlike a simple unilateral promise, the preliminary agreement creates reciprocal obligations between the parties.

This signature generally takes place several weeks before the final authentic deed. It gives the buyer the time needed to obtain financing, carry out additional surveys and satisfy the conditions precedent. The seller, for its part, is assured that the purchase project is real. How this period unfolds, from the conditions to be satisfied through to final signature, is set out in our article on the steps that follow signature of the preliminary agreement.

The preliminary agreement has immediate legal effects. It transfers ownership of the property subject to the condition precedent of the authentic deed being executed, in accordance with the principle in Article 1583 of the French Civil Code, under which "it is complete as between the parties, and ownership is acquired as of right by the buyer as against the seller, as soon as the thing and the price have been agreed". This feature of French law explains why certain costs arise from signature of the preliminary agreement.

Distinction from the unilateral promise of sale

The unilateral promise of sale binds only the promisor seller, who undertakes to sell if the beneficiary exercises the option within the agreed period. It generates different costs from the bilateral preliminary agreement, in particular as regards tax registration. The beneficiary of a unilateral promise becomes owner only on signature of the final deed, whereas the buyer under a bilateral preliminary agreement acquires a real right from signature of the preliminary contract. On the legal nature of these two preliminary contracts and their respective effects, see our analysis of the differences between the bilateral promise and the unilateral promise.

General principle for splitting the costs

Article 1593 of the French Civil Code sets out the fundamental principle: "The costs of deeds and other incidentals to the sale shall be borne by the buyer". This rule applies to the whole property transaction, from the preliminary agreement to the authentic deed.

This statutory split reflects the economic logic of the transaction: the buyer, who benefits from the transfer of ownership, bears the costs necessary to secure the legal position of the purchase. The seller, who parts with the property against payment of the price, does not have to bear the costs of legal formalities.

However, this default rule may be set aside by contrary agreement. The parties may provide for a different split in the preliminary agreement, particularly in a market favourable to the seller. This contractual freedom remains rare in practice, as customs are firmly established.

Practical application of the principle

In a standard preliminary agreement, the buyer bears the notary's fees, the registration duties, the costs of publication at the land registry (service de publicité foncière), and the bank charges linked to its financing. The seller bears only the costs specific to it: the mandatory surveys that fall to it, the costs of releasing any mortgage, and property capital gains tax where applicable. The item-by-item split of notarial costs between the two parties is dealt with separately in our article entitled buyer or seller, who pays what.

Notarial costs and fees

The notaries' fee structure

Notaries apply a regulated scale fixed by decree for their fees (émoluments). This scale, revised regularly, applies compulsorily to all property deeds. For 2026, notarial fees are calculated in progressive bands on the sale price:

The first band up to €6,500 is subject to a rate of 3.870%, the band from €6,500 to €17,000 to 1.596%, that from €17,000 to €60,000 to 1.064%, and above €60,000 to 0.799%. These rates are exclusive of VAT, which is added at the rate of 20%.

Distinction between the preliminary agreement and the authentic deed

The notary charges separate fees for the preliminary sale agreement and for the final authentic deed. The fees for the preliminary agreement generally amount to between €150 and €400 depending on the complexity of the file and the value of the property. These costs are added to the fees for the final deed, calculated on the basis of the sale price.

This double billing is justified by the different nature of the services. The preliminary agreement requires prior legal analysis, verification of the capacity of the parties, examination of the conditions precedent and the drafting of a bespoke deed. The authentic deed, which is more formal, requires additional checks, the final settlement of the costs and completion of the land registration formalities.

Ancillary costs borne by the buyer

Beyond the fees proper, the buyer bears the ancillary costs charged by the notary's office: copies of deeds, correspondence, planning searches, searches of the land register, and bank file costs. These costs, often underestimated, can amount to several hundred euros more.

Registration duties and land registration charges

Calculation of registration duties

Registration duties (droits d'enregistrement) are the main tax component of acquisition costs. They vary according to the nature of the property and its geographical location. For an existing home, the standard rate is 5.09% of the sale price in most départements, made up of départemental duties (3.8%), municipal duties (1.2%) and an additional tax (0.09%).

Some départements apply a reduced rate of 3.8%, having waived the optional increase. This difference can represent a substantial saving on a large transaction. The buyer should check the rate applicable in the département where the property is located.

Land registration and the mortgage registry

Land registration, successor to the mortgage registry, levies a land registration tax (taxe de publicité foncière) of 0.715% of the sale price for transfers of immovable property for consideration. This tax is added to the registration duties and cannot be avoided, as land registration is compulsory for the transfer to be enforceable against third parties.

The costs of formalities with the land registry also include the registrar's salary, fixed as a flat amount, and the costs of forms and copies. These amounts, although modest individually, add up in the overall cost of the transaction.

Exemptions and reductions

Certain acquisitions benefit from exemptions or reductions in registration duties. First-time buyers may claim an exemption from land registration tax subject to conditions as to resources and purchase price. Acquisitions under rental investment schemes (Pinel, Malraux) give entitlement to specific reductions.

These tax advantages are strictly regulated and their application requires compliance with precise conditions. The notary checks the buyer's eligibility and makes the necessary declarations to the tax authorities.

Security and insurance costs

Security for the financing

A buyer who applies for a mortgage loan must provide security in favour of the lending institution. This security may take several forms: a contractual mortgage (hypothèque conventionnelle), a lender's lien (privilège de prêteur de deniers), or a guarantee from a specialist body.

A contractual mortgage generates registration costs at the land registry, calculated on the amount of the loan secured. The registration rate is 0.715% of the capital secured, to which are added the notarial fees for drafting the mortgage deed.

A guarantee from a specialist body (Crédit Logement, SACCEF) is an alternative that is often less costly. The buyer pays a commission of about 1% of the capital borrowed, part of which is returned at the end of the loan. This solution avoids the costs of releasing the mortgage when the loan is repaid.

Borrower's insurance

Borrower's insurance, although distinct from notarial costs, represents a significant cost of the property purchase. Its cost varies according to the borrower's age and state of health and the cover taken out. Since the Lemoine Act of 2022, the borrower may cancel the insurance at any time, provided equivalent cover is offered.

This freedom to cancel makes it possible to optimise the cost of the insurance during the loan. The savings made may partly offset the increase in other transaction costs seen in recent years.

Mandatory property surveys

Surveys borne by the seller

The seller bears the cost of most of the mandatory property surveys: energy performance certificate (DPE), natural and technological risks statement (ERP), asbestos, lead and termite surveys, and inspection of the electrical and gas installations. These surveys, grouped together in the technical diagnostic file (DDT), must be annexed to the preliminary sale agreement.

The cost of these surveys varies according to the size, location and age of the property. For a medium-sized flat, the whole set generally costs between €300 and €800. This burden on the seller is an exception to the general principle in Article 1593 of the French Civil Code, justified by the seller's duty to provide information.

Additional surveys borne by the buyer

The buyer may wish to commission additional surveys to refine its knowledge of the property: structural survey, search for hidden defects, or in-depth inspection of the installations. These voluntary surveys remain solely at the buyer's expense, as the seller is bound only to carry out the surveys that are legally mandatory.

Case law accepts that the buyer may make its commitment subject to the carrying out of additional surveys. This condition precedent must be expressly provided for in the preliminary sale agreement, with details of the practical arrangements for carrying out the surveys and interpreting the results.

Bank and brokerage costs

Bank arrangement fees

The lending institution charges arrangement fees for studying and setting up the mortgage. These fees, generally between €500 and €1,500, cover analysis of the file, valuation of the property, and administrative formalities. Some banks agree to negotiate or waive these fees as part of the overall negotiation of the loan.

The recent trend shows an increase in these bank charges, as institutions pass the burden of heavier regulatory requirements on to borrowers. This development reinforces the value of having several institutions compete.

Remuneration of the mortgage broker

The use of a mortgage broker is growing, particularly for complex files or in a context of tighter credit. The broker's remuneration, generally between 0.5% and 1.5% of the capital borrowed, may be borne by the buyer or by the bank, or split between the two.

This service can generate substantial savings on the interest rate and the terms of the loan, more than offsetting its cost. The broker also brings valuable expertise in optimising security and insurance.

Hidden costs and related expenses

Removal costs and initial furnishing

Beyond the strictly legal costs, a property purchase generates related costs that are often underestimated. The removal, adapting the home to the buyer's needs, and the first items of equipment represent a significant budget to be included in the overall financing plan.

These costs, although outside the transaction proper, form part of the real cost of the purchase. Anticipating them avoids cash-flow difficulties in the first months after moving in.

Property tax and co-ownership charges apportioned

Property tax (taxe foncière) and co-ownership charges (copropriété) are apportioned as at the day the authentic deed is signed. The buyer reimburses the seller for the share corresponding to the seller's period of enjoyment. This adjustment, neutral in theory, can represent several thousand euros of additional outlay depending on the date of signature and the amount of the annual charges.

The buyer must also provide for the advances on current and exceptional charges required by the property manager (syndic) of the co-ownership. This sum, often equivalent to one quarter of current charges, is returned when the buyer leaves.

Cost optimisation strategies

Negotiating the split of costs

In a market favourable to the buyer, negotiating for the seller to bear certain costs can lead to substantial savings. This negotiation generally concerns additional surveys, brokerage costs, or a contribution to notarial costs.

This approach requires a favourable bargaining position and solid arguments. The buyer may in particular point to works that will be needed, a prolonged time on the market, or features of the property justifying a different split of costs.

Tax optimisation

Certain acquisitions allow tax optimisation of transaction costs. Buying a main residence gives entitlement to specific advantages, in particular as regards any later property capital gain. Rental investment may benefit from support schemes allowing part of the costs to be deducted or amortised.

These optimisations require a detailed analysis of the buyer's tax position and wealth objectives. Support from a wealth management adviser may be worthwhile for large transactions.

Having service providers compete

Having several notaries compete sometimes makes it possible to obtain a reduction on ancillary costs, since fees are regulated. This approach is limited by the fact that the buyer generally chooses the notary, although the seller may also appoint its own in certain configurations.

Negotiation relates more to related services: speed of handling, quality of advice, or additional services included in the basic service.

Payment timetable

Staging of costs

The costs linked to the preliminary sale agreement are spread over several weeks between signature of the preliminary contract and the final authentic deed. This spread over time allows the buyer to stagger its outlay and organise its financing.

The costs of the preliminary agreement (notarial fees, any additional surveys) are generally payable on signature. Bank arrangement fees are deducted when the loan is set up. Registration duties and fees for the final deed are called for a few days before the authentic deed is signed.

Deposit of funds

Article 2203 of the French Civil Code provides that "The notarial deed of sale is drawn up only on deposit of the price and the costs of the sale and proof of payment of the taxed costs". This obligation of prior deposit protects the parties and third parties against payment defaults.

The notary checks that the funds are available before summoning the parties to sign the authentic deed. This check covers the sale price proper and all the ancillary costs. If the advance is insufficient, signature is postponed until the position is fully regularised.

Regulatory developments and outlook for 2026

Impact of recent reforms

Recent reforms of property law affect the cost of transactions. The gradual dematerialisation of notarial formalities allows economies of scale that are partly passed on to clients. The reform of land registration, with the gradual move to an online service, simplifies procedures.

These technological developments change the cost structure without necessarily reducing it. The IT investments of notaries' offices and of the tax authorities are passed on in fees and taxes, keeping the overall level of costs broadly stable.

Outlook for 2026 rates

Notarial rates are revised periodically to take account of changes in professional costs and inflation. For 2026, relative stability of fees is expected, the last significant increases dating from 2020.

The development of registration duties depends on local and national tax policies. The recent trend shows a stabilisation of these levies, local authorities having generally used up all their tax room for manoeuvre.

Bank charges could change more markedly, linked to the growing regulatory constraints on credit institutions. This potential increase reinforces the value of negotiation and of having banks compete.

Practical recommendations

A property purchase requires rigorous financial preparation that takes in all the costs related to the main transaction. The overall estimate of these costs, generally between 7% and 10% of the purchase price for an existing property, must be refined according to the specifics of each file.

The notary's transparency on the breakdown of costs is a right of the buyer which should be exercised fully. A detailed forecast estimate from signature of the preliminary agreement avoids surprises when the final call for funds is made. Given the upward trend in these costs, overall negotiation of the transaction, including the purchase price and the split of ancillary costs, makes it possible to optimise the real cost of the purchase.

Frequently asked questions

Can the buyer negotiate the notarial costs on a preliminary sale agreement? Notarial fees are regulated by decree and cannot be negotiated. Only ancillary costs (disbursements, file costs, additional services) can possibly be negotiated. Having several notaries compete relates more to quality of service than to the strict cost of the service.

Who bears the cost of property surveys if the preliminary agreement is cancelled? The mandatory surveys remain the seller's responsibility even in the event of cancellation, as carrying them out is a statutory obligation independent of whether the sale is completed. Additional surveys requested by the buyer remain at its expense, unless the preliminary sale agreement provides otherwise.

Are the costs of the preliminary agreement deducted from the costs of the final deed? No, the costs of the preliminary agreement and of the final deed correspond to separate services billed separately. The preliminary agreement generates its own fees, generally between €150 and €400, which are added to the costs of the authentic deed calculated on the sale price.

How can I accurately estimate the total costs of a property purchase? A reliable estimate requires all items to be taken into account: notarial fees (about 1% of the price), registration duties (3.8% to 5.09% depending on the département), security costs (0.7% to 1.5% of the loan), bank charges (€500 to €1,500), and any additional surveys. The total generally represents between 7% and 10% of the purchase price.

Does a preliminary sale agreement signed under private signature generate lower costs? A preliminary agreement under private signature avoids the notarial fees for the preliminary contract but requires tax registration if the final deed is not executed within four months. The apparent saving may be cancelled out by the registration costs, not to mention the legal risks of a deed not drafted by a professional.

Are transaction costs tax deductible? For a main residence, acquisition costs are not deductible but are added to the cost price for calculating any future capital gain on sale. For a rental investment, certain costs may be deducted from property income or amortised depending on the tax regime chosen.

How should costs be split between several buyers in joint ownership (indivision)? Co-buyers bear the costs in proportion to their shares in the purchase, unless otherwise agreed. This split must be specified in the preliminary sale agreement to avoid difficulties at settlement. The notary draws up an individual statement for each buyer according to their rights in the acquisition.