Buying Costs Are High in Monaco, or…So You Thought Buying Costs Were High in The OC?

March 30, 2010 at 1:57 pm · Filed under corona del mar, newport beach real estate and tagged: 2010, buying costs, corona del mar, France, homes for sale, Monaco, Newport Beach, real estate, the OC

How difficult is the property purchase process in Monaco [France]?

Monaco ’s prime residential real estate market is in Monte Carlo, which is famous for its Place Du Casino. The most prestigious area is the Carre D’Or” (Square of Gold) around the Place Du Casino. Prices drop by between ten and fifteen percent as one heads east or west of this point. Fontveille, an economical and industrial district, has a supplementary discount due to its less noble access, although the fact that the environment is constantly evolving assures a similar evolution in perceived values .

Much of the available property in Monaco and Monte Carlo is apartments, from small studios to large luxury triplexes and penthouses. Those overlooking the harbor and Formula 1 circuit are naturally more expensive. There is also a selection of luxury villas and beautiful townhouses and these are even more valuable .

Acquiring property in Monaco is quite straightforward. There are no restrictions on foreigners. You will need the services of a public notary to ensure that the terms of agreement are accurate and conform to the law.

The purchase usually takes place in two stages :

1. Signing the contract; and
2. Executing the transfer deed before the notary.

On signature of the contract, the buyer is generally asked to pay a deposit of 10% of the price, which may be held by the notary or the estate agent.

The purchaser of real estate may be asked to sign an offer or a pre-contract. This is common practice particularly in a buoyant real estate market. There is no consumer credit or “cooling off” principle which entitles you to reconsider a hasty purchase and recover your deposit.

Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.

Registration fee:
Registration fees are imposed at 7.5% (6.5% for registration and 1% for entry) of selling price or market value, whichever is higher.

VAT:
For properties that are either new or under construction, registration fee is 20.6% VAT plus 1% entry.

Notary fees:
Notary fees plus supplementary expenses such as copies and stamps range from 1.5% to 2.5%.

Estate agent’s commission:
Real estate agent’s commission is paid by both parties, 5% (plus 20.6% VAT) for the seller and 3% (plus 20.6% VAT) for the buyer.

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