What costs/charges (other than tax and VAT) are payable on completion of the purchase of real estate and who is responsible for paying these costs and to whom are they payable?
Costs include the notary's fees, the property registration fee and any fees for professional advisors. The notary's fees are determined by law and payable by the seller. The registration fees are payable by the buyer.
Other typical costs related to acquisition of real estate are:
Other costs include the fees of professional advisors.
Foreign persons must generally seek approval from the Foreign Investment Review Board (FIRB) for proposals to acquire Australian real estate unless certain exclusions apply (See Australia – Corporate Vehicles). In order for FIRB to consider an application for such approval, application fees must first be paid to FIRB. These fees range from AUD5,000 up to AUD25,000 with a non-capped fee applicable to acquisitions of Australian residential land worth AUD3,000, 000 or more.
Also, the purchaser may be required to pay a fee to register the acquisition of the real estate with the Department of Land Titles. The amount of fee payable depends on the Australian state or territory in which the property is located and the value of the property.
Costs include the fees of professional advisors and some documentary duties. A notary’s fee is payable by the buyer on the transfer value of real estate at rates ranging from 0.057% to 4.56%. These fees are subject to VAT at a rate of 21%.
Court registration fees for registering the change of ownership are payable by the buyer and form part of the income of the relevant cantonal government.
In Brazil, the purchase of real estate must be formalized by signing a purchase and sale deed and registering it with the real estate registry office responsible for the area in which the property is located. Notary fees for the execution of the purchase and sale deed are charged by the relevant official notary, and registry fees for the registration of the purchase deed are charged by the relevant real estate registry office. Registration fees and notary fees are calculated on the price of the property or the transaction amount, pursuant to price tables that are updated annually and vary from state to state. These fees can be paid by either party, by mutual agreement between buyer and seller. It’s common for the buyer to bear these costs, but the parties may agree otherwise.
Some properties are subject to an emphyteusis regime (aforamento), which requires the payment of a fee (laudêmio) to the indirect property holder, which can be the federal, state or local government, or private entities.
Generally, no other statutory costs or charges are payable on completion of a purchase of real estate.
Other fees and charges such as registration fees, transaction handling fees, etc will be charged by the real estate registry. The types and rates of such fees vary from location to location but are generally nominal. The seller and purchaser will agree on which party will pay them.
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There is a land registry fee for the registration of a transfer of ownership amounting to HRK 250 as well as fees for the public notary and other advisors. Registration fees are payable by the person applying for registration, usually the buyer. Purchase agreements normally stipulate that the notary's fees are met by the buyer.
The fee for the registration of a title document is DKK 1,850 plus 0.6% (in Danish: Tinglysningsafgift). In a sale between independent parties the registration fee will be calculated based on the purchase price. Unless agreed otherwise between the parties, the registration fee is paid by the buyer.
Costs relating to the transfer of land are normally paid by the buyer, unless otherwise agreed. However, the seller is jointly liable for the payment of these costs.
There are fees for the necessary changes to the land register (registration of a priority notice of conveyance, a change of ownership and potentially land charges). The person who applies for the changes to be made is responsible for paying these costs, so both the seller and the buyer are usually responsible jointly.
Most purchase agreements provide for the buyer to bear the costs. The fees are payable to the local court where the land register is kept.
Further, notary fees also need to be paid. The notary services are required by law as otherwise, the deal will not be legally accepted/binding.
If there is a real estate agent involved, then a commission will need to be paid to him/her. The normal commercial practice is for both the purchaser and vendor to pay 1% of the purchase price each. However, in the event that parties do not feel it is necessary to use a real estate agent, it is possible to carry out the transaction without one.
Solicitors may be involved in the transaction for the purposes of checking title, preparing the relevant legal documents etc. As such, aside from limited circumstances provided in the Hong Kong Solicitors' Guide to Professional Conduct, the parties will need to be separately represented and therefore each will usually incur legal costs for engaging their own respective solicitors.
A service fee is payable to the land registry office. Legal and notarial fees may also be incurred. Such additional costs are usually borne by the buyer unless otherwise agreed.
Any costs incurred in connection with the discharge of existing encumbrances are paid by the seller.
Costs include advisors' fees. Each party pays their own advisors' fees.
The incidental costs of acquisition may be deductible when calculating any gain or loss on the disposal of the property. Such fees must be incurred wholly and exclusively for the purpose of the acquisition of the asset, and must fall into one or other of the following categories:
Costs include advisors' fees and compliance expenses (eg for the statutory audit of the company or the completion of accounting and tax returns). Each party pays their own advisors' fees.
The incidental costs of acquisition may be deductible when calculating any gain or loss on the disposal of the property. Such fees must be incurred wholly and exclusively for the purpose of the acquisition of the asset, and must fall into one or other of the following categories:
In addition to the relevant taxes, costs include the fees of professional advisers and notary's fees. Notary's fees are mostly set by law and are related to the value of the transaction within a maximum and minimum range.
The buyer normally pays the notary's fees, while professional advisers are paid by the instructing party.
Notary's fees will be incurred but can usually be negotiated. Other costs include the fees of professional advisors.
Other costs include the fees of professional advisors.
Where foreign persons look to acquire New Zealand real estate that includes “sensitive land” or a “significant business asset,” they must generally seek approval from New Zealand’s Overseas Investment Office (OIO) for proposals to acquire Australian real estate unless certain exclusions apply (See New Zealand – Corporate Vehicles). For OIO to consider an application for such approval, application fees must first be paid, with fees ranging from circa. NZD2,000 up to NZD150,000. Generally, the purchaser will need to obtain OIO approval and pay for any OIO costs, but ultimately this is up to the parties to decide and may depend on the commercial bargaining powers of those parties.
A combination of land charges, such as ground rents, tenement rates, Neighbourhood Improvement Charges, Business Premises permits apply to properties at different rates across Nigeria. The responsibility for these payments is on the owner and occupier of the premises and ought to be paid to Government before a transfer of the interests to the purchaser otherwise, it becomes the responsibility of the purchaser or assignee to make the payment on any outstanding charges after transfer.
The Land Use Act provides that the Governor of a State where a property is located shall give consent for a transfer of the interests in the property to be valid. The transactions in which Governor’s consent is needed include sale of land, mortgage, leaseetc. Payment of a consent fee may be made conditional on the granting of the consent or made antecedent of the grant. The rate chargeable as consent fee depends on the scale adopted in a particular state but is mostly between 3–5% of the consideration paid on the property transaction. Failure to pay consent fee will make the alienation of interest voidable.
The Registration Fee is required to be paid under the various land instrument registration laws of the States before documents are registered. The property sought to be registered may be valued or revaluated by the director of lands or other valuers to determine the amount payable, and not necessarily the amount stated by the parties in the document sought to be registered.
The purchaser is responsible for ensuring that all required costs and taxes for consent and registration of the transferred interests are paid.
The fees for the Solicitors and other professional consultants including estate surveyors and agents also arise in transfer of property transactions.
The purchaser is usually responsible for the payment of the transaction costs and the taxes except where expressly agreed by the parties that the costs and taxes are to be shared by the parties.
These include the cost of advisors and costs relating to the setting-up of a company or holding company, if relevant. The seller is responsible for the broker’s fee, unless otherwise agreed by the parties.
In the case of an asset deal (ie the direct purchase of an interest in real estate by a corporate vehicle or individual), the purchase of real estate incurs the following costs:
Depending on the particular circumstances and the type of real estate, other costs may also be incurred (eg the cost of obtaining other documents required by the notary and the commission charged by the real estate agent).
In the case of a share deal (ie the purchase of shares in a corporate vehicle holding the real estate), costs include:
In the case of the purchase of an interest in a partnership, costs include:
In Portugal, the transfer of real estate requires the payment of notary's fees, if the transfer was executed through public deed and also registration fees regarding the registry of the acquisition before the relevant Land Registry Office. In general, the acquirer pays these transaction costs.
All agreements for the transfer of ownership or other real rights over real estate must be notarized in order to be valid, and the notary's fees can be quite significant. For example, for transactions larger than RON 600,001, a notarial fee of 6,405 RON and 0.6% of the transaction value exceeding RON 600,001 is due.
The notary's fee is paid by the purchaser unless otherwise agreed between the parties.
Real estate related rights need to be registered for enforceability purposes. The Land Registry will charge a fee for any type of registration, depending on the particular characteristics of the transaction (i.e. sale and purchase, lease, right of use, etc). In the case of sale and purchase agreements, the registration of the transfer is subject to a fee of 0.5 percent for registration of the right in favour of a legal entity or 0.15 percent for registration of the right in favour of a natural person applied to the value of the immovable property which was transferred as indicated in the sale agreement.
The registration fee is paid by the purchaser unless otherwise agreed between the parties.
There is a fee of €66 for the registration of the new owner in the Land Register (€33 for registration by electronic means). This fee rises to €266 if the applicant applies for an accelerated registration which is then carried out within 15 days (€133 for registration by electronic means). In addition, all of these fees are reduced by €15 if a notice of an intended registration is filed. The notarial fee for the verification of a signature is €4 plus + VAT per one signature. Responsibility for paying these costs depends on what the parties have agreed.
Costs include the notary's fees, the property registration fee (when buying real estate) and any fees for professional advisors.
Stamp duty is payable by the lender on the creation of a mortgage securing a loan at the rate ranging from 0.5% to 1.5% of the guaranteed debt.
The notary's fees are determined by law and payable by the seller. Fees for the first and subsequent copies of notarial documents are payable by the buyer, unless otherwise agreed by the parties.
The registration fees are payable by the buyer.
In the case of the purchase of a newly constructed or fully refurbished hotel, the seller must obtain a licence to open from the tourism board of the relevant regional government before the hotel can start to operate. There is also a fee for this service.
Costs include the notary's fees and fees for professional advisors. The notary's fees are determined by law and payable by the seller. Fees for the first and subsequent copies of notarial documents are payable by the buyer, unless otherwise agreed by the parties.
Estate agents work on a commission basis which generally varies between 0.5 percent and 5 percent of the purchase price, depending on the property and size of transaction. Additional costs include any legal, financial, commercial and technical investigations. The seller normally pays the estate agent. All other costs are generally paid by whichever party instructed the advisers concerned.
There are none.
These could include:
These are payable to the Land Registration Department of the Abu Dhabi Municipality.
Such fees could include:
Other costs include the fees of professional advisors (eg surveyors, lawyers, accountants, capital allowances consultants).
Where the buyer acquires an interest in the real estate it is usual, and usually a condition of any third-party financing, for certain searches and due diligence to be undertaken, for example:
Also, where real estate is acquired, this must be registered with the Land Registry and relatively small fees apply depending on the value of the property interest acquired.
Other costs include the fees of professional advisors (eg surveyors, lawyers, accountants, capital allowances consultants).
Where the buyer acquires an interest in the real estate it is usual, and usually a condition of any third party financing, for certain searches and due diligence to be undertaken, for example:
Also, where real estate is acquired, this must be registered at the Land Register, and relatively small fees apply depending on the value of the property interest acquired.
In the case of a direct purchase of real estate, notary's fees, state duty and pension fund duty are normally payable.
Pension fund duty is paid by the purchaser of real estate at 1 percent of real estate value (excluding VAT) indicated in the sale and purchase agreement. Pension fund duty is not payable on the purchase of plots of land.
State duty, also applies, at 1 percent of the contractual value of the real estate being transferred. The notary's fees are divided between the parties subject to their agreement.
When real estate is acquired via the purchase of shares in the entity holding the asset, a token amount of state duty is paid to the registrar for registering changes to the statutory documents. In addition, in the case of a joint stock company, fees are payable to the company's registrar for entering the relevant record in the shareholders' register, if this is maintained by an independent entity.
Many states and localities impose costs and fees (in addition to taxes) for recording and filing deeds, mortgages, and other documents in the land records.
Other costs typically include the cost of obtaining title insurance, escrow fees, and fees for professional advisors.
Stamp duty is payable by the purchaser at a sliding scale rate of between 1% to 4% of the purchase price.
The transfer to title fees payable by the purchaser are determined by the Law Society of Zimbabwe at a fixed tariff and are payable at a rate of 3% of the purchase price or 3% of the value of the property, whichever is the greater. The purchaser pays transfer fees unless otherwise agreed by the parties.
In a case of new land development, deduction fees are payable to the Surveyor General’s office and are calculated according to size of the land.
City Council rates/bills also have to be cleared before a transfer can be processed and are charged three months in advance.
Trading licences must also be paid in cases where business will be carried out.
Other fees for professional advisors eg accountants or land inspectors.
