Parties visit notary to draft and authenticate the sale agreement (Compromis de Vente)
Agency: Civil Law Notary
After signing a sale agreement (“compromis de vente”) between each other, as per common practice, the parties will visit a Civil Law Notary for the drafting and authentication of the notarial deed. The sale is complete between the parties, and ownership is acquired by the buyer, as soon as the property, and the price have been agreed, although the property has not yet been delivered or the price paid (Article 1583 of the Civil Code). As a sale of real estate must be registered (which triggers the payment of registration taxes) and recorded in the mortgage registry in order to be enforceable vis-à-vis third parties and as only duly certified deeds may be entered in the register, the sale must be recorded in a notarial deed (“acte de vente”).
The Civil Law Notary is deemed a public official with powers delegated by the State to authenticate the deeds he drafts and provides complete security to the contracts he supervises. The authenticity of the deeds grants the parties an undisputable date and content in Court. The law imposes personal liability on the notary for his professional acts which are more extensive than that of other branches of the legal profession.
As of February 2018, there are 36 Civil Law notaries, 18 of those in Luxembourg canton, in the Grand-Duchy of Luxembourg and the sale may be drawn up in front of anyone of them. This study assumes that parties would call on day one and receive an appointment for the same or following day.
Time and cost: 2 days, EUR 10 (4 EUR stamp per page of the deed (2-3 pages))
Notary conducts full search at property registry
Agency: Property registry (Bureau des Hypotheques)
The Civil Law Notary may go in person to the Bureau des Hypotheques to request and receive either a ‘releve des inscriptions hypothecaires’ (containing a list of mortgages), or a ‘recherche par case hypothecaire’ (containing a list of all land transactions effected by the landowner together with that of every mortgage or charge burdening the property). For each excerpt of the registry EUR 1.24 is payable per property owner and EUR 0.50 per each registered property. If the excerpt includes photocopies, EUR 0.50 is payable per each photocopy. For a closing certificate which confirms that the excerpts are the only existing ones, EUR 1.24 per property-owner is payable. For a negative excerpt ( no properties registered) EUR 2.48 is payable per person.
Time and cost: 1 day, EUR 2.48 (EUR 2.48 for full search)
Notary conducts search at the Administration du Cadastre (online)
Agency: Administration du Cadastre
The Civil Law Notary should also check the status of the property at the cadastre. The notary can equally obtain this information through the cadastre’s webpage where all this information is online. Free information is available to the general public on the website http://www.geoportail.lu. Authorized users, such as notaries, have direct access to all information whereas the general public has only limited but adequate access to the land register information.
Time and cost: Less than one day (online), EUR 0 (electronic) or EUR 5 (paper)
Notary notifies tax administration of transfer and obtains tax clearance
Agency: Tax Administration office
The Civil Law Notary contacts the tax administration office to notify them that the property will be sold. The tax administration office confirms that the property has no claims or unpaid taxes delivering a document called “certificat de non-obligation” . If there are outstanding claims or taxes, the tax administration may register a hidden mortgage (“hypothèque occulte”) on the property.
Time and cost: 1 day, no charge
Buyer sends funds, fees, taxes and anti-money laundering documents to notary
Agency: Civil Law Notary
The buyer will pay the taxes, fees, and funds for the property by wire transfer to the Notary, in addition to notarial fees. Notarial fees are determined by the Regulation of 24 July, 1971 on notary fees. The buyer must also send anti-money laundering documentation to the Civil Law Notary at this time, regarding the origin of the funds he is using. The Civil Law Notary also checks whether the persons signing the authenticated deed have the necessary power of representation.
Time and cost: 2 days, EUR 352,645.01
- 6% of the market value of property (registration fee); plus
- 3% of the market value of property (municipal surcharge within city of Luxembourg); plus
- 1% market value of property (transcription duty); plus
- EUR 3,236,766.13 (Notary fee according to the official schedule).
Notary fee schedule for dafting and authenticate the sale agreement (Act #7 – cumulative fee):
- EUR 3.718,40 : 4%
- EUR 3.718,40 : 2%
- EUR 9.915,74: 1.5%
- EUR 7.436,81: 0,80%
- EUR 49.578,7: 0,6%
- EUR 74.368,06: 0,5%
- EUR 99.157,41: 0,3%
- EUR 991.574,10: 0,10%
- 1.239.467,62: 0,05%
- 1.239.467,62: 0,05%
Parties sign the transfer deed
Agency: Civil Law Notary
The parties return to the Civil Law Notary to sign the transfer deed.
Time and cost: 2 days, already paid in Procedure 5
Notary registers transfer deed at the Administration de l’Enregistrement et des Domaines
Agency: Administration de l’Enregistrement et des Domaines
The Civil Law Notary registers the transfer deed at the Administration de l’Enregistrement et des Domaines, which charges the transfer duty to the notary. The Administration will record the transfer after two to five days. The Administration will also send the deed to the Administration du Cadastre for registration of the new owner there. It will take the Cadastre about two weeks to record the new owner. At the same time, the Administration will take about two weeks to send a copy of the registered deed, with the stamp of the Administration and a reference number on it, back to the notary. The parties pay the registration, municipal and inscription fees to the Civil Law Notary, who pays the Administration.
Time and cost: 18 days, already paid in Procedure 5
