Buyer and seller go to the notary with the title to draft the sale-purchase agreement
Agency: Notary
The property folder (dossier foncier) is already in possession of the seller. The folder contains the following documents: the property title, a cadastral plan of the property, the acquisition price of the previous sale, the names of the owners, and the surface area of the land. The Notary must draft the sale and purchase agreement. The costs for any property transfer is 3% of the property value (law n°005/ AN/18/8èmeL modifying the General Fiscal Code).
Time and cost: 1 day, DJF 1,077,517.11
- 2% of property value (mutation fee)
- 3% of property value (transfer fee)
- 40,000 F to 180,000 F (notary fees)
- 1000 F per page (x 6, stamp duties))
Notary checks for mortgages or liens on the property
Agency: Conservation de la propriété foncière
The Notary check that the property has no liens or charges at the land Registry (Service des Domaines – Conservation de la Propriété Foncière) and asks for a complete list of documents affecting the property (fiche de renseignement sur un titre foncier).
Time and cost: 3 days, DJF 2,500
Notary proceeds to tax authorities to check status of the property and capital gains
Agency: Tax Authority
The Notary submits a copy of the sale-purchase agreement to the Tax Authority to determine the capital gain. After receiving the capital gains tax (if there any to be paid), the notary could convene the parties for the signature of the sale-purchase agreement.
Tax Authority must always be consulted to determine the capital value as a requirement before the signing of the sale agreement. In the majority of cases, the tax authorities re-estimate the selling price (70% of cases) for the payment of the additional amount of capital gain, and this step can take up to a week.
Time and cost: 7 days, no charge
Parties return to the notary to sign the sale-purchase agreement
Agency: Notary
Once the Capital Gains Tax (CGT) has been determined by the tax authority, the notary convenes the two parties to finalize the deed of sale by signing it in front of him. Once this is accomplished, the notary will also sign the deed of sale. The cost of any transfer of ownership is 3% of the value of the property (Law No. 005 / AN / 18 / 8th amending the General Tax Code).
At this point, the buyer only remits a portion of the amount (a deposit) to the seller and if there is a gain, the seller will pay 5% of the amount of the gain.
Time and cost: 1 day, already paid in Procedure 1
Notary registers the sale agreement with the tax authority.
Agency: Tax Authority
The sale-purchase agreement is notarized (acte de vente) and then it’s registered with the Tax Authority (bureau de l’Enregistrement et du Timbre). The notary pays the registration fees directly at l’Hôtel des Impôts.
Documents needed for the registration at the Tax Authority:
- Taxes clearance certificate (Certificat liberatoire)
- Sale-purchase agreement
- Proof of payment property transfer fee (3% property value)
Time and cost: 3 days, 3% property value (already paid in Procedure 1) + 1000 F per page (x 6, stamp duties already paid in Procedure 1)
Notary requests a name change on behalf of the new owner at the Conservation de la propriété foncière
Agency: Conservation de la propriété foncière
The notary can now request the transfer of the title in the name of the new owner. He will deliver the authenticated deed of sale, a copy of the old title deed, a copy of the identity documents of the buyer and seller, and finally the proof of payment of the transfer tax of 2% of the value of the property. The procedure involves checking all paper records and transaction history for the property. The director of the land registry must sign the papers to make them official. The buyer will obtain the title of ownership with a new page with the details of the last transaction and the change of ownership.
Time and cost: 9 days, 2% property value (already paid in Procedure 1)
