Who pays the notary fees in the sale?

How are notary fees calculated during a sale?

Before we clarify who pays, we need to understand exactly what is included in notary fees for a sale . Many laypeople throw here different Positions in one pot.

• The notarization fee: This is the actual fee for the notary. He drafts the purchase agreement, advises both parties, and carries out the notarization.
• The land registry fee: This is a government charge for the transfer of ownership being recorded in the land register ("the big book of owners").

Together, these two items constitute the total notary fees for the sale of the property itself. Important: Technically speaking, the costs for drawing up mortgage deeds are often not included in the shared notary fees for the sale , but are usually borne entirely by the buyer, as they serve their financing needs.

The crucial question: Who pays?

In Switzerland, there is freedom of contract. This means that buyers and sellers can freely agree in the purchase contract who will bear the notary fees for the sale . Theoretically, either the seller or the buyer could pay everything. In practice, however, almost all parties adhere to cantonal customs. Anyone wishing to deviate from these customs must provide a very sound justification during negotiations.

The "half-half" model (the standard in German-speaking Switzerland)

In most German-speaking cantons of Switzerland, including Zurich, Bern, Basel-Landschaft, St. Gallen, and Aargau, it is customary for buyers and sellers to share the notary fees equally when selling a property . Each pays 50 percent. This model is considered fair, as both parties have an interest in the transaction: the seller wants the money, and the buyer wants the house. The notary fees are thus considered shared transaction costs.

The "buyer principle" (Western Switzerland and Ticino)

In French-speaking Switzerland (e.g., Geneva, Vaud, Valais) and Ticino, the tradition is often different. Here, it is more common for the buyer to bear all notary fees in the sale . Similarly, in some German-speaking cantons (e.g., Schaffhausen or parts of Thurgau), the practice tends for the buyer to bear the main burden, while the seller may only cover the costs of clearing their own encumbrances.

How high are the notary fees for a sale?

The amount of notary fees for a sale is not fixed, but usually depends on the purchase price (per mille rate). Each canton also has its own regulations in this regard.

Here's a numerical example to illustrate:

• Purchase price : 1,000,000 Swiss francs.
• Canton of Zurich: The notary fee is 0.1% (CHF 1,000) and the land registry fee is 0.15% (CHF 1,500). The total notary fees for the sale are therefore CHF 2,500. through two , pays Each 1,250 francs.
• Canton of Bern: Here, fees are often higher, ranging from approximately 0.5% to 0.7%. Notary fees for a sale can quickly amount to 5,000 to 7,000 Swiss francs.

It is essential to find out about local rates in advance, as notary fees for sales can vary by several thousand francs depending on the region.

The trap of joint and several liability

Regardless of what you agree upon in the contract, both parties are usually jointly and severally liable to the notary and the state for the notary fees in the case of a sale . This means that if you have agreed that the buyer will pay everything, but they are bankrupt or ignore the invoice, the notary will contact the seller. You will then have to pay all the notary fees and try to recover the money from the buyer through civil proceedings.

minimize this risk with notary fees during the sale , many notaries require an advance payment or settle the fees directly via the escrow account into which the purchase price is paid.

Deductibility: An advantage for the seller

For you as the seller, notary fees are not just an expense, but also a way to optimize your taxes. You can deduct your share of the notary fees from the profit when calculating capital gains tax as acquisition costs (selling expenses). This means : If you pay 2,000 Swiss francs in notary fees , your taxable capital gain will decrease by exactly 2,000 francs. Therefore, keep your receipts for notary fees safe; they are worth their weight in gold.

For the buyer, notary fees are considered part of the property's acquisition costs. They can only be claimed as a tax deduction if the buyer resells the house years later and then calculates their own capital gains tax.

Special feature: The promissory note

We need to make a clear distinction: The notary fees for the sale of the property (transfer of ownership) are shared. But what about the mortgage deed for the bank? If the buyer takes out a new mortgage, a mortgage deed often needs to be drawn up or increased. The notary and land registry fees for this process are not among the standard notary fees for the sale that are shared. Since the mortgage deed serves solely to finance the buyer, they usually have to bear these costs alone. Make sure this item is listed separately on the notary's invoice so that you, as the seller, don't inadvertently pay costs that aren't part of the shared notary fees for the sale .

Negotiation strategy

In a "seller's market" (high demand, low supply), the seller often dictates the rules. Here, the usual practice (generally 50/50) is strictly adhered to, or attempts can be made to pass the notary fees on to the buyer (which is unusual in German-speaking Switzerland and can appear arrogant).

In a buyer's market, however, it can be a smart concession for you as the seller to offer to cover a larger portion of the notary fees to close the deal . Since notary fees are relatively small compared to the purchase price (a fraction of a percent), this is often a psychologically valuable, yet financially manageable, concession.

Conclusion

The question "Who pays the notary fees in a sale ?" can be answered in most German-speaking cantons of Switzerland with "both parties pay half." This is the common practice and is considered fair. In French-speaking Switzerland, the buyer often pays alone.

Important for you: Document the arrangement regarding notary fees in writing within the purchase agreement to avoid misunderstandings. As the seller, make sure to deduct your share for tax purposes, and as the buyer, ensure that the costs for the mortgage deed are not conflated with the general notary fees for the sale . Transparency prevents problems.

If you need help calculating additional costs or want legal security for your contract, Loft offers uncomplicated and transparent solutions.

Glossary

• Notary fees for a sale: The total fees incurred for the public notarization of the purchase agreement and the entry in the land register.
• Joint and several liability: The principle that both parties (buyer and seller) are liable for the total fees if the other party does not pay their share of the notary fees during the sale .
• Notarization: The formal act in which the notary reads the purchase agreement aloud to the parties, explains it, and has them sign it. Without she The sale is invalid .
• Usus: The local custom or practice (e.g., cost sharing) that is applied when nothing else is stated in the law or contract.
• Mortgage certificate: A security that serves as collateral for the bank's mortgage. The costs for its issuance are usually considered separately from the general notary fees during the sale .