What notary and land registry fees are incurred when buying a home?

The composition of the fees in detail

What exactly are notary and land registry fees?

Notary and land registry fees consist of two separate but closely related items. Both are usually based on the purchase price or the mortgage amount.

• Notary fees: The notary certifies the purchase agreement. They check its legality, explain any risks and certify the signatures. Their fee is a significant part of the notary and land registry fees.
• Land registry fees: The land registry is the government agency that registers ownership. The government charges fees for the registration (mutation) work. These make up the second part of the notary and land registry costs.

It is important to understand that notary and land registry fees are not negotiable like a broker's fee. They are based on cantonal tariffs or regulations.

Regional differences: federalism strikes again

When we talk about notary and land registry fees, we have to talk about the canton in which the property is located. Switzerland has three notary systems that have a significant impact on the amount of notary and land registry fees:

• Official notary (e.g. Zurich, Schaffhausen, Thurgau): Here, the notary is a public official, often located directly at the land registry office. Notary and land registry fees are often lower here, as they follow fixed government tariffs. In Zurich, for example, the notary and land registry fees for notarisation amount to 0.1% of the purchase price.
• Freelance notary (e.g. Bern, Aargau, Basel, Geneva): Here, notaries are self-employed. Although there are fee schedules, notary and land registry fees tend to be higher here than at the official notary.
• Mixed system: Some cantons have mixed systems.

Knowing how the system works will help you to better estimate the notary and land registry fees. Buying a house in the canton of Bern often incurs significantly higher notary and land registry fees than a comparable purchase in the canton of Zurich.

The mortgage note: a cost driver

Notary and land registry fees are not only incurred for the actual purchase agreement. If you take out a mortgage, the bank will require a mortgage deed as security. The creation of this mortgage deed incurs further notary and land registry fees.

These specific notary and land registry fees are calculated based on the amount of the mortgage (pledge amount).

• Certification of the mortgage deed: The notary must also certify the establishment of the lien.
• Registration of the lien: The land registry office enters the encumbrance.

Taken together, these notary and land registry fees for the mortgage deed often amount to 0.1% to 0.3% of the loan amount. Money-saving tip: Check whether there is already a mortgage deed on the property that you can take over from the previous owner. This saves enormous notary and land registry fees, as no new mortgage deed needs to be drawn up, only a transfer.

Who pays the bill?

One of the most common questions is: who bears the notary and land registry costs? The law often provides for dispositive law, which means that the parties can agree otherwise. The following is customary in the market:

• Purchase agreement: The notary and land registry fees for the transfer of ownership are usually split equally (50/50) between the buyer and seller.
• Debt certificate: Since the debt certificate serves solely to finance your purchase, you as the buyer usually bear 100 per cent of these specific notary and land registry costs.

It is worth explicitly stating in the purchase agreement how the notary and land registry fees will be divided in order to avoid disputes.

Calculation example and guidelines

How high are the notary and land registry costs in concrete terms? As a rule of thumb, you should expect the pure notary and land registry costs (excluding transfer tax!) to amount to around 0.2% to 0.5% of the purchase price.

Sample calculation (canton with official notary's office, e.g. Zurich): Purchase price: CHF 1,000,000

• Notary fee for purchase agreement (0.1%): CHF 1,000
• Land registry fee for transfer of ownership (0.1%): CHF 1,000
• Notary and land registry fees (total): CHF 2,000 (Note: In cantons with independent notaries, these notary and land registry fees can also amount to CHF 4,000 to 5,000).

In addition, there are notary and land registry fees for the mortgage note (e.g. £800,000 mortgage), which can amount to approximately £2,000. Overall, you should therefore have liquid funds available for notary and land registry fees, as these are not financed.

When are the fees due?

Notary and land registry fees are usually invoiced immediately after the purchase has been completed. The land registry office and the notary send the invoices for the notary and land registry fees to the party specified in the contract. As you cannot cover these costs with your mortgage, you must ensure that this money is available in your account. In the worst case, late payment of notary and land registry fees can lead to delays in entries being made.

Conclusion

Notary and land registry fees are a technical but financially relevant part of your budget. They vary greatly depending on the canton and notary system. While they are often moderate in cantons with official notaries, notary and land registry fees can be significantly higher in cantons with private notaries.

When calculating notary and land registry fees, never forget the fees for the mortgage note. These are often overlooked, but make up a significant part of the total notary and land registry fees. Clarify with the estate agent or seller at an early stage whether an existing mortgage note can be taken over in order to optimise your notary and land registry fees. Transparency is worth its weight in gold here.

If you need assistance with precise budgeting and analysing the notary and land registry costs incurred, Loft can help you keep track of everything and complete your purchase securely.

Glossary

• Notary and land registry fees: All fees for public certification and official registration when purchasing real estate.
• Public certification: A formal process at the notary's office that is mandatory and accounts for part of the notary and land registry fees.
• Mortgage note: A security to secure the mortgage. Its creation incurs separate notary and land registry fees.
• Official notary: A system in which the notary is employed by the state, which often leads to lower and fixed notary and land registry fees.
• Mutation: The technical term for a change to an entry in the land register, for which notary and land registry fees are charged.