2024/08/15

Buying an apartment and notary fees – prepare for expenses

The price of an apartment is unfortunately not the only cost that needs to be incurred when purchasing it. Unless the property is finished to a turnkey standard, it will require additional finishing work, and in the case of the secondary market, renovations. A frequently overlooked cost in analyses is the notary fee. This refers to the remuneration of the notary who confirms the validity of the development agreement or the transfer of ownership rights to the property. Compared to the price of the property, the notary fee may not seem like a huge expense, but it often amounts to several thousand zlotys, so it should not be underestimated when planning a budget. Why is a visit to the notary so important when buying an apartment? What is the notary fee for a development agreement and the transfer of ownership? What is the difference between the primary and secondary markets regarding the notary fee?

Why does purchasing an apartment require confirmation from a notary?

If you are buying an apartment from the primary market, you will likely need to visit the notary at least twice. The first obligation concerns the development agreement, which must be signed if the construction of the property that will become your new apartment is ongoing. How does it work?

Imagine you are browsing new apartments in Poznań and you find an offer that perfectly meets your expectations. Let’s say the apartment is in another building belonging to the Poznań estate of Grunwald Między Drzewami, which is distinguished by its location in a green area with excellent access to the city center and great local infrastructure. The apartment is still under construction and will be ready for use in two years, so you sign a contract with the developer that makes you the owner. This is how the development agreement works.

The development law, which protects the interests of property buyers, requires that the document be in notarial form. Therefore, both parties must visit the notary. Later, when the transfer of ownership rights to the property takes place, another visit to the notary will be necessary to ensure that no one can challenge your ownership.

What is a notarial fee?

A notarial fee is simply the remuneration for the notary for preparing a document. This fee cannot be omitted because in Poland there is an obligation to prepare notarial deeds in the case of purchasing real estate. On the other hand, forgoing this form of contract verification would be reckless.

What is the notarial fee depending on the value of the property?

Although a notary can freely decide how much the notarial fee for a specific service will be, Polish law specifies its maximum amount. It is always dependent on the value of the purchased property. In practice, it happens that the notarial fee is less than the legally designated limit, especially when you buy a property from a developer.

Maximum amount of the notarial fee vs. property value:

Property value up to 3,000 PLN – cost 100 PLN
Property value from 3,000 PLN to 10,000 PLN – 100 PLN plus 3% of the excess over 3,000 PLN
Property value from 10,000 PLN to 30,000 PLN – 310 PLN plus 2% of the excess
Property value from 30,000 PLN to 60,000 PLN – 710 PLN plus 1% of the excess
Property value from 60,000 PLN to 1,000,000 PLN – 1,010 PLN plus 0.4% of the excess
Property value from 1 million PLN to 2,000,000 PLN – 4,770 PLN plus 0.2% of the excess
Property value over 2,000,000 PLN – 6,770 PLN plus 0.25% of the excess, but not more than 10,000 PLN.

The notarial fee is a significant expense, although it doesn't have a huge impact on the budget compared to the total value of the transaction. When signing a contract with a developer, you have a chance to take advantage of a lower rate.

Who pays the notarial fee when buying an apartment on the secondary market?

Notarized agreements for the purchase of real estate also apply to the secondary market. Although the law does not specify who must pay the notary's fee, it is almost always, by custom, the buyer of the apartment who pays the notarial fee.

Who pays the notarial fee when buying a property on the primary market?

The situation is different in the primary market. In the case of a developer agreement, both parties share the costs. The law requires the developer to cover at least 50% of the notarial fee. This means that as the buyer, you will pay a maximum of 50% of the notary's fee.

Before purchasing a new apartment, it is worth carefully calculating all the associated costs, as the notarial fee is one of those expenses that cannot be overlooked.