Buying an apartment and notary fees – prepare for expenses

CThe cost of an apartment is unfortunately not the only expense that must be incurred when purchasing it. Unless the property is fully finished, it will require 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 for the notary who confirms the validity of the development agreement or the transfer of ownership of the property. Compared to the property price, 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 for 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 by a notary?

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

Imagine you are browsing new apartments in Poznań and you find an offer that perfectly meets your expectations. Let’s assume the apartment is in another building belonging to the Poznań estate Grunwald Między Drzewami, which stands out for 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 completed in two years, so you sign a contract with the developer that will make you its owner. This is how a development agreement works.

The Developer's Act, which protects the interests of property buyers, requires that the document be in notarial form. Therefore, both parties must go to the notary. In the future, when the ownership rights to the property are transferred, another visit to the notary will be necessary to ensure that no one can challenge your ownership.

What is the notary fee?

The notary fee is simply the remuneration for the notary for preparing the document. This fee cannot be omitted because, in Poland, there is a legal obligation to prepare notarial deeds in the case of real estate purchases. On the other hand, renouncing this form of contract confirmation would be reckless.

How much is the notary fee, depending on the value of the property?

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

Maximum Notary Fee and 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 amount exceeding 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 above 2,000,000 PLN – 6,770 PLN plus 0.25% of the excess, but not more than 10,000 PLN.

TNotarial fee is a significant expense, although it does not have a huge impact on the budget compared to the total value of the transaction. By signing a contract with a developer, you have a chance to benefit from a lower rate.

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

Notarized contracts for property purchases also apply to the secondary market. Although the law does not specify who is to pay the notary's fee, it is almost always customary for the buyer to cover the notarial fee when purchasing an apartment.

Who pays the notarial fee when buying a property from 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 a 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, and the notarial fee is one of those that cannot be overlooked.