Buyer costs
The difference between free in name and buyer's costs
Free in the name or at the buyer's expense, you have probably seen these terms in the text of an owner-occupied home. But what exactly do these terms mean? We will explain it to you in this blog.
What does buyer costs mean?
Buyer costs, also abbreviated as kk, are the costs that are borne by the buyer when purchasing a house or apartment. If you want to become the owner of a home, costs will be added to the purchase price of the home. These costs are called the buyer's costs. Existing homes are often sold at buyer's expense. And what are the costs that you pay under the 'buyer costs'? We have listed them below:
Basically, the Buyer Costs consist of;
• Transfer tax;
• Notary costs for registering the property in your name (also known as the 'Deed of Delivery');
• Costs for registering the 'Deed of Delivery' at the land registry.
In practice, most buyers still have to deal with additional costs that are often also referred to as 'Buyer Costs'. Think about;
• Construction report;
• Purchasing agent costs;
• Costs valuation report;
• Advice and mediation costs from the bank or mortgage advisor;
• Notary costs for the mortgage deed;
• Costs of registering mortgage deed at the land registry.
What do you pay for buyer costs in 2021?
Are you planning to buy a home and would you like to know what the buyer costs are? First of all, take the transfer tax into account. This is a percentage of the purchase price of the home. This percentage is generally 2% of the purchase price. However, there are also situations where this rate is 0% or 8%. You also pay notary costs: these costs depend on the number of deeds that need to be drawn up and can vary between € 1.000 and € 2.000. Do you want help buying a home and do you engage a mortgage advisor or purchasing agent for this? Then these costs will be below the buyer's costs. And what about appraisal costs? Yes that one too!
And can you finance the buyer's costs in the mortgage? Unfortunately, this is no longer possible since 2018. The maximum mortgage for 2021 is 100% of the home value. You must therefore pay the costs out of your own pocket. Did you know that part of the buyer's costs are tax deductible? This includes mortgage advice, appraisal costs and notary costs for the mortgage deed.
What does free in name mean?
Free by name, also abbreviated as von, means that in principle there are no additional costs for the buyer on top of the agreed purchase price. But watch out! Not all costs are always included. It is often the new-build homes that are sold freely by name. The seller of the home pays the following costs for you, among other things: the notary costs for the deed of transfer, the VAT (or transfer tax for an existing home) and the cadastral costs for registering the deed of transfer. You must pay 21% VAT on the new-build home when purchasing the home. This amount is included in the purchase price of the home together with the other costs of the project developer (e.g. the costs of purchasing the land, construction costs and connection costs of utilities).
Tip: Ask the project developer what costs are included in the purchase price of the home.
Existing homes can also be sold freely by name. The advantage? The seller pays the costs for the Deed of Delivery at the notary and transfer tax to make the home more attractive.
The costs for a home – free in name
Have you found a nice home - free in name? Do count on real estate agent costs, notary costs for the mortgage deed, costs for taking out the mortgage and valuation costs.
Do you need advice? We from ECHT Makelaars & Taxateurs are ready for you! | 072-202 131 20 | info@echtmakelaar.nl
