What are the risks of buying real estate without a notary?

Oct 9, 2024

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Buying real estate is one of the most important financial decisions in a person's life. Yet some real estate transactions are conducted without the involvement of a notary, which can result in serious consequences for both the buyer and the seller.

As a guarantor of the legal security of a transaction, the role of the notary is essential to ensure the validity of the real estate purchase.

Let's examine the major risks of buying real estate without a notary and why it's vital to use a professional to secure such an important transaction.

Absence of legality verification of the property

The notary plays a fundamental role in verifying the legality of the real estate. When a transaction is carried out without a notary, there is no guarantee that all the necessary checks have been made. This can lead to serious long-term problems.

A risk of buying an illegal property

Without the intervention of a notary, you could buy a property that does not have the required legal authorizations, such as a title deed, a town planning certificate, or a building permit. These documents are essential to verify the property's compliance and ensure it complies with current legislation.

Suppose you buy a house, but without the notary checking the origin of the property titles. After a few months, you discover that the property is on non-buildable land or is subject to a mortgage, which could force you to return it or face legal proceedings.

By going through a notary, you ensure that all legal documents are verified, including easements, mortgages, or potential disputes. This protects your purchase and avoids unpleasant surprises.

Sale of non-compliant property

In some cases, unscrupulous sellers may attempt to sell properties that do not meet building or urban planning standards. Without a notary to carry out the checks, you could buy a property with non-compliant works, which can result in fines or even demolition orders.

No legal security for the buyer

One of the main roles of the notary is to guarantee the legal security of the transaction. When a transaction is carried out without this professional, there is no legal framework that fully protects the buyer's rights, which can lead to disputes or significant financial losses.

Risk of real estate scams

In the absence of a notary to oversee the transaction, you expose yourself to real estate scams. Unscrupulous sellers may attempt to sell you properties for which they have no ownership rights, or properties that belong to several people, complicating the transaction.

A seller claims to be the owner of an apartment, but in reality, he only holds an undivided share of the property. Without checks by a notary, you could end up with a property that you cannot easily use or resell, as other co-owners hold shares.

The notary is the only one authorized to verify the real identity of the owner and ensure they have the legal rights to sell the property. This protects you from fraud.

Lack of transparency in contract terms

The sales contract is a complex document that must detail all the conditions of the transaction (price, payment deadlines, suspensive clauses, etc.). Without a notary, you risk signing a contract with disadvantageous or unclear clauses, which can make it difficult to carry out the sale or lead to conflicts with the seller.

High financial risks

When a real estate purchase is made without a notary, the financial risks are much higher. Real estate transactions often involve large sums, and the absence of a strict legal framework can result in significant financial losses.

Payment without guarantee

Without a notary, you may be required to make an advance or significant payments without any guarantee that the transaction will go through. In the absence of funds deposited with a notary, the seller could withdraw from the sale without refunding the deposit, or you could discover that the property is not compliant after having paid part of the price.

You pay a large deposit for the purchase of land, but after a few weeks, the seller does not complete the sale and disappears with your money. If the payment had been made with a notary, the deposit would have been safely held until the transaction was finalized.

By going through a notary, your money is deposited in an escrow account. This ensures that the funds will only be transferred to the seller once all the legal conditions of the sale are met.

Fees and taxes not calculated correctly

During a real estate purchase, the notary also takes care of calculating the notary fees and taxes (registration fees, capital gains tax, etc.). Without this precise calculation, you risk ending up with hidden fees or incorrect amounts to pay after the transaction.

You buy an apartment without a notary, and after a few months, you receive a notification from the tax services stating that you still need to pay transfer duties that you hadn't anticipated.

No protection against future disputes

The notary does not just draft the deed of sale. He is also the guarantor of the long-term security of the transaction. The absence of a notary can therefore create future disputes, especially if errors were made during the transaction.

Difficulty proving ownership

The absence of a notarized deed can make it difficult to prove ownership of the property. This can be problematic in the event of a future sale or if a dispute arises concerning the rights to the property. Moreover, without registration of the deed of sale in the land register, you have no legal guarantee of ownership.

If you need to resell your property or use your property as collateral for a bank loan, banks will require a registered notarized deed. If this document does not exist, it could compromise your future financial plans.

Inheritance or co-ownership conflicts

Real estate is often at the heart of inheritance or co-ownership conflicts. In the absence of legal documents drafted and kept by a notary, you risk finding yourself at the center of disputes with other heirs or co-owners.

Imagine buying a house without knowing that it is jointly owned with other members of the seller's family. Without a notary to verify the legal status of the property, you could become involved in endless and costly disputes.

Conclusion: Never underestimate the importance of a notary in a real estate transaction.

Buying real estate is a significant investment, and going without a notary exposes you to many risks: lack of legal verification, legal insecurity, financial losses, and future disputes. The notary, as a public officer, is an essential expert to secure your purchase, guarantee your rights, and avoid unpleasant surprises.

It is crucial to always consult a notary for any real estate transaction, whether it is for the purchase of a primary residence, a rental property, or a building plot. The notary's involvement guarantees total legal security, protects your finances, and ensures a transparent transaction in compliance with the current legislation.

Ready to buy real estate safely? Contact a notary to secure your transaction and explore our real estate offers on Housing Place today.