The buyout of indivisible shares generates notary fees, which are not always distributed as one might think. Whether it concerns an inheritance, a divorce, or a separation between partners, the question of who pays the notary’s bill depends on the legal nature of the operation and what the parties decide among themselves.
Legal qualification of the operation: division or sale, two distinct tax regimes
Before discussing fees, it is important to clarify a point that co-owners often overlook: the buyout of shares can be classified as a division with compensation or as a sale for consideration. This distinction changes everything from a tax perspective.
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When one of the co-owners buys out the shares of the others to become the sole owner, the notary drafts a liquidation deed. If the operation is classified as a division, it falls under the right of division. If it is reclassified as a sale (for example, when a third party intervenes), the rights of transfer for consideration apply, with a significantly higher rate.
The tax administration and notaries exercise heightened vigilance over this qualification, as it determines the taxable base. A poorly qualified deed can lead to a reassessment. Practitioners recommend precisely framing the drafting of the deed so that the buyout remains within the scope of division, especially in inheritance cases.
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To better understand the details of notary fees for the buyout of indivisible shares, it is necessary to break down each item of expense before asking who bears them.
Rights of division and notary fees: what the costs cover
The “notary fees” is a misleading shortcut. The majority of the amount does not go to the notary himself, but to the public treasury.
The right of division
The right of division is a tax levied by the state on the net value of the shared property. Its rate has been gradually lowered in recent years. The rate of the right of division applicable in 2025 is 1.80% according to Article 746 of the CGI in its current version. This rate applies to divisions resulting from a divorce or separation of bodies.
In the context of an inheritance among direct heirs, the regime may differ. The rights of division remain due, but certain situations may entitle to partial exemptions that the notary must verify on a case-by-case basis.
Fees and expenses
The notary’s fees are regulated by a national scale proportional to the value of the property. They are not negotiable below a certain threshold. In addition, there are expenses, which are the sums advanced by the office for administrative formalities (mortgage status, publication at the land publicity service, copies of deeds).
In total, overall fees generally represent between 2% and 3% of the property’s value in a family division, compared to a significantly higher percentage if the operation is reclassified as a standard sale.
Who pays the notary fees during the buyout of shares
The answer depends on the legal context and the will of the parties. Three scenarios arise.
- In a mutual consent divorce, the notary fees are generally shared between the two ex-spouses, unless otherwise agreed in the approved divorce agreement. The buyer of the share (the one who retains the property) often bears the entire cost in practice, because they have an interest in finalizing the operation.
- In an inheritance, the default rule is to share the costs among all co-owners, proportionally to their respective shares. The heir who buys out may agree to take on the entire cost as part of the overall negotiation of the compensation.
- In an indivision between partners or associates, no legal rule imposes a precise distribution. Everything is negotiable. The notary records the agreement in the liquidation deed.
The key point to remember: no law requires that the buyer alone pays the notary fees. The distribution results from an agreement between the parties, formalized in the deed. If no agreement is reached, the notary applies the rule of proportional sharing according to the shares.
Valuation of the property on the day of division: the real point of contention
Field feedback from practitioners converges on one point: disputes arise less over the principle of the buyout or the distribution of fees than over the method of valuing the property. Notary fees are calculated based on the value declared in the deed. Undervaluing the property mechanically reduces the compensation and the rights of division but exposes the parties to a tax reassessment.
Notarial offices increasingly require an external valuation (real estate agent, land expert) to secure the file. The value retained must correspond to the market price on the day of division, not to the initial acquisition value or an old estimate.
This requirement for updated valuation protects both the seller and the buyer. For the seller, it ensures a fair compensation. For the buyer, it prevents a disgruntled co-owner from contesting the deed after signing.
Financing and actual coverage of fees
When the buyer finances the buyout through a mortgage loan or a home equity loan, the notary fees are almost always included in the borrowed amount. The bank also requires that the notarial deed be finalized to release the funds.
This financing mechanism naturally leads the buyer to cover all the fees, as they include them in their loan. The other co-owners, in turn, receive the net compensation. However, this practice is not mandatory: a selling co-owner can perfectly agree that the fees be deducted from the compensation they receive, which amounts to an indirect sharing of the burden.
Exiting indivision through a buyout is today often preferred over judicial auction, not only to avoid the depreciation associated with an auction sale but also because the costs of judicial proceedings add to the notary fees and increase the bill for everyone. Negotiating an amicable agreement on the distribution of fees remains the least expensive solution for all parties involved.