Are there material costs associated with the creation of mortgages over real estate?
No, only registration/ filing fees. They are €50/€175 in the Property Registration Authority and €40 in the Companies Registration Office.
Creation of mortgages over real estate involve notary public fees and legal fees, as well as Public Registry duties to record the public deed. These costs vary depending on the characteristics of the transaction and the place where the property is located.
Mortgages do not involve any tax payments, except for the applicable taxes on interests paid by debtors to creditors under the relevant loan that is secured by the mortgage.
In principle, no transfer tax is due and the costs for the creation of the mortgage right are limited to the notarial and land registry fees.
The current property registration fee for real estate, hereunder for mortgages is NOK 525. For refinancing (within the same lending framework and for the same pledgor and real estate) the costs are NOK 200.
Mortgages over real estate must be provided in a contract executed in front of the notary public. Notary taxes and tariffs are computed as a percentage of the value of the mortgage.
Land book registration is at the date hereof subject to a tax of RON 300 (approximately EUR 65) plus 0.1% of the value of the guaranteed receivable.
Creation of mortgages in Russia is associated with the following main costs:
- A nominal registration fee – approx. USD 70 to register a mortgage in the Realty Register.
- Notary's fee (notarisation is not mandatory) – approx. USD 500 – 1,000.
- Licensed appraiser’s fee - negotiable.
- Insurance costs (not mandatory) - negotiable.
There is no stamp duty or transfer tax in Russia.
The only material cost associated with the creation of mortgages is a stamp duty levied on the property owner. The stamp duty on mortgages is currently 2 percent of the mortgage amount.
The costs, including taxes, notary and registration fees, in respect of the creation of a mortgage over real estate varies from one Canton to another, but are substantial. They are generally between 0.5% to 2% of the amount of the face value of the mortgage.
The title deed fee (%0,455 of the contract value as for 2017), stamp tax (%0,948 as for 2017) and fix fee are compulsory material costs in creation of mortgage over real estate.
A mortgage to be perfect and valid and to produce all its effects depends on being executed in a public deed (except for legal and applicable mortgages) duly registered in the corresponding real estate record with the competent real estate registry office (as previously mentioned). Accordingly, creating a mortgage necessarily implies costs related to registry offices, such as: costs to draw up a deed and the registration of referred deed in the real estate record. Such costs are variable, since they are calculated based on the value ascertained to the credit, in addition to levy of local and state taxes.
It depends of the location of the property. Some states and municipalities impose a mortgage recording tax which is calculated as a percentage of the face amount of the mortgage and is paid by the borrower (see Q14). In all cases, in addition to its own costs, a borrower will be responsible for the lender's title insurance, legal fees, and due diligence costs as well as a de minimis recording charge.
There are a variety of fees and expenses payable in relation to the registration of mortgages with appropriate registries but as a general rule they are unlikely to be significant enough to affect how the transaction should be structured, e.g. Land Registry fees on a scale of up to £250 per property for the registration of a mortgage and a Companies House fee of £15 for online filing of a charge.
There are no notarisation requirements or property taxes payable in relation to the creation of security over real estate. SDLT is not payable on the creation of security over real estate.
Costs for the creation of a mortgage over real estate are as follows:
- administrative fees for assembling the full set of documents needed for creating the mortgage (notarized copies of notary deeds, excerpts from cadastral maps and sketches of the property, different certificates issued by the Register agency or other regulatory bodies) – depending on the specific case these costs can amount to up to 100 BGN.
- Fees of the notary official for executing the notary deed – determined in the Ordinance for the notary fees, dependent on the type of the real estate and the debt value, secured with the mortgage. In case of a debt of 100 000 BGN – ca. 6000 BGN notary fee.
- Fee for entry into the Land register, payable to the Register agency – 0,1 % of the debt value, for which the mortgage is created, but not less than 5 BGN.
Upon renewal of the mortgage (after the expiration of each 10-year period) the notary official’s fee are half of those collected for the establishment of the mortgage, whereas the Land register fees remain the same.
Creation of mortgages over real estate involves the registration of a notarial deed, which implies notary’s fees for the drafting of the mortgage deed equal to approximately 0.33% of the amount guaranteed and the Land Registry fees and taxes equal to 0.720% of the amount guaranteed.
A mortgage must be notarised and generally will contain a clause submitting the property to immediate enforcement. Such clause enables enforcement without a prior court judgment. However, the court auction procedure will still remain in place. On top, there will be registration fees for the mortgage. The mortgage may be a certificated mortgage, in which case its assignment is possible without registration of the assignment (which would again incur costs) but with assigning the mortgage certificate, which happens outside the land register. The charges imposed will be on a gliding scale but they may amount to approx. 0.5 percent of the mortgage value depending on circumstances.
There are no property or transfer taxes payable in relation to the creation of security over real property.
The registration fee of a mortgage interest is HK$230 if the interest being registered is valued at HK$750,000 or less, or HK$450 if the value exceeds HK$750,000. Mortgages must also be registered at the Companies Registry at a fee of HK$340. No stamp duty or other taxes is payable on mortgage creation or mortgage documents. No notarization fees are required as no notary public needs to ratify the mortgage.
The formalisation and registration of mortgages with the Land Registry entails the payment of Notary and Land Registry fees and, more significantly, Stamp Duty.
Stamp Duty rates may vary from 0.5% to 2.5% depending on the location of the real estate asset, the tax base being the total amount secured by the mortgage (i.e. 120%-140% of the loan amount as a market standard).