It is the duty of the notary receiving the authentic deed of sale

This decision provides important insight into your property law. Here is what it changes for you.

The situation

It is the duty of the notary receiving the authentic deed of sale of a property to inform the buyer of that property that, under tax law, payment of VAT is the responsibility of the seller, unless the parties expressly agree on the final incidence of the tax. It follows that the judgment is liable to be quashed which, in order to dismiss the buyer of a property from their liability action against a notary on the ground of a breach by the latter of such duty to advise, holds that the preliminary sale agreement for that property contained a clause which could be interpreted as meaning, as is customary in property sales, that the seller intended to obtain a net price free of all charges, the existence of such custom being supported by the provisions of Article 1593 of the Civil Code according to which 'the costs of the deed and other ancillary expenses of the sale are borne by the buyer', whereas the express agreement of the parties on the final incidence of the tax did not arise from the terms of the preliminary sale agreement and Article 1593 of the Civil Code could not apply, VAT being an element that burdens the price agreed with the client and not an accessory to the price.

What the law says

This decision confirms the fundamental principles of property law.

Key points to remember

• Strictly adhere to the statutory time limits for bringing a claim
• Keep all supporting documents (title deeds, deeds, correspondence)
• Anticipate: preventive advice is always cheaper than litigation

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