By Céline Lekeux, IPI-licensed real estate agent 503 608
Estimating real estate sale costs in Wallonia: A guide for homeowners
What Are the Actual Costs Bearing by the Seller in Belgium?
When putting a house or apartment up for sale in Wallonia, most people focus on the net price the seller will receive. However, completing a real estate transaction involves various administrative, legal, and technical costs that must be anticipated. Contrary to popular belief, the buyer is not the only one who incurs expenses when signing the notarized deed.
This informational article does not constitute legal advice. For a personalized analysis of your situation, it is essential to consult your notary or real estate professional.
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1. Compiling the Required Administrative Documentation
In the Walloon Region, the law requires the owner to compile a complete technical file even before the listing is published or the offer is signed. Most of these documents incur fees for issuance or professional services:
- The Building Energy Performance Certificate (PEB): This document assesses the property’s energy efficiency. Prepared by a certified inspector, the fee varies depending on the property’s square footage and the complexity of its systems.
- Electrical system inspection: An inspection report (indicating compliance or non-compliance) must be provided to the buyer. The inspection must be conducted by an accredited organization.
- Urban Planning Information: Issued by the municipality where the property is located, these administrative extracts allow for verification of the property’s compliance with urban planning regulations. The municipality charges a fee for their issuance.
- Soil certification: Issued in Wallonia by the State Soil Database (BDES), this certification confirms that there is no recorded pollution on the parcel.
- The Record of Subsequent Work (DIU): While it compiles technical details of work performed since 2001, maintaining it up to date incurs no direct cost; however, reconstructing it in the event of loss may require the assistance of professionals.
2. Notarial Procedures and Mortgage Release
Although registration fees and fees for the main deed are legally paid by the buyer, the seller may incur specific notarial costs:
Mortgage Release
If a mortgage is still outstanding on the property or if the registration has not reached its legal term (30 years), a deed of release is required to free the property from any financial encumbrances. The notary charges fees and administrative costs to record the cancellation of the mortgage in the registry of the Office of Legal Security.
Tax Clearance and Any Outstanding Taxes
The notary systematically verifies the seller’s tax status. If any real estate withholding taxes or other regional taxes related to the property remain due, they are deducted directly from the proceeds of the sale during the final settlement.
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3. Capital Gains Tax on Real Estate
As a general rule, the resale of a home that is owned and occupied as a primary residence is not subject to any capital gains tax in Belgium. However, a specific tax rate of 16.5% (plus any additional municipal surcharges) may apply in certain specific cases:
- Resale of a built property (other than a primary residence) less than 5 years after its private sale.
- Resale of buildable land less than 8 years after its acquisition.
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4. Marketing Fees
If you choose to work with a real estate agency to ensure a smooth transaction and manage showings, the agent’s commission is a fee defined by contract (brokerage agreement). This commission is due only if the sale is actually completed and covers the appraisal, marketing, screening of prospective buyers, and legal follow-up until the preliminary sales agreement is signed.