Property Law: calls for European Commission to investigate allegations of 'excessive' fees

A London solicitor threw down the gauntlet to French notaires this week as he called on the European Commission to investigate what he labelled the 'cartel' system operated by notaries across the channel.


David Anderson, partner at Sykes Anderson, has launched the French Law Association to represent the interests of British clients, who are increasingly purchasing properties in France. So far, 14 law firms have signed up.


Mr Anderson said the current system, whereby notaires' fees are set by the government, was 'protectionist' and led to 'excessive' costs for clients. Notaires - who formally document the transaction - currently charge just over 1% of the value of a property transaction. He added that it was 'grotesque' that training courses for notaires are reserved for French nationals only.


He said: 'English solicitors should be able to compete in this huge market and provide the full service. The prices are too high, and there should be competition instead of tariffs set by the government.


'We will be lobbying the European Commission, but we are not seeking confrontation with the notaires. We believe that change will be gradual, but the way Europe is moving, it is inevitable. We are reaching out to forward-thinking notaires, who should see this as an opportunity, not a threat. But sticking their heads in the sand is not an option.'


Mr Anderson said that it was 'sad' that notaires will not be included in the Services Directive, which will be voted on by the European Parliament this month. The directive will make it easier for lawyers to provide services throughout the EU by stripping away restrictions such as advertising bans.


Dominique de Garanderie, head of the French delegation at European lawyers' association the Council of Bars and Law Societies of Europe, said: 'Notaires were not included in the first draft of the directive because they have a very special status in France [because part of their function is to collect taxes]. The Commission could reflect [on whether the rules are protectionist], but this kind of situation does not only apply in France, but also in other European countries.'


Bill Kennair, chairman of the UK's Society of Scrivener Notaries, said: 'The two systems [in France and the UK] are so different that you cannot compare them. Notaries in France do not see every penny of the money they receive in fees; some of it is tax.'


June O'Keeffe, Law Society head of EU affairs, added: 'We are in favour of the Services Directive, depending on the regulatory conditions laid down. At the moment, it offers potential benefits to solicitors, but should the regulatory burden imposed be too high, we would have to reconsider our position.'