5 Unexpected Costs of Buying Property in Nigeria—And How to Avoid Them
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Buying a property is one of the most significant investments you'll make, but many are caught off guard by hidden costs that go beyond the purchase price. Whether you're buying a home or investing in real estate anywhere in Nigeria, it's essential to understand the additional expenses to avoid budget surprises.
Below are the top five hidden costs you may encounter and tips on how to avoid them.
1. Legal Fees
When buying property in Nigeria, legal fees are an unavoidable cost. Yet a good number of people don’t seem to realize this. Of course, you’ll need to hire a lawyer to handle the transaction, conduct due diligence, and verify the property’s title documents. However, many underestimate just how much these fees can add to the final bill. Legal fees are typically around 5% of the property price, but they can vary depending on the complexity of the transaction.
How to Avoid Excessive Legal Fees
• Request a fee breakdown before hiring a lawyer.
• Negotiate the fees upfront to avoid unexpected charges.
• Work with a trusted real estate agent to ensure transparency in the legal process.
2. Agency Fees
Real estate agents play an essential role in helping you find and secure a property, but their services come at a cost. Agency fees can range from 5% to 10% of the property's value. Many overlook this charge, especially when budgeting for properties in high-demand areas.
How to Avoid Overpaying Agency Fees
• Work with reputable agents such as those at Manroe Realty, who are clear about their fees from the outset.
• Always request a written agreement that outlines the agent’s commission structure.
3. Survey Plan Costs
A survey plan is a critical document that outlines the exact boundaries of the land you're buying. The cost of hiring a licensed surveyor to produce this plan is often not included in the initial property price. Depending on the location, survey fees in Nigeria can range from ?100,000 to ?500,000 or even more.
How to Avoid Survey Plan Surprises
• Confirm whether the seller has an existing survey plan.
• If you need to commission one, ask for a detailed quote from the surveyor to prevent unexpected fees.
4. Stamp Duty
Stamp duty is a government tax imposed on legal documents, including property transfers. The amount varies based on the property value, but it is usually from 1.5% to 2% of the property's cost. Many buyers forget to include this fee in their budget, leading to last-minute financial pressure.
How to Avoid Stamp Duty Stress
• Always factor stamp duty into your overall budget from the start.
• Speak to your lawyer or real estate agent to get an accurate estimate of the stamp duty for your property.
5. Property Registration Fees
Once you’ve bought the property, you’ll need to register it with the appropriate government authorities. This process ensures that the property is formally transferred to your name. Registration fees vary depending on the property’s location and value, but they typically range from 3% to 5% of the purchase price.
How to Avoid Registration Delays and Extra Costs
• Set aside a portion of your budget specifically for registration.
• Ensure all documentation is correct and complete before starting the registration process to avoid delays and penalties.
Ready to Buy a Property Without the Hidden Costs?
At Manroe Realty, we pride ourselves on transparency. Our experienced team will guide you through the entire buying process, ensuring you’re fully aware of all costs involved upfront. We help you avoid unexpected fees and make your property purchase as smooth as possible.
Start your journey with us today! Contact us to find your ideal home or investment property in Abuja.
