The Hidden Charges

Over the years, many first-time property buyers often refer to some required additional charges as "Hidden Charges". This is a common misleading term.

After investing a significant amount in plots of land for example, clients are often reluctant to pay an additional fee as they often call it hidden charges. Some clients outrightly reject this payment, thinking it's just another way for the real estate developer to make more profit.

However, this perception is incorrect and misleading.

So, what exactly is this fee?

Customary or statutory fees are token additional fees associated with property purchases. These fees are standard and essential components in the process of acquiring a property.

The fees cover 3 essential components which are the Deed of Assignment, survey and developmental levy.

Deed of Assignment which is the document that legally transfers the right of ownership from the seller(developer) to the buyer(subscriber)

Survey which maps out the portion of property paid for in buyer's name. It helps to establish accurate land measurements and boundaries, which are essential for property transactions and legal purposes. This payment goes to the Govt and it's cost varies based on the type of property and its location.

Developmental fees which are meant for infrastructure. It is a levy a real estate developer takes to oversee the infrastructural project within the estate. The fee is used for roads and drainages, street lights, access to water, recreational facilities. Some estates consider including an estate playground for Children and an estate supermarket to ease the burden of shopping for household items.

A well-organized estate offers peace and tranquility to its residents, and while it will cost you more in the short term, the peace you gain will be priceless in the long run.

These fees are not hidden as they are clearly stated what they are meant for.

It's the duty of a competent realtor to properly educate you on the importance of these fees. "If you don't know"

When you buy a new car, it's not yours in the eyes of the government until you pay customs duties, do vehicle particulars, insurance and other papers. You wouldn't tell a car dealer to add all these fees to the cost of a vehicle

Experienced investors consistently ask for the total package, and it's advisable for first-time property buyers to inquire about the TOTAL PACKAGE or overall cost.

It's your right to ask necessary questions for clarification.

Conclusion

When purchasing land having a well planned budget to close your deal is crucial and you should be prepared for additional costs some of which might not be obvious at the start of the transaction however, a reputable and trustworthy realtor will transparently outline these details.

The specific amount of this statutory fee can vary based on the property type and its location.

Are you looking to buy genuine properties, be it land or homes in Lagos and its neighbourhood "without hidden charges"? Please contact via Whatsapp or drop an email at [email protected].

I'm here to help you navigate your property ownership journey in Nigeria.