Real Estate Hidden Fees in Nigeria
The word hidden fee or hidden charges comes to mind when you meet a first-time client or prospect looking to buy land or property.
Even those that are well experienced in this field will still call it hidden fee.
Alright!
You as the prospective investor looking to invest in real estate should always ask for the total package of that land. Nobody’s going to stop you from asking necessary questions of what you don’t know and need to know and if you are not comfortable with their statutory fee don’t subscribe.
There is nothing like hidden fees or charges as used by first-time investors. It is called statutory fees and these fees are customary when land is purchased.
When you buy a new car, it’s not yours in the eye of the Govt till you pay customs duties, do vehicle particulars, insurance, and other papers. You won’t tell a car dealer to add all these fees because you don’t want to discourage your clients.
So, there is NO word in real estate as hidden Charges? It is called STATUTORY fees in real estate.
Let’s take a look at the Statutory Fees in real estate.
DEED of ASSIGNMENT
This is a transfer of ownership from the estate developer to subscribers. In order words, a deed of Assignment is an Agreement between the Seller of a Land or Property and a Buyer of that Land or property showing evidence that the Seller has transferred all his rights, his title, his interest, and ownership of that land to that the Buyer that has just bought the land.
The Deed of Assignment acts as the main document between the buyer and seller to show proof of ownership in favor of the buyer. The person or Seller who transfers his rights or interests in that property is usually called the Assignor and the person who receives such right or interest from the Seller is called the Assignee.
SURVEY
When you give or say survey price to some prospect, that’s when they will tell you they know the surveyor-general of Nigeria or my brother is a surveyor. He will do it for me for free!
The survey is mapping out the portion of land you paid for.
This fee or payment goes to the government and it has different prices in different locations and states.
DEVELOPMENT FEES
This fee is meant for development and infrastructure within the estate.
Statutory fees are not hidden as they are clearly stated in the forms and FAQ/Terms & Conditions of your client-interested property.
What are hidden charges in the Nigerian real estate market
In the case of buying land from Omonile.
When you buy land from omo onile, they are the ones that can add real estate hidden fees in Nigeria
When you buy land directly from Omonile/indigenous landowners, you pay for survey, engage the service of a lawyer to draft an agreement, you pay omonile unpredictable fees like, foundation fee, decking fee, roofing fee, boil hole fee, and you settle Youths that comes around to help. Those youth will tell you that they are the ones keeping your land from land grabbers.
Another thing from buying land from Omonile is, if you don’t develop your land in under six months, they can sell your land to someone else and relocate you to another plot.
If you don’t buy from a real estate company because of the statutory fee you get to pay fees to the community such as the Community Development Association (CDA) fee for connecting electricity to your house. And aside from the costs, there are other associated costs that you incur such as building your drainages and fixing the road to make it motorable for cars.
Conclusion
When it comes to buying land having a good budget to close your deal is the best and you should be prepared for additional costs some of which might not be obvious at the start of the transaction. The amount of additional costs that are involved in a transaction often depends on the type of property and the nature of the transaction.
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Adeyeye IfeOluwa is a Web Designer & Developer, Digital marketer, Real Estate Consultant, and Writer
Landsprout.com came with a passion to help you achieve wealth in real estate investment and solve the hassle within it.
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