Buying property in Lagos is an exciting venture, but beyond the listed price, there are several hidden costs that many buyers overlook. At Ramos Real Estate, we believe in transparency, so here’s what you need to know before making that big purchase.
- Legal & Documentation Fees
One of the most critical aspects of property acquisition is ensuring that all legal documents are in place. Some associated costs include:
- Legal Fees (2.5% – 10% of Property Price): Hiring a lawyer to conduct due diligence, verify property documents, and draft agreements is essential. Some lawyers may be open to negotiation on their fees.
- Survey Plan (₦300,000 – ₦2,000,000): Confirms land boundaries and ownership.
- Governor’s Consent (3% – 5% of property value): Required for any land transaction to be legally recognized.
- Agency & Professional Fees
When purchasing property, buyers often work with real estate agents or professionals who require a commission:
- Agency Fee (5% – 10% of Property Value): This fee is paid to the agent facilitating the transaction, and the percentage may vary depending on the deal and negotiation.
- Surveyor’s fee: If land measurement and verification are needed, this comes at an extra cost.
- Valuation fee: If you need a valuation report for financing or legal purposes.
- Stamp Duty & Registration Costs
Stamp duty is a government-imposed fee for processing land transactions:
- Stamp duty (1.5% – 2% of property value): Payable to the Federal Inland Revenue Service (FIRS).
- Registration fees: Varies based on property type and location.
- Service Charges (For Estates & Gated Communities)
Many modern estates in Lagos require residents to pay maintenance and service fees:
- Estate dues: Covering security, waste management, and facility maintenance.
- Electricity deposit: For meter installation and connection.
- Water supply & sewage disposal: Some estates charge extra for water and sewage services.
- Infrastructure Levy & Development Fees
If you’re buying land in an undeveloped area, developers or communities may charge fees for infrastructural development, which could range from ₦500,000 to ₦5,000,000, depending on the location.
- Hidden Costs for Renovations & Furnishing
Most new property owners underestimate the cost of:
- Renovations & upgrades: Especially if buying an older home.
- Interior finishing: Flooring, painting, and fittings.
- Furniture & appliances: Costs for making the house move-in ready.
Final Thoughts
While Lagos remains one of the most attractive property markets in Nigeria, understanding these hidden costs will help you budget wisely and avoid unexpected financial burdens. At Ramos Real Estate, we guide you through every step of your property purchase, ensuring transparency and clarity.
