Buying property in Nigeria is a significant investment, but beyond the advertised price, several hidden costs can catch buyers off guard. Being aware of these expenses and how to manage them helps you budget accurately and avoid unpleasant surprises.

1. Legal and Documentation Fees

These include lawyer’s fees for verifying property titles, drafting the Deed of Assignment, and other legal paperwork necessary to transfer ownership. Legal fees typically range from 5% to 10% of the property value. Documentation also covers government approvals like the Governor’s Consent and Certificate of Occupancy processing.
How to avoid: Hire a trusted real estate lawyer early to review all documents and clarify all legal fees upfront to avoid unexpected charges.

2. Agency Fees and Commissions

Real estate agents usually charge commissions ranging from 5% to 10% of the property price for facilitating the transaction. This fee can add a substantial amount to your total cost.
How to avoid: Negotiate agency fees in advance and work only with reputable, registered agents to ensure transparency.

3. Survey and Building Approval Fees

A survey plan is essential to define your land’s boundaries and is required for registration. Surveyor fees can range from ₦100,000 to ₦500,000 or more, depending on location and land size. Building approval fees are also necessary if you plan to construct on the land.
How to avoid: Engage licensed surveyors and architects to handle these processes professionally and ask for a full cost breakdown before purchase.

4. Infrastructure and Development Charges

When buying in estates or undeveloped areas, you may face additional levies for infrastructure development such as roads, drainage, electricity, and security. These charges can range from hundreds of thousands to several million naira.
How to avoid: Request a detailed breakdown of all development levies and service charges before committing to purchase. Avoid properties with vague contract clauses allowing arbitrary fees.

5. Service and Maintenance Fees

In gated communities or estates, buyers often pay ongoing service charges covering security, waste disposal, and maintenance of shared facilities. These fees can add to your monthly or annual expenses.
How to avoid: Before buying, inquire about the estate’s service charge structure and factor it into your budget.

Summary

Being aware of these hidden costs and planning for them will help ensure a smoother, more transparent property purchase experience in Nigeria.