5 Facts You Must Know About Statutory Fees in Lagos Real Estate.
It is so worrisome that when you showed an interest in a particular property thinking that is certain amount, you will be surprised to later hear that you will need to pay for this or that.
Did you intend to buy a property and you were told there are other payment to make aside the actual cost of the land known as Statutory Fees?
Before statutory fee was called hidden charges by most people but they are actually not.
Statutory fees in real estate transaction are customary fee being paid when a land is purchased.
They are normal fees needed to make your property valid and to maintain the standard of the estate.
Before, statutory fees is always separated from the cost of the land but now most real estate companies add the cost of the land with the statutory fees as total cost and give the price of the land as all inclusive. (Total package)
While some developers still prefer to break the cost down so that the potential buyers will have knowledge about the payment structure.
So, what does statutory fee entails and what is it used for?
READ: How not to Fall Victim of Buying Fake Property in Lagos from Abroad
5 Facts you must know about statutory fees.
Statutory Fees are used to settle the following cost.
1. Deed of assignment
2. Survey plan
3. Allocation cost
4. Development levy.
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1. Deed of Assignment
Deed of assignment fee is a the money paid to a lawyer to prepare a document known as deed of assignment. It is used to transfer land ownership from estate developer to you as the authentic owner of the property when you purchase the land.
Deed of Assignment contain all the relevant information of the new land owner.
2. Survey Plan Fee
Part of the statutory fees is used to process the survey plan document for the portion of the land you paid for. This money goes to the Govt and the service of the surveyor in charge.
3. Allocation Cost
It is used for assigning your own portion of the land by erecting corner piece for you.
Note: Corner piece is different from corner plot.
4. Development Levy
Development fee is meant for development of the estate. such as:
- Interlocked road
- Perimeter fencing
- Drainage system
- Electricity
- Recreational facilities and
- Other infrastructural facilities within the estate.
I want you to note that Corner Plot is not included in the fee whether it is all inclusive or not.
If you want a Corner Plot, it would attract a surcharge. Surcharge is a certain amount paid on corner plot.
Some developers collect 30% while some is 40% for surcharge. It depends on the company’s policy.
In a nutshell, statutory fees are not hidden charges as they are clearly stated in the FAQ Form.
However, I believe you know that most of the premium estates you see in Lagos, there facilities are built with development fee.
So when you see the price of a property try to know whether is all inclusive or separated. If it is separated carefully review the statutory fees before making payment so that you won’t get struck.
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