HIDDEN CHARGES IN REAL ESTATE

THE ISSUE OF “HIDDEN CHARGES” STATUTORY FEES EXPLAINED

My dear people,

There is nothing like hidden charges as used by people. It is called statutory fees and these fees are customary when land is purchased.
Before the advent of Estate Developers, after payment of land is made, land buyers had to do Survey, they had to pay Omonile fees (which is unpredictable), ‘Owo’ foundation, decking, roofing, fencing and even Borehole!  As if that is not enough, the ‘youths’ will still come over to collect money, which can range from N200k to as high as N3m total package. Also, ‘Owo afinkon’ as Yourbas call it (land commissions money when you buy from another person who bought from the family), and every year you will give them money or gift as appreciation or ground rent.  Apart from these, the buyer will still pay an Architect for architectural drawings (300k to 500k) and still get building approval from Town Planning authorities.
Also, he will pay between 100 to 200k to ‘draw light’ as they call it, to the CDA. He also has to do the front drainage of his house which will cost him over 200k to 500k, (and maybe still buy an SUV, in order to drive into his house because there are no good street roads).
And also, sometimes if you don’t develop your land within six months, an Omonile can sell your land to someone else and ask you to take a swap.
Now, with the advent of estate development firms that ask you to pay Development fee, Survey and Documentation fees, so they can get everything done for you, you can virtually just go to sleep. It's a good deal if you ask me.
They will handle Omonile for you (they saved you 200k to 3m)
Interlock the street (saves you 500k)
Drainage (saves you 200k)
Electricity (saves you 200k to CDA)
Fence the entire estate. (gives you security)
For documentations Deed (some Lawyer's ask for 5 per cent of the cost of the land)
Survey Fees
Architectural drawings in some cases (save you over 500k)
They help you with all approvals as well. It's value for money buying from any estate developers.

Now, what exactly are these statutory charges? They include the following:

DEED OF ASSIGNMENT: which transfers ownership

SURVEY: which maps out the portion of land paid for. This goes to the Government and it is fixed for different locations. Ibeju Lekki is between 500k to 1m per plot but real estate companies collect a lesser amount between 300-500k depending on the location. Eti Osa is 1m but some companies take 500 to 800k.

DEVELOPMENT FEES: which is meant for the provision of infrastructure like paved roads, electricity, drainage, water supply, fencing/security, etc.
These fees are "not hidden" as they are clearly stated in the Subscription forms and FAQs.

As a consultant, it's my job to properly educate my prospects on the importance of these fees.
When you buy a new car, it's not yours in the eye of the Government until you pay customs duties, do vehicle particulars, Insurance and other papers. You don’t want to tell a car dealer to add all these fees because you don't want to discourage your clients.
Experienced investors will always ask for "total package". For newbie investors, I need to educate them, That’s why I'm a Consultant.