Buying property doesn’t just involve the cost of the asset, there are also legal fees and other hidden fees that should not be overlooked.
What other costs must a buyer sort out beside the cost of the property?
Besides property price, there are taxes and legal fees that need to be paid. However, the total cost of buying property may vary depending on circumstances, location, and how the buyer plans to finance the purchase of the property. This is exactly why a professional broker, lawyer or accountant must be consulted.
Here are some possible fees that buyers may need to pay along the way.
Document stamp tax
Taxes are levied even on documents, instruments, loan agreements and paper evidencing, transfer of right or property among others. The transfer of a property or deed of absolute sale may have a percentage tax involved based on the total value of the asset in question.
To determine the exact amount of transfer tax, buyers should consult with knowledgeable people. The realtor can help guide the buyers through this intricate process that involves the tax imposed on the type of handing over of property, either through sale or payment of a debt or otherwise.
Registering for a deed of sale, transfer or exchange of real estate property has a registration fee. There are different rates for different brackets of asset prices.
Chances are, buyers find it convenient to take out a house loan when buying a property. Applying for a housing loan can mean extra costs tied to the price of the property. Insurance cost, appraisal fee, handling fee should also be kept in mind.
Notarizing a deed is a very simple thing to do, and is mandatory for the deed of absolute sale. This usually may be a fixed flat rate or a minor percentage of the price of the property.