Buying land in Port Harcourt can be exciting, but it can also come with extra fees that may not be obvious at first. Many people are drawn to the idea of “cheap” land, but often these deals hide extra charges that can make the total cost much higher than expected. In this blog post, we break down these extra costs and explain why working with a trusted real estate company can help you avoid problems.
The Lure of “Cheap” Land and Its Pitfalls
At first glance, a low-priced parcel of land may seem like an irresistible opportunity. However, beneath that tempting price tag lurk numerous extra fees that can inflate the overall cost of your purchase. For an individual looking to buy land, there are different types of documents to acquire and various fees to be paid—expenses that many buyers may not anticipate at the outset. As a common adage in the market goes, if you see cheap land, you might need to run because the hidden costs could leave you with an overwhelming financial burden.
The initial cost might only be the tip of the iceberg. Additional expenses such as registration fees, survey charges, stamp duties, and other legal costs can quickly add up. In some cases, these unforeseen costs may surpass the apparent savings from the low purchase price, leaving the buyer with not only a heavier financial load but also the frustration of dealing with unexpected administrative hurdles.
Why Cheap Land May Not Be So Cheap
When you see land advertised at a low price, you might think it’s a great deal. However, after making the payment, you may realize that there are several other fees you must pay before you can fully own and use the land. Here are some of the extra charges you should prepare for:
Survey Fee
Before you can officially claim ownership of your land, you need a survey to determine the exact size and boundaries. This is done by a registered surveyor, and the cost depends on the location and size of the land. If you skip this step, you may later find that the land you paid for is smaller than what you expected—or worse, it belongs to someone else.
Deed of Assignment Fee
A Deed of Assignment is a legal document that transfers ownership of land from the seller to the buyer. This document is very important because it proves that the land now belongs to you. Without it, you may have trouble in the future, especially if another person claims ownership of the same land.
Governor’s Consent or Certificate of Occupancy (C of O) Fees
In Nigeria, land legally belongs to the government, and to fully own your land, you need to obtain either a Governor’s Consent (for land that has already been allocated) or a Certificate of Occupancy (for land that is being allocated for the first time). These documents come with official charges that vary depending on the state and size of the land.
Bush Entry Fee
If you are buying land from a community or family, especially in developing areas, you may be asked to pay a “bush entry” fee. This is a traditional fee paid to the local youths or community members to grant you access to start work on the land. The cost depends on the area, and in some cases, it can be negotiated.
Omo-Onile or Community Development Fee
“Omo-Onile” charges are common in many areas, especially in Lagos and parts of Port Harcourt. These are fees collected by local landowners or community youths for “allowing” you to develop your land. Even if you have legally purchased the land, you may still need to pay this fee before you can start construction.
Drinking Money
This is an informal but widely recognized expense when dealing with land transactions, especially in local communities. It is a token given to community elders, family heads, or even land agents to “seal the deal.” While it may not be official, refusing to pay could slow down the process or even create unnecessary problems.
Development Levy
In some areas, estate developers or communities charge a development levy for new landowners. This fee is used for road construction, drainage, electricity, and other infrastructure developments within the area. If you are buying land in an estate or a newly developed area, be prepared to pay this extra cost.
Agency Fee
If you are buying land through an agent or middleman, you will likely need to pay an agency fee. This is the commission the agent charges for helping you find and secure the land. The fee is usually a percentage of the total cost of the land and varies depending on the agent.
Land Registration and Stamp Duty
Once you have all your documents, you need to register the land with the government and pay a stamp duty fee. This process ensures that your land transaction is legally recognized, protecting you from disputes in the future.
Fencing and Security Fees
In some locations, especially in developing areas, new landowners are required to contribute to community security or fence their land to prevent encroachment. Some areas have organized security fees that must be paid to protect the land from trespassers or illegal occupants.
These extra costs can turn a seemingly low-cost deal into an expensive one, making you pay much more than you initially planned.
How to Avoid Extra Costs
Many buyers fall into the trap of hidden costs because they only focus on the price of the land without considering the extra fees involved. The best way to avoid unnecessary expenses and stress is to buy from a verified real estate company. The best way to avoid these hidden fees is to work with a verified and trusted real estate company. Here’s why:
Clear Information: A good real estate company will give you a clear list of all the fees you need to pay. You will know the total cost from the start.
Avoid Scams: Trusted companies check and verify every detail. This way, you are less likely to fall for a deal that looks too good to be true.
Faster Process: With their experience, these companies can handle the paperwork and legal checks much faster, saving you time and stress.
When you leverage this professional support, you not only gain peace of mind but also ensure that the investment in your future is sound and free from unwelcome surprises.
Final Thoughts
Buying land in Port Harcourt is a big decision. Hidden costs are part of the process, but they don’t have to be a problem if you are well informed. Always consider all the fees involved and work with trusted professionals to make sure you get a fair deal. By being aware of the various extra charges and choosing to work with a verified real estate company, you can confidently navigate the complex landscape of land deals.
In real estate, as in life, it pays to look beyond the surface. A well-informed approach not only safeguards your investment but also sets the stage for future success in one of Nigeria’s most vibrant cities. Happy land hunting and smart investing!
Port Harcourt is one of Nigeria’s fastest-growing city, making it the perfect place to start your land investment journey.
Ready to secure a plot of land in Port Harcourt? Contact Win Realty today and let us help you own a stress-free, legally backed property.
Call/WhatsApp [+234 814 900 3508] OR Visit our office: [2nd Floor, Mall Flora, Sars Rd. Port Harcourt]