Are You Aware of These 6 Costs When Buying Property?It is interesting to note how so many buyers and investors at large experience a total blackout when it comes to the transaction fees related to buying property. When you get to the point of buying a house, the devil is in the detail. You need to be aware of the amount of money you will spend throughout the entire buying process. Apart from the sale price, there are other real estate transaction fees you should keep in mind: mortgage fees, paying for a lawyer, and taxes related to property. Not forgetting to mention the hidden costs you might not be aware of.
These pointers will help you make the right decision when the time to buy a house comes. In turn, you will make the right investment decision knowingly. What fees should you keep in your mind when buying property in Kenya?
You Have to Get a Lawyer
The importance of getting a lawyer is like having oxygen: you can’t do without one. Lawyers in Kenya are regulated by an Act of Law known as the Advocates Remuneration Order. Sometimes, the fees that the lawyers charge are regulated by ethical principles and rules. The general rule of thumb is that the buyer will pay for these fees because the transaction benefits him. The Seller will also pay his Advocate such fees for representation, the initial due diligence process and drafting.
The percentage fees range from 1%-2% of the purchase price but the minimum payable is Kshs. 35,000. If the price on the purchase is low, the costs are higher. The converse is true; if the purchase amount is high, the costs will be low. You should note that it is illegal for your Advocate to charge you lower fees. Therefore, refrain from bargaining too much.
Who Does the Property Belong To?
Before you buy any property, you need to do a title search to know the rightful owner of the land. A title search will also help you know if the title has been charged, if it has a caveat or if there are any outstanding land rates to it. Performing a title search is a digital process offered by the government through the eCiziten platform. A title search costs Kshs. 500.