Many buyers focus on the purchase price but overlook the additional costs of buying real estate. Recently, I met a couple who had their budget set and were ready to buy, but were surprised to learn about closing costs such as Stamp Duty, Registration Fees, and Legal Fees.
Understanding these expenses beforehand can help you budget properly and avoid unexpected surprises during the purchasing process.
- Stamp Duty
- What it is: A government tax on the transfer of property ownership.
- Who pays: Typically split between buyer and seller, 10%
- Approximate cost: 10% of the purchase price is charged (this is spilt 50:50 among the buyer and seller)
2. Legal Fees
- What it is: Payment to your attorney for handling the legal aspects of the purchase—such as preparing the Deed, conducting title searches, and ensuring proper registration.
- Who pays: Buyer.
- Approximate cost: Can range from 1–2% of the purchase price or a fixed fee depending on the lawyer.
3. Registration Fee
- What it is: A fee paid to the government for registering the change of ownership.
- Who pays: Usually the buyer.
- Approximate cost: Varies.
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