What Are the Hidden Costs of Buying Property in Ogun State?
Introduction
Buying property in Ogun State—whether for personal use, rental income, or real estate investment—can be an exciting and rewarding venture. However, many property buyers focus solely on the purchase price, forgetting there are numerous “hidden costs” that can significantly affect your total expenditure.
These hidden costs aren’t illegal or shady—they’re simply additional expenses that many people overlook until it’s too late. Being aware of them can help you budget properly, avoid surprises, and make informed property decisions.
🏠 Planning to buy land, a house, or commercial property in Ogun State? Here’s a full breakdown of the hidden costs you need to consider before signing any deal.
Why Are They Called “Hidden” Costs?
Hidden costs are not usually mentioned upfront by agents or sellers. They’re not part of the advertised property price, but they are legally required to complete the transaction, process ownership documents, or prepare the property for use.
Some of these costs are government charges, while others come from professional services, community levies, or infrastructure contributions.
Top Hidden Costs of Buying Property in Ogun State
1. Legal and Agency Fees
Lawyer’s Fee: Typically 5%–10% of the property value.
Covers due diligence, contract drafting, and legal representation.
Real Estate Agent’s Commission: 5%–10% (negotiable).
Often paid by the buyer in private transactions.
Tip: Always confirm the percentage before engaging a lawyer or agent.
2. Stamp Duty
Stamp duty is a mandatory tax on the Deed of Assignment or Sale Agreement.
Rate: 1.5% of the property’s value for individual buyers.
This must be paid before your documents can be registered with the government.
3. Survey Plan Fee
A registered surveyor must measure and map the land.
Cost: ₦150,000 to ₦500,000 depending on location and size.
This is necessary for land registration and building approvals.
4. Deed of Assignment / Title Transfer Documentation
This is the legal document that transfers ownership to you.
Drafting and processing may cost ₦50,000 – ₦200,000, or more depending on the lawyer and transaction size.
This document protects your ownership rights—don’t skip it.
5. Land Registration Fees (at the Land Registry)
These fees cover the cost of registering your property with the Ogun State Land Registry.
This may include:
Registration Fee
Consent Fee
Charting Fee
Endorsement Fee
Filing Fees
Total can range from ₦200,000 to ₦1,000,000, based on the land value and location.
6. Capital Contribution / Infrastructure Levy (Especially in Estates)
Common in government or private estates in Ogun State.
Fees cover:
Road construction
Electricity poles
Drainage systems
Range: ₦100,000 to ₦1,500,000, depending on the estate.
Ask for written confirmation of any community fees before paying.
7. Development Levy (Rural or Urban Areas)
Some communities or local authorities charge levies before you begin development.
May also be tagged as:
“Community development dues”
“Land opening fees”
Cost: ₦50,000–₦300,000 (negotiable, but often unofficial).
8. Building Plan Approval Fees
If you plan to build, you must get approval from the Ogun State Urban and Physical Planning Board (OGUPPB).
Includes:
Drawing submission fees
Environmental assessment charges
Costs vary: ₦100,000 to ₦500,000, depending on your building type.
9. Fencing and Site Clearance
Before building, you’ll need to fence the land and clear vegetation or previous structures.
Average fencing cost: ₦700,000 – ₦2,000,000
Site clearing: ₦50,000 – ₦300,000 depending on land size and bush density.
10. Omo-Onile/Community Youth Fees (In Some Areas)
In many local areas, especially semi-urban or rural communities, the local youth or families (Omo-Onile) demand:
“Entry fee”
“Foundation fee”
“Roofing fee”
“Completion fee”
Though unofficial, these fees are common and can’t be ignored in certain parts of Ogun State.
Can range from ₦100,000 to ₦1,000,000 in total.
Always clarify these fees early and get receipts to avoid future harassment.
Summary Table: Hidden Costs Breakdown
| Cost Type | Estimated Range (₦) |
|---|---|
| Legal Fees | 5%–10% of property price |
| Agency Fees | 5%–10% of property price |
| Stamp Duty | 1.5% of property price |
| Survey Plan | ₦150,000 – ₦500,000 |
| Deed of Assignment | ₦50,000 – ₦200,000 |
| Land Registration | ₦200,000 – ₦1,000,000 |
| Infrastructure Levy (Estate) | ₦100,000 – ₦1,500,000 |
| Community / Development Levies | ₦50,000 – ₦300,000 |
| Building Plan Approval | ₦100,000 – ₦500,000 |
| Omo-Onile Fees (if applicable) | ₦100,000 – ₦1,000,000 |
| Site Clearance / Fencing | ₦750,000 – ₦2,000,000 |
Tips to Avoid Overpaying on Hidden Costs
Work with a trusted lawyer and surveyor—they can help verify and negotiate costs.
Ask for a cost breakdown from sellers, estate managers, or agents.
Visit the land registry and OGIRS office for confirmation of official charges.
Avoid cash payments without receipts, especially for community-related levies.
Compare estate costs—some estates charge more than others for similar infrastructure.
Call to Action
Are you planning to buy property in Ogun State?
Don’t get caught off guard by hidden costs.
Speak with a licensed lawyer and surveyor before making any payments.
Visit your local OGIRS office to confirm government fees like Stamp Duty and Registration Charges.
Get everything in writing—including receipts for community and estate fees.
Knowledge is power—and in real estate, it saves money.
Conclusion
Buying property in Ogun State goes beyond the sale price. From government taxes and legal documentation to estate fees and potential community levies, the total cost can rise quickly if you’re unprepared.
By understanding and budgeting for these hidden costs, you can secure your investment confidently and avoid unpleasant surprises. Always do proper due diligence, work with professionals, and demand transparency at every stage of the process.