Hidden Costs When Buying a Property
Last Update 3 months ago
Beyond the property’s purchase price, several additional costs apply during and after the purchase. Knowing these helps you budget correctly.
1. Stamp Duty and Registration Fee
Typically ranges from 3% to 5% of the property value (varies by province). Paid to the government for registering the property in your name.
2. Capital Value Tax (CVT)
Usually around 2% of the property’s declared value, applicable on property transfers.
3. Withholding Tax
Applies to both buyer and seller; rate depends on filer/non-filer status as per FBR laws.
4. Legal and Documentation Charges
Fees for lawyers, notaries, and documentation services during the sale and transfer process.
5. Real Estate Agent Commission
Normally 1%–2% of the property value, paid by the buyer, seller, or shared depending on agreement.
6. Society or Development Charges
In some housing societies, buyers may need to pay maintenance, transfer, or possession fees.
7. Moving and Setup Costs
Include renovation, shifting, or furnishing expenses after purchase.
Tip: Always ask your agent or seller for a complete cost breakdown before finalizing your purchase.