Real Estate Fees: A Simple Guide to What You Pay

If you’re looking at a property, the first thing that pops up is the price tag. But the price isn’t the whole story. There are extra costs that most people call "fees," and they can add up fast. Understanding each fee helps you avoid surprises and plan your budget better.

Common Fees When Buying a Property

Broker or agent commission. In India, the broker usually takes around 1% to 2% of the sale price. The fee is paid by the seller, but sometimes the buyer ends up covering it, especially in rental deals.

Stamp duty. This is a tax you pay to the government for transferring ownership. The rate varies by state – in Maharashtra it’s about 5% of the property value, while in some states it can be lower.

Registration charges. After you pay stamp duty, you need to register the deed. This cost is usually a small percentage of the property price, plus a nominal paperwork fee.

Legal fees. A lawyer checks the title, verifies documents, and makes sure there are no hidden liabilities. Expect to pay anywhere from INR 5,000 to INR 20,000 depending on the complexity.

Home loan processing fee. If you finance the purchase, the bank may charge 0.25% to 1% of the loan amount as a processing fee. Some banks waive this if you keep a certain amount in their account.

Maintenance deposit. For apartments, the builder often asks for a few months’ worth of maintenance in advance. This isn’t a fee, but it’s cash you need to have on hand.

How to Keep Fees Low

First, shop around for brokers. Not every broker charges the same rate, and some are willing to negotiate, especially if you’re a serious buyer.

Second, compare stamp duty rates across nearby states if you have flexibility on location. A few percentage points can mean thousands of rupees saved.

Third, use a reputable lawyer who offers a fixed fee. Avoid lawyers who bill by the hour for standard checks – a flat rate is usually cheaper.

Fourth, negotiate the processing fee with your bank. Some lenders drop the fee if you have a good credit score or if you opt for a higher loan amount.

Finally, ask the builder if the maintenance deposit can be spread over the first few months instead of paying it all up front. Many developers are open to this, especially in new projects.

Knowing what each fee is for makes the whole buying process less stressful. When you see a number on a paper, you’ll know exactly why it’s there and whether you can push back on it.

Keep this guide handy the next time you look at a listing. It will help you budget accurately, negotiate smarter, and avoid hidden costs that can bite later.