Complete Guide to Understanding the Fees and Costs Involved in Buying Real Estate

Buying a property is a significant investment that goes far beyond the listed price. Besides the property's value itself, there are several fees and additional costs every buyer should be aware of to avoid financial surprises and properly plan their budget.

In this complete guide, we will detail the main fees and expenses involved in purchasing a property, helping you prepare for all costs in the process.

1. ITBI (Real Estate Transfer Tax)

ITBI is a municipal tax charged on the transfer of the property to the buyer's name. The rate varies from city to city but usually ranges between 2% and 3% of the property's declared value.

Important: The ITBI can be calculated based on the sale price or the property's assessed value, whichever is higher.

2. Public Deed

The deed is the official document that formalizes the property purchase. It must be prepared at a Notary Office, and the cost varies depending on the property's value and location.

Tip: The deed is only mandatory for properties that won’t be financed. If financing is involved, the deed is issued after registration.

3. Property Registration

Registration is the step where ownership is officially transferred to the buyer at the Property Registry Office. This guarantees legal possession.

Costs: Registration fees vary by state and property value, typically around 1% to 2% of the purchase price.

4. Brokerage Fee

The real estate agent's commission usually ranges between 5% and 6% of the sale price and is typically paid by the seller. However, it’s important to check your contract, as in some cases the buyer may incur related expenses.

Important: A good agent adds value by helping negotiate better deals and avoiding future problems.

5. Additional Costs and Expenses

Besides the main fees, extra costs can appear during the purchase process, such as:

• Financing fees: credit analysis, property appraisal, and bank charges.
• Property insurance: mandatory in financing to protect against damages.
• ITCMD tax: applies in cases of inherited or gifted properties.
• Renovation or adaptation costs after purchase.

Conclusion

Understanding all fees and costs involved in buying a property is essential to avoid surprises and to plan your budget safely. These values impact the total investment beyond just the property's price.

If you are thinking about buying a property, count on the support of an experienced agent to clarify all your doubts and ensure a transparent and smooth transaction.

Need help planning your purchase without surprises? Contact me and let’s talk!