Transaction costs to buy a home in Mauritius

If you want to buy a home in Mauritius, it’s of course basic to first seriously weigh the price of the property. The pencil-pushing would also typically weave around securing a mortgage based on your income or capacity to pay the loan.

As you go through this exercise, don’t forget to factor in the transaction costs and fees of home buying. These are often payable upon closing of a deal and thus often overlooked in initial cost estimates of a purchase.

Professional fees in closing costs

The closing costs include the fees for the professional service providers involved in a real estate transaction. These key professionals include the real estate agents or agency acting as the intermediary between the seller and the buyer.

Typically, one agent represents the buyer, while the seller brings to the negotiation table another agent. In Mauritius, the buyer and the seller each pay their respective agents 2-3% on resale. For new projects, the buyer doesn’t pay any commission. A 15 percent VAT is added on top of the agents’ fees.

For the buyers, their real estate agent is particularly important in helping check if all the transaction documents are valid. An agent also helps a buyer ensure that the property is true to the specifications that the seller provides.

A real estate agent can likewise help ascertain maintenance costs if you’re buying a residence in a condominium complex. An agent’s assistance in this buying scenario is also helpful in examining the rules and regulations within the complex.

The vital role of a notary

When you buy a home in Mauritius, you will also require the expert services of a notary. The notary will draft the property deed and ensure that all its supporting documents are in order. The seller has the responsibility to submit these supporting papers for the sales contract to the notary.

The notary’s job also includes verifying that the property you’re buying has no encumbrances like unpaid taxes. The notary will likewise validate payment of all the taxes and fees related to your purchase.

Notary fees are paid based on a cumulative schedule, shared equally between buyer and seller. Notary fees range from 0.50 percent to 2 percent of the property value, plus 15 percent VAT.

Besides these professional charges, you will pay a registration fee if you buy a home in Mauritius. This fee amounts to 5 percent of the property value. Other closing costs, like transfer tax, stamp duty, and situation plan, are charged to the seller.

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