What Are the Closing Costs When Buying Property in Panama?

Buying property in Panama involves more than paying the agreed purchase price. Buyers may also need to budget for legal fees, notarial services, Public Registry charges, inspections, and mortgage-related expenses. The exact total depends on the property and transaction, but understanding each cost separately is the best way to avoid surprises. Panama’s rules also changed in 2026: Law 546 introduced a new tax exemption for qualifying first sales of new homes and explicitly prohibits contractual terms that force a buyer to pay or reimburse the seller’s real estate transfer tax. Panama’s Ministry of Economy and Finance explains the 2026 law.

What Are Closing Costs in Panama?

Closing costs are the expenses associated with completing a property purchase, apart from the price paid to acquire the property itself. They can include professional services, public registration charges, administrative expenses, and fees connected with a mortgage.

In Panama, it is important to distinguish between three financial categories.

• Buyer-side transaction costs: Expenses the buyer incurs to complete the purchase, such as the buyer’s lawyer, due diligence, and applicable registration or notarial charges.

• Seller-side taxes and expenses: Certain taxes arising from the transfer or sale, including the real estate transfer tax and capital gains tax obligations. These should not automatically be treated as the buyer’s expenses.

• Ongoing ownership costs: Expenses that arise after the purchase, such as property tax, condominium fees, insurance, maintenance, and utilities. They affect the overall cost of owning a property but are not all closing costs.

The term closing costs is not a single standardized package that every buyer in Panama pays at a fixed rate. One lawyer’s quotation may include contract review, title checks, and registration coordination, while another may charge separately for some of those services. A bank may also collect its own fees and third-party expenses.

For this reason, buyers should request an itemized estimate rather than relying solely on a percentage advertised in a real estate guide.

How Much Are Closing Costs When Buying Property in Panama?

There is no reliable single percentage that applies to every purchase. The cost of completing a cash purchase may be considerably different from the cost of buying with a mortgage, and professional fees do not necessarily rise in direct proportion to the property’s price.

As an initial planning exercise, some market guides suggest setting aside approximately 1%–3% of the purchase price for buyer-side expenses in a relatively straightforward cash transaction, with a larger contingency for complex purchases or financing. This is a preliminary budgeting range, not an official rate or guarantee; actual costs can fall outside it. Published estimates differ because they include different services and sometimes count seller-side taxes incorrectly as buyer expenses.

For example, a buyer purchasing a $300,000 resale apartment should not automatically assume that they must pay an additional 5% or 6%. The correct budget depends on the lawyer’s quotation, the applicable registry and notarial charges, any inspection or additional due diligence, and whether a lender is involved.

A useful way to approach the budget is to separate expenses into the following categories:

This approach is more useful than assuming that every purchase costs a fixed percentage.

A further distinction matters: the seller’s taxes may be processed before the ownership transfer can be registered, but that does not automatically make them the buyer’s legal responsibility. The buyer should confirm that the seller has completed the required tax steps without accepting expenses that should not be charged to them.

Real Estate Transfer Tax in Panama

The real estate transfer tax is known as Impuesto de Transferencia de Bienes Inmuebles, or ITBI. It is one of the most important taxes to understand when reviewing the financial arrangements for a property sale.

Under the general regime, the tax rate is 2%. The taxable base is not necessarily identical to the price written in the purchase agreement. The applicable calculation can depend on the transfer value and the property’s adjusted cadastral value under Panamanian law.

The General Directorate of Revenue (DGI) provides information about the tax and the required declaration through its official Form 106 guidance. Buyers should have their lawyer or tax adviser confirm the calculation applicable to the particular property.

Who pays the transfer tax?

The seller is responsible for submitting the relevant transfer-tax declaration under the DGI’s published guidance. More importantly, Law 546 of August 31, 2026, expressly states that a contractual provision requiring the buyer to pay, reimburse, or assume the seller’s legally payable ITBI is null and void. The law entered into force on September 1, 2026. Buyers should have their lawyer check that the sale agreement and closing statement reflect the current law.

This is particularly important when reviewing older contract templates or advice written before the 2026 changes. Do not accept a line item labeled “buyer pays transfer tax” without asking the lawyer to explain its legal basis.

The 2026 exemption for qualifying new homes

Law 546 also changed the ITBI treatment of qualifying first sales of new homes. The exemption applies to the first B/.120,000 of the taxable base, subject to the law’s conditions. If the taxable base exceeds B/.120,000 but does not exceed B/.200,000, a preferential scale applies to the portion above B/.120,000.

The rules include timing conditions connected with the property’s occupancy permit. The law also contains a transitional provision for qualifying transactions involving permits issued before the law took effect. Therefore, buyers should not assume that every newly constructed apartment automatically qualifies.

The details are available in the Ministry of Economy and Finance’s announcement of Law 546 and the official publication in Panama’s Digital Official Gazette.

Although the exemption may affect the seller’s tax bill and the transaction’s overall economics, it should not be confused with a general exemption from all closing costs. Legal services, registration, financing, and other expenses may still apply.

Capital Gains Tax and Seller-Side Withholding

The tax on transferring property and the tax associated with the seller’s capital gain are separate obligations.

Panama’s tax framework generally provides for a 10% income tax on the actual capital gain for a taxpayer whose ordinary business is not buying and selling real estate. A 3% payment calculated on the relevant transfer value serves as an advance against that tax. The seller may have the option to treat the 3% amount as the definitive tax, subject to the applicable rules.

These figures describe the general framework, not a calculation that can be applied blindly to every sale. The seller’s tax treatment may depend on whether the sale forms part of an ordinary real estate business, the property’s tax basis, the applicable legal provisions, and any special rules.

The DGI identifies the relevant declarations as Form 106 for the real estate transfer tax and Form 107 for capital gains. Its official property-tax FAQ states that the seller submits these forms.

Why buyers still need to pay attention

Even when a tax is the seller’s responsibility, the buyer should make sure the transaction is prepared correctly. The relevant declarations, payment records, and supporting documents may be needed for the transfer process.

Before closing, ask the lawyer to confirm:

• Which seller-side declarations must be filed.

• Whether the required tax payments have been made or properly arranged.

• Which receipts or supporting documents must accompany the transfer.

• Whether any tax issue could delay registration.

• That seller-side tax obligations have not been incorrectly added to the buyer’s closing bill.

The goal is not to take responsibility for the seller’s tax. It is to avoid discovering at the last minute that the transfer cannot proceed because the seller has not completed the necessary steps.

Public Registry Fees

A property purchase is not complete simply because the buyer and seller have signed a private agreement and exchanged money. The ownership transfer must be documented and registered in accordance with the applicable legal procedures.

The Public Registry of Panama records property rights and relevant documents, including transfers of ownership and mortgages. Registry charges depend on the type of document and the applicable tariff.

For example, the Registry’s published qualification manual describes a fee structure for certain horizontal-property transfers that includes a qualification charge and an inscription charge calculated per B/.1,000 or fraction, using the applicable value. That document is useful for understanding the structure, but it is not a substitute for confirming the current charge for a particular transaction.

Buyers can consult the Public Registry of Panama and its online services, including the registration-fee calculator described in its official materials. Ask the lawyer or notary to provide the calculation for the exact deed being registered.

Registry expenses can include more than one entry when the transaction involves a transfer of ownership and a new mortgage. A mortgage may need its own registration, so buyers using financing should not assume that the fee for registering the sale covers everything.

Notary Fees and Other Formalities

Notarial services help formalize documents used in the transaction. Depending on the structure of the purchase, the work may involve preparing or formalizing the public deed of sale, certifying signatures or copies, and handling related documents.

The amount depends on the documents involved and the applicable fee schedule. There may also be separate charges for additional copies or services.

When reviewing an estimate, ask whether the notary’s fee covers:

• The public deed of sale.

• Any additional documents required for the transfer.

• Certified copies.

• Mortgage documentation, if applicable.

• Other administrative work.

Do not assume that the lawyer’s fee includes all notarial expenses. Equally, do not assume that every transaction needs every possible notarial service.

A clear quotation should identify the service, the expected charge, and whether the amount is fixed or subject to change.

Lawyer Fees and Legal Due Diligence

For many foreign buyers, the lawyer is one of the most important professionals involved in a Panamanian property purchase. A local lawyer can help the buyer understand the documents, check the legal status of the property, and coordinate the steps needed to complete the transaction.

Legal fees are not one universal government-set percentage that can be applied to every property. They depend on the lawyer, the agreed scope of work, the transaction value, and the complexity of the matter.

A straightforward purchase may require less work than a transaction involving a company as the owner, a property with an existing mortgage, unclear records, a new development, or additional cross-border documentation.

What should the lawyer’s fee cover?

Ask whether the quotation includes the following services:

• Reviewing the promise of sale or purchase agreement.

• Checking the property’s title and ownership records.

• Identifying registered mortgages, liens, or other relevant restrictions.

• Confirming the seller’s authority to transfer ownership.

• Reviewing the property’s tax status and relevant clearances.

• Checking condominium or homeowners’ association obligations, where applicable.

• Preparing or reviewing the transfer deed.

• Coordinating with the notary and Public Registry.

• Confirming the required tax documents and payment records.

• Reviewing mortgage documents if the buyer is financing the purchase.

Not every lawyer includes every item in a standard package. Some may charge a fixed fee, while others use an hourly rate or a fee linked to the value or complexity of the transaction.

How to compare legal quotations

Do not compare two quotations based on the headline amount alone. One lawyer may quote only for reviewing the contract, while another may include title checks, closing coordination, and registration follow-up.

Ask for a written description of the services included, what is excluded, whether third-party costs are extra, and how additional work will be charged.

The lowest quotation is not necessarily the least expensive option if important due-diligence tasks are excluded and must be purchased separately.

Real Estate Agent Commission

Brokerage commission is another expense to clarify, but buyers should not automatically assume they owe a commission simply because an agent helped them view a property.

Who pays the commission depends on the brokerage agreement and the transaction’s contractual arrangements. In many transactions, the seller engages the agent and agrees to pay the commission. Other arrangements may differ, so the buyer should check any agreement they are asked to sign.

If a buyer is asked to pay a separate commission or service fee, request the written agreement that establishes the obligation and the calculation method.

A commission may be expressed as a percentage of the sale price, a fixed amount, or another agreed structure. A commonly quoted market percentage is not automatically a legal requirement.

Also check whether any applicable tax on the brokerage service is included in the quoted commission or added separately.

The practical rule is simple: identify who hired the agent, what the agreement says, and whether the amount appears in the closing statement. Do not allow a vague “agency fee” to appear unexpectedly without a clear contractual basis.

Mortgage and Financing Costs

Financing a property purchase generally adds expenses that do not arise in the same way in a cash transaction. These may include lender fees, an appraisal, mortgage registration, legal services connected with the loan, and insurance.

The precise costs depend on the lender, the loan amount, the type of property, the borrower’s profile, and the terms of the offer.

Bank processing and closing fees

Some lenders charge an application or processing fee. Others may have a closing commission calculated as a percentage of the amount financed.

For example, Banco General’s published fees and charges list different charges for mortgage products, including a closing commission of 1% of the financed amount plus applicable ITBMS for certain transactions involving foreign buyers. The same published schedule lists processing and legal-service charges and explains that notarial and registry expenses are quoted according to the operation.

This is an example from one bank, not a nationwide rule. Another lender may use a different structure, and the contractual terms of the approved loan determine the charges that apply.

Before committing to financing, request a written breakdown of the full costs, not just the interest rate and monthly payment.

Property appraisal

A lender may require an independent valuation to establish the property’s value for lending purposes. The appraisal fee is generally a transaction-specific expense and should be confirmed with the bank.

A lender’s valuation is not necessarily the same as a detailed inspection of the property’s physical condition. An appraisal primarily serves the lender’s requirements; it may not identify all maintenance or structural problems that matter to the buyer.

Mortgage registration and legal work

A mortgage may require separate documentation and registration. The relevant fees can depend on the amount secured and the documents used.

Ask whether the bank’s quotation includes the preparation of mortgage documents, notarial charges, registration, and any third-party services. If the bank and the buyer’s independent lawyer perform overlapping tasks, clarify the division of responsibility rather than assuming one fee covers both.

Insurance

A lender may require property insurance and, depending on the loan and borrower, life insurance or other coverage. The premium can depend on the insured value, property characteristics, age, coverage, and lender requirements.

Insurance is often an ongoing ownership expense, although the initial premium may need to be paid as part of completing the loan. Include the first required payment in the cash budget, but distinguish it from a one-time registration fee.

Property Appraisal, Inspection, and Due Diligence Costs

Not every useful property check is legally mandatory, but skipping due diligence can expose a buyer to problems that cost much more than the checks themselves.

Depending on the property, buyers may consider:

• A physical inspection of the apartment or house.

• A specialist assessment of structural or technical issues.

• A title and registry review.

• Confirmation of outstanding property taxes.

• Confirmation of condominium or homeowners’ association balances.

• Review of relevant building, development, or handover documents.

• Checks on existing mortgages or other recorded interests.

Some of these checks may be performed by the buyer’s lawyer; others may require an inspector, engineer, or separate specialist. Clarify which tasks are included in the legal quotation.

New developments and resale properties

For a new-build property, buyers should review the developer’s documentation, handover terms, and any obligations specified in the purchase contract. The fact that a property is new does not eliminate the need to verify ownership and contractual terms.

For a resale property, the buyer should pay particular attention to title, existing encumbrances, property tax status, and any condominium balances. A physical inspection can also reveal maintenance or repair needs that are not apparent from listing photographs.

The cost of due diligence depends on the property’s size, age, condition, and legal complexity. Ask for a quote before ordering specialist work, and do not confuse an optional inspection with a lender-required appraisal.

Additional Costs When Buying a New-Build Property

Buying directly from a developer may involve a different combination of expenses from buying an existing property from a private owner.

Possible costs include legal review, registration, notarial services, handover documentation, and any fees expressly set out in the purchase contract. Depending on the project, there may also be utility activation charges, condominium-related payments, or other costs connected with taking possession.

The allocation of these expenses varies. A developer may offer to cover certain closing expenses as an incentive, but the offer should be recorded clearly in the written agreement. Buyers should not rely on a verbal promise or assume that the developer covers every cost.

The 2026 ITBI changes are especially relevant to qualifying first sales of new homes. Under Law 546, the first B/.120,000 of the applicable taxable base may be exempt, with a preferential rate scale for qualifying transactions above that amount up to B/.200,000. The exemption depends on the legal conditions, including timing related to the occupancy permit. It is not a blanket exemption for every property marketed as new.

Ask the developer’s lawyer or your own lawyer to confirm eligibility and the calculation before the purchase documents are finalized.

Additional Costs When Buying a Resale Property

A resale purchase may involve more investigation into the seller’s title, the property’s tax status, and any existing obligations.

Before closing, ask your lawyer to check:

• That the seller is the registered owner or otherwise has legal authority to transfer the property.

• Whether a mortgage or other encumbrance is recorded.

• Whether relevant property taxes are up to date.

• Whether condominium or homeowners’ association dues are outstanding.

• Whether the transfer requires additional documents or clearances.

• Whether the property has physical defects that may require repairs.

Do not assume that every debt associated with a property automatically becomes the buyer’s personal liability. The legal treatment depends on the nature of the obligation and the circumstances. Nevertheless, unresolved balances, liens, or missing documents can complicate a transaction and should be investigated before funds are released.

Where the seller has an existing mortgage, ask how it will be settled and discharged as part of the closing process. The final statement should make clear which funds go to the seller, which are used to discharge obligations, and which are paid to professionals or authorities.

Who Pays Which Closing Costs: Buyer or Seller?

The following table is a practical starting point. The final allocation depends on the applicable law, the transaction, and the agreements involved.

The most important point is that legal responsibility, contractual allocation, and the person who physically transfers the money are not always the same thing. Your lawyer should explain each distinction and ensure that the closing statement does not assign a cost to you without a valid basis.

Example Closing-Cost Calculations

The following examples show how a buyer can build a budget. They are illustrations, not official quotations or guaranteed market averages. Actual charges must be confirmed with the lawyer, notary, registry, lender, and other relevant providers.

Example 1: Buying a $300,000 resale apartment with cash

Assume the buyer purchases an existing apartment for $300,000 without a mortgage. For illustration, the buyer receives a legal quotation of $3,000, a notarial estimate of $500, and a property inspection quotation of $350. The registry amount below uses the indicative tariff structure described in the Public Registry’s published manual; the current fee should be confirmed using the Registry’s calculator.

In this scenario, the estimated buyer-side expenses total $4,860, or approximately 1.62% of the $300,000 purchase price.

This total is not a universal estimate. It excludes any unexpected legal work, additional registry entries, other specialist inspections, and expenses that may arise from the property’s specific circumstances. The notarial and administrative amounts are assumptions for budgeting, not published official prices.

It also does not include the seller’s ITBI or capital gains tax as buyer expenses.

Example 2: Buying the same property with a mortgage

Now assume the buyer purchases a $300,000 property and finances $210,000, equivalent to 70% of the purchase price.

Start with the illustrative $4,860 from the cash-purchase example. Then add possible financing-related costs. For this illustration, assume the lender applies a 1% closing commission to the loan amount, plus 7% ITBMS on that commission, and charges $130 for processing. These are example assumptions informed by the types of charges shown in Banco General’s published schedule; they are not guaranteed to apply to a particular borrower.

Combined with the first example, the total would be approximately $9,687, or 3.23% of the purchase price.

This illustration assumes the listed amounts are separate, additional charges. In a real transaction, some may already be included in a bank’s package or overlap with another provider’s work. Insurance may also be quoted for a different coverage period, and the actual mortgage registration costs must be calculated for the relevant deed.

The lesson is not that every mortgage purchase costs 3.23%. It is that financing can add several thousand dollars beyond the expenses of a cash purchase, so the buyer should obtain the lender’s complete fee schedule before signing.

How to use these examples for your own purchase

Ask each provider for a written estimate and replace every illustrative amount with the actual quotation. Confirm whether taxes are included, whether the fee is one-time or recurring, and whether another provider has already included the same service.

Keep the seller’s tax obligations separate from your buyer-side budget. If a new home may qualify for the 2026 ITBI exemption, ask your lawyer to confirm the eligibility and the relevant documents before relying on it.

How Foreign Buyers Can Prepare for Closing

Foreign buyers can use the same basic budgeting process as other buyers, but international transactions may involve additional questions about identification, payment arrangements, documents, and financing.

Before making a binding commitment, consider these steps.

1. Choose an independent local lawyer. Ask about experience with the relevant property type and foreign purchasers. Obtain a written description of the legal work.

2. Request an itemized estimate. Ask for separate amounts for legal work, notarial services, registry charges, inspections, and any mortgage expenses.

3. Verify seller-side taxes. Ask your lawyer to confirm that the relevant declarations and payments are being handled correctly.

4. Check the property records. Confirm title, recorded encumbrances, and relevant tax or condominium balances before closing.

5. Confirm the payment process. Establish the accepted payment method, recipient, due dates, and whether international transfers may incur extra charges.

6. Clarify foreign-document requirements. Ask whether any documents need translation, certification, or other formalities for this specific transaction.

7. Budget for unexpected expenses. Keep a contingency for additional due diligence or transaction-specific requirements.

8. Retain your records. Keep the signed contract, final closing statement, receipts, payment confirmations, and documents confirming the transfer.

Do not send substantial funds based solely on an informal email or messaging conversation. Independently verify the recipient’s identity and payment instructions, particularly if bank details change shortly before closing.

Common Mistakes Buyers Make When Budgeting for Closing

Assuming every purchase costs the same percentage

A percentage can be useful for initial planning, but it cannot replace an itemized estimate. Professional fees, financing, and property-specific checks vary considerably.

Treating the seller’s taxes as automatic buyer expenses

The ITBI and capital gains tax should be distinguished from buyer-side expenses. Panama’s Law 546 of 2026 also expressly prohibits contractual terms requiring the buyer to pay or reimburse the seller’s legally payable ITBI. Have your lawyer check any disputed charge against the current law.

Confusing a tax rate with the taxable base

A 2% rate does not necessarily mean 2% of the advertised price. The applicable calculation rules must be checked for the property and transaction.

Overlooking mortgage expenses

A low advertised interest rate does not mean a low-cost mortgage. Processing, closing, appraisal, legal, registration, and insurance charges may all affect the initial cash requirement.

Assuming one professional’s fee covers everything

A lawyer’s quotation may exclude the notary, registry, specialist inspections, certificates, or lender expenses. Ask precisely what is included.

Ignoring the property’s existing obligations

Outstanding taxes, condominium dues, or registered encumbrances should be investigated before closing. Even when the buyer is not personally responsible for an obligation, it may affect the transfer or require resolution.

Relying on verbal promises

If a seller or developer promises to cover a particular fee, make sure the arrangement appears in the written agreement. The final closing statement should be consistent with the contract and applicable law.

A Closing-Cost Checklist Before You Buy

Use this checklist to organize the purchase.

Before making an offer

• Estimate buyer-side closing costs separately from the purchase price.
• Ask a lawyer for a written fee quotation.
• Clarify who is responsible for each tax and transaction expense.
• Budget for title checks, inspection, and other due diligence.
• If buying a new home, check whether the 2026 ITBI rules may apply.

Before signing or committing substantial funds

• Have the purchase agreement reviewed by a qualified Panamanian lawyer.
• Verify the seller’s authority and the property’s registered status.
• Check relevant property taxes, encumbrances, and condominium obligations.
• Obtain a written breakdown of notarial and registration charges.
• If using a mortgage, obtain the bank’s full schedule of fees and required insurance.
• Confirm payment instructions independently.

Before closing

• Confirm that the required tax declarations and payments have been handled.
• Review the final closing statement.
• Check that the seller’s tax obligations have not been incorrectly charged to you.
• Confirm the amounts payable to each professional and authority.
• Retain the signed documents and proof of every payment.
• Confirm the status of the ownership transfer and any mortgage registration.

This checklist is a practical planning tool, not a substitute for legal or tax advice tailored to the transaction.

Frequently Asked Questions

How much are closing costs when buying property in Panama?

There is no universal total. A straightforward cash purchase may involve lower buyer-side costs than a mortgage purchase, while complex transactions can cost more. Build your estimate from itemized legal, notarial, registry, due-diligence, and financing expenses rather than relying on one percentage.

What taxes apply when buying real estate in Panama?

The main transfer-related taxes include the real estate transfer tax (ITBI) and the seller’s capital gains tax obligations. Their calculation and responsibility differ. Qualifying first sales of new homes may receive the ITBI exemption introduced by Law 546 of 2026.

Does the buyer pay Panama’s real estate transfer tax?

The seller is responsible for the relevant declaration under DGI guidance. Law 546 of 2026 also prohibits contractual terms that require the buyer to pay or reimburse the seller’s legally payable ITBI. Have a lawyer confirm the law’s application to your transaction.

Who pays capital gains tax when a property is sold in Panama?

The seller generally handles the capital gains tax declaration and payment. The applicable tax treatment depends on the seller’s circumstances and the rules governing the transaction. The buyer should confirm that the necessary tax steps have been completed without automatically treating the seller’s tax as their own expense.

How much does a real estate lawyer cost in Panama?

There is no single fee that applies to every purchase. A lawyer may charge a fixed fee, hourly rate, or another agreed amount. Request a written quote that identifies contract review, title checks, closing coordination, and registration follow-up.

Are notary fees required when buying property in Panama?

Notarial services may be needed to formalize the documents used in the transfer. The services and charges depend on the transaction and applicable requirements. Ask which documents are covered and whether mortgage-related work is quoted separately.

Do foreigners pay higher closing costs than Panamanian citizens?

There is no universal rule that every foreign buyer pays a higher percentage of the purchase price. However, a foreign buyer’s financing arrangements, bank fees, document requirements, or legal structure may increase the cost. Check the actual terms rather than assuming either equal or higher costs.

Are closing costs different for cash buyers and mortgage buyers?

Yes. Mortgage buyers may face appraisal, loan-processing, bank legal, mortgage-registration, and insurance expenses that do not arise in the same way in a cash purchase.

What additional costs should I expect when buying a new apartment?

Possible expenses include legal review, registration, notarial services, handover-related charges, and any fees specified in the developer’s agreement. Qualifying first sales of new homes may benefit from the ITBI rules introduced in 2026, but eligibility must be confirmed.

Can closing costs be negotiated between the buyer and seller?

Some expenses and their allocation may be negotiated, subject to applicable law. However, not every fee is negotiable, and a contract cannot override mandatory legal rules. Law 546 of 2026 specifically prohibits requiring a buyer to pay or reimburse the seller’s legally payable ITBI.

Should I hire a lawyer when purchasing property in Panama?

An independent Panamanian lawyer can help verify title, review the agreement, check relevant obligations, and coordinate the transfer. Buyers unfamiliar with local procedures may find this especially valuable. Confirm the scope and cost of the work before engaging the lawyer.

What costs are not included in the property’s advertised price?

The advertised price may exclude legal fees, notarial services, registration, inspections, mortgage expenses, insurance, and other transaction-specific charges. Ongoing property tax, condominium fees, utilities, and maintenance are separate ownership costs that should also be considered when assessing affordability.