Real estate investment in Nigeria has proven to be a lucrative venture, with annual growth rates reaching around 15%, rivalling asset classes like index futures. However, the process of acquiring property in Nigeria can be intricate, often leading to pitfalls for unsuspecting buyers. To safeguard your investment and ensure a smooth transaction, adhere to this comprehensive checklist for acquiring property in Nigeria:
Your Checklist to Acquiring Property
- Engage the Right Professionals
Enlist the expertise of seasoned professionals to guide you through the property acquisition process. This includes:
Lawyers: Lawyers are crucial for ensuring the validity of your purchase and ownership rights. They will review legal documents, verify property ownership, and handle the legal aspects of the transaction.
Surveyors: Surveyors assess the physical condition of the property, evaluating soil stability, potential hazards, and adherence to building codes. Their expertise helps prevent future issues arising from structural defects or environmental factors.
Land Agents: Land agents assist in finding the right property that aligns with your needs and budget. They leverage their market knowledge and connections to identify suitable options and facilitate initial negotiations.
- Conduct a Thorough Physical Inspection
While online property listings can be enticing, don’t rely solely on virtual descriptions. Schedule a physical inspection to assess the property’s condition firsthand. Consider factors such as:
- Structural Integrity: Inspect the property’s foundation, walls, and roof for signs of damage or instability.
- Essential Services: Ensure the property has access to essential utilities like electricity, water, and sanitation.
- Neighbourhood Surroundings: Evaluate the surrounding environment, considering proximity to amenities, noise levels, and potential safety concerns.
- Insist on a Deed of Assignment
A deed of assignment is the most compelling proof of ownership for real property. It provides comprehensive details of the property, including the Governor’s Consent, ensuring the validity of your title. Avoid relying on receipts, contracts of sale, or survey plans, as they offer limited protection against ownership disputes.
- Exercise Caution When Buying from Real Estate Companies
While real estate companies can be a convenient source of property options, exercise caution due to potential risks:
- Imperfect Title: Some companies may not have fully perfected their ownership rights, exposing buyers to future forfeiture. Engage a lawyer to scrutinize title documents thoroughly.
- Receipt-Only Transactions: Avoid companies that only issue receipts as proof of ownership. A receipt is not a substitute for a Deed of Assignment.
- Incomplete Transfer of Ownership: Verify that the real estate company has the authority to transfer ownership to you. Review their Memorandum and Articles of Association for any clauses that could jeopardise your ownership rights.
- Understand Family Land Ownership Dynamics
When purchasing family land, ensure that the sale is authorised by the family head and principal members. Sales by other family members may be invalid. Consult a lawyer to identify the individuals with legal authority to sell the property.
- Follow the due process and obtain the necessary clearances.
Adhere to all legal requirements and obtain necessary approvals before proceeding with construction. Avoid resorting to bribes or shortcuts, as these practices can lead to future complications and the potential demolition of unauthorised structures.
- Register Property Ownership in Your Name
Protect your investment by ensuring all property titles are registered in your name as it appears on your government-issued identification documents. If you must register property in someone else’s name, clearly establish that they hold the property “in trust” for you.
Conclusion
Acquiring property in Nigeria demands careful consideration and adherence to legal procedures. By following this comprehensive checklist and engaging the right professionals, you can safeguard your investment, ensure a smooth transaction, and secure ownership of your property with confidence.
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