Are you considering buying property in
Lagos or already in the middle of a property transaction and you need
professional advice and assistance? If you are, then this is for you!
This guide is meant to explain the process to
anyone who is interested in buying property in Lagos in order to ensure that it
is done safely and lawfully. Acquiring land or developed property is one of the
dreams of every Man; it can be very exciting and very scary all at the same
time. This is especially so because in Lagos, Nigeria there is always the risk
of deception.
v DECIDE ON A BUDGET
AND LOCATION:
Buying a property is a big step concerning
an important lasting financial obligation, so be considerate about what you can
afford. Also, if you intend to live in the property, then you need to be
sure that it is in a location you are happy at and can be for a long time. Once
this is decided, then you are good to go and can move on to the next step.
v HIRE A COMPETENT LAWYER:
Yes, all lawyers have some idea about
property law, but there are some nuances and issues which someone who is not a
specialist in property matters would easily miss. Not all lawyers are experts
in property transactions; it is not enough that you hire a lawyer. Therefore it
is critical that the lawyer you hire can prove to you that they know what they
are doing, so it is important that you hire the right lawyer. Let you decision
to hire a lawyer be based not on convenience or price, but on competence and
experience.
v LOOK FOR THE ideal
(OR ALMOST ideal) PROPERTY
The next step is to begin the search
for properties which match your budget and location. At this point, you can
engage the services of an estate agent, who will look for properties which match
your criteria, create a shortlist for you, and then organise for you to inspect
the properties shortlisted. Your lawyer can also assist you in recommending a
trustworthy estate agent, he/she should have several estate agents they work
with and can recommend to you.
v investigate THE
SELLER
This phase is where your lawyer will
conduct the proper searches, ask the right questions, and request for the right
documentation to determine if the person you are speaking to about the property,
has the right to sell. This is EXTREMELY important especially when the property
in question is family land. When you find a property you are interested in, you
should always ensure that the person you are dealing with is the owner of the
property or someone who has the valid authority to sell the property.
v INVESTIGATING THE
PROPERTY
At this stage, the lawyer will conduct the relevant searches and
examine the appropriate documentation to ensure that the property is free from
any encumbrance or pending litigation, that the property is not the subject of
any Government acquisition, and that the property is not subject to any
overriding interests.
v PHYSICALLY INSPECT
THE PROPERTY
At this stage, if you have confirmed
that the person you are dealing with has title, and the property is free from
any issues, then you should visit the land to physically inspect it. At this
stage you want to ensure that the land and the environment meet your
expectations. It is also advisable to conduct a site visitation with a
registered surveyor who will look at the survey plans and advise on the
property as well.
v NEGOTIATION
At this stage, it is now a matter of
agreeing on an acceptable price for the land. Your lawyer will also be able to
give you a solid indication of what future liabilities will exist for you
(stamp duty fees, other government fees), so you can factor that in when making
an offer. It is also a good idea to have an independent valuation of the
property carried out in order to have a guide regarding the value of the
property and whether the amount being negotiated represents fair market value
of the property.
v DOCUMENTATION
If the negotiation goes well and the
offer is accepted, then your lawyer (and the seller’s lawyer) can move to the
stage of drafting and negotiating all the completion documents. In land
transactions in Lagos, there are 3 main documents – the contract of sale, the receipt, and the Deed of Assignment. The lawyers will deal with this, and ensure that the interests
of both parties are addressed.
v COMPLETION, EXCHANGE
& POSSESSION
At this stage, the land transfer
process is gathering pace, the buyer and the seller have signed and exchanged
contracts, and the buyer is now in possession of all the original title
documents and transfer documents. The purchase price of the property has also
been made at this stage. Once all that is complete, the buyer becomes the owner
of the property and can take possession.
v POST-COMPLETION
Once the buyer has taken physical
possession of the property, the next step is to file all the necessary
documentation with the appropriate government authority and then commence the
process to obtain Governor’s consent of the transaction. Once Governor’s consent
is obtained a Certificate of Occupancy is issued, and the property transaction
is then complete.
Please note that by virtue of the
provisions of the Land Use Act, ownership of all property in a State vest in
the Governor, and a right of occupancy is given to a person for a maximum of 99
years.
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