When one is old and unable to work, no one wants to be homeless or helpless. Also, investing in a property that will provide you with a high return on investment is dependent on the location or type of the property.
Guide to buying real estate in Nigeria 2022: Tips to consider
Buying real estate is the biggest, safest, longest-lasting, and greatest investment one can make these days while still young, energetic, and active.
Purchasing a home in Nigeria has a number of legal regulations and procedures that must be followed. The first step in buying a house in Nigeria is to consult with a lawyer who can verify the property you want to buy. Only a lawyer can assure that one does not run into legal issues with their property title after purchase, and only a lawyer is statutorily entitled to prepare legal documentation for the transfer of an interest in any property for a fee under Nigerian law.
Step-by-step guide to buying a house in Nigeria
For any property purchase in Nigeria, the following stages are critical and must be carefully followed:
- All applicable property title documents must be demanded and collected by the buyer from the seller.
- The buyer can then hire a lawyer to look into the seller's title as well as do due diligence on the house being sold.
- The buyer will do a land registry search and have his or her solicitor investigate the property's title properly.
- If the property's title is authentic, a seller or buyer may proceed to draft a contract of sale that both parties will sign. At this point, the buyer has the option of making a deposit or paying the entire property price.
- Following full payment, the seller or buyer may draft and sign a deed of assignment or conveyance, which conveys the seller's or buyer's interest in the property.
- The buyer may go ahead and register the property's title with the appropriate land registration.
Requirements for buying a house in Nigeria
Several necessary documents are required from the seller as part of the land purchase procedure in order to efficiently convey a good title to the buyer. These documents are necessary since they tend to prove the seller's ownership interest. In Nigeria, there are many sorts of property paperwork to be aware of. The following documents are included in this collection:
The Certificate of Occupancy (C of O): It confirms the legal ownership of any land or property in Nigeria, regardless of its usage. It is frequently given to a landowner by the government as proof of the owner's interest in the property, provided that such interest is in accordance with the applicable laws. It is a legal document indicating that the governor of the state has awarded an individual who has acquired an interest in land a statutory right of possession. The CofO isn't always appropriate for all properties. It is mainly provided to people who had a property in Nigeria before the Land Use Act of 1978 was enacted, or to people who are receiving direct property allocation from any government.
Approved survey plan
This is an important document that reveals the exact location of a property as well as its limits. It will also reveal whether or not the property is subject to government acquisition.
Deed of assignment
This is a very significant document that should be created by either the seller or the buyer of the land once any land transaction is completed. It is a legal document that is used to transfer a property interest from one person to another. If the seller previously purchased the house to be sold from another seller, the prospective buyer should obtain a copy of this paperwork so that he or she may trace the house's history.
Letter of administration
If the owner fails to complete the deal, the buyer must request a grant of probate or letter of administration for the property. Any documents personally owned by a deceased person in respect of his or her property before death are no longer valid to convey title to the property after his or her death. In the case of any land or house owned by a deceased person, the award of probate or letter of administration will function as a legal title. The document will name Executors or Administrators, as the case may be, who will be able to sign any Assent instrument transferring the property's interest.
This is not a document of itself. Any property transfer requires the approval or attestation of a state governor, either directly or through an appointed commissioner. Any transaction involving the transfer or transferring of any property interest from one person to another requires the consent of the governor of a state under the Land Use Act of 1978.
When a Certificate of Occupancy (C of O) is not accessible, this sort of paperwork comes in handy. You must ensure that the land is not a government acquisition or is not on the government's future use plan. An acceptable land document will result from excision that has been duly gazette and verified by the Ministry of Land. When you buy land from a family via Excision, you'll need to fill out Form 1c, which you'll submit to the government to establish that the family sold you the land.
Another tip to consider - Location
Location is another tip to consider when buying Real Estate in Nigeria. Before buying land in Nigeria, there are a few things you should know, and it's always a good idea to think about location when investing in real estate. This is because, when it comes to real estate investing, location plays a significant role in determining your return on investment. Whether you are a first-time real estate investor or have done so previously, you should consider price appreciation of the property while assessing location before purchasing land and homes.
Here are several profitable neighborhoods in Lagos, for example, where you may expect a good return on your real estate investment. Sangotedo, Ibeju Lekki and Epe.
However, while you may be anxious to purchase land/property in Lagos, you may ignore several obvious and easy-to-detect indicators of forgery and fraud in your eagerness to own property in Nigeria's famed business city. As a result, you'll need to take some precautions to safeguard your property using the tips listed in this article.
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