Buying Lands and properties in choice areas Nigeria is like purchasing Gold! It is advisable to avoid fraud and falsification of contract documents before purchasing a designated real estate property. Consequently, this article will underline several methods of acquiring real estate and measures to be adopted when buying a property in Nigeria.
There are several methods of acquiring real estate in Nigeria. Properties can be acquired through property transfers, donation of land, probate or letters of administration, direct purchase and others. This article will emphasize the sale of real estate property, which is common practice in Nigeria.
The acquisition of real estate by sale is when the rights in a unit of property (or designated real estate) are transferred between seller and buyer. At least two parties are involved in a real estate transaction. The parties can be natural or legal entities (e.g., a company). A real estate transaction can be rather complicated; hence, an experienced real estate company (like Oakwood Heights Limited) and a lawyer are required.
Five (5) phases involved in acquiring real estate by sale are mentioned herein for ease of understanding. A buyer is expected to follow through with each stage when buying a property.
- Inspection phase: This is where the buyer examines the property by physically observing the property he wants to buy. This must be done to ascertain the description of the property presented by the seller (which can be the landowner or real estate agent). The physical observation also helps the buyer know if the property’s location is in line with the state’s urban and regional planning laws (business or residential).
- Pre contract phase: In this phase, the buyer proceeds to search for the property’s title to establish the genuineness of the title property and ensure there is no concern on the property. The search can be done in:
- The appropriate Land Registry
- The probate registry-to ascertain if the title of the property was gotten through a will.
- The Corporate Affairs Commission-to know if the seller is a company and thus registered.
- The court-to inquire if there is a disagreement on the property title.
- Contract phase: This is the phase where the potential buyer has done all the due diligence, sure of the property he wants to buy and ready to proceed with the purchase. At this phase, the parties involved negotiate the terms of sale; a contract of sale of real estate (evidencing the transaction between the parties) is prepared, signed, and exchanged; and the initial deposit on the property is made.
- Completion Phase: This is the phase where the parties complete the sale and acquisition of the title property. The buyer is expected to complete the payment for the property, and the seller present to the buyer all original copies of the property’s title documents, including a Deed of Assignment, purchase receipt, the contract of sales, building plan, and other relevant documents in possession of the previous owner. At this point, the title property is now owned by the buyer.
- Post-completion phase: In this phase, the buyer proceeds to perfect the title of the property. This is done at the land registry of the state where the property is located.
For inquiries, please reach out to us on 07047214004 or send us a mail at info@oakwoodheights.com.ng