Introduction
Before purchasing real estate in Nigeria, it is important to consider the points discussed in this article. Many people are often in such a hurry to own property that they skip consulting a property lawyer in Nigeria from the start to help with due diligence, search and related acts. Some of these people haven’t had a bad experience buying a property that is encumbered so they believe there is no need for legal guidance. Some do not know that due diligence and search are core steps to be taken before they pay for a property. They are used to an informal and unsafe practice where they simply engage a lawyer to “prepare a deed” after paying money into the vendor’s bank account. It has worked for them for years and so they believe nothing bad can happen.
However, the statistics on allegations of fraud in real estate transactions are there for anyone interested to look up.
Whether you are buying in Port Harcourt, Lagos, Abuja, or anywhere else in Nigeria, a legal professional can help you secure a good deal. If your purchase is in Port Harcourt, a real estate lawyer in Port Harcourt can provide even better guidance, because in addition to the legal expertise a good property lawyer anywhere possesses, they understand the local terrain.
1. Professional Guidance for Due Diligence
This need not be overemphasized. Proper guidance will help you conduct due diligence on the property and the title documents to ascertain true ownership.
Don't just rush to make payment when you are given a Deed of Conveyance or any title document because you saw the stamp or signature of a magistrate or notary public. This does not dispense with due diligence.
It is not due diligence that the person who introduced you to the property is someone well trusted. Perhaps your religious leader, life coach, mentor, father, or older family member. Even these set of persons can be genuinely wrong. They may have referred you with good motives, thinking the vendor has title because of the level of trust they have in said vendor. It could be that the vendor, unknown to them, has secured a loan using the property as mortgage, or has even sold the same property to a third party. Proper guidance and meticulous checks can discover these encumbrances that make it impossible for title to be transferred.
2. Search at the Land Registry
Depending on the nature of the property, a search at the relevant government offices will reveal information about:
• The owner of the property
• The size of the property
• Existence of any charges
Note that where the land is native land yet to undergo statutory purchase, this information may not be available. Charting can also determine whether the property falls into government land or private land.
3. Are There Existing Charges on the Property?
It is possible that the landlord may have obtained a loan facility from a bank using the property as collateral. Or he may have failed to pay tenement or ground rate. Proper checks can help you find out about all these before completing the purchase.
4. Building Approval
Are you buying a property with a building on it? Then you must request the building permit. Guidance can help answer any questions or concerns you may have about approvals and compliance.
5. Understanding the Legal Rule of Lis Pendens
Purchasing property that is the subject of litigation puts you at risk. Relevant searches at the high court registry where the land is situated can uncover ongoing disputes.
Many people make the mistake of seeking guidance at the last minute. Some call after paying for the property and ask that a deed be prepared for them. This is putting the cart before the horse.
You don't want to imagine the sleepless nights and seven- or eight-figure litigation expenses that land suits can bring! Conducting checks early can save you from paying much more later to resolve problems that could have been prevented.
Document verification and title investigation are very important, as discussed above. Engaging proper guidance from the beginning can also advise you about areas to avoid, especially those prone to land fraud. It helps you understand the various scams deployed by fraudsters to swindle property investors. More importantly, professional checks ensure that all legal requirements are met and your investment is secure.
Final Thoughts
Purchasing real estate in Nigeria requires careful attention to detail. By focusing on due diligence, carrying out searches at the land registry, checking for charges, building approvals, and understanding potential disputes, you can protect your investment and avoid costly mistakes.