Buying land or developed property is one of the dreams of every Nigerian. It can be a very exciting and very scary prospect at the same time. This is especially so because in Nigeria there is always the risk of fraud. Therefore, this guide is meant to explain the process everyone who is interested in buying land/property in Delta State should follow to ensure that it is done safely and properly.
STEP 1 DECIDE ON A BUDGET AND LOCATION
Buying a property is a big step involving a substantial long-term financial commitment, so think hard 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 very long time. Once you decide on a budget and location, then you are good to go and you can move on to the next step.
STEP 2 – HIRE A COMPETENT LAWYER
Not all lawyers are experts in property transactions. It is not enough that you hire a 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. Therefore it is critical that the lawyer you hire can prove to you that they know what they are doing. You will need a lawyer in all the next stages, 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.
STEP 3 LOOK FOR THE PERFECT (OR ALMOST PERFECT) PROPERTY
Once you hire a lawyer, 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. the estate agent will look for properties which match your criteria, create a shortlist for you, and then organise for you to view the properties shortlisted. Your lawyer can also assist you in recommending a trustworthy estate agent. if your lawyer is involved in many land transactions, he/she should have several estate agents they work with and can recommend to you.
STEP 4 INVESTIGATING THE SELLER
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. A lot of times when dealing with property in Delta, you hear of fraudulent individuals who try to sell property which they do not own to unsuspecting buyers. This stage is where your lawyer begins his/her work fully, the 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, is the real owner. This is EXTREMELY important especially when the property in question is family land.
STEP 5 – INVESTIGATING THE PROPERTY
If you pass step 4 and you can confirm that the person you are speaking to regarding the property in Delta which you want to buy, is the real owner of the property or has the authority of the owner, then you can move on to this stage. In this stage, your lawyer will also play a big role. 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
STEP 6 – VIEW 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.
STEP 7 NEGOTIATION
This stage is explanatory, the buyer and the seller have satisfied themselves that the deal can proceed, it is now a matter of agreeing on an acceptable price for the land. Your lawyer will be very instrumental here as well, as the 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.
STEP 8 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 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 Delta, there are 2 main documents – the receipt and the Deed of Assignment. The lawyers will deal with this, and ensure that the interests of both parties are addressed.
STEP 9- 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
STEP 10 – 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 vests in the Governor, and a right of occupancy is given to a person for a maximum of 99 years.
NEXT STEPS
Are you considering buying property in Delta or already in the middle of a property transaction and you need professional advice and assistance?
From the above you can see that there are a number of risks involved with buying property in Nigeria, and the most effective way to prevent a number of them is to conduct proper verification before you proceed i.e. verify that the person you are dealing with is the legitimate owner and verify that the property has no encumbrances. Therefore, we at talk to a lawyer have created the ‘Talk to a lawyer Property Protection Service’, to help buyers of property in Nigeria to manage their risk. The service includes conducting comprehensive legal verification of the ownership and status of a property by our legal experts, and then we will provide a written report. The service costs N40,000 (Forty Thousand Naira only) and you will receive your report within 7 days. This gives you peace of mind before you go into any property transaction, Interested in this service? Chat with us now.
There is a possibility of you stumbling on an opportunity to buy land and getting a good deal but don’t get carried away to the point of neglecting the documents. Jumping at a good deal to buy land is fine but you need to be extremely sure of what you are buying and avoid leaving anything to chance.
Ask for proof of ownership. Involve verification experts before you pay for any piece of land. Don’t take anything for granted. The process of land investigation is quite complicated and you should leave it to professionals to do this on your behalf.
Anyone who tries to sell you land and is reluctant to show you proof of ownership is as good as trying to sell you a stolen car. Would you buy a stolen car? Documents like the receipt, land survey, Letter of Allocation, Power of Attorney, Gazette and Deed of Assignment must be available. It doesn’t matter if this person is your aunt, uncle or boss at work, a document is a document and there is no substitute for it. Our solicitors and land verification experts can do this on your behalf.
7.DOCUMENTATION OF TRANSACTIONS AND PAYMENTS.
Take the pain to document every single part of the transactions involved in buying land in Nigeria. Every single part of the deal needs to be documented; from the cost of land to the survey fees. Documentation is vital for referencing and you should ensure the documents are detailed.
Everything must be properly documented with receipts from the payment to the survey fees. It’s very important so you can have a full and a complete detail of the transaction made.
All transaction should be well documented, this is very important for future references. These document include, contract of sale, deed of assignment, letter of allocation, survey plan, affidavits etc.
Where payments are made via cheques make sure you make photocopies of the said cheques and the vendor must acknowledge receipts of same.
8. INSPECT THE LAND BY YOURSELF.
This is a very important step to take when acquiring a property. Lots of people have been scammed and duped because they were too busy to inspect the property themselves.
No matter how busy you are avoid delegating the inspection of the land that you intend to buy to someone else. Go and inspect the land yourself and see things with your own eyes. Don’t rely on a third party to do this for you no matter how much you trust this person.
You can rely on our solicitors and professional’s guidance and experience to see things differently from the way you see them. Despite this advantage, endeavour to make yourself physically available for the inspection of the land.
Regardless of how busy your schedule is, you have to find a way to create enough time to carry out a thorough inspection of the land before you buy it. A growing number of people have been swindled just because they were too busy to carry out a thorough inspection of the land before making payment.
Pictures sent to you by the landowner is good but going for an inspection of the land is much better.
5. FILE THE DOCUMENTATION FOR YOUR NEW PURCHASE WITH THE RELEVANT LAND REGISTRY.
It’s important to do this step because it legally makes you the new owner in the eyes of the law. If the property already has a C of O (certificate of Occupancy), the next step is to prepare a Deed of Assignment ,register same and pay the relevant taxes and dues to the Government ,thereafter you must obtain Governor’s consent for the transfer of title.
If the said property does not have a Certificate of Occupancy ,it is important then that you start processing your C of O as soon as possible in your name.
A power of Attorney must be donated and a deed of assignment signed by both parties for this purpose ,after which it is pertinent that these documents be registered at the land registry ,the relevant taxes and development levies must be paid.
Our team are always at hand to help with this process as well as every other step stated above,our team will also render relevant legal advise and draft all necessary papers where necessary .
