2015: Mistakes To Avoid While Making Investment In Properties.

Most people just go into investing in properties without consulting and or commissioning an expert to undertake the requisite task of ensuring the property is totally free from all encumbrances whether express, implied, equitable or legal. Some properties with existing equitable right such as express, implied and/or constructive notice and properties under State or Federal acquisition are being sold to innocent purchaser on daily basis.

Below are some of the common mistakes made by purchasers, assignees, mortgagees and leasee of a leasehold interest:

Firstly, Failure to perform the requisite due diligence at the appropriate registry to ascertain if there are existing encumbrances.

Some purchasers while relying on what their agent(s), family members and or friends tell them, commit huge sums of money into properties without retaining the services of a professional to conduct due diligence on the property in question. Some others, hastily consult a non-professional or a quack to carry out the necessary due diligence and often, these non-professionals either due to greed, selfish interest and or lack of technical know- how, carry out shallow search on the property, thereby giving the property a clean bill of health only for such property to end up either as a subject of a prolong litigation or outright demolition for being under Federal or State Government acquisition.

A case in view is the recent demolition carried out by the Nigerian Police in Badagry, Lagos State, Nigeria ( On the alleged Police Land even when the Res was still been litigated upon) where Landlords and Landladies had their properties worth millions of Naira demolished within a twinkle of an eye for failure to retain a trained professional to conduct due diligence or accept the counsel of a trained professional. The pains and agonies of these Landlords and Landladies are unimaginable. Their life time investment went down the drain in just one day. This obviously is pathetic and disheartening.

Secondly, most purchasers and assignees simply rely on the fact that the property they wish to buy is covered by a Certificate of Occupancy ( C of O) or the fact that there is an existing building on the land. It is important to note that Certificate of Occupancy is not an absolute proof of good title because it can be revoked if fraudulently obtained. Surprisingly, C of O confers no legal title on a purchaser of any piece of land that has no valid title ab-ini-tio. So, if the Seller parades a C of O, common sense demand that the purchaser retain a Professional to deduce the title to the original owner of the land.

Lands under government acquisition is a ticking time bomb to any person that may acquire such waiting for a perfect time to explode. The fact that there is an existing building on a land does not preclude the government from taking over the property anytime she is in needy of it. Furthermore, the doctrine of laches and acquisance does not apply in this scenario if it is established that there was a constructive notice on the land and the assignee/purchaser was negligent in conducting due diligence on the said land.

We recently undertook an independent corporate due diligence for a client who had concluded plans to purchase a four (4) storey building worth over 800 million Naira in Lagos. Plans have been concluded and the purchaser had carried out his search on the property through his agent. We were only commissioned to undertake the legal paperwork so money could exchange hands. However, we decided to carry out independent due diligence to ensure a proper job was done. We discovered that the said property is under Federal acquisition, this was confirmed by both Federal and State ministries. The vendor was not aware that his property has been under Federal acquisition, according to him, he had done a search in time past and was told the property is free from encumbrances, it however turned out that the agent he commissioned simply didn't do his job effectively and efficiently. Just imagine if we were not vigilant enough or if we were simply after our commission and were not professional enough. The worse would have happened!

We know for sure that lands acquired by government can be released to the original owner and we are currently processing the release of this property, so we can have a formal deed of rectification and thus ensure the land is totally free form encumbrances before a formal sale.

Avoid consulting non- professionals who are simply in it for the money or other pecuniary benefits. We pride ourselves as professionals because we are not only in business for making money but primarily to secure our client's investment with our expertise and the passion we have in ensuring that fraudulent land developers/vendors in connivance with some other persons don't cash in on innocent purchasers' gullibility and negligence to enrich themselves. Ensure due diligence is observed on that property before committing cash to it. As mentioned earlier, we are not in this for money so we render all property due diligence free of charge as we do not charge a dime as our professional fee. Our duty as aforementioned is to ensure we contribute our quota in curbing the menace and excesses of fraudulent land developers and vendors.

For more inquiries, write us at: info@macropropertiesng.com or call: 08035165680,08050718913.

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