Setting Up A Real Estate Agent Outfit - What Are The Requirements Please.

I'll try my best to answer your questions on the subject matter above:


Generally i believe there is no act or law that supports the group called "real estate Agent" but the Nigerian institute of surveyors and estate valuers are generally considered the right group or professionals to handle real estate transactions in Nigeria, but since most of them are kinda uptight and restricted in their practice, alot of people or groups have began to operate as minor low scale realtors to help people and attract clients who want to buy and sell properties on a low scale level without the need of professionals.

The advantage is that transactions are done very quickly, clients dont need to pay exhorbitant professional fees and the word of mouth travels very fast amongst fellow real estate agents.

The disadvantage is that it is a very risky proposition for  a client to deal with real estate agents because beyond the sale and minor transactuons, they cannot professionally evaluate a property and cannot inolve themselves in conveyancing matters and most especially they cannot be held liable for any defect in the sales of property hence the rule "caveat emptor-buyers beware" because they take the money and split after the sale.



I am not sure whether they have an association or not and i know the state government taxes them as regular small businesses but on a professional scale, i dont think there is any requirement whatso ever.


The known body is NIVES-Nigerian institute of estate surveyors and valuers



In house lawyers to companies or businesses are generally prohibited from handling such matters and after some time the lawyer might end up stealing most of your clients since he can do both the sales and conveyancing. The best advise is to hook up with one lawyer and while you contract for sales and purchases of properties, the lawyer does your conveyancing matters and your both happy. You get your 10% from the agency fees and the lawyer gets his 10% for the conveyancing and you dont have to pay extra monthly salaries or commissions



Just like the dos and donts of having a lawyer on your team, the same applies for a professional estate valuer or surveyor. Since he is a professional, he would definately take over your duties and clients at some point. Its best you sub contract these things with a surveyor when there is a need for it and you pay him his commission.

Until you become a master and professional in this chosen field, be rest assured these professionals will take advantage of you if you ever intend to employ them. Just out source when the time comes and deal with your private agency transactions and you would get no hassels.

Hope i have been able to help!!

Cheers!

 

No problem. I'll tell you how it works in Naija:

1. Assuming you are an estate agent and you end up getting Mr A to sell his house and your acting on behalf of him to sell the house through adverts or word of mouth and the property is going for N1,000,000, iF Mr B is interested in that property, he would pay the following:

a. N1,000,000 asking price of the property

b. 10% of N1,000,000 = N100,000 which is the agency fees or money given to the agent for marketing the property on behalf of Mr A

c. 10% of N1,000,000 = N100,000 which is the legal fees given to the lawyer to help draft the deed of assignment and who propably did the required search of the property at the land registry to know if the property is free from defect.

2. So therefore, MR B will pay a total sum of N1,200,000 before the property can be transfered to him. EVERY BODY GETS HIS OR HER OWN CUT. That is what is being known as the total package!

If you have any more questions just mail me at barristermatto@yahoo.com

Cheers!

What if Mr. B has his own lawyer and not willing to use the agent lawyer like I did. Why should I trust the agent lawyer ? Whose best interest is he looking out for ?

@lawyer,
      Thank you for dealing with this subject properly, you are doing a great job.
But i would advise that anybody interested in starting this business should at least go for a tutelage under an established agent for 3 months (weekends will be ok) .You can try Realty point ltd. their office is at onigbagbo House, Maryland.

Your truely correct third eye. Real Estate Business is really an ugly business and not for the faint of heart. To be successful in it, you need to understand the rudimentary of it and understudy pros who live and die for this tough job and are used to a tough environment like naija! We could keep in touch and rub minds together!

Cheers!