Buying a property is a major decision and should be approached carefully especially in mega cities like Lagos which is renowned for intricate land scams. Due to naivety or desperation a number of property buyers have fallen victim of scams and have bitter stories about the transaction. Our article this week focuses on some common mistakes made when buying property in Nigeria and how to avoid making same mistakes

#1 Due Diligence- Whilst buying property in Nigeria, accepting the Sellers narration of the history of the property without proper due diligence is one of the greatest mistakes made by Buyers in property transactions. No matter how straight forward the story looks it is always essential to conduct proper checks at the land registry and where applicable – Probate Court, Corporate Affairs Commission etc. Physical inspection of the property in the absence of the Seller is also advisable as well as important things like finding out how safe the neighborhood is or the condition of the street when it rains etc. Conducting proper due diligence enables you verify the owner, history of the land, reason for sale i.e. whether there is any litigation on the land or topographical challenge.

#2. Failure to engage a Lawyer- Due to the sensitivity of property transactions, it is advisable to engage a Lawyer experienced in real estate transactions whose role is to basically access the risks inherent in the transaction and also document the agreement of the parties. It is important to give your Lawyer full disclosure in order to ensure they provide you with sound advice before making the purchase.

#3 Paying excessive consideration – Another common mistake in buying property in Nigeria is paying too much for the property. This can be avoided by checking prices of surrounding locations and offer an appropriate price based on your checks. Buyer can also consider engaging the services of an Estate Surveyor who can offer professional assessment of the property based on market realities.

#4 Showing Desperation- Buyers sometimes get desperate especially when they need the property urgently or when they have been searching for a property for a while without success. When a Seller senses desperation in the Buyer, it strengthens the Sellers negotiating position and most likely the Buyer will be duped or will buy at an exorbitant rate.

#5. Failing to take immediate possession- This is important especially in Lagos where the menace of land owners selling the same land to multiple buyers is rampant. It is advisable that once payment is completed, the Buyer immediately takes possession by either constructing a fence or security post on the property or moving into the property.

#6. Failure to Obtain Proper Documentation- Land Transactions are rooted in documentation and it is thus essential for the Buyer to insist on exchanging cash for the appropriate documents. As much as possible a Buyer should avoid paying in advance without a clear cut agreement on when documents of title would be transferred .

CONCLUSION

Buying property in Nigeria can seem overwhelming sometimes but if you go into the process having already done your homework and with a competent and trusted Lawyer, you can protect yourself from all of these mistakes.

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These doesn't do anything. The fear of Scammers and Ikwerre peeps is the beginning of wisdom. Lagos is a lot safer.