It happened about three years ago when U.B.A bank went to meet Mrs tejuoso requesting her to lease her building to them for banking operation but the letter was stated "subject to contract" and the lease will take effect the moment their is physical possession of the property. After this, the bank made mention of some changes they want in the property to suit their banking operation which includes;
That all main services which include main waters, main electricity, plumbing system and sewage disposal facility were in good condition
That they will demolish structure to make space for bank operations.
That mrs tejuoso will pay engineers that will inspect the chances of the building being use for banking operation.
Mrs tejuoso with a very good heart and great mind to sell her property agreed on all these terms and condition and thus decided to make all the necessary amendment to make the building suitable for the bank. This made her part with N850,000 with some other detriment.
Some months later the bank wrote to Mrs tejuoso saying they are no longer interested in the lease of the property. When she brought an action for breach of contract, it was held that the contract was held "Subject to contract" thus its a conditional acceptance which is not valid or binding until their is physical possession of the property
Real estate agent,tenant and landlord should try and avoid buying or spending money to improve a property where " Subject to contract" is written on the docume this is a simple way of escaping liability under the law



Post from : http://www.propertylover.com.ng/2018/09/lesson-1-do-not-buy-property-named.html