Few hours after I paid #4 Million Naira to lease a Petrol Station, I received a bombshell.

My friend who found out told me that the underground tank was leaking.

That was the reason why the Owner wanted to lease/sell the Filling Station.

The next day my Engineer confirmed that the underground tank was leaking.

Any petroleum product stored in the tank would leak out which would be a big loss for my business.

I couldn't believe I just made a big error.

I didn't inspect the tank before making payment. So I demanded repair of the tank or full refund of my money.

The Owner through his lawyer told me in a letter that I was bound to complete the payment because it was my duty to inspect the property.

My head was spinning when I read the letter. The cost of repairing the tank is about #1 Million and I can't even afford that.

I engaged the services of Sesi, a lawyer that was highly recommended by close friends.

''Investor Jimi you made a big error by not inspecting the property properly before you paid.

The second error was not documenting the transaction even though you are paying in instalments.

But this is not a hopeless case."

Two weeks later, Sesi successfully brokered a deal that solved the problem.

The Property Owner would extend the lease by an extra year which I won't pay for.

The money for the extra year would be used to fix the defect in the storage tank.

Sesi left me with an admonition before we parted ways:

''Investor Jimi, never conclude any real estate transaction without documenting it. Otherwise, you'll be shooting yourself in the foot."

I hope you also take this lesson seriously!

What's your takeaway from my story? Please share in the comments section.

There's always a clause in every business transaction "caveat emptor"(Buyers Beware). The seller is not obligated to disclose any defect to his goods/services to the buyer. It is the duty of the buyer to make enquiries and inspect the goods before making payment.

The only transaction that demands "uberrimae fidei" (Utmost good faith) is insurance policy.


I'm glad He later agreed to be merciful to you by deferring a year payment for your laxity.

Zonefree:
There's always a clause in every business transaction "caveat emptor"(Buyers Beware). The seller is not obligated to disclose any defect to his goods/services to the buyer. It is the duty of the buyer to make enquiries and inspect the goods before making payment.

The only transaction that demands "uberrimae fidei" (Utmost good faith) is insurance policy.


I'm glad He later agreed to be merciful to you by deferring a year payment for your laxity.

...hope this non-obligation doesn't include Vendors here on NL?

It's fraudulent to sell defective stuff while having the buyer think it's problem-free. If it were Boom, I'd have the seller feel my pain when the lease is over.

Boomboost:


...hope this non-obligation doesn't include Vendors here on NL?

It's fraudulent to sell defective stuff while having the buyer think it's problem-free. If it were Boom, I'd have the seller feel my pain when the lease is over.

Why do you think most banks don't take actions when one reports being defrauded? The bank will rather direct you to EFCC. In a business transaction, you're expected to carry out diligent inspection of the goods and the seller also. The mere words of a seller is nothing in court of law unless it's documented.