When buying a property, either for the first time or as a seasoned investor, there are real estate terms you would come across at different times during your purchase journey. Having a comprehensive grasp of these real estate terms would establish you as a smart buyer with in-depth knowledge of the industry and would also improve the entire experience for you. This glossary of real estate terms are alphabetically organized for you to make reference to on-the-go.

Appreciation – This is how much your house increases in value over time. A lot of factors can affect this increase including Building improvements, Housing demand in the area, Government Regulations, Project Constructions, and inflation. 

For example, In Lagos, Land value in Epe is continually increasing due to proposed projects in the area. Notably - The New International Airport along Lekki-Epe Expressway. Property value in the area is set to increase by 50% before 2024. Key into early sales with Ashborne Gardens and Martel Grandiose.

Certificate of Occupancy – A Certificate of Occupancy is a legal document issued by the government that proves that a person owns land in Nigeria. The Government reserves the right to seize any plot of land or property without a C of O at any time without any compensation paid.

The purpose of obtaining a certificate of occupancy is to establish that the house or building is in a livable condition according to the law. Such a certificate is usually required to occupy the facility on a daily basis, to sign a contract to sell it and to close a mortgage on the property.

Debt-to-Income Ratio – DTI ratio compares a person’s gross monthly income to their total monthly payments. It’s calculated as a percentage and used by lenders to determine whether someone is qualified for a loan. A low DTI is considered less risky while a high DTI is riskier, and therefore makes the person less attractive to lenders.

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