•All You Need To Know
The real estate sector has enjoyed boom for over 10 years and Lagos State real estate market has contributed significantly to this development. In fact, Lagos State has been dubbed the center and hub of real estate activity in Nigeria.
Lagos is a dream destination for real estate investments because of the high rate of return on investments. The market analysis for Lagos State shows that it is one of the highest property values in Nigeria. The Lagos property market especially the mid-market segments remained buoyant when property prices in states across the country took a haircut from the recent economic recession. A piece of land that was purchased around 2006 in Lekki for 5 million was sold for 40 million naira nine years later, that is a seven-fold increase and it is not an isolated case.
Ibeju Lekki in Lagos is the hottest investment destination in Africa at the moment became the Lekki free trade zone(LFTZ) has attracted massive investments within the zone such as Deep Seaport, Dangote Refinery, Lekki International Airport, Golf Courses and Resorts, the 4th Mainland Bridge, the Smart City Project, etc. It has been projected that developments in Ibeju Lekki will provide up to 400,000 jobs on completion and smart investors are already taking position to take great advantage of the expected demand for residential and commercial properties in the Ibeju Lekki area.
This is why top real estate players/companies have positioned themselves in the axis. They are buying big for real estate development, while some are there to build houses and commercial properties to meet the demand of people who will be working there in the nearest future.
But despite all these, there are still many challenges with how to buy land for investment or private property.
The first danger when buying land in Ibeju Lekki is long term unsettled land cases
There are many landed property belonging to families in Ibeju Lekki with the family holding original documents of the land but the government has taken the land from them. Because the government hasn’t touched the land for years and the family would probably believe it’s still their own, so they will sell it to property firms with a receipt. Immediately government notices development on the land, they will come in.
In order to perfect their plan, some of these families will tell you to use their Property lawyer to do findings on the land and the lawyer would not tell the buyer that the land has been taken by the government.
A few months back, one of the popular real estate players told City People that he was duped because they made him use their own lawyer, and as a result the lawyer gave him wrong information about the land. The land that was under government acquisition was said to be free of any acquisition. This is one of the major issues in the sector.
Alot of real estate firms have folded up because of this singular act.
Another danger is when buying a land with no document and the seller says the document is in process. This is a major risk. Why? Many of these so called Governors Consent is in process, the title may be denied by govermemt and people have already bought the land. What they (Omoonile) will tell the investor or the real estate player is that, the document is in process and when it’s out and you haven’t paid what we asked from you, then you will pay twice the original money.
That has always been the trick to dupe investors.
Another danger of buying land in Ibeju-Lekki is unlawful encroachment from Omo Onile after you have bought a large expanse of land from a family in Ibeju-Lekki. Take for instance, if you buy 50 hectares of land and you fail to fence it immediately. According to a real estate expert, Olumide, the General Manager of Whitegate Homes. “After the real estate firm had bought land and sold the size of that land to their different subscribers, the land most times are usually not up to the number of hectares they bought, especially if you fail to fence the land. Part of your land will be sold to another real estate company or investor”.
Another danger is not using your trusted surveyor when buying land from Omoonile. These Omoonile have their own surveyors they use to defraud people. They will tell you they have a surveyor who is always available to help out. It’s true, but you may be defrauded. The surveyor will do what they have planned before the arrival of the real estate investor. If the land is 20 hectares, they will connive with the surveyor to tell the buyer the measurement is up to 25 upward. This has been another major issue real estate players do face in the business of real estate in Lagos.
Have a budget in mind: This step is crucial as it makes you know what you are capable of buying. This also makes you avoid waste of time and energy because you have clearly defined your goals before you start.
Begin to search for the right landed property that suits your needs. At this stage, you might want to work with a real estate agent or consultant, better still you might want to check online for the best one that suits your budget. A professional real estate agent will identify your needs and match you with the right property. In addition, you might hire a lawyer to confirm what the estate agent is bringing to the table.
Research the developer or owner of the property and the property itself. This is the duty of your lawyer, he has to research the owner of the property. He needs to be sure the property is not owned by Omo-oniles or fraudulent people. The lawyer will ask the right questions and requests the right documents. This stage is also vital when you want to buy land in Lagos. Furthermore, the lawyer also needs to investigate every document the land has. Though, this is usually carried out in the Lagos land registry in Alausa Ikeja. These searches conducted on land make you aware of any encumbrances whatsoever that the land might have.
So how can you get ir right? By Physical inspection: Nowadays, inspections are done virtually that you don’t have to be physically present to see the property. Thanks to technology that has made property viewing so easy. Virtual reality is another device you can use to inspect the property from anywhere. Property inspection makes you see the defect the property might have whatsoever.
Beware of statutory fees: These fees are charged by real estate companies and it covers the documentation fee; developmental fee: development of the estate such as drainages, water, electricity, maximum security, etc and; survey plan fee which will spell out the size of your land. Some of these fees are negotiable depending on the company you are dealing with. If you are dealing with omo-oniles, which I wouldn’t advise you should. Their fees are so deadly
Property documentation: After negotiating the statutory fees and you have made payment for the property. The three documents required after a successful real estate transaction are; deed of assignment, survey, and contract of sale.
Taking possession: After you have made your total payment for the land, then you can take possession after your property has been allocated to you. At this stage, you have all your necessary documents to show that you are in total possession of the land.
Title perfection: This stage is not compulsory, it all depends on if you want to file your land document with the government. This is necessary if you want to process your Governor’s consent.
– ISAAC ABIMBADE
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