Everyone knows that acquiring land or property is a substantial financial endeavour, where mistakes can result in significant monetary losses. To avoid this, it is important that you approach land or property acquisition with meticulous care and attention.
In this series, we will outline a step-by-step process for acquiring land or property in Nigeria. We will emphasize the importance of each stage, showcasing its influence on the overall transaction’s success. We will also stress why you need to employ the expertise of professionals to navigate this complex process effectively with you.
1) The Pre-Contract Stage
This initial phase in a land transaction requires that you conduct a physical inspection of the property, verify the vendor’s claims about the land or property, and ensure that it aligns with your intended use. It is important that this critical stage should be carried out with the guidance of an expert, possessing the necessary background, knowledge, and skills in property acquisition.
The processes within this stage include :
A) Investigation of Title
It is important to ensure that the vendor holds a valid title to the property being sold. Before entering into the contract stage, you must ascertain that the vendor has the right to sell the land or property. Additionally, you have the duty to verify if any third parties hold rights that could affect your intended use of the property, such as usage restrictions, rights of way, tree preservation orders, or mortgages. This often entails extensive inquiries that must be conducted by a person familiar with the processes before the property purchase is finalized.
To aid this process the expert working with you on the acquisition will usually conduct a search at the Land Registry to verify the vendor’s claim and check for any encumbrances on the land.
B) Ensuring the Land is Fit for Purpose
It is crucial that several factors be considered before purchasing land, and relevant inquiries such as the ones highlighted below be made, else you might end up purchasing land or property that is problematic:
- It must be verified that the property is free of disputes
- Guarantees in relation to the property must be accessed
- You must ensure that the property is in compliance with local Planning laws and State schemes
- Insurance provisions and policies must be reviewed
- Reversionary title or interest must also be evaluated etc.
Remember, the Nigerian property market is intricate, making it essential to have competent professionals by your side throughout this journey.
References
1) https://nigeriapropertycentre.com/blog/buying-selling/6-key-steps-to-take-when-buying-a-house-or-land-property accessed 14th August, 2023.
2) https://tribuneonlineng.com/major-steps-to-take-when-buying-land/ accessed 14th August, 2023.
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