Buying of property for investment or for use is one of the best things for anyone to engage in, especially in Lagos. Usually, it is very exciting when you think of buying a house or a plot of land, especially for those who have planned and saved for it for many years and finally seems achievable. Sometimes, the excitement is so much that we forget so many important things we need to put in mind while buying. This is especially important in this hard economy we presently find ourselves in. Again, purchasing a property can be stressful sometimes, especially in a bursting city like Lagos.
So this article will take you through the crucial and important points to consider before embarking on buying a property.
THE CONVEYANCING PROCESS
It is no news that the conveyancing process is basically one of the most important and daunting parts of buying a property. That’s if it’s not even the most daunting and important. So you would agree with me that lack of adequate knowledge on the main documents required to acquire a property can make it more challenging and even risky. Listed below are the major documents you need to obtain to complete your property purchase.
- Certificate of Occupancy (C of O)
This document is usually issued by the government. Usually the state government has the right to issue this document to the lessor of the Land, to own and use the land. This document is valid for the period of 99 years. Only one C or O can be given on a parcel of land. This means that when that parcel of land is sold, a new C of O is not issued but rather the C of O is transferred to the new owner, and this is done through the Governor’s consent. This brings us to the Governor’s consent.
2. The Governor’s Consent.
This document is an action by the governor or his appointee to show consent to a land transaction on a deed of assignment, that is executed between an assignor and assignee. This is done through appending a signature on the executed document. This document is prepared by either the assignor or the assignee’s lawyer and then sent to the governor’s office for a signature of either the governor or the governor’s appointee.
This document is crucial at this moment of fake selling of lands by agents. Getting the Governor’s Consent document can help you put out scams and be sure you have a genuine transaction consented by the Governor.
3. Deed of Assignment
This is a document that details that the seller, who is the owner of the said land has transferred all his rights and interest on the land to the buyer. Which means, when signed, the buyer becomes the new owner. This document is usually prepared by the lawyer of the buyer and then vetted by the seller and his lawyer before it is signed by both parties and their witnesses. This document usually contains the details of the transaction made and the description of the size, location and cost of the property being sold and the document is only considered legit upon registration in the land registry and obtaining of the governor’s consent.
4 Deed of Conveyance
This document is an old document which was usually considered a valid proof of ownership of a property or land until the Land Use Act of 1978. This document is similar to the Deed of Assignment. It is still available for many old houses today, as their title documents. On buying any property with this document, you would need to renew the document to fit the new Land Use Act.
5 Survey Plan
This document usually details the location and boundaries of the parcel of land, its measurement and its description. This document is issued by the office of the Surveyor General in Lagos, if your property is in lagos. If your property is in other states, the office of the Surveyor General in those states will issue it.
PLANNING AND REGULATORY LAWS
The Lagos State Real Estate Regulatory Authority Bill (LASRERA)
In Lagos, this law prohibits any unregistered individual or unlicensed agency from engaging in real estate transactions in the state.
There are so many unlicensed real estate agents in Nigeria today. While this is true, it is safer to transact with licensed and well registered real estate agents or registered agents of licensed real estate agencies. You can find a list of these agencies and real estate professionals on several platforms like Estate Intel.
I personally work with a well known Real estate agency, with lots of awards as the best real estate agency in Lagos. EUC Homes has lots of juicy properties to choose from. You can also work with us as an agent. Which means you can introduce our products to your family, friends and clients and get paid very nice commissions when they make a purchase. We can train you on how to go about your marketing. To join us as a consultant, click here to register.
The Land Use Charge Law (2018)
This law was enacted to provide for the harmonisation of all charges paid on properties and other land based levies. It makes adequate provision for the levying and collection of land use charges, not just in Lagos state but in other states. Each local government is empowered to collect the charges for its Jurisdiction.
THE MARKET PRICE
The property market in Lagos is wide. Different locations in Lagos has different prices for properties. So the location you are buying a property from will determine how much you pay for a particular property. The most expensive properties are mostly found on the Island. These places include: Victoria Island (327m), Lekki Phase 1 (200m), and Ikoyi (299m). The mainland too has some very expensive areas. These include: Surulere (101m), Yaba(90m), Ikeja(269m), Magodo(300m).
Apart from prices, other fees apply when you are buying a property in lagos.
1 Legal Fees: This is usually between 2-5% of the cost price. This can be negotiated.
2 Agent Fees: This fee is usually paid to the agent that introduced the property to you. Sometimes even when you meet the owner of the property directly, you’re still made to pay this fee in lagos. The fee is usually between 2-7% of the property cost. It is also negotiable.
Other taxes that might be included are;
1 Omo-Onile Charges. These are usually part of the fees when buying property from communities like ibeju-Lekki and other local communities in lagos. The fees include: development levy, foundation fees, decking fees, and community fees. These people called Omo-Onile usually disallow the buying or developing of properties if these levies are not paid. However, these levies are negotiable.
2 Service Charges. This is a levy paid if your land is bought in a serviced estate. The charges are for provision of some amenities and facilities like security.
DUE DILIGENCE CHECKS
Due Diligence is basically the process of checking your documents for authenticity. This process helps you verify that the title and ownership of the property is without claims and it is original. The buyer’s lawyer usually carries out this due diligence check.
NOTE. The agent fees, omo-onile fees, are not paid when you buy any property from our company. The company takes care of all of that. Also, the company takes care of the due diligence. To Check out some of our properties.
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