Property prices in Nigeria are on the rise, especially in major cities like Lagos, Abuja, and Port Harcourt. Real estate here is also one of the best investments you can make. However, buying property in Nigeria is not without its challenges. Getting the right information will help you find your dream home. Here are 11 steps to buying property in Nigeria, Lagos, Abuja, or Port Harcourt:
Step 1. Know your budget
A common mistake made by first-time homebuyers is to go beyond their means. This may attract you to buy a property that you can’t afford. This is because of the high-interest rates charged on mortgages by the banks in Nigeria.
It is important to know your budget and stick to it. If you don’t, you will eventually overspend forcing yourself into a situation where a lot of money is going out and coming in very little.
Step 2. Find A Realtor
No matter what you’re looking for, whether it be luxury, value for money, or location, at some point you’ll need to find a real estate agent who will stand for you.
An experienced real estate agent is the person who’ll also help with all paperwork. The good news is that with the digital world, you no longer need to stress yourself, as agents can be sourced and interviewed from online websites like https://property9ja.com.
“A real estate agent will also help you with other tasks such as hiring inspectors, negotiating with different stakeholders, and drafting contracts.”
Step 3. Location And Value
Find out the value of the land you want to buy and where it is located. Find out the price per square meter that is being sold in that area. Find out what people are selling their properties for. Ask around, do not forget to check with estate agents who will have information about current prices as well.
Step 4: Get An Experienced Lawyer
There are many laws that govern buying and selling property. For this reason, it is important to hire a real estate lawyer. The following are some services you can expect from a real estate attorney:
- Drafting and reviewing contracts for real estate transactions like sale, purchase, lease, exchange, partition, mortgage, or any other contract.
- Laying out provisions in the contract to protect your interests and those of other parties involved in the transaction.
- Providing legal advice on how to structure your transaction to enable you to maximize profits while minimizing risks involved.
- Representing you before state and federal agencies that regulate real estate transactions like the Department of Housing and Urban Development (HUD) or the Federal Housing Authority (FHA).
- Providing legal counsel on neighborhood issues such as neighborhood association rules, covenants and restrictions (CC&Rs), zoning ordinances, and more.
Step 5: Book An Inspection
When you are buying property, it is important that you do an inspection of the property. This will help you to identify any defects with the property that may not be visible to the naked eye.
An inspection can also provide information on the history of the property and what expenses are likely to arise with the ownership of the property.
Using a qualified structural engineer for your inspection will ensure that you get the most comprehensive report possible. A structural engineer will tell you if there are any cracks in the building’s foundation, walls, or ceilings.
Step 6: Negotiate The Price
Although you have your own budget set aside, which might be more or less the property’s proposed price. Regardless, you need to negotiate the price of the property after seeking consultation with your agent, lawyer, and inspection engineer.
Get a professional real estate agent involved in the transaction. Realtors know how much similar properties have been sold for in the area and will have valuable insight into what you should pay for the property you want to purchase.
Step 7: Do your homework
Before purchasing any property, it is important to get all the information you need about the property and area that you intend to invest in.
You can get this information from reputable real estate agents or lawyers who specialize in Real Estate law. They will be able to tell you about some of the historical landmarks in the area and give you tips on what to look out for before signing any contract to buy property in Nigeria.
Step 8: Documentation Gathering
When every other step is fully completed, it’s time for both parties’ lawyers to arrange on the document to officially handover everything in.
You need mostly these three documents from the seller;
- Contract of Sale (COS): It shows the name and address of the seller(s) and buyer(s). It also details all terms and conditions relating to the transaction.
- Deed of Assignment (DOA): It transfers ownership from seller to buyer or vice versa.
- Receipt: This is obtained from the Land’s office after payment of transfer fees has been made.
Step 9. Market research
Having done some background research on Real Estate laws in Nigeria, look around for properties that fit your budget, criteria, or area. You might want to look at comparable properties for sale on our website.
Compare these properties with their price tags and location before deciding which ones you would want to buy. If it’s a commercial property, then you need to do research if the area fits into the business type, etc.
Step 10: Payment And Handing Over
Now that you’ve verified every necessary information, you will need to make either part or full payment to the seller in the presence of both lawyers while a receipt is being issued and ensure that every necessary document or information is passed appropriately. And you’re the official owner of the property now.
Don’t forget to use verified agents on our website…