10 Rules to Obey When Buying a Land/Property In Lagos

Owning a landed property in Lagos is something many people consider as a worthy venture. However the attendants risk involved in the acquisition of such land and retention without having to battle with 'the powers that be' is another cause for concern and worry.Some might say it’s probably better to use their millions to buy stocks/shares or do some small business but the truth is that those kinds of businesses are too risky but having a property of your own when you can afford it helps to consolidate your wealth.

So, if you have enough money to build or buy a house of your own, it’s best to just do it as it increases your chances of remaining rich for the long term. There are many people that made millions during their youthful age but ended up wasting it and didn’t even have anything to fall back on by the time they are retired.

It’s one thing to make lots of money in Lagos but another thing to actually keep hold of that money for the long term. Investing in a solid asset like real estate is one way smart Lagosians keep remaining rich even when they are no longer making a lot of active income.

Everyday thousands of Nigerians at home and abroad hope to buy a property in Nigeria more especially in popular cities such as Lagos, Abuja, Port Harcourt, Abeokuta, Ibadan etc but a common reoccurring theme that filters through their minds is how to safeguard their money so that they won’t be duped by Land Fraudsters or lose their Lands to the Government.

There are a great number of things to look out for and keep in mind when buying a new home or land property especially in a place like Lagos Nigeria. The following 10 steps are crucial and will serve as guideline while you make that investment in property in Lagos.

1. You should have a Budget:

Budget first and foremost before all things unless you would go bankrupt

The No.1 cardinal sin of most intending property buyers is not having a budget before they set out to buy a land. No matter the amount you have saved in your bank account, always take the time to research the other fees that are usually associated with buying a land and they always come in these form.

a. Legal fees- 5% of the cost of the land
b. Agency Fees- 5% of the cost of the land
c. Survey Plan- (usually above N100,000-N300,000) Depending on the location of the land and state.
d. Cost of signing the documents- ( A very strange tradition in Lagos but nonetheless something you cannot escape paying)
e. Cost of putting up a fence to secure your land immediately you purchase it
f. Cost of perfecting your documents with the Government at the Land Registry such as a C of O, Governors Consent, Ratification fees, Survey Land information etc.

Once you have done the math to know all these hidden fees that are associated with buying a land, it will adequately guide you on the location and type of land that would suit your pocket.

2. Thou Shalt not buy a Land without demanding for the Documents that the Owner(s) Possess:

Look for all the accompanying documents that a land seller must have such as a Receipt, Land Survey and or Deed of Assignment

Buying a property without knowing the documents the Seller possessed is like attempting to buy a car from an auto dealer or independent seller without asking him to show you his driving licence and car papers? You know what will happen to you when you are caught driving without proof of ownership from the previous seller. The same rule applies to buying a land. Anybody trying to transfer land or property to you must show you the documents he executed with the previous owner so as to show proof of Ownership or else anything you are buying from him is a stolen property and it’s as simple as that.

You hear daft stories like, “Oh, it’s my Aunty that is selling the land and I know her or it’s my Colleague at work selling the land so I just paid money into their account because I know them previously”. Really!!! Husband and Wives draw up wills, Parents document gifts they give to their children, why then would you just pay for a land to a non blood relative because you know them previously. For those of you intending to do something like this soon, please stop it because you might be buying a problematic land that has no proof of ownership previously and when something goes wrong, there would be no evidence to back up your claims that you bought it legally without any issue.

3. Carry out a proper land verification search:

Land Verification is a very important thing to do before you buy a land in Lagos. The intricacies of investigating a land is so complex that you should not play i too know with your money without involving land verification experts to confirm the validity of that land you intend to buy unless you risk throwing away your life saving to Land fraudsters because you were too stingy, ignorant or too cocky to perform one.

Please do not buy any property without performing a Land Check on the Owner, the Land and the Documents the Seller possesses. There are so many things to cross reference at this stage that is why you must take your time and be patient because it is your money that is at stake not the seller or Agent’s money. If you fail to take this step, then you would be left alone to wallow in your own self pity and misery because the seller would be long gone with your money.

Do not let the occasional grumblings from the seller or agent weigh you down or push you to do something rash such as ” A lot of people are rushing to buy this land and if you don’t pay now, the land may be gone” etc. Don’t listen to them. The land was there before you decided to pay interest in acquiring it and it would still be there after you do your search. The seller and agent are just eager to line up their pockets with your money so they throw you that line to you to scare you.

The reasons you must do the search is because you must verify the owner, how he got the land previously, why he wants to sell, what is prompting him to sell whether there is any dispute or litigation that he wants to shift the burden to you or he has bought a very bad land and wants to dispose it quickly before the problem manifests into something bigger or he has dubious and unreliable documents that do not confer title or ownership to him, so he is looking for the nearest fool or unsuspecting buyer to pass that problem to.

Also you will have to investigate the land to know whether it’s genuinely a good land, a land that isn’t under government acquisition or not, a land that is not subject to any communal or legal dispute, a land that doesn’t run afoul of government regulations etc.

And finally investigating all the documents the owner has and ought to have such as a Survey plan, deed of assignment, contract of sale, C of O, Governors Consent, Gazette, Letter of Allocation, Receipts, Deed of Transfer, Power of Attorney etc. The check list is too much but it must be done so that you are satisfied 100% of the title. This is the only thing that will give you piece of mind and you must contract a land verification expert to do it to give you that extra comfort or peace of mind.

4. Always Involve Professionals in Land Matters before you buy a property:

A lawyer, Surveyor and Architect are the 3 most important people you must get in touch with before you buy a land. The lawyer is the only one that can draw up your contract papers legally. Any other landed document drawn up by any other person is null and void and you would not be allowed to process your papers at the Land registry.

Secondly a Registered Surveyor is the only one that can draw up your survey plans. Without the survey plan you have no description of the land you intend to buy. Use only a registered surveyor please and finally, an Architect is the one who would advise you on the type of house you are to build and the cost of putting up that structure starting from the location of the land down to the type of soil. Don’t do self service. Engage these professionals to guide you properly.

5. Do not buy a Land without Viewing the land physically:

No matter how beautiful or attractive the land being advertised appears please go there and look at it. Too many Real estate developers and Agents have scammed thousands of Lagosians using beautifully drawn flyers promoting lands that are equivalent to Aso rock estate in choice locations only realize that they are Sh***t holes or dump yards not fit for human habitation.

Always find time to visit the place physically or send a trusted representative to view it. Don’t rely on just pictures and sweet words because there are so many other important things the picture or advert won’t tell you such as the neighborhood, light and water issues, the road leading to that place, amenities such schools or hospitals, transportation ease to and fro, marketetc. Make sure you check all these things before you finally commit yourself to buy a land.

6. Do not buy a property that smells of trouble:

No matter what happens in life, you must always trust your own personal instinct and 95% of the time, your conscience would never lie. The moment you visit a land for inspection, follow whatever your guts tell you. If your mind is shaky about the land, don’t push it; walk away because that land isn’t meant for you.

If you see things that make you tremble or suspicious please walk away. If you see things like fenced lands that cannot be justified by the owner or no proof of ownership, no survey plan or its layout, you hear the land is a relocation land or there is a minor dispute that was just solved, so many family owners or sellers etc please kindly walk away and move on. You have just dodged a silver bullet in your pocket. Don’t let anyone pressurize you to buy it. The signs that you see now might seem so small and irrelevant but trust me 5 years down the line it will begin to manifest seriously and the Agent or Seller who allayed your fears and coerced you to buy it would be long gone and you will be left on your own to deal with the resultant issues.

 7. You must not pay for any Landed Transaction in Cash:

Do not pay for lands in Lagos with Cash directly. Document it.

Don’t even dream of it. Everything must be properly documented from the cost of the land down to the Receipt or survey fees. This is the only thing that can save you from problem tomorrow in case you want to track down a fraudulent seller of land. I hear people giving land sellers cash to make them feel comfortable but it’s not right. Even if the signing fees is N50,000, try your personal best to document it through a recognized bank instrument.       

Instead of paying cash directly, why don’t you pay through Checks or Bank Drafts so that there would be a history of the transaction? Also engage a lawyer to prepare a purchase receipt in your favour so that all parties would acknowledge receipt of these Bank instruments. It would prevent the seller from denying the exact amount he was paid and when he was paid and for what purpose. I do it all the time to protect my clients and that’s why a land fraudster cannot claim he wasn’t paid for a specific land

If push comes to shove, that tiny piece of evidence can be used in court to show when, how and the time the person collected the money and he cannot deny it. Most fraudulent sellers try to avoid this route by accepting partial cash installment payments to cover up their tracks. Don’t do it.

8. Never ever listen to a land seller’s opinions about the title of land they possess without you verifying it:

A lot of previous land purchasers are very guilty of this commandment and have become terrible victims in the aftermath of this issue. They listen to these land sellers who lie to them that the land has Government approved papers such a Gazette or C of O etc but they do not have any shred of evidence. They lie that certain big shots have bought lands there and they are all deriving title from that government document legalizing their ownership of the land but there is none available that you can inspect physically. Because people are ignorant they believe them.

How would you take the word of an illiterate over an educated professional? It makes no sense. Their only business with you is to show you the land, prove ownership and show you their documents. Any other thing that comes out of their mouth to sway you to buy is just plain lies so don’t fall for their tricks. If you’re in doubt, engage Omonile Lawyer to get to the bottom of these stories. I might be saving you from throwing away your life saving to a Land fraudster.

9. Make sure you put all your Landed Transaction Details in Writing:

All your Land Transactions must be documented to save your self from unwarranted headache tomorrow. There are so many documents you need to make sure the title of that land is properly transferred to you such as a deed of assignment, contract of sale, letter of allocation, affidavits, purchase receipt, deed of gifts, letters of administration, survey plan etc. Not having some of these documents is Akin to just assuming you own a land but when you are ready to take possession of the land you now realize someone else has taken over your land and has done his documents to claim ownership over you. Please always consult a property lawyer experienced in real estate to guide you on the documents you need to prove ownership of that land.

Another very common mistake most purchasers are culpable of. They pay for lands but there is no proof of the deed of assignment or contract of sale between the buyer and the seller. Absolute madness!!!! Some will say they haven’t received the receipt but they are waiting for the owner to come back so he would take them to meet the family he bought it from. Many I know don’t even have a survey plan. How do you prove ownership? How can you trace the owner?

Some people tell me that it’s not a problem because they know where the person lives so he cannot run. Ok, what if he dies? How do you prove to his family or community that you bought the land validly from him? What if another person lays claim to that same land, how do you prove ownership? The 3 basic things a Buyer must have when they pay for a land is a Receipt, Deed of Assignment and a Survey Plan. Without these 3 things you have a very slim chance of proving ownership if anything goes wrong in future.

10. Thou Shalt take possession of the land you bought immediately:

Please take possession of your land immediately you buy or within a reasonable time after you buy the land so as to ward off land speculators or Fraudsters prowling around to steal unguarded lands. 

As soon as you buy it, try to take possession of it by constructing a small fence around it. You don’t have to do 9 coaches, just 2 or 3 is enough to demarcate your land so that any prospective buyer of the land knows that it has already being bought and should stay clear of it. Pour gravel or sand there, do a well on the site and visit if frequently. Hire a mai guard to come on the land to watch over it till you have money to build something tangible.

Don’t just leave it fallow and expect it to wait there for you when you are ready. Somebody else would end up encroaching on your land and steal it.                  -(Courtesy: Omonilelawyer)