HOW TO ACQUIRE REAL PROPERTY IN NIGERIA
While purchasing a piece of land or a structure is essential, the buyer should exercise caution to prevent concerns with fraud and misrepresentation before making the transaction.
HOW TO ACQUIRE REAL PROPERTY IN NIGERIA
Due to the lack of available land, real estate is an extremely expensive asset with high economic value. This is owing to the fact that the price of land or structures rises over time, making real estate transactions one of the most complicated in today's society. While purchasing a piece of land or a structure is essential, the buyer should exercise caution to prevent concerns with fraud and misrepresentation before making the transaction. To that purpose, this article will describe the various techniques for buying real estate as well as the procedures to follow while doing so in Nigeria.
METHODS FOR PURCHASING REAL ESTATE
The following are the common ways to purchase real estate in Nigeria:
A gift is something that is freely given without expecting anything in return. Gifts don't have to be written down. Executing a Deed of Gift, however, is frequently preferred in order to prevent disagreements in the future. A deed of gift is a legal document executed during the parties' lifetimes that transfers ownership of real estate from the grantor (the property's owner or legal title holder) to the beneficiary.
A deed of gift must be done voluntarily, which means without force or deception, the grantor must not get payment for the gift they have made since, if they do, it would obviously no longer be a gift but a sale, and the recipient must accept the gift.
PROBATE/ LETTER OF ADMINISTRATION
A probate is the procedure used to confirm a will's legality. The process of validating a testator's will is one that the court has mandated. It is the power a beneficiary has to take possession of any gifts or assets left by the testator. The rights or title to real estate cannot be transferred to a beneficiary by a will or codicil on their own; instead, the beneficiaries must apply for and be granted probate in order to have unrestricted access to the gifts made in the will. The letter of administration gives an administrator the power to handle, manage, or distribute the assets of a decedent who passed away without leaving a will.
SALE OF REAL ESTATE
This technique of purchasing real estate is particularly well-liked because it entails the seller (the person with legal title to the property) transferring all rights, titles, and interests in a piece of land or a building to the buyer in exchange for a substantial sum of money.
PROCEDURE FOR ACQUIRING REAL ESTATE THROUGH SALE
Inspections must be conducted in order to determine whether the real estate is free and clear of encumbrances, subject to government acquisition, or compliant with applicable town planning rules.
The property may be physically inspected by the potential buyer. By physically visiting the property, it is possible to determine whether it is occupied, how much of it has been developed, the presence of any public facilities (such as telephone or electric poles) on the property, and its general state of preservation.
The nature of the property can be confirmed by the potential buyer, including whether it is meant for residential, commercial, or even a combination of the two uses. This is a crucial consideration because it would be awful if a company bought a building that was just meant for domestic usage
This entails making preliminary inquiries, signing and exchanging a formal contract of sale, and putting down a down payment on the property.
The potential buyer is prepared to move forward with the sale at this point since they are definite about the home they want to acquire. The price, terms of payment, and other aspects of the sale are negotiated at this point. The parties also sign and exchange a formal contract that documents their deal.
POST CONTRACT STAGE
At this point, the parties have written, signed, and exchanged the formal contract. The buyer is given the chance to research the vendor's title while the vendor continues to prove his ownership. The vendor proves that he has excellent title to the property by presenting an abstract of title or epitome of title.
Following a careful examination of the vendor's title, the buyer or their legal counsel may question the vendor about any uncertainties or problems with the vendor's title, and the vendor is required to respond in order to resolve any ambiguity.
In order to confirm that there are no encumbrances on the property, the prospective buyer should also conduct searches on the property at the following locations:
The relevant land registry; The court, to inquire if the land is the subject of any dispute; The probate registry, if the if the vendor obtained the title from a will; and The corporate affairs commission, if the if the vendor is a company, to ensure that the company is actually registered.
The parties then seal all transactions and procedures required to transfer title to the buyer. The buyer is required to make a full payment for the property at this time. A properly executed Deed of Assignment attesting to the transaction between the vendor and the buyer is among the documents that the vendor must give the buyer after the full purchase price has been paid.
POST COMPLETION STAGE
The buyer still holds legal ownership of the property as at this point, pending title perfection. Without the governor's approval, the assignment deed cannot be stamped and registered, and no legal title to a real estate can be transferred.
For federally owned lands, the approval of the minister of housing and urban development is needed; for state-owned lands, the approval of the governor of the state where the land is located is needed. The deed should be appropriately stamped and registered after obtaining the necessary consent.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact firstname.lastname@example.org
WRITTEN BY CHAMAN LAW FIRM TEAM
TEL: 08065553671, 08024230080