Real Estate Investment in Nigeria: What You Need To Know Before Buying Lands and Properties in Nigeria

There are many things you need to know about Real Estate Investment in Nigeria, especially in Lagos State. In this article, I am going to discuss the things You Need To Know Before Buying Lands and Properties in Nigeria.

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Caveat emptor is Latin for “Let the buyer beware”. It has become a proverb in English. Generally, caveat emptor is the contract law principle that controls the sale of real property after the date of closing, but may also apply to sales of other goods. ~~Wikipedia.

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This applies to EVERY property purchased in Nigeria. You’re expected to have done your due diligence before committing your funds.

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Land acquisition in Lagos isn’t as hard or complicated as we make it seem. The problem here is misinformation and getting easily sold by people(Realtors) who themselves don’t really know how it works. Especially in this new dispensation, where EVERYONE ‘sells’ real estate.

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By law/constitution, every land belongs to the government of the state. Always have that at the back of your mind. The fact that you paid for a piece of land doesn’t mean it can’t be taken away from you.

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But people still buy and own land for decades. A legacy that they pass down from generation to generation.

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What to do? Get it right. Understand the procedures and how it works in every state. If you do not understand, work with someone who does, don’t try to cut corners, it might come back to bite you really hard in the a**.

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This location has got heavy government presence. The reason isn’t far-fetched. It’s tagged ‘The New Lagos’ for a reason. The development is majorly driven by big international investors. And in no time, the location is going to be highly sought after. The primary buyers are going to cash out big.

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Although most parts are under government acquisition as of now and they will repossess their land in the case of any unauthorized encroachment by individuals. Especially on expanses that have been marked for usage other than ‘residential’, you can still get some without acquisition. But make no mistakes, they are no longer cheap!

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Most real estate companies who offer the ‘site and service’ aspect of real estate(i.e buying and selling of plots of land), are in it for profit only. It’s your money at stake, CARRY OUT DUE DILIGENCE.

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Listen, a land that has the almighty C of O can be repossessed and the C of O revoked. Were you aware? The difference is that the person who acquired the land would be compensated. Talk more of land without EXCISION.

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In layman’s terms, Excision is express permission, granted to the members of a community by the government, giving them the right to use an expanse of land for a given purpose.

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The purpose is usually either residential, commercial, or agriculture. Don’t forget that there is a blueprint of the entire landmass. And every locale is marked for different usages on the blueprint.

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Actually, once Excision is given, it is hardly revoked. To make extra sure of this, it’s safer to have the excision GAZETTED. A gazette is an official publication of the granted excision on the National dailies(News Paper). Those who applied for this gazette can then tear out that page, laminate it, and keep it safe for future reference(s).

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One can pursue a C of O with the Gazette, but not with an Excision.

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Ok. So you’re being told to buy land without excision or with ‘EXCISION IN PROCESS’. That’s not a title. A survey is not a title either. Deed of Assignment(DOA) can be regarded as a title ONLY in some instances. ( I’ll explain this in another post).

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So, buying an ‘Excision in process’ land is a RISK. It’s a 50/50 chance you’re taking. The excision might be granted, and it might not be granted. If you want to pursue the excision yourself, the procedure is long and expensive, you might not see it through. It’s usually not worth it if you only got a few plots out of an expanse.

Some investors buy it anyway because they know that, that’s the best time to buy. As you’d get it at the best price ever. These are people whose risk appetite is large and by experience, know-how to guard what’s theirs.

If you’re risk-averse, there are options that are safer for you, and might not come as cheap, but you can pick a payment plan. That way, you’d have peace of mind.

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Make no mistakes, plots of land at Ibejulekki appreciates so fast you’d think it’s blood money. Just get it right or know the risks involved at least.

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Real estate is still their dad when it comes to investments. The safest investment on earth is earth fam.

Again, get it right. And you’d be thankful for your decision a few years down the line.

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