Buying a property in Nigeria is relatively straightforward when you understand the process and carry out proper due diligence. The difficult part is usually not finding a house or land. The real challenge is making sure the property is legally safe to buy and that you are paying a reasonable price.
1. Start with your budget and purpose
Before looking at properties, determine how much you can comfortably afford. Your budget should not only cover the advertised property price. You may also need to account for legal fees, agency or professional fees, documentation, registration, taxes and other transaction-related costs.
You should also be clear about your purpose. Are you buying a home? Looking for rental income? Buying land to develop later? Or investing for long-term appreciation? …Your objective will influence the location and type of property you should consider.
2. Find a suitable property
Once you know your budget and objective, you can start searching through property websites, agents, developers, referrals and direct listings. At this stage, don’t rush simply because a property appears to be a good deal. Compare similar properties in the same neighbourhood. Look at the condition of the property, accessibility, infrastructure, surrounding developments and current demand. For buyers researching locations before making a decision, resources such as property listing websites can also be useful for learning about Abuja property locations and the factors that can affect property decisions.
3. Carry out proper due diligence
This is arguably the most important stage of buying property in Nigeria. NEVER ASSUME that a seller’s documents automatically mean that the property is safe to purchase. The relevant documents will depend on the property and location. You should have the property’s ownership and title investigated by appropriate professionals and where necessary, conduct searches with the relevant government authorities.
4. Negotiate and agree on terms
If the property passes your due diligence, you can negotiate the price and agree on the terms of the transaction. Make sure the agreed terms are properly documented. The payment structure should be clear, including the amount being paid, what it is for, when further payments are due and what happens if either party fails to fulfil their obligations.
5. Complete the transaction and documentation
After the necessary agreements and payments have been completed, the appropriate documents need to be executed and where applicable, registered or perfected with the relevant authorities.
The exact process varies depending on the state, type of property and nature of the title. This is one reason why there isn’t a single checklist that applies identically to every property transaction in Nigeria. The guidelines and laws vary according to each state in Nigeria.
Finding a property can take days, weeks or even months. Verifying the property can take considerably more care. Don’t allow pressure from a seller or agent to make you skip due diligence. The goal is to buy a property that you can confidently own, use, develop or sell in the future.
