Innovictor
New Member
Buying land is one of the most important investment decisions that you will ever make in your life. Nigerians traditionally and rightfully attach a great deal of importance to owning a home, and in many cases, buying land is the first step in the journey.
We have all heard the stories of land and property purchase scams and see the signs, warning would-be buyers to stay clear of: buyer beware, 419 etc. These warnings should never be ignored, as they tell us a great deal about the minefields, better known as the Nigerian Real estate market.
So here are a few tips that may help you find your perfect piece of Nigeria to call your home.
1. Don’t Pay in Cash, Conduct the transaction through a Bank Account
If you have a desire to buy land, pay directly through a bank account bearing the name of the seller. A mobile money transfer or bank transfer is not even smart. Take the money to his bank, deposit it in his account and keep your copy of the teller’s receipt. When filling in the receipt (write payment for Land) conspicuously, so that the seller doesn't come out to say that the payment was for a loan he provided some time ago.
Cash is king; he who holds the cash has the power, and once you've parted with your money, you have parted with that power. Hence, when buying land, you should avoid paying cash directly to the seller. When you use cash to purchase land, there is no paper trail to corroborate the payment. Thus, a dishonest seller can deny collecting money from you and he can dispute the amount paid.
2. Buy the Land through a Registered Real Estate Agent
Many people shy away from buying land through registered real estate agents, probably because of the commissions that the agency will charge. However, nothing can be riskier in a land purchase than buying a land without the assistance of a REGISTERED real estate agent. A real estate agent will conduct due diligence on the land to ensure that the seller has the right to sell the land. The real estate agent will verify the valuation of the land in relation to the neighbourhood to ensure that you are not overpaying.
3. Avoid Making Instalment Payments
Most persons are not able to raise funds to purchase a land from a single source; hence, they usually pay for land in instalments. This is a good way to spread the cost of the land over time, but a fast way to lose your money. The seller will keep the documents of the land until you have completed the payment of the land; hence, there's no exchange of ownership when you pay in instalments until the last payment is made.
If the seller dies before you complete the payment, how will you get the land or obtain your deposits from his family members? A scammer can also increase the selling price of the land and you'll be forced to raise the extra money since your deposit is already with him.
Instead of paying instalments, open a new bank account and start depositing the money there. Don’t collect the ATM card or withdrawal booklet of that account until the money is enough for the purchase. If the land looks like a good deal, but is time-sensitive, advise the seller that you'll commit with 1% of the selling price and that if you don't complete the deal by covering the balance by a given date, you'll forego your 1% deposit.
4. Lands without Survey Plans are Highly Risky
The survey plan might actually be the biggest proof that a seller has the right to sell the land to you. Before you buy the land, ask for the survey plan, the survey plan at least tells you that the government is aware of the existence of the land. Make sure that the name on the survey plan is the same as the name of the seller.
You should also check if the coordinates on the survey are the same as the coordinates on the beacon on the land. If the seller can't provide you with the survey, it might be that the land has never been surveyed or that another person owns the land. Whichever way, it might be smarter to let the deal pass.
5. Don't Pay for a Land until You've Examined it Physically
I find it hard to understand how you'll be comfortable sending money to buy a piece of land that you've never seen physically, but some people do it. Before you buy land, you must see the land physically; this will ensure that you are getting value for your money. You'll know the topography of the land, the kind of neighbourhood and the level of development (if any on the land).
If you can't visit the land yourself, (maybe you are outside the country), you can send someone you trust to go and help you examine the land physically before you commit to a purchase.
We have all heard the stories of land and property purchase scams and see the signs, warning would-be buyers to stay clear of: buyer beware, 419 etc. These warnings should never be ignored, as they tell us a great deal about the minefields, better known as the Nigerian Real estate market.
So here are a few tips that may help you find your perfect piece of Nigeria to call your home.
1. Don’t Pay in Cash, Conduct the transaction through a Bank Account
If you have a desire to buy land, pay directly through a bank account bearing the name of the seller. A mobile money transfer or bank transfer is not even smart. Take the money to his bank, deposit it in his account and keep your copy of the teller’s receipt. When filling in the receipt (write payment for Land) conspicuously, so that the seller doesn't come out to say that the payment was for a loan he provided some time ago.
Cash is king; he who holds the cash has the power, and once you've parted with your money, you have parted with that power. Hence, when buying land, you should avoid paying cash directly to the seller. When you use cash to purchase land, there is no paper trail to corroborate the payment. Thus, a dishonest seller can deny collecting money from you and he can dispute the amount paid.
2. Buy the Land through a Registered Real Estate Agent
Many people shy away from buying land through registered real estate agents, probably because of the commissions that the agency will charge. However, nothing can be riskier in a land purchase than buying a land without the assistance of a REGISTERED real estate agent. A real estate agent will conduct due diligence on the land to ensure that the seller has the right to sell the land. The real estate agent will verify the valuation of the land in relation to the neighbourhood to ensure that you are not overpaying.
3. Avoid Making Instalment Payments
Most persons are not able to raise funds to purchase a land from a single source; hence, they usually pay for land in instalments. This is a good way to spread the cost of the land over time, but a fast way to lose your money. The seller will keep the documents of the land until you have completed the payment of the land; hence, there's no exchange of ownership when you pay in instalments until the last payment is made.
If the seller dies before you complete the payment, how will you get the land or obtain your deposits from his family members? A scammer can also increase the selling price of the land and you'll be forced to raise the extra money since your deposit is already with him.
Instead of paying instalments, open a new bank account and start depositing the money there. Don’t collect the ATM card or withdrawal booklet of that account until the money is enough for the purchase. If the land looks like a good deal, but is time-sensitive, advise the seller that you'll commit with 1% of the selling price and that if you don't complete the deal by covering the balance by a given date, you'll forego your 1% deposit.
4. Lands without Survey Plans are Highly Risky
The survey plan might actually be the biggest proof that a seller has the right to sell the land to you. Before you buy the land, ask for the survey plan, the survey plan at least tells you that the government is aware of the existence of the land. Make sure that the name on the survey plan is the same as the name of the seller.
You should also check if the coordinates on the survey are the same as the coordinates on the beacon on the land. If the seller can't provide you with the survey, it might be that the land has never been surveyed or that another person owns the land. Whichever way, it might be smarter to let the deal pass.
5. Don't Pay for a Land until You've Examined it Physically
I find it hard to understand how you'll be comfortable sending money to buy a piece of land that you've never seen physically, but some people do it. Before you buy land, you must see the land physically; this will ensure that you are getting value for your money. You'll know the topography of the land, the kind of neighbourhood and the level of development (if any on the land).
If you can't visit the land yourself, (maybe you are outside the country), you can send someone you trust to go and help you examine the land physically before you commit to a purchase.
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