9 things to know before buying a house in Nigeria

The details you must know before buying a house in Nigeria.

Buying a house in Nigeria is a very important decision for everyone. There are also many intricate details in the process, which need to be carefully considered, otherwise it could easily turn into a disastrous investment. Today, the editor has compiled 9 things to know before buying a house in Nigeria. 

Things to know before buying a house in Nigeria

1. Are there multiple co-owners

Some houses have multiple co-owners, such as those shared by heirs, families, as well was husbands and wives. In this regard, the buyer should sign a house purchase contract with all co-owners. 

Know that if only some of the co-owners dispose of the joint property without authorization, the purchase contract signed by the buyer and the co-owners is generally invalid unless the other co-owners agree.

2. Is the land situation clear?

Buyers of second-hand houses in Nigeria should pay attention to the nature of land use, whether it is allocated or sold. 

The allocated land is generally used free of charge, and the government can take it back free of charge; only purchase when the landlord has paid the land transfer fee, and the buyer has more complete rights to the house. 

You should also pay attention to the useful life of the land.

If the land use right of a house is only 40 years old, and the owner has used it for ten years, then the house must not be measured by the price of a commercial house in the same area with land use right of 70 years. Otherwise this would be extremely uneconomical.

3. Are the housing procedures complete? 

The Certificate of Occupancy is the major document that proves that the owner has the ownership of the house and is arguably the most important thing to know before buying a house in Nigeria. 

There is a great risk that you will not get the house if you do not have the Certificate of Occupancy, because the homeowner will still be able to resell it. 

Even if it has not been obtained in the future, the homeowner can still resell it. Therefore, it is best to choose a house with a Certificate of Occupancy for transaction.

4. Is the house currently for rent? 

Some second-hand houses are leased by others when they are sold, this you must know before buying a house in Nigeria. 

If the buyer only looks at the Certificate of Occupancy and only pays attention to the transfer procedures, and does not pay attention to whether there is a lease, the buyer is very likely to get a house that cannot be moved in or used in time. 

This is because Nigeria recognizes that selling does not break the lease, that is to say, the housing sales contract cannot be opposed to the previously established lease contract. 

This point has been ignored by many buyers and intermediary companies in practice, and it has also been used by many sellers to cause more disputes.

5. Does the municipal planning affect the house 

Some homeowners selling second-hand houses may already know that the house will face demolition in about 5 to 10 years, or that high-rise residential buildings will be built near the house, which may affect the lighting, price and other municipal planning conditions, so they are eager to sell. 

Before purchasing houses in Nigeria, especially dirt-cheap ones, this is one of the many things to know about. 

6. Is the property management fee in arrears or being owed? 

Some homeowners in Nigeria have been documented to have sold their houses with property management fees, electricity bills and gas expenses (if available) in arrears for a long time, as well as large amount of debt. 

If the buyer buys the house without knowledge of it, he may have to bear it all.

7. Are units of the house infringing? 

The houses of general units include cost-priced employee housing and standard-priced employee housing. Both of these lands are allocated in nature, and land use fees should be paid before they are sold. 

Furthermore, the general unit of standard-priced housing enjoys part of the property rights, and the unit enjoys the preemptive right of purchase when transferred. 

If the buyer does not pay attention to these, they may violate the legal rights of the unit together with the homeowner.

8. Have the intermediary company violated the regulations? 

Some intermediary companies provide intermediary services in violation of regulations.

For example, in the case of second-hand housing loans, they provide buyers with a zero down payment service, that is, all the purchase price paid by the buyer can be defrauded from the bank.

You as a buyer must know that if discovered by the bank, you might have to bear all the responsibilities.

9. Is the contract clear? 

Although the purchase and sale contract of second-hand housing in Nigeria does not need to be as comprehensive as the purchase and sale contract of commercial housing, some details should be clearly agreed upon. 

This include the subject of the contract, guarantee of rights, housing price, transaction method, liability for breach of contract, dispute resolution, signing date and other issues.

All of these should be fully considered before paying for a house in Nigeria.