Investing in Real
Estate?
Estate?
What
you need to know before buying that house or land
you need to know before buying that house or land
By
Daniel Wajuihian
Daniel Wajuihian
A
friend came to me recently to assist him prepare a “Deed of Assignment” of the
land he bought few months ago. He had
earlier found a plot of land to buy somewhere at the Ajah-Lekki axis, in Lagos,
Nigeria. He got a Surveyor to draw up the survey, and obtained a payment
receipt from the family who sold it to him.
friend came to me recently to assist him prepare a “Deed of Assignment” of the
land he bought few months ago. He had
earlier found a plot of land to buy somewhere at the Ajah-Lekki axis, in Lagos,
Nigeria. He got a Surveyor to draw up the survey, and obtained a payment
receipt from the family who sold it to him.
He
came to me much later, at the stage he needed to perfect his title to the land,
since I have advised him that Lagos State Government would not accept any
documents for perfection of assignment of land, except there is a properly drafted
Deed. When he took the Deed to the family he bought the land from, for them to
sign the Deed, they insisted that they would only sign if he paid them some
money as “signing fee.”
came to me much later, at the stage he needed to perfect his title to the land,
since I have advised him that Lagos State Government would not accept any
documents for perfection of assignment of land, except there is a properly drafted
Deed. When he took the Deed to the family he bought the land from, for them to
sign the Deed, they insisted that they would only sign if he paid them some
money as “signing fee.”
He
was forced to pay them for signing. Can you imagine paying a signing fee to the
same family who you earlier paid the land purchase price? He could have avoided
paying the extra money if he had taken some precaution before paying for the
land. Here is what to do before you buy that land or property.
was forced to pay them for signing. Can you imagine paying a signing fee to the
same family who you earlier paid the land purchase price? He could have avoided
paying the extra money if he had taken some precaution before paying for the
land. Here is what to do before you buy that land or property.
First,
as a buyer, you need to instruct a lawyer to conduct a diligent search on the
title to the land or building and wait to receive the search report before you
part with payment. One of the very valuable facts that a search report usually
reveals is the name of the current registered owner of the land. It will also
reveal if the title is encumbered or not
as a buyer, you need to instruct a lawyer to conduct a diligent search on the
title to the land or building and wait to receive the search report before you
part with payment. One of the very valuable facts that a search report usually
reveals is the name of the current registered owner of the land. It will also
reveal if the title is encumbered or not
Why
should anyone pay for a land or building without first getting his or her lawyer
to conduct a search on the title to it?
Even where you are buying from a trusted source, it is still important
to conduct a search before paying for the land or house.
should anyone pay for a land or building without first getting his or her lawyer
to conduct a search on the title to it?
Even where you are buying from a trusted source, it is still important
to conduct a search before paying for the land or house.
What
if there has been a defect or encumbrance on the title to the land that has not
been obvious to that friend or trusted person? If it is because you are
avoiding the fee to the lawyer for the search, then that is “penny wise pound
foolish”. Here is what the courts have said regarding the need to investigate
the title to any land or building before buying: “A PURCHASER WHO DID NOT
TAKE THE TROUBLE TO INVESTIGATE THE TITLE OF THE VENDOR, WOULD HAVE HIMSELF TO
BLAME FOR NOT DOING SO”.
if there has been a defect or encumbrance on the title to the land that has not
been obvious to that friend or trusted person? If it is because you are
avoiding the fee to the lawyer for the search, then that is “penny wise pound
foolish”. Here is what the courts have said regarding the need to investigate
the title to any land or building before buying: “A PURCHASER WHO DID NOT
TAKE THE TROUBLE TO INVESTIGATE THE TITLE OF THE VENDOR, WOULD HAVE HIMSELF TO
BLAME FOR NOT DOING SO”.
You
also need to see the original title document (s) before you buy and take it in
exchange for payment. Even then beware that merely sighting the title documents
is not adequate precaution. There are Issues of cloning and fake title
documents. Therefore, the document needs
to be confirmed or verified as genuine. I also consider the land information or
charting useful. It has to be ascertained that the land is not under government
acquisition or restricted to particular use (may be strictly industrial) which
may be different from your investment motive.
also need to see the original title document (s) before you buy and take it in
exchange for payment. Even then beware that merely sighting the title documents
is not adequate precaution. There are Issues of cloning and fake title
documents. Therefore, the document needs
to be confirmed or verified as genuine. I also consider the land information or
charting useful. It has to be ascertained that the land is not under government
acquisition or restricted to particular use (may be strictly industrial) which
may be different from your investment motive.
It
is not sufficient to accept merely the survey, or receipt from the seller. You
need to ensure that the deed of assignment (or any of the appropriate
conveyances) prepared by a lawyer is duly signed by all the parties in exchange
for payment.
is not sufficient to accept merely the survey, or receipt from the seller. You
need to ensure that the deed of assignment (or any of the appropriate
conveyances) prepared by a lawyer is duly signed by all the parties in exchange
for payment.
Buying
a land or house is a lifetime investment, so exercise due caution.
a land or house is a lifetime investment, so exercise due caution.
