You may miss the vital point to your investment Verification if you try to skip a single line.
In 2017, over 6 already constructed estates, fenced land for estates and even individual buildings around Lekki-Ajah axis of Lagos State were either taken over by government, put on stop work order or even demolished. In case you are familiar with this axis mentioned, one of such location is Monastery road in Sangotedo. While the non Estate Property loss was over 3000 buildings to avoid exaggeration. We’ve not mentioned several scam recorded.
This kind of occurrence is a common one, it’s spreading like wildfire and we don’t want it to reach your side or the people you know. And if you or someone you know is already a victim, we can put a stop right there.
This is very peculiar with land in Ibeju- Lekki, Lagos and across different states in Nigeria.
This is why we started a Buyers-beware Real Estate Video Tour where we search for genuine estates and non Estate properties, land and buildings, where our property verification team (Estate Surveyor, Land Surveyor, Researcher, Town Planner and a property lawyer) run each of these properties through certain expertize checklist in order to tell buyers which one is sure to invest and which one is not… especially in the fast developing area.
Now, many have spent billions in real estate investment without verifying the deals through the help of property experts because real estate has been over hyped to be low risk. We have witnessed lots of encumbrance and takeovers in the past after client must have thought there’s no single issue, and so from the report of research even from government insiders, Majority of the lands will be claimed without single compensation, houses would be bulldozed down without any resettlement.
And for the disputed land from court judgment, it’s either the developer vacates the land or pays a huge sum to re-acquire the land from the right owners. If and only if they settle it well in court.
About 300 people that invested 30 million naira each to buy a house in “a secured” estate last year had lost their investment!
You wonder why this should be so?
We had a mandate to verify a certain estate around Lekki Free Trade zone. Our findings revealed that this estate and the one beside it are seated right in the centre of a Government “proposed steel industry” and in this case would be a site for “demolition without compensation”.
Could it be that the Omo-oniles are lying to sell while people don’t bother to verify the genuinity of their interest?
Could it be that the developers are aware of these things but are just so greedy?
Could it be that the developers are not greedy but they simply don’t understand the repercussions of such a mess?
Could it be that the developers couldn’t hire expert that can confirm land status and land authentication before collecting people’s money?
This is just one out of the many cases…
This isn’t to scare anyone, it’s simply to raise awareness so that investors can become scam-proof with the best practice we’re going to be sharing until individuals and corporate buyers learn the fundamentals of how to verify a property, either within an estate or with Omo-Onile, before parting away with their money.
This is why we put together a very short checklist to guide you on the best real estate investment practice.
We believe that after reading this, you’ll be part of the good Nigerians that’ll forward this material to friends, colleagues and family in order to educate them and save them from the pitfalls of real estate ignorance and excessive loss spreading like wildfire.
Wishing you the best as you nod your head digesting each of these points.
I know that you must be thinking “who gat the time?” with a #yinmu look like my Nigerian brother…
You don’t need to do it yourself, outsource what you’re capable of but never ever ignore researching a company you want to part away your money with.
Researching a company isn’t about your friends or family telling you about a developer company. It’s about they taking their time to inquire about the company. Most hidden info on Google are probably on the second page of Google.
Understand that the fact that a company is a registered limited liability company doesn’t mean it’ll last. Neither is company popularity a citadel to secured investing. And the fact that it had been existing for maybe 10 years doesn’t mean it’s not about to go bankrupt. The sustainability factors should be well considered.
Bank on Popular and old companies, if and only if they have great reviews.
Hey hey just stop there. Have you ever seen a tokunbo land? I mean, have you negotiated a land before based on it’s been a fairly used lands?
So, don’t go and be looking for cheap lands in a fast-developing area. Rather, look for affordability.
Sometimes, the only difference between free and non-free land is just 20% of the price.
Imagine losing all your 3m instead of paying 4m for a titled land.
When you see 1m land in places like Ibeju-Lekki, tell your Surveyor to go there for you or if you have the coordinate app installed and set on your phone, pick the coordinate and you’ll confirm such land don’t even have a good title.
Again, get it “Excision in progress”, “excision in process”, “excision block”, “registered survey” are not land titles because those are the land being sold at ridiculous prices.
You won’t have something precious that appreciate on it own and then sell it off desperately unless you’re really distressed. And mind you, distressed sale is different from scam sales. Just beware. Everyone’s an expert now so again beware.
Excision is the most basic good title land can possess. It just means that government released that piece for the land owners which can be used to process the C of O.
However, when an excision is applied for, nothing is guaranteed until the result is out.
Maybe out of 100 acres applied for excision, only 40 acres is granted.
So, what happens when you buy a plot that falls within the non-excised 60 acres?
Also, it’s not even everytime an excision is applied for that it’s granted. Some have been there for the past 6 years now without approval.
This is where many people lost their future dream of being a legitimate land owner.
Same with global C of O, the fact that Ogombo has global C of O doesn’t mean it covers the whole of Ogombo. Haha… look well o.
You don’t want the government to come and bulldoze off your sweat.
If you’re clear on this, let’s move to the next point.
Majority of the scam and losses encountered are due to the omission of this stage. Many investors or even marketers think inspection is just to see the land. How does seeing the land/property guarantees it’s genuine?
Next time you want to inspect, you have 2 options
- Go with an honest and smart surveyor and let him chart the land for you.
- Download “Mobile Topographer” either through your Android playstore or your iPhone AppStore and let a savvy surveyor set it up for you and teach you how to use it whenever you need to go for any inspection. You can learn this under 5 minutes. No. This app isn’t self taught like other apps, it’s a professional app that needs certain professional setting.
Pay the price to avoid losing it all.
We’ve seen many cases where developers don’t want you to come with your own surveyor for inspection claiming their own surveyor will do the checking for you. How does that even make sense?
We’re not saying their surveyor should not do your survey o, but their surveyor doing your prepurchase inspection?
Omo onile too hates to see you with surveyor because they consider surveyors as deal spoilers.
So if you’re going with a surveyor, never tell them you’re coming with a surveyor, rather, you’re coming with a brother or do it yourself after being taught. This is very important. Let that sink.
When you’re done picking the coordinate, you don’t keep the information to yourself otherwise it becomes useless.
You’ll need to send the information to the surveyor General office if you’re connected to that level, otherwise, you’ll send it back to the surveyor and he’ll help you send it to the surveyor General office at a fee.
Why is sending it to this office so important? Because that’s the only place you can find an updated information about land partitioning and uses. All the information is with them on a map called acquisition map.
So you’ll here stuff like, committed, General acquisition or free. When you hear free, ask them again “what title?”
Here, you also need certain level of professional interpretation before you go ahead with such transaction.
Committed acquisition is a NO NO! while general acquisition is like gambling with your money… You may end up losing all your money or better still, have to pay *5 of your initial purchase price to re-buy “your land” from the government through regularization also known as ratification.
It doesn’t matter if you’re buying from an Estate or from Omo-Onile, court cases on lands due to irregular or fake documents and disputes from third party claimants are peculiar in Nigeria which makes most people lose their money ignorantly on trust.
It doesn’t matter if houses had been built in the estate or not, once the land is found to be illegally occupied by the developer or the person who sold to you, court places a STOP WORK order and the next thing could be to bulldoze the buildings within the estate.
And to worsen the case is the country depleted system that makes certain collateral cases even undocumented.
So you have to let a professional in, to do their best. Not at 100% efficiency but something close to 90% that’ll lower any risk of future claimant.
Haha… this is a terrible case. Only searching through a PRO Estate Expert can reveal this to you.
Abi do you want to receive a message from bank that your house actually belongs to them? Or do you want any other 3rd party to sue you without your prior knowledge?
The case of Abule Parapo in Awoyaya Ibeju-Lekki is still very fresh in the mind, where over 400 properties where demolished leaving their owners homeless!!!
One very important issue every investor needs to resolve before buying into any property is the existence and genuineness of certain documents like Registered Survey Plan and Approved Layout.
While an approved layout may not be an issue for a community land or Omoonile land, it’s such an issue for an estate land.
This is because without an approved layout within an estate, you will never be granted a building approval which ultimately affects the perfection of your title.
And where what’s physically implemented is different from the approved layout, the day government needs money and wake up to be vetting the allotted standard areas for commercial, institution, recreation and road networks, that’s the cause of most people regret which we don’t wish for any of you.
Also, in the case of government infringement on your property due to public interest, such property without perfect Document will not be entitled to compensation for the building.
And when there’s no perfect Document for land too, there will be no compensation at all.
There are many good developers around, unfortunately, most of the lands people rush to buy today in the name of investing in the future, especially the cheap “estate lands” you see around do not have approved layouts.. Just verify this before making payments.
Sometimes when you’re buying a good land from its rightful owner, you may still be dealing with a wrong investment!
How is this so?
The so called land owners have histories and specific traits that are peculiar to them and they are very well known for. While some can be so dubious as to sell the same land to several unsuspecting buyers or even resell land they had previously sold to another person due to greed, another family owner may have internal disputes amongst their members which lead to opposing faction among them.
Thus buying from one faction will mean having to deal with issues from the other faction. It can even be worse if such dispute is a subject of litigation.
This is not to say that there are no safe lands to invest in, rather, when you perceive any trace of dispute, you’re better off staying clear of such land.
Finally, as you make payment for that property that you have certified safe to invest in, make sure that you get all the title transfer documents signed and sealed by the rightful signatories.
Take possession of your new property as soon as possible. You may at least want to put up a fence and gate to secure it if you’re not ready to start your main building within 3-6 months of purchase.
And as you do these, proceed with finalizing the perfection of your title documents with the relevant government ministry.
With this, we wish you the best of real estate investment.
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