Oyedemi said: “The real estate market in Nigeria is fast growing and there is a pool of real estate developing companies. But before considering engaging the services of any of these organisations, a prospective property buyer needs to carry out due diligence.
“Firstly, is to know the company’s office location and identify members of management staff, find out if the firm is duly registered with the Corporate Affairs Commission and other regulatory bodies, as well as if they have verifiable and corporate accounts. The person should also undertake an environmental scan of their pedigree.”
“Property transactions may eventually become nightmarish if certain major checks are not diligently carried out. For instance, a prospect must take a site tour of the property he or she wants to buy. Site inspection is a very important experience because it gives a property buyer the chance to see the nature of the property being put on sale and to ask meaningful questions.”
He noted that the services of a property lawyer must be engaged for a seamless property transaction to be achieved; pointing out that not all lawyers are property lawyers. They will help you look at the legal framework of the transaction, and all other legal-related matters.
“Another necessary step is to demand pre-contract information – rules and policy binding the transaction such as statutory charges. I discovered that many customers fall victim to this. So often, you hear the customers saying that he/she is not aware of any other charges. It is called a statutory fee because it includes development fees, charges for deeds and surveys.
“A prospective property buyer must not overlook the necessity to request for an estate layout. This will enable a buyer to know the estate or property he or she is buying, how it is designed, planned and to make an input if the buyer has any,” Oyedemi, who doubles as Managing Director of PWAN Plus said.
The buyer must also request for a development plan even before paying for a property. It helps to know how long it will take to develop the property and other infrastructure. “These days, someone will pay for land, two years later nothing is happening at the site. Ideally, a buyer needs to have pre-information about how long it will take to develop the estate.
“If the response is positive, then one can proceed to sign the legal contract. This is a legal document containing all transaction processes and all information about the contract binding you and the vendor or developer. It’s also important to ask for a property allocation date. Always agree on when to be allocated your property after payment is made.
“Some of the issues we face are that people pay for property and don’t ask questions. After one year and six months, they go on social media. There is always a guideline for buyers.
Oyedemi also advised, “when you make payment and get your receipt or documents,” urging buyers to always use real estate professionals such as registered land surveyor, quantity surveyor, town planner, structural engineer, architect, estate surveyor and valuer, builder and lawyer.
