Whether you are about investing in real estate or you just simply plan on buying a house to live in, the house buying process can be exciting and stressful at the same time.
Away from the preparation and home inspection, one aspect of buying a house that is not talked about enough is the various legal requirements and important processes one has to follow.
In Nigeria, it is pertinent that the legal process is executed by a property lawyer so as to ensure you do not run into legal issues after your purchase. By Nigerian law, it is also only a lawyer that is statutorily permitted to prepare legal documents (instruments) for transfer of an interest in any property for a fee.
The following steps are important to take when buying a house in Nigeria.
Demand, Collect and Investigate Property Title
Property title in property law basically refers to the document that determines the ownership of property. This document protects the rights of the title holder against other claims made by anyone else to the property.
The first step of buying a house is for the buyer to demand and collect all relevant property title documents from the seller. It is now left for the buyer to make sure he or she gets the services of a lawyer to investigate the property title and also conduct due diligence in respect of the house to be sold.
This investigation of property title may involve several searches at various registries where records of properties and encumbrances are actually kept. For instance, if the property to be sold is in Lagos, the lawyer can go to search at the Land Registry located at Alausa Ikeja Lagos. Every state had its land registry.
Prepare Contract Of Sale stage
After the lawyer has ascertained that the property title is genuine then both the buyer and the seller moves to the next phase which is the preparation of the contract of sale for the property.
The contract of sale is the preliminary document used to conclude the transaction between the seller and buyer. It contains some agreements that cannot be included in the transfer document and is also the first document that can be drafted where the buyer of any real estate intends to make payments on installments.
At this stage, the buyer can go ahead and make a deposit or pay all the property sum.
[READ MORE: Make Huge Profits from Land Flipping With These Important Steps]
Deed Of Assignment Stage
The deed of assignment is a registrable document that transfers the title of a property from a seller to the buyer. It can either be prepared by the buyer’s lawyer and reviewed by the seller or prepared by the seller/lawyer and reviewed by the buyer.
At this stage, the buyer pays the total sum if he or she hasn’t already done so, this would enable the buyer take full possession of the property. The next step is for the seller to submit all original documents relating to the title of the land to the buyer.
The Deed of Assignment is usually to be accompanied by the survey of the property in question as these are needed for the registration of the property, which will be the next stage.
Registration of the Property stage
As stated in the Land Use Act, it is compulsory that when a land or house is sold in a particular state, the consent of the governor of the state must be obtained when the property is transferred between the parties.
The new buyer must then register the property with the government to complete the transaction upon the transfer of the property. Registering properties in Nigeria includes a process, which involves obtaining the governor’s consent, payment of stamp duties and registration of assignment or conveyance at the Lands Registry of a state. This is required to ensure compliance with pertinent statutes and defend the legal validity of the purchaser’s name to the property.
