Real estate remains one of the most lucrative investment options for Nigerians in the diaspora. However, investing in property from abroad comes with challenges, including fraud, legal issues, and poor property management. To ensure your real estate investment is secure and profitable, here are the key rules and guidelines to follow.
Understand Property Ownership Laws in Nigeria
Nigeria allows its citizens, including those in the diaspora, to own land and property. However, there are legal requirements and restrictions to be aware of:
Verify Land Titles: Ensure that the property has a Certificate of Occupancy (C of O) or a Governor’s Consent, as these are the most recognized legal documents for ownership.
Avoid Government-Acquired Lands: Some lands are designated for public use and cannot be legally sold for private ownership.
Work with Trusted Real Estate Professionals
One of the biggest risks of buying property remotely is dealing with fraudulent agents or developers. To avoid scams:
Hire a Real Estate Lawyer: A lawyer will help verify property documents, conduct background checks, and ensure all transactions are legally binding.
Use a Licensed Surveyor: They can confirm the land’s location and ensure it is free from disputes.
Choose Reputable Real Estate Companies: Work with well-known developers with a track record of delivering quality properties.
Conduct Due Diligence Before Buying
Before making any payments, ensure you verify all aspects of the property:
Confirm Ownership at the Land Registry: Check with the state’s land registry to confirm that the seller is the rightful owner.
Visit the Property (If Possible): If you cannot travel, appoint a trusted family member or professional to inspect the property physically.
Beware of "Omo Onile" Issues: In Lagos and some other states, local landowners (Omo Onile) may try to claim illegal fees. A good lawyer can help you navigate these challenges.
Use Secure Payment and Documentation Methods
Money-related disputes are common in real estate transactions, so follow these steps for a secure process:
Never Pay in Cash: Always use traceable payment methods like bank transfers or escrow services.
Demand a Purchase Agreement: Ensure the agreement clearly states the property details, payment terms, and responsibilities of both parties.
Get a Deed of Assignment: This legal document transfers ownership from the seller to the buyer and should be registered at the Lands Bureau.
Register Your Property to Avoid Future Disputes
To establish full legal ownership, register your property with the relevant authorities:
Obtain a Survey Plan: This document confirms the exact location and boundaries of the land.
Register the Title with the Government: The property title must be registered with the state's land registry to avoid disputes.
Plan for Property Management and Maintenance
Owning property in Nigeria while living abroad can be challenging, so ensure you have a solid management plan:
Hire a Property Manager: A professional property manager can handle rent collection, maintenance, and tenant issues.
Use Smart Security Systems: Install CCTV cameras and smart locks that allow remote monitoring.
Set Up an Emergency Fund: Unexpected repairs and legal issues can arise, so keep a financial buffer.
Investing in real estate in Nigeria as a diaspora can be a great way to build wealth, but it requires careful planning. By following these rules conducting due diligence, working with professionals, using legal documentation, and securing your investment , you can avoid common pitfalls and enjoy long-term returns.
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