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Take Your Due Diligence A Step Further If You Are Investing In Lagos Real Estate To Prevent Matters That Hurts.

Posted by bricksandclaypro on May 21, 2024

Don’t sleep in your house only to wake up homeless the next day. The series of building demolition in Lagos state with the recent being the building demolition in Mende Maryland Ikeja. Has necessitated the need to take your due diligence beyond the Lagos State Land Registry when buying a house, land or investing in real estate in Lagos State.

Basically, due diligence check with respect to real estate entails the verification of the authenticity, legality, and value of a property before finalizing a purchase. It includes examining legal documents, assessing the property’s condition, and evaluating any potential risks associated with the transaction. These activities helps buyers make informed decisions and ensures that the property is free from encumbrances or violates any state laws.

Step-by-Step Guide to Conducting Due Diligence:

Conventionally, what most property buyers in Lagos usually do when conducting a due diligence check is to verify property ownership by obtaining the tracking code of the property from the seller and verify them with the Lagos State Land Registry. Key documents usually checked include the Certificate of Occupancy (C of O), Deed of Assignment, and Governor’s Consent. Once they can confirm that the seller has the legal right to sell the property and that the title is genuine and unencumbered they usually think that they are done with the due diligence check in neglect of other very important aspect of the exercise

Below are other key aspect of the due diligence that must be included in your checks before purchasing a property in Lagos.

Zoning Regulations Check: Visit the Lagos State Ministry of Physical Planning and Urban Development to obtain information on land use, zoning laws, and any restrictions that may affect the property. Confirm that the property is suitable for your intended purpose, whether residential, commercial, or industrial. If the property’s intended use does not comply with the zoning regulations set by the Lagos State Government please DO NOT go ahead with the purchase. Also ensure that the said property does not encroach any water channels right of way leading to any form of water flow obstruction. Having in mind that this was the reason why the Lagos State Ministry of Environment carried out a demolition activity of some of the sections of Arowojobe and Mende Villa.

Survey and Boundaries Verification: Engage a licensed surveyor to conduct a survey of the property and confirm if it is in alignment with the records at the Office of the Surveyor General of Lagos State, if any discrepancy is found then it’s a NO NO. Also ensure that the property size and dimensions match the details in the title documents and that there are no boundary disputes with neighboring properties.

Legal Compliance and Approvals: Ensure that the property complies with all legal and regulatory requirements. Verify that the necessary building permits, approvals, and licenses have been obtained from relevant authorities such as the Lagos State Physical Planning Permit Authority (LASPPPA) and Lagos State Building Control Agency (LASBCA). Confirm that the property’s development adheres to approved plans and regulations.

Though The checks below are not so pronounced but its still advisable to carry them out.

Investigate Outstanding Taxes and Liabilities: Make sure that the property is free and clear of all outstanding taxes and financial liabilities. Ask for tax clearance certificates from the seller and confirm with the Lagos State Inland Revenue Service (LIRS) that all property taxes have been paid. Check that there are no liens, mortgages or legal claims against the property that could affect your ownership.

Perform Environmental and Physical Assessments: Assess the physical condition of the property to identify any structural problems, defects or environmental hazards that may exist. Hire a professional inspector to assess the integrity of the building, plumbing, electrical systems and general upkeep. Check for environmental issues such as flooding, soil erosion or pollution that could affect the value and usability of the property.

Market Analysis: Carry out a market analysis to determine the fair market value of the property. Assess the investment potential of the property by researching recent sales of similar properties in the area, considering market trends and consulting with property experts. Ensure the price paid reflects the true value of the property and reflects current market conditions.

Engage Legal and Real Estate Professionals: To assist with the due diligence process, hire experienced legal and property professionals. A property solicitor will be able to assist you in checking legal documents, researching titles and ensuring that legal requirements are met. A qualified estate agent can provide market insight, terms negotiation and facilitate a smooth transaction.

Conclusion: Due diligence is a front burner activity when it comes to property acquisition in Lagos State. It is a crucial activity as it ensures a safe and profitable property investment. By following the steps outlined in this guide and working with qualified professionals, buyers can mitigate risk, ensure legal compliance and make informed decisions whether you are buying residential, commercial or investment property.

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