Understanding Real Estate Business in Nigeria 2020
In this article, I will be pouring out from my 3 years working experience about the real estate business in Nigeria and how you benefit immensely from it.
Grab your seat,relax with cup of popcorn and flow with me.
Now to the business of the day.
What is Real Estate ?
Real Estate is simply defined as property consisting of land,the buildings on it and the natural resources embedded in it such as crops,minerals and water.
It can also be referred to as immovable property such as buildings or houses in general.
Real Estate can be divided into four categories namely; Land,Residential, Commercial and Industrial.
Let's take a look at the four categories one after the other.
Land
Land include vacant land,farms and ranches. Vacant land can be further divided into underdeveloped, early development and site assembly.
Commercial
Commercial includes shopping malls,medical and Educational buildings,Hotels and offices, apartment buildings (for renting).
That is why you will be required to fill a form indicating either residential or commercial when buying land from Estate developers.
Residential
Residential includes newly constructed and resale homes.
Under these we have flats,bungalows,terrace building,high value homes.
Industrial
Industrial includes manufacturing buildings and property, Warehouses. These buildings can be used for storage, production, research and distribution of goods.
What you need to know before buying/selling Lands.
Land can be classified as either free or acquired.
A parcel of land is considered free if the government has not indicated any interest in the Land. Such land is safe to buy because the title on the land can be perfected without issues.
In most cases,such land will either have a gazette ,a certificate of Occupancy or a Governor's consent.
Lands that falls under within areas designated as as urban areas are under government acquisition until deemed free.
There are two types of acquisition namely "COMMITTED ACQUISITION" and "GLOBAL/GENERAL ACQUISITION".
Now let's take them one after the other.
Committed acquisition occurs when Government has indicated an intention to use that Land for a specific purpose such as provision of amenities.
Such lands can never be available for use by individuals as it belongs solely to the government.
If you purchase land under committed acquisition,it becomes impossible to protect your land title and your occupation of the land is only temporal until the government comes to kick you out.
Become an affiliate and earn 500,000ngn monthly
Global/General acquisition: lands that are under general acquisition or global acquisition can later be confirmed "free" or "committed" as the case may be.
A land under acquisition can become free by a process called "EXCISION."
Excision is a process where the government releases a portion of an expanse of land that is not committed.
If a parcel of land that was under acquisition becomes excised,it is then considered free and becomes gazzeted.
The gazzete then becomes the title on the land and such land is safe to buy because a proper title can be processed on the land.
A second case where lands under general acquisition can be released is if an individual purchased a land that was under acquisition without going through an excision process.
Such a land can go through another process called "Ratification" or "Regularization" in which the land owner pays for the land to ratified or regularized.
But such lands must not fall within a "COMMITTED" area.
Knowing Land Documents and Sizes.
The following documents are usually involved when a purchase is made.
1. The purchase receipt.
2. The contract of sale.
3. The deed of assignment.
4. The survey document.
5. The building plan for housing investment.
6. Any other title document that may apply.
So let's quickly take a look at some the above documents.
Deed of Assignment.
A deed of assignments is one of the transactional document drawn up by a real estate attorney between current title holder for a particular property and the new buyer.
In real estate transaction, a deed of assignment is a legal document that transfers the interest of the owner of that interest to the person whom it is assigned, the assignee.
When ownership is transferred,the deed of assignment shows the new legal owner of the property.
Survey Plan
A survey plan is a document that measures the boundary of a parcel of land to give accurate measurement and description of that land.
The people that handle survey issues are surveyors and are regulated by office of surveyor general of a state.
A survey plan must contain:
1. Name of the owner of the land surveyed.
2. Address or description of the land.
3. Size of the land surveyed.
4. The drawn out portion of land survey and mapped out on survey plan document.
5. The beacon numbers.
6. The surveyor who drew up the survey plan and date it was drawn up.
7. A stamp showing the land is either free from government acquisition or not.
Certificate of Occupancy.
Certificate of occupancy (C of O) is issued by the State government.
e.g The Lagos state government officially lease Lagos land to you the applicant for 99 years.
All lands belongs to the government.
Having known that,let's take a look at land sizes and how it is measured.
In describing land sizes,we do hear words like "Acres"," Hectares" and plots.
Knowing the difference can be pretty difficult for those not in the field.
So in that light we will be breaking it down for proper understanding.
Let's define what an Acre,hectare is,in terms of land size.
Acre
An Acre is a standard unit of measurement used by Land sellers and it is almost equivalent to the size of a standard football field. An Acre is a product of any rectangular plot of land giving a total of:
4,046sqm or
43,560 sq ft or
6 plots (each measuring 60ft x 120ft).
It's simply 6 plots
Hectares
A hectare is one of the least known metric units and one which potential buyers and Estate developers seem to struggle with -
It actually contains of 15 plots which is Two and half acres.
In Lagos State, the standard size of a plot is 60ft x 120ft (18m x 36m i.e. 648 sqm), while in some other cities of the country, plots are measured in 50ft x 100ft such as Ibadan and other Cities and states in Nigeria.
You need to buy properties from Trusted Estate developers
Once you have decided to purchase a property (be it land or a home),comes one major concern; who you will be purchasing your dream home(or land) from.
Who you can trust.
Considering the prevalent issues of land scams all over the place which stems from dubious activities of land grabbers and Fraudsters. You need to do your due diligence by seeking to verify the property at the land registry to confirm true ownership.
You can consult with a seasoned realtor or a property attorney.
In the current real estate scenario, home/land buyers have the option of purchasing the property either directly from Developers or Land grabbers.
But as a Realtor,I will always advise you buy from estate developers based on the reasons I will be stating before the conclusion of this piece.
First, let's look at who real estate developers are.
Who are real estate developers?
They are people or companies who coordinate the business process that encompasses activities that range from renovation and release of existing buildings to the purchase of raw land and the sale of developed land or parcels to others.
Also, they convert ideas from paper to real property.
They buy land, finance real estate deals,build or have builders build projects,create,imagine, control and orchestrate the process of development from the beginning to end.
Developers usually take the greatest risk in the creation or renovation of real estate- and receive the greatest rewards and in most cases they determine the marketing of the property.
Now to the reasons you need to buy property from developers.
1. Real estate developers give you the advantage of paying on installment.
Some companies give you up to 12 to 20 months which is not the case with Land grabbers.
2. Real Estate developers give you the advantage of buying while you wait, that is; you can buy now and develop 5 years later is as much as you clear the land regularly.
3. Real Estate developers perfect title documents.
I know that by now you are already thinking about Real estate developers you can do business with.
You don't have to be bothered, we got you covered as regards that.
You can contact us via email: ochiriozua5000@gmail.com.
You can follow us on
Facebook
Twitter
Instagram
Whatsapp
Grab your seat,relax with cup of popcorn and flow with me.
Now to the business of the day.
What is Real Estate ?
Real Estate is simply defined as property consisting of land,the buildings on it and the natural resources embedded in it such as crops,minerals and water.
It can also be referred to as immovable property such as buildings or houses in general.
Real Estate can be divided into four categories namely; Land,Residential, Commercial and Industrial.
Let's take a look at the four categories one after the other.
Land
Land include vacant land,farms and ranches. Vacant land can be further divided into underdeveloped, early development and site assembly.
Commercial
Commercial includes shopping malls,medical and Educational buildings,Hotels and offices, apartment buildings (for renting).
That is why you will be required to fill a form indicating either residential or commercial when buying land from Estate developers.
Residential
Residential includes newly constructed and resale homes.
Under these we have flats,bungalows,terrace building,high value homes.
Industrial
Industrial includes manufacturing buildings and property, Warehouses. These buildings can be used for storage, production, research and distribution of goods.
What you need to know before buying/selling Lands.
Land can be classified as either free or acquired.
A parcel of land is considered free if the government has not indicated any interest in the Land. Such land is safe to buy because the title on the land can be perfected without issues.
In most cases,such land will either have a gazette ,a certificate of Occupancy or a Governor's consent.
Lands that falls under within areas designated as as urban areas are under government acquisition until deemed free.
There are two types of acquisition namely "COMMITTED ACQUISITION" and "GLOBAL/GENERAL ACQUISITION".
Now let's take them one after the other.
Committed acquisition occurs when Government has indicated an intention to use that Land for a specific purpose such as provision of amenities.
Such lands can never be available for use by individuals as it belongs solely to the government.
If you purchase land under committed acquisition,it becomes impossible to protect your land title and your occupation of the land is only temporal until the government comes to kick you out.
Become an affiliate and earn 500,000ngn monthly
Global/General acquisition: lands that are under general acquisition or global acquisition can later be confirmed "free" or "committed" as the case may be.
A land under acquisition can become free by a process called "EXCISION."
Excision is a process where the government releases a portion of an expanse of land that is not committed.
If a parcel of land that was under acquisition becomes excised,it is then considered free and becomes gazzeted.
The gazzete then becomes the title on the land and such land is safe to buy because a proper title can be processed on the land.
A second case where lands under general acquisition can be released is if an individual purchased a land that was under acquisition without going through an excision process.
Such a land can go through another process called "Ratification" or "Regularization" in which the land owner pays for the land to ratified or regularized.
But such lands must not fall within a "COMMITTED" area.
Knowing Land Documents and Sizes.
The following documents are usually involved when a purchase is made.
1. The purchase receipt.
2. The contract of sale.
3. The deed of assignment.
4. The survey document.
5. The building plan for housing investment.
6. Any other title document that may apply.
So let's quickly take a look at some the above documents.
Deed of Assignment.
A deed of assignments is one of the transactional document drawn up by a real estate attorney between current title holder for a particular property and the new buyer.
In real estate transaction, a deed of assignment is a legal document that transfers the interest of the owner of that interest to the person whom it is assigned, the assignee.
When ownership is transferred,the deed of assignment shows the new legal owner of the property.
Survey Plan
A survey plan is a document that measures the boundary of a parcel of land to give accurate measurement and description of that land.
The people that handle survey issues are surveyors and are regulated by office of surveyor general of a state.
A survey plan must contain:
1. Name of the owner of the land surveyed.
2. Address or description of the land.
3. Size of the land surveyed.
4. The drawn out portion of land survey and mapped out on survey plan document.
5. The beacon numbers.
6. The surveyor who drew up the survey plan and date it was drawn up.
7. A stamp showing the land is either free from government acquisition or not.
Certificate of Occupancy.
Certificate of occupancy (C of O) is issued by the State government.
e.g The Lagos state government officially lease Lagos land to you the applicant for 99 years.
All lands belongs to the government.
Having known that,let's take a look at land sizes and how it is measured.
In describing land sizes,we do hear words like "Acres"," Hectares" and plots.
Knowing the difference can be pretty difficult for those not in the field.
So in that light we will be breaking it down for proper understanding.
Let's define what an Acre,hectare is,in terms of land size.
Acre
An Acre is a standard unit of measurement used by Land sellers and it is almost equivalent to the size of a standard football field. An Acre is a product of any rectangular plot of land giving a total of:
4,046sqm or
43,560 sq ft or
6 plots (each measuring 60ft x 120ft).
It's simply 6 plots
Hectares
A hectare is one of the least known metric units and one which potential buyers and Estate developers seem to struggle with -
It actually contains of 15 plots which is Two and half acres.
In Lagos State, the standard size of a plot is 60ft x 120ft (18m x 36m i.e. 648 sqm), while in some other cities of the country, plots are measured in 50ft x 100ft such as Ibadan and other Cities and states in Nigeria.
You need to buy properties from Trusted Estate developers
Once you have decided to purchase a property (be it land or a home),comes one major concern; who you will be purchasing your dream home(or land) from.
Who you can trust.
Considering the prevalent issues of land scams all over the place which stems from dubious activities of land grabbers and Fraudsters. You need to do your due diligence by seeking to verify the property at the land registry to confirm true ownership.
You can consult with a seasoned realtor or a property attorney.
In the current real estate scenario, home/land buyers have the option of purchasing the property either directly from Developers or Land grabbers.
But as a Realtor,I will always advise you buy from estate developers based on the reasons I will be stating before the conclusion of this piece.
First, let's look at who real estate developers are.
Who are real estate developers?
They are people or companies who coordinate the business process that encompasses activities that range from renovation and release of existing buildings to the purchase of raw land and the sale of developed land or parcels to others.
Also, they convert ideas from paper to real property.
They buy land, finance real estate deals,build or have builders build projects,create,imagine, control and orchestrate the process of development from the beginning to end.
Developers usually take the greatest risk in the creation or renovation of real estate- and receive the greatest rewards and in most cases they determine the marketing of the property.
Now to the reasons you need to buy property from developers.
1. Real estate developers give you the advantage of paying on installment.
Some companies give you up to 12 to 20 months which is not the case with Land grabbers.
2. Real Estate developers give you the advantage of buying while you wait, that is; you can buy now and develop 5 years later is as much as you clear the land regularly.
3. Real Estate developers perfect title documents.
I know that by now you are already thinking about Real estate developers you can do business with.
You don't have to be bothered, we got you covered as regards that.
You can contact us via email: ochiriozua5000@gmail.com.
You can follow us on
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