When buying a property in Lagos, there is a thin line between getting things right and making legal mistakes.
Neglecting some important aspects of legal technicalities can quickly turn a seemingly good deal into a nightmare.
Such mistakes can cost you a lot, which is why you don’t want to make them in the first place. If you are wondering what legal mistakes to avoid, you’re in the right place.
In this article, we will shed light on the five most common errors buyers make when purchasing property in Lagos and how to avoid them.
5 Common Legal Mistakes to Avoid When Buying a Property in Lagos
Below are five legal mistakes you must avoid when buying a property in Lagos State.
1. Not Doing Your Due Diligence
We know the allure of low-priced deals can be tempting. You want to quickly pay for the property before someone else does.
Such hasty decisions could land you in trouble. They can be costly in the long run, especially because you may not then have enough time to do your due diligence on the property.
But what do we mean by due diligence? Due diligence involves thorough research and verification of a property to ensure it is free from any legal encumbrances, disputes, or issues.
In Lagos, properties can often come with complex histories. So, it’s wise to verify the ownership and ensure the seller has the legal right to sell the property before making any payment.
This involves checking the title deed and verifying with the Lagos State Land Registry. Ensure the property is not under any government acquisition or encumbrance, as the government can reclaim such properties at any time.
Also Read: 7 Common Forms of Land Scams That Happen in Lagos
2. Neglecting Proper Documentation
In real estate transactions, a gentleman’s agreement (unwritten agreement) is as good as worthless. The point is that you must endeavor to put all agreements and contracts in writing no matter who you’re dealing with.
Again, don’t entertain situations where the seller says that a title deed or some other important documents are not ready.
Try as much as possible to ensure they have all the proper documents they should have. A key document in any property transaction is the Deed of Assignment, which officially transfers ownership from the seller to the buyer.
Without this document, you cannot register the property in your name at the Land Registry. This registration is important because it provides legal proof that you’re the new owner of the property.
Another critical document is the Certificate of Occupancy (C of O), which confirms the legal right of the holder to use the land.
Such documents should be drafted or reviewed by a qualified legal practitioner to protect your interests.
Ensure that the documents detail all the terms and conditions of the transaction, including the purchase price, payment terms, and dispute resolution mechanisms.
Additionally, always insist that any agreement you make is captured in a legally binding contract.
3. Overlooking Zoning and Land Use Regulations
Another common legal mistake is failing to verify the land use. We all know that Lagos is a rapidly developing city. As such, land use designations can vary from place to place.
Certain areas are designated for residential use, while others are for commercial, industrial, or agricultural purposes.
A common mistake buyers make is assuming that they can develop the property for any use they deem fit without considering the existing zoning laws.
If you purchase a property intended for residential use in an area designated for commercial use, you might face significant legal challenges and financial losses.
Lagos State Ministry of Physical Planning and Urban Development is responsible for regulating land use and zoning. Violating their regulations can result in the government demolishing the property or significant fines.
Before buying any property, check with the Lagos State Physical Planning Permit Authority (LASPPPA) to confirm the designated use of the land.
Also, consulting with a town planner or a property lawyer can save you from potential zoning issues and ensure that your intended use aligns with local regulations.
These steps ensures that you comply with the city’s master plan and avoids potential legal issues related to land use violations.
Also Read: How We Help Nigerians Living Abroad to Purchase a Property in Lagos
4. Ignoring Property Taxes and Levies
Property taxes and levies are an integral part of property ownership in Lagos. But many buyers overlook these ongoing costs, leading to financial strain and legal troubles later on.
Before buying property in Lagos, be aware that the Lagos State Government imposes various taxes such as Land Use Charge for all property and land.
Failing to pay these taxes can result in penalties, interest, or even seizure of the property.
In a similar way, many new estates in Lagos require buyers to contribute to the development of infrastructure such as roads, drainage systems, and security.
Some buyers neglect to clarify these obligations, only to find themselves faced with unexpected costs after the purchase.
It’s important to have a clear understanding of any communal obligations and to get them documented in the purchase agreement.
To avoid this mistake, understand the tax obligations that come with the property you are buying.
Better still, hire a tax consultant or property expert to help provide insights into the applicable taxes and ensure you budget for these costs.
5. Overlooking Legal Representation
There is no way this should be overlooked. But many buyers in Lagos attempt to cut costs by foregoing legal representation during property transactions.
This is a critical mistake. Real estate transactions involve complex legal documents and processes that require professional oversight.
A property lawyer can help ensure that all documents are properly drafted, reviewed, and executed.
But they don’t stop there. They can also provide valuable advice on compliance with local laws and regulations.
So while hiring a qualified lawyer might seem like an added expense, it can save you from costly legal battles and ensure that your interests are fully protected.
It is always better to do the needful than to have a property transaction that ended in litigation, even though it could have been avoided with proper legal representation.
Also Read: At What Point Should I Involve a Lawyer When Buying a Property?
Avoiding Legal Mistakes while Buying Properties
Buying property in Lagos can be a rewarding investment, but it requires careful attention to legal details.
Avoiding these common legal mistakes we listed in the article can help ensure a smooth transaction and protect your investment.
As usual, we advise that you engage professionals, including property lawyers and surveyors, to guide you through the process.
With proper preparation and vigilance, you can manage the various processes of Lagos real estate transaction and secure your property without legal hassles.
Would you like to purchase, register or sell a property in any part of Nigeria and you need our legal support? Are you searching for the services of a genuine legal team that can assist you in documentation and contract drafting? Would you like to hire a legal team to conduct due diligence and property verification for you? Or you need a clarity before investing in real estate? If your answer is yes, click here and we will attend to you immediately.
