With the recent event within the corridor of Ikota, Lekki-Ajah Lagos; It is important we educate ourselves and understand the most crucial aspect when buying and/or selling real estate in Lagos State, Nigeria.
Conducting due diligence in real estate transactions in Lagos State, Nigeria, is especially crucial due to the unique characteristics of the real estate market and the legal and regulatory landscape of the state.
Here are specific reasons for due diligence in real estate transactions in Lagos State:
Title Verification: Ensures the authenticity of land titles and confirms the seller’s legal right to transfer the property.
Land Use And Zoning Compliance: Verifies that the property adheres to local land use and zoning regulations, determining its permitted use and potential for development.
Government Approvals: Confirms that the property has obtained necessary government approvals and permits, avoiding regulatory issues.
Community Engagement: Addresses local community concerns and dynamics, preventing potential conflicts related to land use.
Infrastructure And Utilities: Evaluates the availability and reliability of utilities and assesses the impact of infrastructure development on property values.
Environmental Assessment: Identifies and addresses environmental risks and liabilities through assessments like Environmental Impact Assessments (EIA).
Property Survey: Verifies property boundaries to prevent disputes and encroachments.
Lease And Tenancy Review: Examines lease agreements for commercial properties to understand rights and responsibilities of landlords and tenants.
Tax And Financial Considerations: Understands tax implications, including property taxes and capital gains taxes.
Security And Safety Assessment: Evaluates the security situation in the area for the safety of residents or occupants.
Market Trends And Economic Conditions: Analyzes local real estate market trends and economic conditions to make informed investment decisions.
Future Development Plans: Considers future development plans and changes in urban planning that may impact the property’s value or intended use.
Given the complexity of the real estate market in Lagos State, thorough due diligence is not just a best practice but a necessity to protect the interests of buyers, sellers, and investors. Engaging with local legal and real estate professionals is often recommended to navigate the specific challenges and intricacies of the Lagos real estate market.
Recommendation
Before making your next property purchase, reach out to Definition Properties Limited (www.definitionpropertiesltd.com) for a complimentary consultation. They conduct thorough due diligence and integrity tests (for buildings) to ensure a sound decision before proceeding with the purchase.
I remain Francis Akintola
#yourministerofrealestate
I give professional real estate advice, negotiate and help smart investors make profitable real estate investments for high ROI, thereby creating wealthy landlords. My ultimate goal is to help you achieve your property investment portfolio goals