Buying a residential property in Lekki Lagos is highly desired among prospective home owners in Lagos. The reason is because unlike the Lagos Mainland, the Lekki area of Lagos is still undergoing development. The Lekki area also offers a wide range of choices for you to choose from. There are also mouthwatering flexible payment plans designed to ginger anyone who has money to invest.
What it means is that most of the houses in the Lekki area are newly built and have contemporary designs unlike most of those on the mainland.
Over the years Developers and property investors have been able to create massive development in the Lekki area.
For the purpose of this article, the Lekki area of Lagos comprises of Lekki Peninsula I and Lekki Peninsula II. These areas comprise of Lekki Phase 1, Ikate, Osapa London, Ikota, Ajah, Sangotedo down to Abijo GRA.
These areas are experiencing a mix of luxury and averagely priced residential property and with this and other reasons, many prospective home owners are looking to purchase residential properties there.
However, before you go ahead to buy a residential property in Lekki, Lagos, there are a few legal requirements you must take into consideration. Just before we discuss the questions, let’s quickly take a look at the types of residential property asset classes you can find in Lekki.
Types of Residential Properties in Lekki
There are quite a number of residential property asset class in Lekki. The choice you make depends on your budget, family size and purpose.
Land
Land is one of the types of properties you can buy. In Lagos, every property is divided into residential, commercial, agricultural, industrial and mix use. If your plan is to buy a land for residential purposes, ensure that you buy in an area earmarked for residential or mixed-use purposes.
Land is one of the best types of properties to buy because you can actually develop it to your taste.
One other thing you should note is that land in Lekki area are both dry land and swampy land. It is therefore important to carry out a physical inspection of the land before closing the deal.
Apartments or Condominium
Some residential properties in Lekki are built as flats of different sizes most of which are within a building containing other flats. Flats offer a good family accommodation depending on the size. A flat would usually have at least one bedroom or could have as much as five bedrooms. Some condominiums also offer studio apartments.
Townhouses
Townhouses are becoming a very popular choice of residential properties in Lekki. A townhouse is a multi-floor apartment that shares one or both walls with adjacent properties. Townhouses are built in such a way that maximizes the use of space. For instance, a plot of land which ordinarily will be used for one spacious family house can be used to build four townhouses.
Semidetached Duplexes
Semidetached duplexes are also good options for residential properties in Lekki. A semidetached duplex is also a multi-floor apartment that shares one or both walls with adjacent properties. However, a semi-detached has a secluding fence and gate. A semidetached offers a secluded compound area which makes it a bit more private than a townhouse.
Duplexes
A fully detached duplex is also a very good choice of residential property in Lekki. What makes a duplex unique is that it does not share its walls with any other property. It may share one or two walls of its fence with other fence, but it is styled as a private and exclusive residence. It offers a bigger compound space than the townhouse and semidetached duplex.
Legal Questions to Ask Before You Buy A Residential Property In Lekki
Buying a residential property is not the same as buying a personal property such as car or a wristwatch. When buying a residential property there are questions that you must ask before you close the deal.
Let’s assume that you have already inspected the property and you are satisfied with the outlook appearance, the next stage would be to negotiate. But before you close the deal here are a few questions that you must not just slide off.
Who is the legal owner of the property?
This may look like an easy thing to do, but finding out who the legal owner of a property is not just by asking. It is important to also view the documents and verify that the person you are engaging with is either the true owner or an authorized agent of the owner.
Also, another reason for asking this question is because the legal owner in some cases is different from the equitable or beneficial owner.
A legal owner is one who has legal title over the property. Whereas an equitable owner is one who has bought the property from the legal owner but has not registered or perfected his title.
What happens when you buy from an equitable owner?
The equitable owner of a residential property in Lekki is someone who has not obtained the consent of the Governor. The Land Use Act of 1978 requires that everyone who seeks to buy or sell real estate in Nigeria ought to obtain the consent of the Governor.
However, many people in the Lekki area do not fulfil the requirement of the law regarding consent. What it means is that an equitable owner cannot give legal title.
If you are buying from an equitable owner, you would still need the legal owner to sign the deed of assignment in order for legal title to you.
Going back to the legal owner might create some challenges in terms of costs and time, so it’s always important for you to find out ahead if the person you are buying from is the legal owner or equitable owner.
The best way to find out if a vendor is the equitable or legal owner is to ask if they perfected their title.
What title does the property have?
Whether you are buying a residential land or developed property, it is very important to be aware of the title that covers the property. Title could either be excision, certificate of occupancy, Deed of Assignment (with the Governor’s consent), Deed of Assent, etc.
Ensure that you also verify the title before closing the deal. In order to verify the title, you would need a real estate lawyer to conduct legal due diligence using the title documents. Legal due diligence is usually conducted at the land registry, probate registry, corporate affairs commission etc depending on the title.
Is the sale an outright assignment or a sublease?
When buying a developed residential property in Lekki, one of the questions you must ask is if the sale is an outright assignment or a sublease.
This question must be asked especially if the vendor is an organized estate development and management company.
You can also find out the type of transaction you are about to enter into by asking for an advanced copy of the title deed before closing the deal.
The difference between an outright assignment and a sublease
An assignment is the complete sale of the remaining term of occupancy on a property. When a vendor assigns the property through a deed of assignment, he or she no longer has interest in the property.
A sublease on the other hand is a sale of part of the remaining term of occupancy on a property. When a vendor subleases the property through a deed of sublease, it means that the ownership or control of the property would eventually revert back to him.
If you are under a sublease agreement, you cannot assign or sell the property without recourse to the person who sold to you.
Please note however that some sublease agreements are drafted in a way that actually reflects an outright assignment. So, before you sign a sublease agreement when buying a residential property in Lekki, it is important to ask a real estate lawyer to review the documents.
Are there any encumbrances or charges on the property?
If there are encumbrances, charges or third-party rights on a residential property in Lekki that you are planning to acquire, then you should think twice before closing the deal.
Encumbrances and third-party rights connote that someone else has some interest on the property. It could be a bank, a mortgagor, a creditor or some other person or company. An instance is where the developer obtains a loan to complete the building and uses the building as a collateral.
Unless the developer has paid back the loan, it is risky to buy such a property. The reason is because if the developer refuses to pay back the loan, the bank has the right to take over and sell the property in order to recoup the borrowed funds.
How to find out if there are encumbrances on a property?
The best way to find out if a property has been encumbered is to instruct a real estate lawyer to carry out due diligence on the property and the vendor. Through carrying out proper due diligence, the lawyer would be able to uncover any hidden defects on the property.
What are the defects of the property?
It is very crucial to ask if there are any environmental, geographical or physical defects on the property. Although the vendor may not be willing to disclose those defects to you, it is often advised that you carry out a thorough investigation yourself or through your agent.
You can investigate by a careful look at the building structure, or the land texture, the environment, flow of water when it rains, any nearby factory, crime rates etc.
Procedure for buying A Residential Property in Lekki, Lagos
If you have decided to buy a residential property in Lekki, Lagos, then it is advised you follow the procedure outlined in this book. Kindly note however that there is no straight and narrow pattern towards achieving your goal.
So, feel free to adopt any procedure that suits your needs or purpose.
Origination
This is the first stage of the property purchase. Here is where you ask questions and map out what you need. Questions such as how much you are willing to spend, which exact area to buy and what size you need to buy. It is important to ask these questions in order to be able to narrow your search.
Seek Professional Help
Buying a residential property in Lekki is a huge investment and certainly not something you would want to do haphazardly. In order to be able to get the best you would need to hire professionals to help you achieve the best result. You would need to hire an experienced estate agent that is vast with Lekki properties and also well connected with other agents. You would also need to hire an experienced real estate lawyer.
The role of the estate agent is to help you find the best deal in the market. The real estate lawyer on the other hand would ensure that the transaction goes smoothly.
If you are buying a land, you would also need to hire a land surveyor. The role of the land surveyor would be to ensure that the land is not within committed territory.
Contract
The contract stage is the negotiation stage of the process. A valid contract is formed when there is an offer and acceptance between the intending purchaser and the vendor.
What it means is that you must have made have negotiated and agreed on a purchase price. You must also have shown serious interest in closing the deal. At this stage, both the vendor and the purchaser have mentally agreed to close the deal pending the outcome of investigation of the title.
Due diligence
Due diligence is the investigation of the property’s title. Due diligence is usually carried out by the purchaser’s lawyer. Due diligence is not only about title investigation. It also includes investigating the physical condition of the property, the neighborhood, the value of the property and any other relevant factors. At the end of the due diligence process, the solicitor will declare whether or not the property is safe.
Equipped with the solicitor’s information, it would be easy for you to decide.
Also, if you are buying a bare land, investigation by a land surveyor is very important.
Here is a list of things to investigate during due diligence:
- Who owns the property?
- Is the title valid?
- Is the property free from acquisition?
- Are there any encumbrances or third-party rights affecting the property?
- Are there tenants on the property?
- Are there any pending bills regarding the property such as utility bills, Land Use Charge etc.
- What are the environmental defects on the property?
- If the property is jointly owned, are the other joint owners in agreement with the sale?
- Is there a dispute, pending litigation, ADR or other aggrieved party’s concerns over the property?
- Were all the building permits obtained for the property?
- Are there any cracks or other physical defects?
- Is the area prone to flooding?
- Is the area prone to crime, criminality or rascality?
- Does the house need repairs, if so what is the cost of the repairs?
Closure
At the end of the investigation of title, the next step would be to close the deal. At this stage, your obligation is to pay the purchase sum while the vendor would sign away his property to you.
Documents you are expected to receive upon closure.
Once you close the transaction, the vendor ought to give you a contract of sale. In most cases your solicitor would prepare a deed of assignment or the relevant title document. You would also have to hire a surveyor to draw a survey plan which would be quoted in the title document.
