“Landlords grow rich in their sleep without working, risking, or economizing.”
John Stuart Mill
As a Nigerian, investing in land can be one of the smartest moves you make towards building wealth. Imagine something that grows in value without having to do a lot.
But as exciting as this sounds, there are certain mistakes that can make this dream turn into a nightmare. These mistakes can ruin your plans and lead to extra costs and legal problems.
In this article, you’ll learn the top 8 biggest mistakes to avoid when buying a plot of land in Nigeria in 2024. And the important things to know before buying land in Nigeria.
Key Takeaway
- Buying land in Nigeria can be a rewarding investment. However, it comes with risks if not approached wisely.
- Checking for government interest in the land ensures you’re not investing in a property that could be reclaimed for development.
- Skipping due diligence can lead to costly surprises. Some of these include finding out the land has multiple owners or unresolved debts.
- A land survey helps you confirm the plot’s actual boundaries, preventing future disputes with neighbors.
Top 8 Mistakes To Avoid When Buying a Plot of Land in Nigeria 2024
When buying land in Nigeria to build your dream home or for commercial purposes, there are certain mistakes to avoid.
Here are 8 biggest mistakes to avoid when buying a plot of land in Nigeria in 2024:
- Not Conducting Due Diligence
- Ignoring Legal Land Documentation
- Failure To Conduct a Proper Land Survey
- Falling for Scams
- Disregarding Future Plans
- Ignoring Zoning Regulations and Laws
- Failing To Complete Land Transfer
- Not Confirming Land Ownership
1. One of the Biggest Mistakes To Avoid When Buying Land: Not Conducting Due Diligence
If it’s your first time buying land in Nigeria, skipping due diligence is like walking into an unfamiliar environment without guidance.
Imagine thinking you’re purchasing a dream plot, only to find out it has multiple owners, unpaid debts, or worse—the government restricts it. Nightmare, right?
Due diligence means doing careful research and checking things out before making a big decision. This decision can either be buying something important or agreeing to do something.
Here’s what that looks like in practice:
- When conducting due diligence, don’t just take the seller’s word for it. Insist on seeing proof of ownership, like a title deed. If the seller hesitates or doesn’t have these documents, it’s a red flag.
- Sometimes, land may have unresolved debts or legal disputes tied to it. Ensure that the property is “encumbrance-free.” You can do this by checking the land registry. An encumbrance is a legal claim on a property that limits and restricts the owner’s ability to transfer or use the property.
2. Ignoring Legal Land Documentation: 2nd Top Mistake To Avoid
Before going ahead to buy a plot of land in Nigeria, you’d need to confirm certain types of land documents. Not doing so can lead to conflicts or even loss of property.
Some of these documents include Certificate of Occupancy (C of O) or deed of assignment. Ensure to confirm that these documents are authentic, and legally binding.
Without them, your claim over the land is weak, and you’re left vulnerable to legal disputes. Always ask for these documents and verify their authenticity with the local land registry to avoid costly mistakes.
3. Failure To Conduct a Proper Land Survey
Another crucial mistake to avoid when buying a plot of land in Nigeria is neglecting a proper land survey. Not conducting a land survey could lead to you paying for more or less land than you’re actually getting.
A proper survey confirms the actual boundaries and size of the plot, so you know exactly what you’re buying. To conduct a survey on the property, you can work with an experienced surveyor.
With their help, you can confirm land boundaries and avoid accidentally encroaching on neighboring land. Furthermore, conducting a land survey is one of the top factors to consider when buying land in Nigeria.
4. Falling for Scams
In Nigeria, land scams are a real threat, and falling for one is an unfortunate mistake you wouldn’t want to make when buying a plot of land.
Some sellers pose as legitimate owners or agents and only disappear once payment is made. To avoid scams, always verify the seller’s credentials.
Confirm their ownership with legal documents, and consult a lawyer or real estate agency like Win Realty before making payments. Remember, if it seems too good to be true, it probably is!
5. Disregarding Future Plans
This is one of the common mistakes to avoid when buying a plot of land in Nigeria. Let’s say you buy land near a developing highway—this could be a jackpot for future value!
Before buying, check with the local planning office about the area’s zoning regulations and future development plans.
This helps you choose land that aligns with your long-term goals, whether you’re building a home, a business, or an investment property. Knowing the area’s future plans is also useful when deciding where to buy affordable land in Nigeria.
6. Ignoring Zoning Regulations and Laws
You should avoid ignoring zoning regulations. Every area has specific rules about how land can be used.
Some plots are zoned for residential use, while others are for commercial or industrial purposes.
If you don’t check these laws, you might buy land where your intended use isn’t allowed. To avoid this, it’s best to verify the zoning laws with the local authority.
7. Failing To Complete Land Transfer: One of the Unforgivable Mistakes to Avoid When Buying a Plot of Land in Nigeria
One of the simplest but costliest mistakes to avoid when buying a plot of land in Nigeria is not completing the land transfer.
Owning the land on paper isn’t enough; you must legally transfer it to your name through the proper process. Without this, your ownership isn’t fully secure, and you’re vulnerable to disputes.
To transfer ownership, you’ll need official documents like a deed of assignment, which proves the sale has been made and the land now belongs to you. You can use the help of a lawyer to get through this process.
8. Not Confirming Land Ownership
Unfortunately, ownership conflicts are common, and if you don’t verify the seller’s rights, you could buy land with multiple claims on it.
Before making any payment, confirm that the seller is the legitimate owner. You can do this by reviewing the title documents and consulting with a lawyer or the land registry.
This extra step ensures that the land you’re buying is free from disputes and legally available for sale. After all, real ownership matters more than just having the land on paper.
Final Thoughts
Buying land in Nigeria can be an exciting investment, but if you’re not careful, it can come with serious headaches. By knowing the mistakes to avoid when buying a plot of land, you’ll save yourself a lot of trouble.
So, take your time, ask the right questions, and always double-check everything before paying. Remember, investing in land is about building long-term value, so patience and thoroughness pay off.
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