Real Estate Contract Lagos Nigeria - Free Real Estate Contracts Guide

real estate contract lagos nigeria africa

Real estate contract Lagos Nigeria - When you invest in Nigeria real estate, you spend money to buy a completed property or plots of land. In either case, you must be given a property contract that defines exactly what was purchased.

By definition, a real estate contract is a legal document that states the nature of the real estate transaction between the buyer and the seller of a property or the landlord and the tenant of a property.

From the above definition, it is obvious that real estate contracts are drawn up for two types of property transactions:

1. When a real estate client buys a property from a seller and

2. When a potential tenant rents a property from a landlord

In simple words, the property contract defines . . .

the nature of the real estate transaction between two parties

the amount paid by the buyer for the property (for rent or outright purchase)

the duration for which the contract is binding and

the rights and liabilities of both parties

These four elements above must be present for a contract to be complete.

Remember . . . the property contract is an agreement between two parties.

Consequently, a real estate contract is not binding on either party unless it is signed by both parties. When both parties sign the document, they in effect say they both agree on the terms of the real estate contract.

Property Contract - The Purpose

The purpose of a property contract is to document the transaction between two parties.

Why document it?

You do that for three key reasons:

1. Your memory can fail you.

You may forget the exact terms of the contract or your understanding of the terms of the contract may be different from that of the other party. But when you document it, each party have an opportunity to read all the terms of the agreement before accenting to it with their signature above the dotted line.

This means that there is no room for what is called gentleman contract . . . verbal contract between two friends who trust each other.

Betrayal has become a common feature of this materialistic world. The sad truth is that friends now betray friends.

Therefore, even if you're buying a property from a friend, ensure the appropriate legal contract is drawn up by a lawyer.

2. The Children of The Seller May Claim Ownership of The Property After The Seller Passes On

Children usually know the property owned by their parents. When parents die and the children are in a frenzied fight to inherit what they left behind, some would remember that he used to have a property somewhere. And they may jump in for the loot.

A real estate contract between you and the seller clearly indicates to the children that their father gave up ownership of the property for monetary gains.

If the agreement you had with the seller was "gentleman agreement", then you will likely lose that property to the seller's children.

3. A Real Estate Contract Is A Legal Document Tenable In A Court of Law.

Therefore, in the event of a dispute, you can seek re-dress in court knowing that you have a document that is acceptable in court. And with this document you can legally regain possession of your property from any trespassers.

Loopholes In Real Estate Contracts

Who is qualified to draw up a legal contract?

The person recognized by law to do so is a real estate attorney.

Real estate attorneys in Lagos Nigeria often charge five (5) percent of the property value as their attorney fees.

If the property price is, say, 40 million Naira then you're likely to pay 2,000,000 Naira as attorney fee. Even if your attorney agrees to collect 2.5 percent of the property value as his fee, that will still amount to 1,000,000 Naira.

Sizable amount, right? And just for writing an agreement!

Therefore, a number of real estate clients feel they can save on this fee by pulling together information from various sources to draw up the agreement without a lawyer.

You know what that is?

Risky business.

This kind of behaviour results in property contracts that do not include all the terms required to make the contract rock solid. So when there is a dispute that results in a court case, the prosecution's attorney can easily flaw the terms of the contract and your property ownership could be at risk.

The truth is . . . a real estate or property contract looks like a simple document to put up, but it's actually more complicated than that.

My Advice?

Use a real estate attorney for all your property contracts. It's a sure way to avoid home contract loopholes and secure your investment.

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