4A. HOW TO CHOOSE A NEIGHBOURHOOD.
- This is still about taking precaution, when you want to buy real estate. One of our friends sent us this true story and I like to share it with you. May be it will be of benefit to you: It is still about precaution:
- “Few years back, I bought a house that I intended for a wonderful home. Unfortunately for me, I did not know that it is important to mingle with the neighbors to learn about the neighbourhood, including the potential problems ahead of time. And it caused me many sleepless nights – literally. My first night in the house, I woke to the sounds of two barking, yelping dogs that howled and bellowed until morning. The next night the same thing happened. I later found out that the seller had been fighting with the neighbours over the barking dogs for years. The other neighbours had also been complaining, but the owner of the dogs just didn’t care
- It took me more than a year of working with the Local Government Authorities before the owner agreed to take responsibility for the problem. Before the problem was solved, I had tried so hard to sell the house, but I was unable to sell it. One lucky prospect wanted to buy, but when he came for inspection, he heard the dogs bark ferociously. He didn’t come back”
- Sometimes we make mistakes when we do something for the first time. It happens, but buying or renting a home is one of those things that ought not be handled casually. Keep in mind these common mistakes to ensure that you buy or rent safe, sane, and secure when next you buy or rent a home.
- So, I ask you, what is the one thing you wish you knew before you bought or rented your current home? Send mail to firstname.lastname@example.org.
We have found out the factors and issues we needed to take into account as we choose a land or building to buy. Now that we have chosen, we are supposed to take all the precautions necessary so that we do not suffer any loss. So, what are these precautions?
- First, as a purchaser you need to instruct a lawyer to conduct a diligent search on the title to the land or building and wait to receive the search report before you part with payments. One of the very valuable facts that the report usually reveals is the name of the current registered owner of the land. It will also reveal if the title is encumbered or not.
- More about the need for a search before buying
- Really, why should anyone pay for a land or building without first getting his or her Lawyer to conduct a search on the title to it? I don’t even think I would like to imagine the rationale. Oh, maybe it is because you are buying from a friend or any other trusted person, but it still does not matter. What if there has been a defect or encumbrance on the title to the land that has not been obvious to that friend or trusted person? If it is because you are avoiding the fee to the Lawyer for the search, then that is “penny wise pounds foolish”.
- Here is what the Supreme Court of Nigeria has said regarding the need to investigate the title to any land or building before buying: “A PURCHASER WHO DID NOT TAKE THE TROUBLE TO INVESTIGATE THE TITLE OF THE VENDOR…WOULD HAVE HIMSELF TO BLAME FOR NOT DOING SO”.
- You also need to see the original title document (s) before you buy and take it in exchange for payment. Even then be aware that merely sighting the title documents is not adequate precaution. There are Issues of cloning and fake title documents, including Certificates of Occupancy. Therefore, the document needs to be confirmed or verified as genuine.
- There is need for a land information/charting. It has to be ascertained that the land is not under government acquisition or restricted to particular use(may be strictly industrial, etc) , which may be different from your investment motive
- I have usually suggested that the payment is made to that true and current owner as revealed on the Search Report.