Buying land in the oil rich city of Port Rivers State, can be an amazing experience and significant investment, but it also comes with its challenges and complexities. The real estate market in Rivers State is picking up and it is promising also. Understanding the legal, financial and other considerations is essential to making a successful stress-free purchase. Here are some key things to know before buying land in Rivers State:

1. Types of Land Ownership

In Nigeria, land ownership can be mainly classified into two types:

• Leasehold Land: Land owned by the government or an individual but leased to another party for a specific period (typically 99 years). After the lease expires, ownership reverts to the original owner.
• Customary Land or Freehold: Land held under customary law, usually in rural areas, where ownership is communal. It is referred to as freehold because the ownership is finite unless sold. This can be complicated as the buying process involves multiple stakeholders.

2. Conduct Background Research

Before making a purchase, conduct comprehensive research on the area you are considering. Key factors to look into include:

• Development Plans: Investigate any government or private development plans that may impact the area, such as roads, bridges, or commercial projects, which can increase property values or affect your land negatively.
• Market Trends: Analyze current market trends in Rivers State, including price fluctuations and demand in the specific area. This helps in making an informed investment decision.

Read: Title Documents in Nigeria

3. Legal Considerations

The legal framework surrounding land ownership in Nigeria is complicated, and it’s crucial to ensure that the land you intend to buy has a clear title. Here are some legal aspects to consider:

• Land Title: Verify that the seller has a valid title to the land. This could be a Certificate of Occupancy (C of O), Governor’s Consent, or Deed of Assignment. It is also possible to purchase land with a yet-to-be-registered title, but thorough due diligence must be carried out before such a purchase.
• Search at the Land Registry: Conduct a search at the Rivers State Land Registry to confirm the ownership status and any encumbrances (mortgages, liens, etc.) on the property.
• Contracts and Agreements: Ensure that any agreements are in writing and signed by both parties. Engaging a lawyer to draft or review the purchase agreement is advisable to protect your interests. As an investor DO NOT settle for verbal agreement

4. Engage Professionals

Hiring professionals can significantly ease the process of buying land. Consider the following:

• Lawyers: A lawyer with experience in real estate can assist with due diligence, contract review, and ensuring compliance with legal requirements.
• Surveyors: A qualified surveyor can provide a proper measurement of the land and verify its boundaries, ensuring there are no disputes over land size.

Read also:THE DUTIES AND ROLE OF A LAWYER IN NIGERIA

5. Understanding Costs Involved

The costs associated with buying land in Rivers State can extend beyond the purchase price. Key expenses to consider include:

• Purchase Price: The initial cost of the land itself.
• Legal Fees: Costs for hiring a lawyer to handle the transaction and ensure all legalities are adhered to.
• Agent Fees: If you employ a real estate agent, expect to pay a commission, usually around 3-10% of the purchase price.
• Surveyor’s Fees: The Surveyor that surveyed the land and prepared the survey plan will be paid as well
• Stamp Duty: This tax is charged on the transfer of property and is usually charged ad valorem.
• Registration Fees: Fees associated with registering the land in your name at the Land Registry.
• Development fee: If you bought the land from the Real estate Company, you will be required to pay development for the development of the Estate.

6. Know the Risks

Like any investment, purchasing land in Rivers State comes with risks that you should be aware of:

• Fraud: Land fraud is prevalent, so always verify the authenticity of documents and the identity of the seller.
• Disputes: Land disputes can arise due to unclear ownership, boundary issues, or claims from relatives or communal landowners.
• Land Grabbing: This is mostly prevalent in some part of Rivers State, where some hoodlums will grab parcels of land belonging to people and demolish the structure and then re-sale it to other people. When buying land in Rivers State, you have to be certain that the seller is not a land grabber.
• Government Acquisition: Be aware of the possibility of government acquisition for public projects, which can lead to loss of property.

Read also:Understanding Real Estate in Nigeria

7. Payment Plans and Financing

Understand the payment options available to you:

• Payment Plans: Some sellers may offer flexible payment plans, allowing you to pay in instalments. Ensure that the terms are clear and documented.
• Mortgages: If you require financing, research mortgage options from banks or financial institutions in Nigeria. Consider interest rates, repayment terms, and eligibility criteria.

8. Land Development

Familiarize yourself with physical planning laws that govern land use in Rivers State. Different areas have specific regulations regarding residential, commercial, or industrial use. Ensure that the land you intend to purchase has been zoned for your intended use. This information can usually be obtained from the local planning authority.

9. Documentation and Record Keeping

Maintain all documentation related to the land purchase. This includes:

• Purchase Agreement: Keep copies of all agreements and contracts.
• Payment Receipts: Document all payments made during the transaction.
• Land Registration Documents: All relevant documentation used for registration

In conclusion, buying land in Rivers State can be a rewarding investment, but it requires careful planning and consideration. Do not forget to engage the services of a Lawyer from the onset of the land transaction.

For further enquiry

Email: info@verazadvocates.com.ng

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