1 Buying land without valid legal titles/documents:
Under Nigerian Law, the Governor of a State acts as the trustee of a majority of lands within the state. For any land transaction to be valid, it must originate from the Governor or have his consent. Before you buy a land/property, you need to know the legal document(s) showing that the land has been transferred to you, and is legally yours.
Some of the documents that show this ownership include any of the following: Certificate of Occupancy, Excision and Gazette, Governor’s Consent, Court Judgment etc.
A Power of Attorney is NOT A VALID LAND TITLE. KNOW THIS VERY WELL !!!. In the case of Ude v Nwara, the Supreme Court said “A Power of Attorney merely warrants and authorizes the Donee to do certain acts in the stead of the Donor, and so, IT IS NOT AN INSTRUMENT WHICH CONFERS, TRANSFERS, LIMITS, CHARGES OR ALIENATES ANY TITLE TO THE DONEE, rather, it could be a vehicle where these acts could be done by the Donee for and in the name of a third party …”
2. Not knowing the importance of location:
In order to succeed in real estate, there are 3 factors you must consider. One, location. Two, location. Three, location. The primary reason people invest in real estate is to see the value of their property appreciate, as time passes by, and to also earn income from it.
One factor that makes property to increase in value is the migration of people to a certain location. Closely related to this factor is when industries and amenities start springing up in a location.
For instance, in 2022, I worked for GText Homes, under the leadership of Dr. Stephen Akintayo. One of its Estates, Beryl Beach Front Estate in Ibeju Lekki, Lagos, has certain landmarks that have increased its value; they include the Dangote Refinery, Lekki Free Trade Zone, and the upcoming Epe Airport. In 2019, a plot was selling for N1.5 million at pre-launch; as at 2022, it was going for N7.5 million.
If you fail to understand these factors that increase the value of a land/property while picking a location to invest in, and you just buy land anywhere, you might not get the expected returns on your investment. Avoid this mistake.
3. Not carrying out legal search:
Every land has a history on it. Before you buy any property, a legal search needs to be carried out to find out if there are any impediments in the land. I heard the story of a lady who spent millions of naira to acquire land in Ibeju Lekki, only to discover after making payment that the land was already under compulsory government acquisition. If she had carried out a simple legal search, she won’t have lost her money.
Hence, a search should be carried out at the Lands Registry, Court Registry, CAC Registry and Probate Registry to find out if there are legal impediments/encumbrances over the land. Don’t buy land that has legal impediments.
4. Taking too much time to invest:
There’s a Chinese proverb that says “The best time to plant a tree was 20 years ago; the second best time is now”. In relation to real estate, the best time to have invested was few/many years ago; the second best time is now. When you buy land that has good prospects for growth, there is a high likelihood that you will have good returns on your investment. Once you are sure about an investment, don’t waste time before keying into it.
A real estate agent I once transacted with told me how in the early 2000's whilst doing his NYSC in Abuja, he had the opportunity to buy land at low prices, but he didn't do so. He claimed they were all bush. After his NYSC, he went back to his state of residence. When few years later he relocated back to Abuja, the same lands he categorized as bush were now developed, and he couldn't afford to buy them. He has painful regrets about this.
DON’T DELAY ANY FURTHER. START BUYING LAND TODAY. Don’t say you don’t have all the money to invest. You can do a down payment, and continue making payment in installments, because whether or not you invest today, the value of the land will start growing, and you will need to pay more money for the land if you are waiting till you have all the money.
5. Investing all the money you have:
This is another mistake to avoid. You might be surprised that I am writing this. After all, I sell real estate. No matter how juicy a real estate offer is, don’t invest all your money in it. Why? Real estate is not like forex or cryptocurrency that can grow quickly overnight. It could take months and years before it grows.
You might need money to do other investments, attend to family needs, handle a health emergency, go on a vacation, pay for an online course, among other things. Having available cash in land will help you do these things. Remember, CASH IS KING.
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