When Buying Or Renting Properties In Lagos.

We have gone through most requests of intending clients as regards lease of certain accommodation spaces and properties listed and we found out that prospective tenants or future property owners are not being adequately advised on steps to take.. Below are a few advices that might help

WHEN RENTING A PROPERTY:

a. Whenever you say "i am looking for a property to rent around lekki, ikeja, v.i etc, first you must know that these areas are choice areas that attract high tenancy rates because they have low density areas & amenities so it would be baffling to hear someone saying "our budget is between N700,000 to N850,000 per annum". What they would likely get for that price would not be more than a one bedroom boys quarters with toilet and bathroom together (if any) and the size of it all might not be more than 8 by 12 at most.

Also, whenever for instance an agency tells you that a rent is N600,000 per annum, you must always factor in the prevailing fees that follows it. Which is the 10% legal & 10% agency fees.This simply means that when an apartment is listed for N600,000 it is going for N1,440,000 in total..

This is because most Lagos landlords prefer collecting 2-years in advance rent although this is contrary to the rent tribunal act that stipulates the prescribed rent per area and prohibits landlords from taking rent beyond a year.. So whenever you tell an agency that your budget is N1,000,000, make sure you had factored the agency & legal fees for 2-years before stating your budget.. else, you'll only be fooling yourself & might likely be taken for a joy ride. Also, do your utmost best to reject caution fees from unsuspecting agents. Caution fees are almost never refunded and the rent act forbids it.

b. Always demand for a fully drafted tenancy agreement drafted by a lawyer which spells out your rights and covenants and more especially the option of renewal of the tenancy after 2-years expires if need be.. and if the rent is to be increased, you should be given a 6 months notice unless there is a valid ground for terminating the tenancy. This agreement would be your bread and butter of the tenancy and the rent you have paid.

c. Due to economic reasons, always try to scout for areas that offer low rents. If you stay on the mainland for instance and maybe work on the island, there is no point trying to pretend that you are a big man by requesting a property for rent on the island which would most likely be tripple your salary and out of pocket expenses. You could always get a place close to the third mainland bridge such as gbagada, oworo, ikeja, anthony, maryland, ketu, ogba, ikorodu and its environs.. else you'll eventually notice you've only been working to pay rents all your life. It is cheaper in areas aforementioned and more cost effective in the long run especially when you have a desire to own your personal property in Lagos real quick.. asides that, amenities you need such as bukas, local markets, salon, accessories vendors etc.. are also way cheaper compared to those in highbrow areas.

d. Finally, if a quit notice is not given 6-months to the expiration of tenancy, The Lagos State rent act provides for you to continue to stay in that property and the landlord can do nothing as long as your lawyer is aware of it. A 6-months quit notice is only applicable if your tenancy is a yearly type for example January 1st 2008 that expires December 31st 2008.

A 6-month quit notice legal calendar is different from a regular calendar calculation. For example; if the tenancy period starts from January 1st 2008 & expires December 31st 2008, the quit notice ought to be issued to you latest June 30th 2008. And if the quit notice is being issued maybe on July 4th 2008, the quit notice then begins to run from August 1st 2008.

The Lagos state law states that there must be one clear full month before the quit notice is valid & if your landlord attempts to mess with you, feel free to buzz your nearest lawyer and intimate him/her.

The landlord or Agent at this stage will be totally helpless. Because it's the law and one should not be ignorant about it anymore.

WHEN BUYING PROPERTIES:

a. Never negotiate with an Omo-onile (Area boys of lands) You might have just thrown money into the bush.

b. Always require for properties that are measured in square metres not in plots because you could luckily end up having a quarter plot, half plot or a corner piece (which is very rare)

c. Always get to know about the area you intend to purchase a land. This is very important because that land being advertised so sweetly to you could either be a govt acquired land that needs to be developed in 20 years time and you had no idea about that fact.. It could be under a pipe line or power line, a restricted area generally not approved for sale to private individuals.. Worst still the property or land could be a subject of litigation.

If you fail to heed to this advice & not consult an attorney to do a search on the property before you even negotiate on the prices, be rest assured, that property might be demolished overtime & possession unilaterally taken from you.

If you dont believe this, you can ask the people of Alimosho local government that failed to heed this advice 33 years ago who are now biting their fingers.

d. Always confirm the existence of the proposed C of O (certificate of occupancy) of a property that has been advertised to you. To tell you the truth, C of O's are mostly in the possession of the true owner, authorized agency or lawfirm that has the power of attorney to sell on the owner's behalf.

Most of these advertised properties don't even have a C of O and if they do, they are not in the possession of those advertising it and if they do have one, it is a photocopy which is not legally valid because they do not possess the power of attorney to accompany such possession of that C of O.. This is a very delicate issue a prospective buyer must be wary about because a lot of third or fourth party agencies all claim to be agents of certain properties and sell all sorts of properties with or without a titled document..

e. Have a legal practioner do a proper search in the lands registry at alausa Ikeja, Lagos which costs less than N40,000 including legal fees & save your future. It costs you nothing to do this very vital investigation before negotiating with a sweet tooth agency promising you a well in the desert. All they are interested in is your money & after you pay, you'll be on your own.

f. Always ask for the accompanying survey plan and good root of title. A good root of title is one which traces the history of the property for the last 30-40years so as to know whether the property or land is under a mortgage or there is problem on the property.

g. Make sure the property is squeaky clean, free from defect and can be resold. & If your agency cannot provide you with the links to this good root of title, please ignore such a property.

h. If you intend to purchase a land that doesn't have a CofO, you should make sure the seller gives you a proper deed of assignment of that property, a purchase receipt agreement & deed of release which states that the seller will be held liable if the property is defective. This agreement must be stamped by Lagos Land Registry unless it is invalid.

i. Most properties being sold as family property or properties with family title shouldnt be treated with kids gloves because of the attendance and potential booby traps involved. You must investigate thoroughly before you attempt to purchase one.

Most of them come with cheap price tags attached to them but remember the cheaper it is the more worried you should be.. Especially when a land dispute occurs within the family and the property in question belongs to a third party instead. You might be forced to pay additional millions if not billions to the true owner in future.

j. If you are a skilled negotiator, you can achieve a 5% reduction in the commission an agency is going to take and 5% in the legal fees from the total amount to be derived from the sale.. When ever you hear a property being listed for N3million or N60million, dont be naive to believe that is the only amount you are going to pay. What you should always ask the agency is the total package for the land or property in question. Dont be fooled by the sweet mouthed original offer.

A N3m offer for a land sale could spiral into this immediately:

10% of N3million = N300,000 (Agency)

5% of N3million = N150,000 (Legal)

Total Package = N3,450,000

Search, perfection of title and governors consent, ground rent and other fees payable to the government approximately N1million.

So without even building a block on that land, you could be shelling out almost N4.5million for a property advertised as N3million for one plot in isheri, not to talk of Lekki or VI

For more info on these kind of deals and also ensuring you get the best property offers in lagos.

kindly contact us on our Instagram page @bokimacyrilhomesltd 

Under 72 hours, you will get your specs with valid confirmation. We have a team of highly trained professionals that are extremely good at these things. Don't forget when proposing a budget, think of the total package you intend to spend and not just a round figure which might throw you off balance much later.

Courtesy: Bokima Cyril Homes Ltd (BCHL-Lagos)