How to Buy Property in Nigeria as a Diaspora: A Comprehensive Guide

Buying property in Nigeria can be a rewarding investment, especially for Nigerians living abroad. However, it requires careful consideration and an understanding of the legal landscape to ensure safe and legitimate transactions. This guide walks you through the essential steps to follow when buying property in Nigeria as a diaspora.

1. Understand the Types of Property Available

Before making any real estate investment, familiarize yourself with the property types available in Nigeria:

• Land: Often purchased for future development or investment. Land can be bare or with initial infrastructure (e.g., roads, electricity).
• Off-Plan Properties: These are properties sold during the development stage, often at lower prices. You buy based on plans and projections.
• Completed Buildings: Fully developed homes or commercial properties that are ready for immediate occupancy or rental.

2. Choose a Reliable Real Estate Agent or Developer

For Nigerians living abroad, it’s essential to work with reputable real estate agents or developers to ensure smooth transactions. Look for:

• Licensed real estate agents: Verify their registration with the relevant real estate governing bodies in Nigeria.
• Developers with a track record: Ensure the developer has a history of delivering completed projects on time and has positive reviews from previous clients.

You can also check with other Nigerian diaspora groups for recommendations and experiences with agents or developers.

3. Conduct Due Diligence on the Property

Once you’ve identified a property, conduct thorough due diligence to confirm its legitimacy:

• Verify ownership documents: Confirm that the seller or developer is the rightful owner of the property. Check the Certificate of Occupancy (C of O), Governor’s Consent, or other legal titles that confirm ownership.
• Land Use and Zoning Regulations: Ensure that the property is properly zoned for the purpose you intend. For instance, make sure residential land isn’t being marketed as commercial.

Engage a property lawyer to help in reviewing these documents and confirming their authenticity.

4. Hire a Real Estate Lawyer

As a Nigerian in the diaspora, having a real estate lawyer is crucial. They can help:

• Review contracts: Ensure that the terms are fair and protect your interests.
• Carry out land searches: To verify that the property is free from government acquisition, legal disputes, or existing mortgages.
• Process title transfers: Handle the legal processes involved in transferring ownership to you.

For more on the legal side of real estate transactions in Nigeria, check out our detailed blog post: Legal Aspects of Real Estate in Nigeria: What You Need to Know Before Buying or Owning Property.

5. Explore Payment Options

When purchasing property from abroad, payment can often be a challenge due to foreign exchange restrictions and fluctuating rates. Many real estate companies allow flexible payment options, such as:

• Outright purchase: A single payment for the property.
• Installment payments: Pay over a specified period, which can make the purchase more affordable.
• Diaspora mortgage plans: Some Nigerian banks offer mortgage plans designed for Nigerians living abroad. These plans provide financing options, with repayment terms based on your foreign income.

Confirm that your payments are made to legitimate bank accounts registered to the seller or developer. Always insist on getting a receipt or proof of payment.

6. Get Insurance for Your Property

Property insurance is essential to protect your investment. Some recommended types of insurance include:

• Title insurance: This protects you against financial loss if there’s a defect in the property’s title.
• Property insurance: Safeguards against risks like fire, theft, or damage.

Many insurance providers in Nigeria offer policies that cater specifically to diasporan buyers.

7. Finalize the Title and Documentation

After making payment, ensure the property title is officially transferred to your name. The final step in property acquisition involves securing the following documents:

• Deed of Assignment: A legal document that signifies the transfer of ownership from the seller to the buyer.
• Governor’s Consent: In Nigeria, land belongs to the government, and any transfer must be approved by the state governor. The Governor’s Consent is crucial in making the purchase official.
• C of O (Certificate of Occupancy): If the land doesn’t have a C of O yet, work with your lawyer to obtain one. This certifies the legal ownership of the property.

8. Plan for Property Management

If you don’t plan to live in the property immediately, you’ll need to arrange for its management. Some options include:

• Property management companies: These firms will handle tenanting, maintenance, and any issues that arise with the property in your absence.
• Trusted family or friends: If you have reliable family members or friends in Nigeria, you can delegate property oversight to them, but make sure there are formal agreements in place.

9. Watch Out for Red Flags

There are common pitfalls to avoid when purchasing property in Nigeria. Be on the lookout for:

• Unclear property titles: Avoid any property where the ownership documents are not transparent or incomplete.
• Excessively low prices: If the deal seems too good to be true, it probably is. Some properties may be subject to legal disputes or located in areas with zoning restrictions.
• Pressured sales: Take your time to review the legal aspects of the transaction, and never feel pressured into making a quick decision.

Conclusion

Buying property in Nigeria as a diaspora is an exciting opportunity to invest in your home country. However, it requires careful navigation of legal processes and thorough due diligence to ensure a safe and secure transaction. By working with reputable professionals and taking the necessary precautions, you can secure a valuable asset for yourself and your family.

For more guidance on property investment in Nigeria, visit RoundPeg Homes or follow us on Instagram and Twitter @roundpeghomesng for updates on our latest real estate offers.