How to Buy a Home in Nigeria

Buying a home in Nigeria as an expat can be an exciting venture, but it's important to understand the local laws, customs, and processes. This guide will walk you through the essential aspects of purchasing property in Nigeria, from finding houses for sale to navigating legal requirements and avoiding common pitfalls.

How do I find houses for sale in Nigeria?

To find houses for sale in Nigeria, consider exploring both online and offline channels. Websites like PropertyPro, Jumia House, and Nigeria Property Centre list properties across the country. Additionally, local newspapers and real estate agencies can provide valuable leads. Networking with locals and other expats can also help uncover opportunities. It's crucial to engage with reputable agents to minimize the risk of fraud.

Are there restrictions on foreigners owning property in Nigeria?

Yes, there are some restrictions on foreigners owning property in Nigeria. The Nigerian Land Use Act prohibits foreigners from owning land outright. However, foreigners can lease land for up to 99 years, and they are allowed to own residential buildings. To circumvent these restrictions legally, many foreigners establish a company in Nigeria, which can then own the property. It's advisable to consult with a legal professional to understand the intricacies of these regulations.

Does Nigeria have an MLS type system?

Nigeria does not have a centralized Multiple Listing Service (MLS) like those found in some other countries. However, there are numerous property websites and real estate agencies that list properties for sale and rent. These platforms often serve as the primary resources for searching available properties.

Do brokers have licenses and how do I know if they are licensed?

Real estate agents in Nigeria are required to be registered with the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON). To verify if a broker is licensed, you can ask for their registration number and check it against the ESVARBON database. It's essential to work with licensed professionals to ensure a smoother and more secure transaction.

What documents are required when buying a home in Nigeria?

When buying a home in Nigeria, you will need several documents, including a valid means of identification (such as a passport or driver's license), a Certificate of Occupancy (C of O) or a Governor’s Consent (for properties without a C of O), a Deed of Assignment, a survey plan, and a receipt for payment. Additionally, if the property is being purchased through a company, you will need the company's registration documents.

Do I need a lawyer when buying a home in Nigeria?

Yes, it is highly recommended to hire a lawyer when buying a home in Nigeria. A lawyer will help verify the property's title, draft and review contracts, conduct searches at the land registry, and ensure compliance with all legal requirements. The cost of hiring a lawyer varies, but it typically ranges from 1% to 5% of the property's value, depending on the complexity of the transaction.

Do people typically buy a property with all cash or take out a mortgage?

In Nigeria, both cash purchases and mortgages are possible, but cash purchases are more common due to the high-interest rates and strict eligibility criteria for mortgages. Mortgages are usually provided by commercial banks and require a down payment of around 20% to 30% of the property's value. It's essential to compare offers from different banks to secure favorable terms.

Are there inspections that take place, and if so what is that process like?

Property inspections in Nigeria are not as standardized as in some other countries, but they are still important. Typically, buyers hire professionals, such as surveyors or engineers, to inspect the property for structural integrity, electrical issues, plumbing problems, and other potential defects. The process usually involves a physical examination of the property, followed by a written report detailing any issues found.

What are some of the pitfalls to avoid when buying property in Nigeria?

Some common pitfalls to avoid when buying property in Nigeria include falling victim to fraud or scams, purchasing properties with disputed titles, overpaying due to lack of market knowledge, and failing to conduct thorough inspections. To minimize these risks, work with reputable agents and lawyers, verify all documents, and perform adequate due diligence before making a purchase.