Different Types of Due Diligence You Must Do Before Buying a Property in Lagos

Purchasing a property in Lagos, Nigeria, is a significant investment that requires careful consideration and thorough due diligence. 

The city’s real estate market is dynamic, but it is also fraught with risks, including legal complications, fraudulent transactions, and environmental challenges. 

To safeguard your investment, you must conduct three primary types of due diligence: which are, legal, technical, and social due diligence. 

This comprehensive article will walk you through the different types of due diligence you must do before buying a property in Lagos.

It will also explain why they are necessary and how you can execute them effectively.

1. Legal Due Diligence

One of the most important due diligence you must do before buying a property in Lagos is legal due diligence.

Legal due diligence is the most critical step in property acquisition. 

It will help you verify the ownership status, and ensure that the property has the proper documentation, and also protect you against any fraudulent transactions. 

Below are the key aspects of legal due diligence:

Verification of Title Documents

Before buying a property in Lagos, it is very important that you verify the legitimacy of the title documents. 

Here are some of the common title documents in Lagos:

• Certificate of Occupancy (C of O): This document proves that the government has officially allocated the land to the owner.
• Governor’s Consent: If a property has changed hands from the original owner, the new buyer must obtain the governor’s consent to validate the transaction.
• Deed of Assignment: This document transfers ownership from the seller to the buyer and must be registered with the Lagos State Land Registry.
• Survey Plan: This shows the exact location and size of the land, helping you to confirm that the property is not under government acquisition.

Land Registry Search

You should conduct a thorough search at the Lagos State Land Registry to reveal whether the property is free from encumbrances, disputes, or government acquisition. 

This is very crucial because many buyers have lost their investments due to purchasing land under government acquisition for public projects.

Verification of Ownership and Encumbrances

After checking all the available documents, you should engage a property lawyer to help you confirm the ownership status of the property. 

Some properties may have pending litigation, be subject to family disputes, or have multiple claims of ownership.

Compliance with Lagos State Real Estate Laws

Lagos State has various laws governing land transactions.

These laws include the Land Use Act, the Lagos State Tenancy Law, and the Lagos State Real Estate Regulatory Authority (LASRERA). 

Ensuring compliance with these laws can prevent you from future legal disputes.

Litigation Search

Conducting a litigation search at the Lagos High Court and other legal institutions will help you determine if the property is involved in any court cases. 

Buying a property under litigation could lead you to future complications.

Also Read:

• What is the Difference between C of O and Governor’s Consent in Lagos?
• Where to Buy Land Near Lagos at Affordable Prices
• How Much Does It Cost to Buy a House in Lagos?

2. Technical Due Diligence

Another important due diligence you must do before buying a property in Lagos state is technical due diligence.

Technical due diligence focuses on the physical and structural aspects of the property. 

It ensures that the property meets safety and environmental standards. Some of the technical due diligence you must conduct include:

Land Survey and Physical Inspection

The land survey will help you determine the exact dimensions of the property, ensuring that it matches the documents provided. 

The physical inspection will help you detect possible encroachments or land disputes with neighbors.

Environmental Assessment

Lagos state has various environmental challenges, including flooding, erosion, and poor drainage systems. 

You must conduct an environmental assessment to ensure that the property is not located in a flood-prone or environmentally hazardous area.

Structural Integrity Assessment

For buildings, you must assess their structural integrity. You should employ an experienced structural engineer to inspect the property for defects, cracks, weak foundations, or poor construction practices. 

This is particularly important for high-rise buildings and properties in waterlogged areas.

Verification of Development Permits

Before you purchase any property in Lagos, make sure you verify that it has the necessary development permits from the Lagos State Physical Planning and Development Authority (LSPPDA). 

Unauthorized developments may be subject to demolition by the government.

Utility and Infrastructure Assessment

Confirm if the property has availability of basic amenities such as electricity, water supply, roads, and good drainage. 

Some properties in Lagos lack essential infrastructure, thereby making them uninhabitable or less valuable in the long run.

3. Social Due Diligence

The last due diligence you must do before buying a property in Lagos is social due diligence.

Social due diligence involves understanding the historical, social, and communal aspects of the property. Lagos has a unique social structure, and ignoring this aspect could lead you to future conflicts.

Below are some of the social due diligence you must conduct:

Investigation of the Property’s History

Most properties in Lagos often have a historical context, especially in traditional land-owning communities. 

Some lands belong to families (Omonile) who may resell them fraudulently. Investigating the history of ownership will help you prevent disputes from emerging later.

Community and Neighborhood Investigation

It is important that you understand the social environment of the property. 

Investigate the security situation, crime rates, and social amenities in the area. Some neighborhoods in Lagos have frequent land disputes, communal conflicts, or high crime rates.

Omonile (Landowners) Issues

Dealing with omo onile (local landowners) is a common challenge in Lagos. Some of these individuals or groups demand unauthorized fees before or after a transaction. 

Conducting thorough research on the community’s land practices will help you mitigate these risks.

Disputes and Conflict Resolution

It is important you check if the property has a history of disputes or past ownership conflicts. Engage the local chiefs, community leaders, and neighbors to inquire if there has been any potential issues.

Access to Social Infrastructure

Make sure the property is close to essential social amenities such as schools, hospitals, markets, and public transport. Remember, buying a property in an isolated area without basic amenities may reduce its long-term value and livability.

Also Read:

• How to Identify a Fraudulent Real Estate Company in Lagos
• How to Choose the Best Real Estate Company in Lagos Nigeria
• Why You Should Invest in Badagry Real Estate Market

Conclusion

In conclusion, due diligence is not just a precaution; it is a necessity when buying property in Lagos. Taking the time to conduct legal verification, environmental assessments, financial analysis, and regulatory compliance checks can protect you from falling victim to scams or making an unwise investment. 

Engaging qualified professionals, such as real estate lawyers and surveyors will further strengthen your position. 

Ultimately, a well-informed purchase decision will provide long-term security, peace of mind, and a valuable asset in Lagos’ dynamic real estate market.

Buying a property in Lagos can be a rewarding investment, but it requires careful due diligence to avoid costly mistakes. 

Given the complexity of the real estate market in Lagos, skipping any step of the verification process can lead to legal battles, financial loss, or even total property forfeiture. 

That is why you must take a meticulous approach before making any commitments.