In this post, Reasons to conduct Due Diligence in Land transactions in Nigeria will focus on due diligenc and is the second part on the blog post, Things to Consider and Investigate before You Buy Any Land in Nigeria. If you haven’t read it you can kindly click to read it now.
There are several reasons why a prospective buyer of land should undertake due diligence in respect of the property he wants to purchase.
These reasons are under listed below:
It will reveal the true owner of the property in question. This is essential because of the fact that several persons can easily pose as the true owners of a property whereas they are merely fronts looking to rip purchasers off their money. If the prospective purchaser undertakes due diligence, then he can easily detect this.
NB; it is better to have the lawyer do this because he knows the necessary questions to ask and the documents to demand for which the purchaser ordinarily would have no inkling of.
It will help the purchase to detect the physical defects in the property he wants to purchase from an estate agent or land owner.
It will help the purchaser to be able to detect/uncover hidden fees and taxes which remain unpaid. Please note that certain rates and land use charges run with the land and not with the occupant of the land. In other words, if there are taxes, rates, land use charges that remain unpaid as at the time of the intended purchase of the land and the land is eventually purchased, the new owner will have to pay it.
But if he undertook due diligence, then he would have taken note of these unpaid rates and possible worked out an arrangement with the vendor to deduct same fee from the purchase price. If he didn’t . . . well, he will still have to pay them. It is not the government’s business that the rates were left unpaid by the previous owner of the property.
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