Introduction:
In today’s civilized world the average rich Nigerian or person in the world does not have to own his/her whole housing plan
(or burden)all by him or herself, he can choose to exercise options,
leverage on his equity or share of ownership and to do this, he or she
requires an enabling mortgage system in place, which is working, up and doing.
It is always easy for people to jump towards anywhere there seems to be free money, but what about the catch, is there any trap?
Do you understand the terms and conditions properly?
It is always wise to know what to expect, don’t be fooled by the terminologies financial
experts use to confuse novice(s) the legal framework and bottlenecks,
you will need to know the obstacles you will face and how to remove
them.
Here
now we have two sides of the story, the financial aspect (mortgage) and
the legal aspect (which involves the law and a lawyer) we would now
however expose you to those mistakes commonly made by the simple:-
1. Make sure you do a careful search through an estate surveyor and valuer
who knows his onion well so you are not sold duds as some simple people
fall into the hand of fraudster in their pursuit of owning or
purchasing land property.
2. Find out why the property you are
interested in is been sold, you don’t want to purchase what other people
are trying to dispose off. Check very well tosecure a mortgage, set a
timeframe, and know the procedures and the right steps to take.
3. Stay away from banks who will tell or trick you to open a mortgage account before they hand you capital to buy or build your house.
4. Talk to one, two or more banks to
have comfortable comparative analysis that will give you an advantage in
the course of your goal setting and getting it.
5. Consider the penalty clause to redeeem your mortgage. This should
give you a flexible plan option to pay off your mortgage or negotiate
interest charges with your bank.
6. Be wise about the documentation and
processes, protocols, due diligence the check list and all other
criteria such as property description,aerial photographs, if it is an
existing property in hard and soft copy, Architectural drawings, bill of
quantity, etc the application process, information to the bank about
your earning ability or capacity, expenditures and pattern. The bank
will ask you this before they tell you how much they can advance you.
7. Do a cash flow analysis of yourself, your profit and loss account and your personal balance sheet.
8. Take good cognizance while
inspecting your choice property, protocols of sale& negotiation,
research, investigate sales. Establish a good relationship with your
broker/ agent or seller; observe very well the regulatory side of
property acquisition or purchase.
9. Understand and review clauses banks
imposing their estate surveyor & valuer or agents to search value
or other services. Be settled about the payment options i.e. down
payment to keep seller happy.
10. Deed of assignment transfer from seller to buyer and the proceedings for final payment.
11. Governor’s Consent after transfer
of property will take 4-6 months under the land use Act (1992) ownership
by leasehold and freehold is 75-99 years as the case maybe if the land
does not have a state C of O the head of the district has a jurisdiction
that is binding and ultimately the local government area chairman is an
authority too.We also have the state and urban development authority.
12. Pay all the fees at once
because the quicker the better the process goes don’t make mistakes in
any of the above highlight. Never be ashamed or slow to ask questions.
Fees include cost of certified true copy of the deed, stamp duties,
endorsement fee, survey and facilitation fee, charting and registration
fee, administration and consent fee, deed of lease or sublease.
