How to Buy a Home in Nigeria

Buying a home in Nigeria as an expatriate can be a complex process, but with the right information and guidance, it can be a rewarding investment. This guide provides a comprehensive overview of the key aspects to consider when purchasing property in Nigeria, including finding houses for sale, understanding the legal restrictions for foreigners, navigating the real estate system, and more.

How do I find houses for sale in Nigeria?

There are several ways to find houses for sale in Nigeria. Online property portals are a popular choice, offering a wide range of listings from across the country. Local newspapers and real estate agencies are also good sources of information. It's advisable to engage a reputable real estate agent who understands the local market and can guide you through the process.

Are there restrictions on foreigners owning property in Nigeria?

Foreigners are allowed to own property in Nigeria, but there are some restrictions. For instance, land in the Federal Capital Territory (FCT) cannot be owned outright by foreigners but can be leased for a period of up to 99 years. However, foreigners can own buildings on the leased land. It's important to consult with a legal expert to understand the nuances of property ownership laws in Nigeria.

Does Nigeria have an MLS type system?

Nigeria does not have a Multiple Listing Service (MLS) system like in the United States. However, there are several online property portals and real estate agencies that provide comprehensive listings of available properties.

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

Yes, real estate brokers in Nigeria are required to be licensed by the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON). To verify a broker's license, you can check with ESVARBON or ask the broker to provide proof of their registration.

What documents are required when buying a home?

Key documents required when buying a home in Nigeria include a Letter of Offer and Acceptance, Receipt of Payment, Deed of Assignment, Governor's Consent, and Certificate of Occupancy. It's crucial to ensure all documents are properly vetted and authenticated to avoid legal issues down the line.

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

Yes, it's highly recommended to engage a lawyer when buying a home in Nigeria. A lawyer will help you navigate the legal aspects of the transaction, including verifying the authenticity of property documents, ensuring the property is free from any encumbrances, and facilitating the transfer of ownership. Legal fees can vary, but typically range from 5% to 10% of the property's purchase price.

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

Both options are common in Nigeria. Some buyers prefer to pay in cash, especially for lower-priced properties, while others opt for a mortgage. Mortgages are available from various banks and financial institutions, but interest rates can be high.

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

Yes, property inspections are a crucial part of the home buying process in Nigeria. A professional surveyor is usually engaged to conduct the inspection, which includes checking the physical condition of the property, verifying the property's boundaries, and ensuring there are no encroachments.

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

Common pitfalls to avoid include buying property without proper title documents, dealing with unlicensed brokers, and failing to conduct a thorough property inspection. It's also important to be wary of unusually low-priced properties, as they may be indicative of potential issues. Always do your due diligence and seek professional advice when necessary.