The unfortunate demolition of properties owned by diaspora Nigerians has highlighted a critical issue within the real estate sector: the lack of due diligence performed by many buyers. Dr. Babatunde Adeyemo, CEO of Pelican Valley Nigeria Ltd, emphasized this point, stating that many diaspora Nigerians, eager to invest in their homeland, often bypass crucial investigative steps before purchasing property. This oversight leaves them vulnerable to unscrupulous actors and unforeseen circumstances, such as government acquisition or land disputes. Dr. Kimberly Stark, a US-based physician, serves as a poignant example of this, having invested significantly in land only to witness its demolition, leaving her dreams shattered and investments lost. This situation underscores the urgent need for greater awareness and education among diaspora communities regarding the complexities of Nigerian land ownership and the vital role of due diligence.
Due diligence in real estate transactions goes beyond simply paying for a piece of land. It involves a meticulous investigation of the property’s legal status, ownership history, and any potential encumbrances. Adeyemo stressed the importance of researching the company selling the property, understanding the individual behind the investment, and verifying the legitimacy of their operations. Critically, he highlighted the importance of ensuring that the property is part of a government-approved layout. Such approvals indicate that the land has undergone scrutiny, is free from government acquisition, and is included in the state’s master plan, thereby significantly reducing the risk of demolition or unexpected development. These preliminary steps, while seemingly cumbersome, provide crucial safeguards for investors, protecting their hard-earned money and ensuring the long-term security of their investments.
The case of Dr. Stark illustrates the devastating consequences of neglecting due diligence. Had she thoroughly investigated the land’s legal standing and verified its inclusion in a government-approved layout, she likely would have avoided this devastating outcome. Her plea to the Nigerian President highlights the distress and frustration experienced by those who have fallen victim to these circumstances. This situation not only impacts individual investors but also discourages future diaspora investment, hindering economic growth and development. It is imperative that potential investors understand the legal framework governing land ownership in Nigeria and take proactive steps to protect themselves.
Experts like Victor Oyefeso, a Rotarian and real estate expert, echo the importance of due diligence. He outlines key steps that every prospective buyer should take, emphasizing the legal procedures necessary to secure genuine ownership. These include conducting a land information chart to trace the land’s history and identify any potential legal issues, obtaining a valid land receipt as proof of payment, and securing a deed of assignment, preferably drafted by a lawyer, to clearly define the terms of the transaction. A registered survey is also crucial to establish the exact boundaries of the property, preventing future boundary disputes and encroachments. These legal documents are not mere formalities; they are crucial instruments that safeguard ownership and prevent future complications.
Oyefeso also advises against leaving land unfenced or unoccupied, as this increases the risk of encroachment. Physical demarcation of the property serves as a visible deterrent and helps to establish clear boundaries. This is particularly important in rapidly developing areas where land disputes are common. By taking these proactive steps, buyers can significantly reduce the risk of losing their investment due to encroachment or legal challenges.
In conclusion, the experiences of diaspora Nigerians like Dr. Stark underscore the critical importance of due diligence in real estate transactions. The Nigerian Diaspora Commission’s efforts to educate and sensitize potential investors are commendable, and it is crucial that individuals heed this advice. Thorough research, verification of legal documents, and engagement with reputable professionals are not optional but essential steps in securing a safe and profitable investment. By following these guidelines, diaspora Nigerians can confidently contribute to their homeland’s development while protecting their financial interests. The process may seem complex, but the peace of mind and security it provides are invaluable. Taking the time to understand the legal landscape and perform due diligence is an investment in itself, protecting hard-earned funds and ensuring a secure future for the investment.
