Nigerians in Diaspora
Hallelujah! So YOU have bought your dream mansion in Nigeria, Lekki, Ikeja, Ikoyi, VGC etc.. You are ecstatic, over the moon with jubilation. Everyone’s dream is to own there own home. First question we ask as an agent is – Is it a Cash Buy, where you get the keys instantly stress free or an OFF-PLAN development, which gets delivered 12 to 48 months after initial payment(on all spread payment plans).
Mr Ola Alabi speaking from his Lagos office said ‘lately we have had a steady stream of potential buyers, who use Agents to do their property leg work, finding their dream homes, sending them brochures, price lists, physical visitation of site, negotiation on offer, bombardment of calls day and night, only to pull out and approach developer direct to buy their property.
We came across this great article by Nigeria Property Observer about buying properties ‘off the plan’, or simply purchasing a property before it’s completed. Buying off the plan has many advantages which includes access to properties that could be sold out by completion, customisation options, and the chance of capital gain prior to completion, with minimal initial outlay.
However, there are also many risks of buying prior to completion individually without an Agent or living abroad. Below are Five major reasons when buying off the plan, why YOU MUST have an agent MERCYHOMESUK for a nominal Consultancy fee of £100
It always good to spend an extra more and be secure, than play smart and become the loser of all, when the developer doesn’t deliver..MERCYHOMESUK
AGENT ALWAYS MAKES SURE THE DEVELOPER HAS A GOOD REPUTATION
We Research the background of the developer and its track record. Have there been court actions against the developer?
“Banks are strict on who they lend to. Banks also look for a good track record before handing over construction finance,” says Mr Banjoko of Alemo developments
We Do not judge a developer solely by its website, adverts or its salespersons .
We visit the property site and check the location. You may find other construction in the area, which may affect your view. We also carefully inspect the display home, models and plans as well as the fixtures and fittings.
DUE DILIGENCE ON BEHALF OF OUR CLIENTS
This will allow you to make an accurate cashflow analysis. It should cover investment and risk.
High potential returns often equal greater risk, and vice versa. We Take the time to identify the potential risk in late delivery or non delivery.
BUYERS BIGGEST RISK,AGENTS DON’T UNDERESTIMATE THE RISKS
One of the biggest risks is that a developer or builder will go under before completion or that a project will fail to get off the ground, but this should result in no financial loss for the buyer. When you pay your 10% deposit to secure your property it is held in trust either by the selling agent or vendor’s solicitor. If the developer is unable to go ahead for whatever reason buyers MIGHT NOT get their money back!.
Another big issue is often the final product Gbenga says the best way to protect yourself from a nasty shock is to check every detail on the sale contract, particularly regarding the finishes. “Most disputes arise from a buyer not being happy with the end product. The best way to avoid this is to be aware of exactly what all of the finishes should be,” MERCYHOMESUK says.
“You should look at the schedule of finishes for all parts of the property, including floor coverings, colour schemes and kitchen appliances. Know everything about the interior, down to how many power points there will be in every room. If a contract is skinny on detail, there may be little room for complain at the end of the day,” she says.
Timing of delivery can also be an issue for buyers of property off the plan. “Developers do need flexibility in the sale contract so they can ensure successful delivery of the apartments, and there are many situations that may cause the delivery date to be extended, such as wet weather.
Leave no room for surprises. If you do not understand the contract, take it to a conveyancer and have them read it and explain it to you. Do not cut costs, because with buying off the plan you cannot see exactly what you are signing up for,” Ola of MERCYHOMESUK says.
The bottom line is that if you are not happy with the contract, you should seek legal advice. If the developer adopts a “take it or leave it” approach, your best bet may be to leave it.
AGENTS ARE AWARE THAT YOU CANNOT EASILY GET OUT OF A CONTRACT
A contract to purchase an apartment off the plan is a legally binding document.
Changes in personal circumstances such as divorce, unemployment, illness or death of a partner are not grounds for legally cancelling an off the plan contract.
You may also be able to cancel a contract if the builder has not registered the plans for the development by a set date in the contract.
Buyers’ agent Angel Falese says off the plan contracts are “incredibly onerous to the purchaser” and urges buyers to ensure they have contracts explained to them by a qualified solicitor or hand over to their Agents to fine comb the contract on their behalf..
Nigerians in Diaspora
Assisting you or representing your interest in negotiating the acquisition of your property.
providing legal services for completing purchase, legal obligations and the Agreement you may enter into for such purpose of acquiring a lifetime investment opportunity.
Following up all paperwork and money transfers where possible
viewing property and acquiring closure on property deal till delivery.
Like a proverb says..It is not the beginning that matters, its the latter end!.
BE WISE, BE SMART, CHOOSE MERCYHOMESUK TO REPRESENT YOU