First-Time Property Buyer's Checklist for Lagos Real Estate
# First-Time Property Buyer's Checklist for Lagos Real Estate
Buying your first property in Lagos is an exciting milestone, but it can also feel overwhelming. This comprehensive checklist guides you through every step of the process, helping you make informed decisions and avoid costly mistakes.
## Before You Start: Financial Preparation
### 1. Assess Your Financial Readiness
✅ **Calculate Your Budget**
- Total available cash
- Monthly income and expenses
- Debt obligations
- Emergency fund (separate from property purchase)
✅ **Determine Purchase Power**
- Property price: 30-40% of your budget (for down payment)
- Factor in additional costs (15-20% of property price)
- Reserve 6-12 months of mortgage payments
✅ **Check Credit Score**
- Request credit report from credit bureaus
- Address any discrepancies
- Pay off outstanding debts if possible
### 2. Explore Financing Options
✅ **Mortgage Pre-Approval**
- Compare offers from multiple banks
- Understand interest rates (typically 15-25% in Nigeria)
- Know maximum loan amount you qualify for
- Gather required documents:
- Employment letter
- 6 months pay slips
- Bank statements (6-12 months)
- Tax clearance certificate
- Identity documents
✅ **Alternative Financing**
- Family contributions
- Cooperative society loans
- Developer payment plans
- Investment partnerships
### 3. Set Clear Property Goals
✅ **Define Your Needs**
- Property type (apartment, house, land)
- Number of bedrooms/bathrooms
- Preferred locations (rank top 3)
- Must-have features vs. nice-to-haves
- Investment vs. owner-occupier priorities
✅ **Research Target Neighborhoods**
- Visit during different times of day
- Check proximity to work/schools
- Assess infrastructure (roads, power, water)
- Review security situation
- Understand property appreciation trends
## Property Search Phase
### 4. Assemble Your Team
✅ **Essential Professionals**
- Real estate agent (licensed, reputable)
- Property lawyer (experienced in Lagos land law)
- Licensed surveyor
- Financial advisor/mortgage broker
- Building inspector (for structural assessment)
✅ **Check Professional Credentials**
- Verify licenses and registrations
- Request references from past clients
- Confirm insurance coverage
- Get fee structures in writing
### 5. Property Viewing
✅ **During Viewings, Check**:
- **Structure**: Cracks in walls, ceiling water damage, foundation issues
- **Plumbing**: Water pressure, leaks, drainage
- **Electrical**: Functional outlets, breaker box condition
- **Doors/Windows**: Proper operation, security features
- **Roof**: Condition, signs of leakage
- **Environment**: Noise levels, neighborhood appearance, flooding risks
✅ **Ask Critical Questions**
- Why is the seller selling?
- How long has it been on the market?
- What's included in the sale?
- Any recent renovations or repairs?
- Utility costs (NEPA, generator fuel, water)
- Estate service charges
✅ **Take Comprehensive Notes**
- Photos/videos of each property
- Pros and cons list
- Comparison spreadsheet
- Questions that arose during viewing
## Due Diligence Phase
### 6. Document Verification
✅ **Essential Documents to Review**:
- Certificate of Occupancy (C of O)
- Governor's Consent (for existing C of O transfers)
- Survey plan (registered with Surveyor General)
- Building approval/permits
- Property tax receipts (last 3 years)
- Deed of Assignment (previous sales)
✅ **Conduct Official Searches**
- Land Registry search (verify C of O authenticity)
- Survey plan confirmation (matches boundaries)
- Court/litigation search (no disputes)
- Excision/Gazette status (for community lands)
- Neighborhood zoning verification
### 7. Property Inspection
✅ **Hire Professional Inspector**
- Structural integrity assessment
- Electrical system evaluation
- Plumbing inspection
- Roofing condition
- Foundation examination
- Pest/termite inspection
✅ **Environmental Checks**
- Not in flood zone
- Not on government acquisition list
- No environmental hazards nearby
- Adequate drainage system
- Not on water pipeline right-of-way
### 8. Neighborhood Investigation
✅ **Community Research**
- Speak with current residents
- Visit local schools, hospitals, markets
- Assess transportation options
- Check crime statistics
- Verify infrastructure development plans
✅ **Estate/Community Fees**
- Monthly service charges
- Security levies
- Development levies
- Access card fees
- Waste management fees
## Negotiation and Offer
### 9. Making Your Offer
✅ **Prepare Competitive Offer**
- Research comparable property sales
- Factor in property condition
- Consider time on market
- Include contingencies (inspection, financing)
- Set reasonable closing timeline
✅ **Negotiation Points**
- Purchase price
- Included fixtures/appliances
- Repairs seller will complete
- Closing cost allocation
- Payment terms
- Possession date
### 10. Secure Financing
✅ **Finalize Mortgage**
- Submit complete application
- Provide property details
- Arrange property valuation by bank
- Review and sign mortgage agreement
- Understand repayment terms
✅ **Alternative Payment Arrangements**
- Developer installment plans (if applicable)
- Agree on payment milestones
- Get payment agreement in writing
- Confirm receipt methods
## Legal Process
### 11. Engage Your Lawyer
✅ **Lawyer's Responsibilities**
- Review all property documents
- Conduct independent title searches
- Prepare/review Sale Agreement
- Coordinate Governor's Consent application
- Handle document registration
- Advise on legal risks
✅ **Sale Agreement Review**
- All parties correctly identified
- Property accurately described
- Purchase price clearly stated
- Payment terms specified
- Completion date set
- Remedies for breach outlined
### 12. Governor's Consent Process
✅ **Application Steps**
- Prepare required documents
- Submit application to Lands Bureau
- Pay consent fees (3-5% of property value)
- Follow up on processing
- Obtain consent approval
✅ **Expected Timeline**
- Standard processing: 3-6 months
- Fast-track options may be available
- Budget for follow-up costs
## Closing Phase
### 13. Pre-Closing Tasks
✅ **Final Property Inspection**
- Verify agreed repairs completed
- Check property condition unchanged
- Test all utilities
- Confirm included items present
✅ **Review Closing Documents**
- Sale Agreement
- Certificate of Occupancy
- Survey plan
- Governor's Consent (or application receipt)
- Tax clearance
- Receipt of payments
✅ **Arrange Property Insurance**
- Building insurance
- Contents insurance (if furnished)
- Title insurance (optional but recommended)
### 14. Closing Day
✅ **Payment**
- Transfer funds per agreement
- Obtain official receipts
- Confirm seller receipt of full payment
✅ **Document Exchange**
- Receive original title documents
- Get property keys
- Obtain all warranties/manuals
- Collect estate access cards/documents
✅ **Registration**
- Register deed at Lands Registry
- Obtain stamped copies
- File documents safely
## Post-Purchase
### 15. Immediate Actions
✅ **Change Locks**
- Replace all exterior door locks
- Update security codes
- Inform estate security
✅ **Transfer Utilities**
- NEPA/electricity account
- Water service (if metered)
- Estate management account
- Waste management
✅ **Update Address**
- Bank accounts
- Employer records
- Driver's license
- Voter registration
- Utility bills
### 16. Long-Term Maintenance
✅ **Set Up Systems**
- Create maintenance schedule
- Keep warranty documents organized
- Build emergency fund for repairs
- Establish relationships with service providers
✅ **Financial Management**
- Set up mortgage auto-payments
- Budget for property taxes
- Plan for service charge payments
- Track property-related expenses
## Common First-Time Buyer Mistakes
### ❌ Mistakes to Avoid
1. **Skipping due diligence to save money**
- Risk: Discovering title issues, structural problems, or legal disputes after purchase
2. **Falling in love with property before verification**
- Risk: Emotional decision-making, overlooking red flags
3. **Not budgeting for additional costs**
- Risk: Running out of funds before closing
4. **Choosing location based solely on price**
- Risk: Buying in area with poor appreciation or difficult resale
5. **Ignoring professional advice**
- Risk: Missing critical issues, legal vulnerabilities
6. **Rushing the process**
- Risk: Making hasty decisions, missing important details
7. **Not negotiating**
- Risk: Overpaying, missing opportunity for better terms
8. **Relying only on seller's information**
- Risk: Incomplete or inaccurate property history
## Cost Breakdown Summary
### Expected Expenses Beyond Purchase Price
**Legal Fees**: 2-5% of property price
- Lawyer's professional fees
- Title searches and verification
- Document preparation
**Governor's Consent**: 3-5% of property price
- Consent fees
- Processing fees
- Legal filing
**Survey/Valuation**: ₦500,000 - ₦1,000,000
- Professional surveyor fees
- Bank valuation (for mortgage)
**Stamp Duty**: ~0.375% of property price
- Government documentation tax
**Agent Commission**: 5-10% (typically seller-paid, but confirm)
**Inspection**: ₦200,000 - ₦500,000
- Structural inspection
- Specialized tests if needed
**Insurance**: 0.5-1% annually
- Building insurance
- Contents insurance
**Moving Costs**: ₦100,000 - ₦500,000
- Depending on property size and distance
**Immediate Repairs/Renovations**: 5-10% of property price (budget estimate)
**Total Additional Costs**: ~15-25% of property price
## Timeline Summary
**Total Time from Start to Move-In**: 6-12 months
- Financial preparation: 1-3 months
- Property search: 1-3 months
- Due diligence: 1-2 months
- Negotiation and offer: 2-4 weeks
- Legal process: 2-4 months
- Closing: 2-4 weeks
- Move-in preparation: 2-4 weeks
## Conclusion
Buying your first property in Lagos is a significant achievement. By following this comprehensive checklist, you'll navigate the process with confidence, avoid common pitfalls, and make an investment that serves you for years to come.
**Ready to start your property buying journey? Power House Real Estate specializes in guiding first-time buyers through every step of the process. Contact us today for a free consultation and personalized guidance.**