Buying a property comes with a lot of joy and excitement. If you are not careful this excitement could be misleading. It could prevent you from doing due diligence and hinder you from asking critical questions.
Several real estate investors have been scammed of their money because they failed to ask the right questions. Real estate transactions are full of assumptions. However, you are not obligated to believe everything the seller tells you. Even if the seller seems to be telling the truth.
The way to bridge the gap between what they are willing to tell you and what you need to know is by asking the right questions. Asking questions clears doubts and ensures everyone is on the same page. In this blog, we curated 5 intelligent questions you should ask before buying a property.
Critical Questions to Ask Before Buying a Property
1. How is the Location?
The location of a property plays a vital role in the value and usability of a property. Hence, you can't afford to leave details about the location to chance. Regardless of your intended land use, you should inquire about the location. To guide your questions about the location, consider the following factors:
- Access to Amenities
If you plan to use the facility for a residential apartment, you want a property close to amenities. Such amenities could be schools, hospitals, parks, markets and other places that make life easier. If the distance of your property from these places is far, you may have a tough time living in the apartment. Additionally, you will be spending more commuting to these places.
On the flip side, if you intend to sell the property, buyers will be on the lookout for these features. As a matter of fact, the proximity of your property to social amenities is a determinant of the market value of your property. The closer your property is to social amenities, the higher the market value of your property and vice versa.
- Future Development Plans
Geographical areas are constantly evolving. New businesses, extensions and infrastructure are springing up. If the future development plans of an area appear bright, you may not necessarily wave it off because of its distance to social amenities
- Crime Rates and Safety
You really should be curious about the crime rate, if you care for your peace of mind. Everyone loves an area that is safe for them and their property. If you intend to transact or use the property for business purposes, a place with a high crime rate is not advisable. Aside from the difficulty in selling the property, you could lose your goods and life before the chance to sell.
- Economic Factors
The economic factors surrounding the location of your property could be a boost for you. Locations having economic boosts are often characterized by increased infrastructural development rates and improved public services. Furthermore, it promises a general upliftment in the standard of living.
2. Why is the Owner Selling and How Long has the Property been on the Market?
Even though these are two different questions, they could save you from being scammed. Aside from what the seller or agent tells you, you should research.
For example, if the owner is selling the land because of security challenges, buying it will expose you to danger. Similarly, if the property is undergoing legal investigation, buying it will transfer the lawsuit to you. If you are not careful, that may be a recipe for you to lose both your money and the property. Hence you should know why the seller wants to dispose of the property.
On the other hand, the duration the property has been on the market could help you make certain inferences. If the property has been on the market for an extended period, you need to ask further probing questions. The delay could be because there is a problem with the property. It could also be because there is an unsettled dispute over ownership of the land.
As a side note, you could ask about the transfer history of the property. If a property has had multiple owners within a short time, that might be a not-so-good sign.
3. What Documents does the Property have?
Land documents are an easy way to determine the ownership claims of a property. Before concluding on the truth of ownership claims, the property needs to have at least four documents. Some of the essential documents a property should have include:
- Land Purchase Receipt
The land purchase receipt is the most basic document every property should have. A Land purchase receipt has the initial seller's name, the purchaser's name, the amount paid and the seller’s signature. If the clause for the receipt is contained in the document transferring the land, you may not need to see the receipt
- Deed of Assignment/Deed of Conveyance
The terms “deed of assignment” and “deed of conveyance” are often used interchangeably. It is a document used to permanently transfer ownership from a seller to the buyer in land transactions. The seller is usually addressed as the assignor, while the buyer is known as the assignee. The deed of assignment contains details like:
- The history of the land detailing how it was first obtained and the down-lines of purchase since it was initially obtained.
- The names and addresses of both parties
- The description and size of the land.
- The cost of the land and the assignor’s willingness to accept the stated price.
- The oath of promise by both parties to engage in the transaction
- The signature of both parties and witnesses of the land transfer.
- A section for the Governor’s consent. This would either be signed by the Governor or any official appointed by the Governor for such purpose.
- Survey Plan
The survey plan of a property contains details about the size and location of the land. It helps you confirm the accuracy of the measurement stated in the agreement. Furthermore, it gives you enough information that can be used to confirm the validity of the land ownership at the state Surveyor-General’s office.
- Grant of Probate
A probate registry issues a grant of probate if a land owner dies without the sale or transfer of land in such owner’s possession. However, the grant of probate can only be issued if the new owner’s name was included as the inheritor of the land in the late owner’s will.
4. How Much is the Total Cost of the Property?
In real estate, do not assume that everything is in white and black. Ensure you ask for detailed, intricate details that will give you all the information you need. Several new property buyers have found themselves in uncomfortable situations because they didn’t confirm the total cost of the property they intended to buy.
Aside from the cost of the property which is properly make clear, it is important to ask if there are extra charges you would be required to pay. Find out if you would need to refund the survey fees, and ask if there are community fees or legal fees you are expected to pay.
Until you have clear-cut answers to the full cost of the property, ensure you do not proceed with the procurement arrangement. This will save you from avoidable embarrassment and bad surprises. It will also help you budget your finances properly and choose properties you can afford.
5. How Accessible is the Property to Main Road?
As ridiculous as this question sounds, it is important if you plan to purchase land in Nigeria. Most especially, if you would be acquiring the land in an area that is just developing. In such areas, your property might be surrounded by bushes and it may be difficult to assess the availability of road tracks. However, you can get these details by studying the master plan of the area the property is located.
Even though this might look negligible, you should not take chances with asking about accessibility to the main road. The last thing you want to do to yourself as a property owner is acquire a property that will be stressful to gain entry to later in the future.
Conclusion
Even if you are new to real estate, asking the right questions before buying a property will help you transact like a professional. It saves you the stress of miscommunication and ensures everyone is clear about the transaction details. If you are planning to step up your real estate game, our 20 Top Real Estate Questions are a worthy companion.
However, if you are new in the market, you should check out Best Real Estate Investment Strategies and the Beginner's Best Guide To Real Estate Investment In 2023. At Land Republic, we are committed to helping you ace your real estate investment journey. We have several resources for you on our blog. Moreover, we would love to walk you through the real estate investment journey. Do not hesitate to contact us via +234 812 222 2283 and support@landrepublic.co.
