Selling property in Lagos, Nigeria’s commercial hub, is an exciting but sometimes complex process. Whether you’re a first-time seller or someone with previous experience, knowing the steps, understanding the legalities, and preparing your property for sale are crucial to ensuring a smooth transaction and maximizing your profit.
In this guide, I’ll walk you through the steps involved in selling property in Lagos, providing useful tips to help you navigate the process seamlessly.
1. Understand the Property Market in Lagos
Before you put your property up for sale, it’s essential to get a clear understanding of the current property market trends in Lagos. The market can be competitive, with different neighborhoods offering varying price points and buyer interest.
- Research Property Values: Compare prices of similar properties in your neighborhood. This will give you a realistic idea of what price range to target.
- Consult Real Estate Agents: Agents can provide up-to-date market information and help you assess the correct asking price. They can also give you an idea of how fast similar properties have sold in your area.
2. Ensure the Property’s Documents are in Order
In Lagos, there are several legal documents that are required to prove ownership and ensure that the sale process is smooth. The absence of the correct documentation can delay the sale or even cause the deal to fall through.
Documents Required for Property Sale in Lagos:
- Title of Ownership: This includes documents like the Certificate of Occupancy (C of O), Deed of Assignment, or Governor’s Consent. These are crucial for verifying your legal ownership of the property.
- Survey Plan: A recent survey plan of the property is necessary, indicating the dimensions and boundaries.
- Tax Clearance: Evidence of tax payments for the property for the past few years.
- Building Approvals: If there have been any constructions or modifications made to the property, ensure that you have the relevant building approvals from the Lagos State Building Control Agency (LASBCA).
- Original Purchase Receipt or Deed of Sale: These documents prove your acquisition of the property.
If any of these documents are missing or outdated, it’s important to resolve them before proceeding with the sale.
3. Prepare Your Property for Sale
First impressions matter, so make sure your property is in its best possible shape before listing it for sale.
- Clean and Maintain: Clear any clutter, fix minor repairs, and ensure the property looks well-maintained. If it’s a home, make sure it’s clean and welcoming. For commercial properties, ensure the spaces are functional and presentable.
- Upgrade Where Necessary: If the property is in need of minor renovations, this could be a good time to address issues that may lower its value or deter buyers. Fresh coats of paint, new fixtures, or landscaping can make a significant difference.
- Professional Photography: High-quality images can attract more potential buyers. Consider hiring a professional photographer to showcase the property in its best light, especially if it’s a large or luxurious property.
4. List Your Property for Sale
There are a few options when it comes to listing your property for sale. Depending on your budget and preference, you can choose one or more of the following:
- Real Estate Agents: Hiring a licensed real estate agent or property consultant can make the sale process easier. Agents have access to a large pool of potential buyers and will handle negotiations, paperwork, and other aspects of the transaction.
- Commission Structure: Typically, real estate agents charge a commission of 5-10% of the sale price, depending on the terms and the property.
- Online Platforms: Websites such as Jumia House, PropertyPro, and Private Property Nigeria allow you to list your property for sale. These platforms attract a lot of potential buyers, especially if you are selling residential properties in popular areas like Lekki, Ikoyi, or Victoria Island.
- Social Media: Don’t underestimate the power of social media for advertising your property. Posting on Facebook, Instagram, or WhatsApp groups can help you reach a larger audience. You can also make use of platforms like Twitter or LinkedIn, depending on your target buyer.
5. Negotiate and Set the Right Price
Negotiation is often the key to closing a deal in Lagos real estate. Buyers may initially offer lower prices, and it’s up to you to decide how flexible you are.
- Set a Realistic Price: Use the research you’ve done in step 1 to set a price that’s fair for the market while also reflecting the value of your property.
- Stay Calm During Negotiations: Buyers will likely try to bargain, but be patient and know the lowest price you are willing to accept. If you’re working with an agent, they will typically handle negotiations on your behalf, ensuring that you don’t undervalue your property.
6. Sale Agreement and Payment Process
Once you and the buyer have agreed on the price, it’s time to draw up the sale agreement. The agreement must be signed by both parties, and it should clearly outline the terms of the transaction, including:
- The Sale Price: The agreed price for the property.
- Payment Terms: Whether the buyer will pay in full at once or in installments.
- Transfer of Ownership: The agreement should specify the process of handing over the property after payment.
- Conditions Preceding Completion: This includes documentation required from both parties and the completion date.
Payment Mode: Ensure that payments are made via a secure method, such as a bank transfer. Avoid receiving cash payments to prevent disputes or issues later on.
7. Transfer of Ownership and Finalizing the Sale
Once payment is made and the sale agreement is signed, you’ll need to transfer the ownership of the property. Here’s how:
- Governor’s Consent: If the property has a Certificate of Occupancy (C of O), you must obtain the Governor’s Consent for the sale to be legally valid.
- Change of Ownership: You will need to notify the Lagos State Land Bureau or the appropriate authorities about the transfer of ownership. This process involves registering the deed of assignment or sale.
- The buyer will need to pay the necessary fees for stamp duty, registration, and other associated costs.
- Handing Over Possession: Once everything is completed, you will formally hand over the property to the buyer. This includes transferring keys, documents, and providing them with all necessary instructions regarding the property.
8. Tax Implications
Don’t forget that there are tax obligations when selling property in Lagos. The two main taxes you’ll likely need to address are:
- Capital Gains Tax (CGT): The sale of property in Lagos is subject to a capital gains tax of 10% on the profit made from the sale. The tax is typically paid by the seller, and it must be settled before the final transfer of ownership.
- Stamp Duty: This tax is paid on the sale agreement and is typically borne by the buyer. It is based on the sale price of the property.
Selling property in Lagos can be a lucrative process if you follow the right steps. From ensuring all your documents are in order to setting the right price and working with trusted agents, each step is important in ensuring that your sale is both legally compliant and financially rewarding.
By staying informed and being proactive in preparing for the sale, you’ll increase your chances of getting a good deal in the vibrant Lagos real estate market. Good luck, and may your property sale be smooth and profitable!