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LCCI BUSINESS YEAR BOOK 2012
exercises rights over the property,
authenticating the document by
applying for the Governor's consent
on payment of fees. Governor's
consent fee varies from state to state,
but once all fees are paid and consent
gotten, the new buyer exercises
superior authority over the property.
The consent now supercedes and can
be used as a security or collateral. It is
a recognized registrable instrument
with citation or search numbers
attached. It is less than 99yrs and the
buyer enjoys the unexpired term on
the title. Most times the root title Is
kept by the original allotted of vendor
Subleases are mostly given when you
are buying from schemes, especially
private schemes which already have
one unified Certificate of Occupancy
to cover the entire estate and decided
to sell a portion to an investor.
Deed of Pail it ions:
This is derived when significant
cant part of your property is sold out,
i.e. half of your property. The interest
of a part is divested and the new
owner is given part of the interest
through the preparation of this
document. The document has some
resemblance with deed of sublease. lt
will be registered on application for
Governor's consent which will give
the new owner the right to administer
or resell the part bought from the
Unoriginal owner. This can also be
used as a collateral or equity to raise
money through banks.
Irrevocable Power of Attorney:
Also a document prepared to allow a
party to administer right over a
property irrevocably without
restriction or interference. It's also a
registrable instrument.
Revocable Power of Attorney:
This is given to a party over a period
of lime lo administer on behalf of
another person who might be
incapable as a result of a particular
reason, maybe on health ground,
absence from location, might be lack
of experience from running the
portfolio or a child most of the time,
this document goes for stamp duties to
show authentication. It is also a
registrable instrument but mostly does
not give the allotee the right to sell.
Memorandum of Understanding
(MOU)) This document highlights the
necessary terms and conditions the
two parties have agreed on before the
property is used for any business
ventures. It's commonly found in joint
venture agreement when a party's
bringing his property as equity and (he
other party is bringing funds for a
common mutual business agreement.
It is also a registrable instrument and
can also be used to secure some
degree of facility when the terms are
explicit enough.
* Deed of Assignment:
This is prepared when the vendor
is assigning his entire interest to a new
buyer. He hands over his root title i.e.
C of O to the buyer who will now
apply for his consent papers with
prepared deed at the governors office
or Lands Registry. This is a very
popular document in Nigerian real
estate market.
There are also other documents
like the deed of mortgage, deed ol
release. These are mostly documents
prepared by the banks against a
property already used by a customer to
secure a facility over a period of time
and also a release documents when all
terms and conditions are met by a
customer. The customer's original
documents such as of C of O, consent
doc n inenl will be ret timed.
Properly Investment could be
defined as a property not occupied by
an owner but bought specifically to
generate profit through rental income
or capital gain. It could also Dc
through reselling of the said property
at a future date for anticipated
marginal financial return. There are
various forms of investors in the
market, these investor s are triggered
by certain circumstances borne out of
their desires to generate profit either in
a short medium or long term spectrum.
The investors might not be coming out
with equal profit margin as a result of
same financial muscles and
investment within a particular location
or region invested, but through their
understanding of the trend and ability
to study a particular market. lt is very
important you come under the
umbrella of a group to help in your
investment decisions. I el us look at
some kind of investors commonly
found in the market. Blind
investors/buyers: These types of
1260
investors are many in the market and
are people who widely invest because
they "heard". They are the "hear say
investors . They do not follow up the
market trend rather their desires are
triggered by the surrounding and
discussions. They are neither a short,
mid or longtime investor. They
grumble or smile as the market
enfolds. Status investors: Mostly, you
find rich men in this category and are
people that invest for PR reasons,
status symbol. They are investors who
already know about a location and
waiting on time to invest. The
investment gives them a satisfaction of
emotional comfort than any financial
gain. These are mostly people who
invest in places like ikoyi.
Speculators:
These are people who invest
because of the need to resell at a
future date for financial return. The
investors are mostly smart, sharp and
act with speed and intent to short
change any vendor who might be
desperate for cash. They are always
storing cash and waiting for
opportunities. Most speculators are not
always in a hurry but very quick to
conclude when they identify great
opportunity. They are always looking
out for businesses and locations that
can give them quick return. They are
mostly short time investors.
Real Estate Investor:
They are real definition of
property investment/investor.
They invest and rent or lease out with
intention to recoup through rental
income and also wait on the
appreciation of his property over a
period of time before making any of
his informed decision. They are long
time- investor and mostly nave- other
streams of income. He concretizes his
wealth through real estate.
Most of these investors might not
really lose in our market presently due
to the huge potentials and the growing
need of houses in Nigeria.
Ume-Ezeoke is the Managing
Director, Homes and Homes Real
Estate Solutions