IMPORTANCE OF DUE DILIGENCE IN PROPERTY PURCHASE

IMPORTANCE OF DUE DILIGENCE IN PROPERTY PURCHASE

The importance of due diligence in acquiring a property cannot be overemphasized. I’ll give an example to highlight the importance of having your due diligence. There was this transaction I did about two years ago, it was a property at Opebi Allen. We got to the property, the client liked the property and was going to buy.
In the course of doing my due diligence search, at the Lagos State Land Registry, there were some technical challenges at the Registry of Lagos State, due to that, we couldn’t really do the search as promptly as we would have loved to, but then, I also took it in my stride to let me just relax a bit about the situation, let me not be too agitated about it.

 

Along the way, we went back to the property to do what is called charting, which is part of property due diligence. It was at that stage, that we then found out that the property that we’re going to buy from the sellers, is actually quite different from what they have in their survey plan, which means that what they purported to sell in their title document differs by about 300 meters away from the actual land that they took us to. If I can put it in proper context, we can imagine the distance that Usain Bolt runs to get to 100 meters, we’ll get the result when we multiply that by three, that was the difference between the location of the property that was being proposed to sell to us and what they actually had to sell in their title documents.

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