THE RISK OF ENGAGING IN REAL ESTATE WITHOUT PROFESSIONALS

Disclaimer: This is not a legal advice. It is for education

Real estate ranks among Nigeria’s top 10 most lucrative investments. Here in Nigeria, when you talk about real estate, people think about estate developers and managers alone. Real estate transactions involve almost everyone. Housing is a basic necessity of human life. Everyone lives in one house or the other(presumably) . Even people who live in hotels, short lets , guest houses, tenants, landlords, people renting warehouses, church and mosque premises, event centers, recreation centers, schools, student’s hostels, football and political venues are all involved in real estate transactions.

When you are buying land to build your family house, farm, industries, estate houses to sell or rent, or when you are renting an apartment, shops, offices etc, you are involved in real estate. Real estate involves everything concerning land and its appurtenances therefore you need a professional to guide you at every stage. Nigerians always think they can do it on their own. When you fail to engage professionals, especially lawyers, engineers, surveyors, architects etc. in buying land, building houses, managing facilities, renting apartments (both as landlord or tenant), booking hotels and short legs, you run into problems. This article highlights the problems you encounter by ignoring professionals.

WHY DO PEOPLE IGNORE PROFESSIONALS?

PROPERTYGROOM investigation reveals that IGNORANCE is the main problem. Ignorance means LACK OF KNOWLEDGE OR INFORMATION. Many people lack basic knowledge of real estate. They still see it as a cultural thing where you just buy land because you need a house and you know the seller, or because your brother lives in that area. This is why you see educated men and women buying land and building houses under high tension electric wires, canals, government acquired land, blocking waterways and gutters. Daily, houses are marked for demolition, especially in Lagos State. Buildings collapse from not using appropriate engineers. Landlords and tenants fight daily. Landlords increase rents without consulting tenants. Tenants sublet without knowing the rules. Family land owners are in court with buyers. Sometimes four people buy one portion of land. The problems are too many. This is why Propertygroom is calling on everyone with interest in land and house in Nigeria to join the campaign.

WHO ARE THE PROFESSIONALS REQUIRED

For the ordinary man and woman who needs land to build house, shops, warehouses, estates and other places of work, including landlords and tenants, these are the professionals required: Lawyers, Surveyors/Valuers, Estate Agents, Architects, Quantity Surveyors, Engineers, Facility Managers.

1. SURVEYORS AND VALUERS: The first person to contact when you want to build is a registered surveyor/valuer. Ensure he is a member of the Nigerian Institution of Estate Surveyors and Valuers (NIESV). This is the official body that regulates and certifies Estate Surveyors and Valuers in Nigeria. They advise on location, market trends, appreciating areas, where infrastructure is coming, and where to avoid. They assess rental/resale value and ROI for land banking, renting, or selling. They also do risk assessment: flood zones, bad soil, slum areas, litigation/family land problems and security. They make comparative analysis based on your purpose of buying. They consider your age, profession, lifestyle, health and other issues. Example: a 30-year-old working at Ministry of Education, Alausa, Ikeja will not be advised to buy land to build in Sangotedo, Ibeju-Lekki due to transportation and years to retirement.
2. ESTATE AGENTS: They help you find land or house to buy, lease or rent based on your directive. After surveyors/valuers choose a location, engage a registered estate agent. There is a lot of fraud here as many operators are fraudsters. The regulatory body in Nigeria is ESVARBON – Estate Surveyors and Valuers Registration Board of Nigeria, created by Estate Surveyors and Valuers Registration Act Cap E13 LFN 2004. Only ESVARBON-registered persons can operate legally anywhere in Nigeria, including FCT Abuja. In Lagos, LASRERA – Lagos State Real Estate Regulatory Authority Law 2022also regulates agents. It registers agents/companies, keeps database, handles complaints and can shut down unregistered agents. ESVARBON still applies. Ensure your agent is registered with these bodies.
3. 3. LAWYERS:The next is a real estate lawyer. Note: lawyers have areas of practice. Engage one whose practice area is real estate. From land investigation, searches, agreements, building approvals, sales and renting, you need a lawyer. If renting, a lawyer should handle the lease or tenancy agreement. If treated unfairly by tenant or landlord, you need a lawyer.
4. ARCHITECTS, QUANTITY SURVEYORS, ENGINEERS: These professionals design your house/estate to suit your purpose. The Quantity Surveyor estimates cost so you prepare. Engineers execute professionally to avoid building collapse.

ARCHITECTS: Licensed nationwide by ARCON – Architects Registration Council of Nigeria under Architects Registration Act Cap A19 LFN 2004.

 The architect turns your idea, land and money into a safe, functional building that can be approved. Their core roles:

1. Design & Planning: The architect understands your budget, family size, lifestyle. Do site analysis for drainage, soil, orientation. Produce floor plans, elevations, 3D views.
2. Technical & Legal Compliance: Ensure drawings meet codes for government approval. Only ARCON architects can sign. They coordinate other engineers.
3. Cost & Material Guidance: Work with QS to fit design to budget.
4. Supervision: Visit site to ensure builders follow drawings and maintain quality. Problem Solving: Provide solutions when issues arise on site.

QUANTITY SURVEYORS: Regulated by Quantity Surveyors Registration Act Cap Q1 LFN 2004. Regulatory Body: QSRBN – Quantity Surveyors Registration Board of Nigeria. They regulate cost estimates, project cost and certify valuations for banks/insurance. They guide you with estimates so you get well prepared.

ENGINEERS: Regulated by Engineers Registration Act Cap E11 LFN 2004. Regulatory Body: COREN – Council for the Regulation of Engineering in Nigeria. They register and license Civil, Structural, Electrical, Mechanical Engineers and discipline misconduct. They are involved in the building of the house.

NOTE: Lagos State doesn’t license them separately. It enforces through LASBCA – Lagos State Building Control Agency Law: Lagos State Urban and Regional Planning and Development Law 2010. LASBCA approves building plans and only accepts drawings signed by ARCON, QSRBN, COREN professionals.

5. FACILITY MANAGERS:They handle daily operation and maintenance of estate houses and common areas. Their role includes security, power, water, waste, cleaning, and landscaping. They coordinate repairs, supervise vendors, enforce estate rules, and manage budgets. By ensuring comfort, safety, and upkeep, they protect property value and improve quality of life. The estate runs efficiently and sustainably. They must be professionals.

The cost of not using professionals in real estate is enormous. Many Nigerians only seek professionals after problems has arisen for instance. The cost of solving problems is far more than the cost of preventing them. A house built without qualified architects and engineers may need to be demolished. Compare that to hiring professionals for a few millions of Naira. Some professionals may even assist as part of our culture. You won’t perform surgery on yourself to save hospital fees. Don’t gamble with property worth millions. Professional fees are an investment, not an expense. They protect your title, maximize rent, and shield you from litigation and make you have peace of mind in your real estate transactions.

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