A GUIDE FOR LAND BUYING IN LAGOS AND “INSTALMENTAL” PAYMENT
HOW TO PURCHASE LAND IN LAGOS WHILE PAYING IN INSTALMETS?
It goes beyond simply seeing the property or confirming the vendor has a legal title on such a property for the purchaser to ensure that the vendor has the legal authority to transfer ownership in that property in order to purchase land in Lagos and pay in instalments. Due to its many benefits over an open or oral contract, it is important for any purchaser who plans to acquire a piece of land or a house in instalments to sign a written contract of sale.
A contract for sale of land is an agreement between a vendor and purchaser that specifies the considerations, obligations and other terms for the transfer of land ownership from the vendor to the purchaser. In a land purchase, the parties may agree that the purchaser can pay the purchase price in a series of instalments either directly or through a financing company or bank. The value of a land sale agreement when purchasing a property in instalments is always higher than an outright sale. A contract of sale is crucial, especially when purchasing a home or piece of land in instalments due to the advantages that will be covered below.
- The phrases’ certainty
- The contract’s legal obligation
- The purchaser is given time to check the vendor’s credentials
- Through the use of express clauses, implied covenants may be avoided
- The agreement will continue even if one of the parties passes away because their personal representatives will carry it out
- The fact that parties are obligated to the conditions and that withdrawal would constitute a breach of contract precludes unnecessary last-minute withdrawal
- Additionally, it precludes gazumping and gazundering. The vendor cannot simply decide to raise the purchase price because the price has already been determined in the contract. The purchaser, on the other hand, cannot compel the vendor to reduce the price because he has seen another offer with a lower price
- It may be offered by the vendor as proof of the anticipation of payment.
The parties to a contract of sale of land should seek professional advice and assistance from their respective solicitors to structure a contract that will adequately protect the interests of the purchaser and the vendor, even though purchasing land in instalments may serve as a flexible substitute for a mortgage loan.
CONTRIBUTORS:
- ISOCHUKWU MICHAEL
- AYENI OMONIKE
