Are you thinking of buying land with the title “excision in progress”? Please read this post before you make that purchase.
What is the complicated thing about land in Ibeju Lekki with title excision?
Plots of land in Ibeju Lekki that have titles such as “awaiting excision” or “excision in progress” are often cheaper than the actual cost of land in that same location.
This is part of the reasons why many people subscribe to this type of property.
One major disadvantage of this type of property is that you may likely lose your money in it if the government eventually didn’t release it to the seller.
What is cheap land?
A plot of land is considered to be cheap if the price is cheaper to compare the normal or average cost of a plot of land at that particular area or location.
For example, if you are to buy a plot of land with global title C of O in Ibeju Lekki today at the cost of 1 million, that is considered to be cheap.
This is because in Ibeju Lekki at the moment, for you to get a genuine and proper titled land in a good location today you should be budgeting from 4 million to 30 million Naira per plot depending on the area and the purpose of the land (residential or commercial use).
Advice: if you are buying land and is cheaper than the normal price of land in that location, you should endeavor to verify the reason before committing your money to that property.
What to do before buying land with the title “excision in progress” (cheap land) in Ibeju Lekki
After you have seen the land you may want to invest in, the next thing to do is to conduct a survey search and a title search.
What a Survey search does is that it helps to know if the land is “committed land or not“. If it comes out to be committed land is simply telling you NOT to go further with the transaction.
While for that of Title Search, in the case where the property has a title such as “excision in progress” or awaiting excision” there will be a file number, with the file number you should be able to know the stage and progress of the excision process made by the seller so far.
The reason is this, most times when some developers (sellers) submit the file for processing, they will abandon the file there and concentrated on selling the property that has not been released by the government.
One of the main reasons they initiate this process of submitting the file to the government is simply to get the file number and show it to the intending buyers that the title of the property in question is in process.
Whereas the property they have put up to sale has not been released by the government.
Advice: do not go for a property that has the title “excision in progress or waiting for excision”, because at the end of the day government may or may not approve it. Is better you wait for it to be approved or you go for another property that has an approved title.
But the truth is that after the approval is successfully granted the price will definitely go up.
Note: a land can actually have a survey plan and have a file number but is still not a genuine property. So always endeavor to conduct a search before purchase.
Another thing you should consider is the company you are buying from. There are many fake companies that recently dive into the business.
You should always buy from a reputable company that has made a good name in the real estate business.
If you are not sure you can always reach out to us for a genuine property.
What happened if the government did not release the excision land submitted and buyers have already paid for the land to the seller?
First, buying this type of land is already a risk, having said that, in this situation, the seller (real estate developer, families, or individuals) should apply for ratification.
The problem is that most time the seller will not want to apply for it unless there is something that is forcing them to do so because they know they are going to be at a loss because they will spend a lot of money doing it.
If you happen to fall into this kind of problem, you should be on the seller’s neck in other to get it done.
How do I protect myself from losing my money when buying excision land?
To mitigate this type of issue, it is advisable during the time of signing the contract of sale, you should look for the part that states the indemnity clause.
This simply means, there should be a place on the contract document stating that, if any problem comes up, on the land, (either from the government, families, Omo-lile, etc) in the future, the sellers must refund your money or get you a similar property somewhere else.
Note: the seller may not refund you the total money you paid because they must have spent some money on administrative but should be able to refund 70% of your money.
Recommendation on what to do before buying an excision land (cheap land) in Ibeju Lekki
- If you want to buy land in Ibeju Lekki today, and the land price is between 500,000 to 2 million without a proper title such as gazette or global C of O, you should first conduct a search on that particular property before purchase.
- Secondly, you should buy from a reputable company, if you must buy from families or individuals, let it have a good title such as C of O.
- Thirdly don’t buy land from traditional landowners (Omo-lile) because even if you have the contract signed with them, if anything happened on that land they will not refund you.
- Lastly, before you sign the document (contract of sale) that is binding the seller and the buyer, look for that part that says indemnify clause. If you do not see that part on the contract please don’t put your signature on it.
Note: many companies will always want to exclude this part on the contract.
What is the benefit of buying an excision land (cheap land)?
One of the major advantages of buying such land is because is always cheap from the prices of the average plot in a similar location.
High profit, for example, a plot of land you buy today for ₦500,000 can appreciate to ₦20,000,000 in the nearest future.
Also, sellers or developers tend to sell this type of land at promo prices, where you buy 5 and get 1 free, which means you have gained an extra one plot.
FAQ on cheap land
Why does land sell cheap?
Developers/ land speculator tends to sell land cheap when the place is developing in other to draw people to that area.
At the same time, plots of land that doesn’t have a good title are sold cheap.
What is the attraction of buying cheap land?
The attraction is simply because is cheap and will give more return on investment to compare the ones that the price is already high.
Secondly, the financial risk involved is minimal because it requires a small amount of money to compare buying developed land of huge amount.
Advice: if you must buy this cheap land, buy it for future and investment purposes and not with the intention of building some structure within the shortest period of time. Because it will take years for the area to get developed.
Is cheap land genuine?
To answer this question, it depends on the area and the title document that comes with the land. For example, in Ibeju Lekki today you can’t get a genuine land with proper title, (like gazette or C of O as a title document) for 1 million or 1.5 million.
Rather what you will get is a land that has a title like; excision in progress, awaiting excision, which is not advisable, because at the end of the day government may not approve the excision.
So in conclusion, 80% of cheap land tends to have some hidden problem which makes them NOT genuine.
What is ratification?
Ratification simply means applying to the government and telling them we know we bought defective land, but now we want to regularize the title. The government will then mandate you to pay a certain amount of money in other to regularize the title.
What are the key things that determine land prices?
The two major things that determine the cost of a plot of land are the location and the title document.
For example, in Ibeju Lekki, many cheap lands currently don’t have a title document. Most of the title documents are always excision in progress. This is part of the reason they are been sold cheap. While the ones that have a proper title like Gazette or C of O sell at a higher price.
At the same time land that is strategically located in that area but doesn’t have a proper title are been sold at a higher price because of its location
Advice: don’t buy cheap land that is along the road in Ibeju Lekki with the title “awaiting excision or excision in progress” because Government will never release such land.
Instead of buying such land, rather go for land that has a proper title with an installment plan, that way, you can avert the risk of losing your money
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