This article is intended to address the incessant and fraudulent sales of one or a single real property asset to many unsuspecting investors . Many real estate investors have fallen victims of this act by the ” omo oniles “.
We have heard cases of omo oniles receiving money for payment of a real property asset particularly in land sales transactions from different investors and absconding after selling the same property or parcel of land to three to four real estate investors.
Real estate investors must be wary of omo oniles dubious activities for them not to fall victim of this act. After listening to people who lost their money and their supposed real estate properties to these people who find a way or a means to scam and dupe them because they know that many investors are always eager, anxious and don’t perform due diligence before getting involve in real estate property asset transactions.
For this reason, I find it necessary to write this article in order to help and provide a simple and practical steps real estate investors can use as a guide or a checklist whenever they find themselves in any real estate property asset purchase.
This post is a comprehensive information on how you can successfully purchase real property asset and it guides you through key steps you must carefully consider before investing in any real estate property asset.
As I have always emphasized, the first step to real estate investing is to decide the purpose or reason for investing. Investors must know why they want to purchase a real property asset and must also know the type of real property asset investment they love to to purchase or invest on.
In addition, investors must develop or adopt an investing strategy which will serve as a guide when making purchases or investing in real property asset. This strategies must also factored in all expenses and cost associated with acquiring, improvements, management, maintenance, insurance, taxes, real estate agent and legal fee etc.
These expenses and costs associated with the purchase or acquiring a real estate property asset may be between 22% to 24% of the real property value in my region but this might be different in other regions of the world. Investors must have all these information handy prior to making any real property asset investing decisions.
If you are cool with this and handy with your investing strategy and you have decided to invest in real property asset then you can start your real property asset search and hunt for an asset that fits into your plan and budget.
If you are lucky to find a real property asset that fits into your plans and budget, you must first of all determine if the real property asset is registered, unregistered, covered by C of O or any other registered private sublease.
After determining the title, you must verify these claims to get wind of any pending litigation or any other issues that may hinder the smooth transfer of ownership. This step will help you in making sure you are not purchasing a real property asset within government acquired properties.
Verifying real property asset claims by the seller ensures you are purchasing the real property asset from the seller or owner who has the right to sell and not some kind of property that must have been sold to someone else. It ensures there is no tax encumbrance on the property asset, no pending litigation and the property is not under government acquisition.
The next important step after verification of claims is to research who exactly is selling the real property asset to you. If you take your time to conduct a little research on who is selling you will be amazed of what you may discover and uncover about the real property asset that the seller may not want to disclose to you.
This step helps you to determine previous and current owners of the real property asset whose name appear on the documents and of course this step can also expose what liabilities exit on the property such as outstanding taxes, prior sales, mortgage, long lease, rents or revocation after which you can decide if you want to go on with the purchase or let it go.
If you decide to go on with the purchase, then you can arrange for the valuation of the real property asset using professional valuers to know the estimated true worth of the real property asset. If you are considering doing the valuation yourself you can check out my article on how to determine the estimated true worth of real property asset here ordiezresources.wordpress.com/blog.
Another important step is to conduct a physical inspection of the real propert asset not only to make sure it conforms with the details on the title but also to help you understand the physical condition of the real property asset to enable you make good and an informed investment decisions.
At this point, you may request for evidence of no tax encumbrance on the real property asset and the documents of exchange must also be presented and relinquished at final exchange. Investor must clarify that all charges and other demands like the building plan approval and land soil test result has been cleared from relevant government agencies.
At this junction, you can start negotiation on the real property asset purchase price until both parties reach a mutually acceptable price agreed by all parties involved as the purchase price for the real property asset.
If you are satisfied with the arrangement you can engage the services of a solicitor knowledgeable in real estate property asset transactions to draft the legal documents of exchange of title and payments.
After both parties have studied, agreed and consented to the terms of the contract which may include but not limited to evidence of good title, issues tagged as important and other enquiries by both parties are satisfactory answered, then you can make a deposit of 10% of the purchase price and propose a date for completion.
When the real property asset has been put under contract, this allows the bank, your solicitor and the seller’s solicitor to work out the details and modality of the contract to ensure both parties meet financial and legal requirements for the transactions.
It is worthy of note that if anything springs up now that the real property asset is under contract such as discovering that the structure or building is weak, environment not safe or unhealthy to live in you can still back out of the purchase but you may lose a percentage of your deposit to the seller or the owner of the real property asset.
However if there are no qualms at all, then you can pay the remaining 90% of the purchase price on completion date through your solicitor and upon confirmation of receipt of payment. Make sure that the seller or the owner relinquish the original documents and legal right to the real property asset which includes the building plan, contract of sale, purchase receipt and original copies of all other relevant documents.
After you have possession of the real property asset you must file the documentation of the new purchase with the state government to legally make you the new owner of the real property asset. It is also important to commence the processing of a certificate of occupancy, C of O if the real property asset does not have any.
In my subsequence posts I will address in detail what to do if the purchased real property asset is under transport system or registered, how to lodge compliance certificate, how incurred expenses are shared, rates, taxes and non performance of contract by either party.
For more information, assistance, enquiries or suggestions, you can leave a message on the comment box and we shall respond swiftly to your needs.
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