Diasporans don’t conduct due diligence on land – Operators

The Chief Executive Officer of Pelican Valley Nigeria Ltd, Dr. Babatunde Adeyemo, has said that most people in the diaspora do not conduct due diligence before purchasing a landed property.

Adeyemo made this assertion during a recent interview with The PUNCH against the backdrop of reservations expressed by people in the diaspora concerning the demolition of their properties in Nigeria.

This came after a viral video clip by a United States doctor, Kimberly Stark, calling on the President of the Federal Republic of Nigeria for help.

Stark said, “My name is Dr. Kimberly Ellen Stark. I am from Chicago, Illinois, in the United States of America. I am here today on the grounds that everything I have worked so hard for is from America to Nigeria, and I chose to invest in Nigeria.

“Coming here today, I can see most of my dreams crumbled and shattered. I bought more than six plots, and I intend to buy more, but how can I invest when the one I invested in is not protected here?

“I appeal to the president of the Federal Republic of Nigeria to please come to my assistance, the Nigerian Diasporans, and all these investors who stand here today. Come and assist us and help us come to this matter. Thank you.”

Reacting to this development, Adeyemo noted that due diligence was essential before purchasing lands in Nigeria.

He said, “In as much as I would love to sympathise with Dr. Kimberly Stark, I would also like to say that more Nigerians in the diaspora would still cry in this kind of circumstance, because most diasporans don’t often do their due diligence before they procure or purchase land.

“Real estate business is not something somebody can gamble about. If you want to buy a property, there are laws that govern the real estate business, and if you want to purchase a property, you should try as much as possible to do your research on what you want to purchase.

“You need to do your due diligence about the proprietor of the company you want to purchase such property from, number one. What kind of person is behind the investment, the management of the investment that you want to be part of? That’s number one.”

According to him, the laws stipulate that if you want to do a real estate business in large volume, and you call it an estate, there are some conditions that need to be fulfilled before going into such a venture.

He continued, “Number one is a government-approved layout. If this woman had purchased the property from a government-approved layout estate, this occurrence wouldn’t have come to pass.

“Stark wouldn’t have found herself in this kind of unfortunate situation, because before the government would give an approval, such land must be free from government acquisition, number one.

“If your land is free from government acquisition, the government will not just come and develop such land. And if the property actually had a government-approved layout, such property would have been in the master plan of the state government. There wouldn’t be any condition that would have warranted demolishing or losing such properties.

“So as a potential investor, if you want to buy, you move closer to those people that can help you. You do your due diligence. For example, I’m on my way to the Nigerian Diaspora Commission event, where I was invited as a real estate entrepreneur to sensitise and advocate, sensitising Nigerians in the diaspora towards promoting diaspora investment.”

The Pelican boss urged other Nigerians in the diaspora to learn the situation by looking in the direction of following the Nigerian Diaspora Commission for investments and doing due diligence.

He urged, “You should go for properties that are verifiable, both from the relevant government agencies, and also do the due diligence thoroughly before investing their hard-earned funds.”

In a similar vein, a Rotarian and real estate expert, Victor Oyefeso, also stressed the importance of due diligence for property buyers.

He said, “Buying land may seem straightforward; just pay the seller, and the land is yours. However, securing true ownership in the eyes of the law is critical, and many buyers fail to consider the necessary steps beyond payment. It is not enough to just pay for the land; you must ensure that you truly own it and that ownership is legally recognised. Property investors should take specific actions to avoid potential pitfalls, including land demolition by the government or court orders.”

Before making any payment, Oyefeso recommends conducting a land information chart to verify the land’s history and legal status. This process helps buyers determine if the land is under government acquisition or if there are other legal encumbrances.

“Another critical step is obtaining a land receipt, which serves as proof of payment. The receipt confirms that the seller has acknowledged receipt of payment and that the transaction has been completed. Additionally, a deed of assignment is essential, as it outlines the terms of the transaction, whether it’s a lease, purchase, or other arrangement. In addition, the deed should be prepared by a lawyer to ensure all terms are clear and legally binding.”

He further noted that a registered survey was another important document that established the boundaries and perimeters of the land, adding that leaving such land unfenced or unoccupied increases the risk of encroachment.