Real Estate Careers and Challenges in Nigeria

'Omo onile' refers to the original descendants of the first settlers who claim rights to land under customary law.

The author has been in the real estate profession for about 45 years.

The author studied Estate Management at The Polytechnic Ibadan, Nigeria.

<p>The author chose to serve pupillage in a first-class indigenous private practice firm.</p> Signup and view all the answers

<p>The author completed the Advanced Management Programme at Lagos Business School and a Master's degree in Housing &amp; Development at the University of Ibadan.</p> Signup and view all the answers

<p>The author gained significant skills in networking, business relations, and maintaining high ethical standards.</p> Signup and view all the answers

<p>The author studied business policy, total quality management, and research methodologies.</p> Signup and view all the answers

<p>The author valued practical experience and professional growth over immediate financial gain.</p> Signup and view all the answers

<p>It limits the ability to promote standardized practices and effectively cover the market.</p> Signup and view all the answers

<p>Digitalisation allows landlords and property sellers to directly access buyers, reducing reliance on agents.</p> Signup and view all the answers

<p>Harsh economic conditions, Naira devaluation, rising costs of building materials, and limited access to finance.</p> Signup and view all the answers

<p>Informal processes are prevalent in land acquisition, construction, and property disposal.</p> Signup and view all the answers

<p>It increases the likelihood of cyberattacks and data breaches.</p> Signup and view all the answers

<p>Fluctuations in property values and rental prices due to economic instability and inflation.</p> Signup and view all the answers

<p>The output far exceeds the membership size, indicating a gap between education and professional representation.</p> Signup and view all the answers

<p>Increased costs of materials and logistics elevate building expenses, impacting affordability for buyers.</p> Signup and view all the answers

<p>A major population shift from rural to urban areas took place.</p> Signup and view all the answers

<p>The Land Surveyor Club was established on June 27, 1843.</p> Signup and view all the answers

<p>The Royal Institution of Chartered Surveyors (RICS) evolved from the Surveyor Institution.</p> Signup and view all the answers

<p>F.G Gleave was the first known chartered surveyor to set up a practice in Nigeria around 1955.</p> Signup and view all the answers

<p>Estate management courses began in 1962 at the University of Nigeria.</p> Signup and view all the answers

<p>The Nigeria Institution of Estate Surveyors and Valuers (NIESV) was formed in 1969.</p> Signup and view all the answers

<p>NIESV was accorded government recognition by the Estate Surveyors and Valuers (Registration, ETC) Decree No. 24 of 1975.</p> Signup and view all the answers

<p>John Wood Ekpeyong graduated as the first Nigerian estate surveyor from the University of London.</p> Signup and view all the answers

<p>The agent arranged surveying, perfected the title, secured an architect, and monitored the construction of two wings of a duplex.</p> Signup and view all the answers

<p>The agent received an agency fee of N100,000 for the purchase of the land.</p> Signup and view all the answers

<p>The owner intended to retain one wing of the property for himself, leading to a loss of retainership for the other wing.</p> Signup and view all the answers

<p>The tenant met the owner's representative during a dedication service over the weekend and paid for the property.</p> Signup and view all the answers

<p>The agent presented proof of a letter from their office that was duly acknowledged by the representative for consent to accept the tenant.</p> Signup and view all the answers

<p>The owner's representative turned down the agent's demand for a fee.</p> Signup and view all the answers

<p>The agent decided against taking legal action, weighing the costs and time against future relationships.</p> Signup and view all the answers

<p>The main challenge was the owner's change of plans which affected occupancy agreements and the agent's commission.</p> Signup and view all the answers

<p>Verbal and non-verbal communication skills, negotiation skills, and commercial awareness are essential soft skills.</p> Signup and view all the answers

<p>Reducing informality involves policy reforms, improved regulatory frameworks, and community engagement.</p> Signup and view all the answers

<p>Market analysis, legal knowledge, marketing, and technical proficiency are vital hard skills.</p> Signup and view all the answers

<p>The databank aims to provide accessible comparable evidence for valuers and reduce valuation inaccuracies.</p> Signup and view all the answers

<p>The managing surveyor faced the challenge of not being able to reach the tenant's family to address the lease expiration and potential renewal.</p> Signup and view all the answers

<p>Collusion and parallel practices among staff have been significant challenges.</p> Signup and view all the answers

<p>The illegal sub-letting was discovered when the managing surveyor realized the tenant could not be contacted and found that the boys quarter was sublet with a different expiration period.</p> Signup and view all the answers

<p>Commercial awareness helps professionals understand market trends, influencing property values.</p> Signup and view all the answers

<p>The professional Managing Agent became impatient after one month of the tenant's overstay and initiated actions to resolve the situation.</p> Signup and view all the answers

<p>Property laws enforce regulations that curb informal practices and protect legitimate transactions.</p> Signup and view all the answers

<p>The main consequence was the petition made against me by the property owner, which led to my arrest by the police.</p> Signup and view all the answers

<p>A formal market can reduce fraud, ensure accurate valuations, and foster professional trust.</p> Signup and view all the answers

<p>The tenant in the boys quarter was persuaded to move out after being reimbursed her remaining three months' rent.</p> Signup and view all the answers

<p>A key factor was that all immediate family members of the deceased tenant lived abroad, making communication and resolution difficult.</p> Signup and view all the answers

<p>It was assumed that the tenant would manage their lease obligations effectively, despite their frequent travels abroad.</p> Signup and view all the answers

<p>The tenant needed temporary accommodation pending the completion of construction on their own property.</p> Signup and view all the answers

The Industrial Revolution led to a large movement of people from rural areas to cities in Europe, especially in the UK.

Trade groups or guilds formed in the 19th century to represent professionals in estate management.

The Land Surveyor Club was founded in 1843 in London, marking the start of a distinct professional group for surveyors.

The Surveyor Institution was established in 1868 and later became the Royal Institution of Chartered Surveyors (RICS) in 1946, solidifying the profession.

Estate surveying practices were introduced to Nigeria after colonialism, with F.G. Gleave being the first known chartered surveyor to establish a practice in the country.

John Wood Ekpeyong, a Nigerian graduate of the University of London, became the first Nigerian Estate Surveyor and Valuer in 1954.

The University of Nigeria, Enugu campus, introduced Estate Management as a course of study in 1962, with J.A Umeh as the first indigenous academic staff.

The Nigeria Institution of Estate Surveyors and Valuers (NIESV) was established in 1969 as a non-profit professional organization to represent and support estate surveyors in Nigeria.

The property profession in Nigeria is characterized by a limited number of professionals compared to the large number of graduates produced by universities and polytechnics.

Digitalization, while offering benefits, presents challenges in the real estate industry. These include data security concerns, the potential for job displacement, and the direct connection between landlords/sellers and potential tenants/buyers, diminishing the role of agents.

The Nigerian property sector is experiencing challenges due to economic instability, leading to factors like naira devaluation, inflation, and increased costs of energy.

Informality prevails in the Nigerian property sector, impacting processes like land acquisition, building construction, and disposals.

Limited number of professional estate surveyors impacts the market's standardization and ability to address needs effectively.

Cyberattacks and data breaches threaten the security of information in the digital environment.

Automation and AI potentially displace some professionals in the real estate sector.

Landlords and sellers directly connect with tenants and buyers through online platforms, reducing the need for intermediaries like agents.

Informal groups claiming land ownership based on being descendants of the original settlers, often creating obstacles for property development even when legal permits are obtained.

The author's journey into real estate began by studying Estate Management at The Polytechnic Ibadan, Nigeria, setting a solid foundation for his career.

The author prioritized practical experience and chose to serve pupillage in a respected private practice firm over lucrative job offers in other sectors.

The author further developed his skills by pursuing an Advanced Management Programme (AMP) at Lagos Business School (now Pan Atlantic University) and a Master's degree in Housing & Development at the University of Ibadan.

The author's studies emphasized business management, marketing, and research skills with case studies and real-world applications, providing a strong foundation for his future career.

The author's education and networking opportunities at prestigious institutions like Lagos Business School and the University of Ibadan helped him build valuable connections with influential individuals, which were not possible through regular college studies.

The author learned business and public relations skills, ethical standards, and client management techniques, which were crucial for his success in the real estate industry.

The author's career path demonstrates that a strong educational foundation, practical experience, and ongoing professional development are vital for building a successful and rewarding career in real estate.

A situation where an estate agent loses the right to represent a property owner, usually due to the owner's decision to work directly with a tenant or change their plans for the property.

A pre-arranged agreement between an estate agent and a property owner that grants the agent the exclusive right to manage and market the property for a specific period.

The act of endorsing a letter of instruction. This means formally acknowledging and approving a written instruction given by a party.

Compensation or payment received by an estate agent for their services in facilitating a real estate transaction.

A process of verifying a prospective tenant's suitability and financial ability to rent a property.

The practice of offering a property for rental or sale to potential clients.

The act of performing a dedication service, usually a religious ceremony to bless a building.

The act of taking legal action to pursue a claim or enforce a right in a court of law.

The practice of estate surveying and valuation in Nigeria faces various challenges. These include unethical practices, lack of professionalism, and the informal nature of the property market.

Improving skills and training for estate surveyors and valuers is crucial. This includes both practical skills, like market analysis and legal knowledge, as well as soft skills essential for communication and business.

Informal property transactions, often without proper documentation and legal oversight, create significant challenges.

To reduce informality, Nigeria needs a multifaceted approach. This involves strengthening land registration systems, enforcing property laws, and encouraging formal property development.

A centralized databank of concluded property transactions would improve transparency and accuracy in valuations.

The databank would provide a pool of comparable evidence for valuers, preventing valuation differences and improving accuracy.

The issue of omo onile, informal land owners often involved in fraudulent activities, needs to be addressed.

By providing valuers with access to comprehensive transaction data, a databank could help standardize valuations and prevent inconsistencies.

A tenant sublet the "boys' quarters" (likely a smaller, separate living space) for a longer term than their own lease. This was not authorized and caused problems when the original tenant died abroad.

A tenant illegally constructed a brothel on a vacant land behind the property the Agent managed, creating serious legal complications

A tenant who had relocated abroad left a relative in Nigeria without proper agreements for the property. The relative sublet part of the house without authorization from the owner, causing the Agent to face legal problems.

After the lease expired and the tenant was unreachable, the agent discovered the sublet agreement and faced the issue of finding a solution, including dealing with the subtenant and the deceased tenant's family.

The agent had to deal with a situation where the tenant had died abroad, leaving the property vacant and with an unauthorized sublet agreement. The agent had to negotiate with the subtenant and manage the deceased tenant's affairs, including contacting family.

A tenant in a property managed by the agent illegally converted a vacant land at the back into a brothel, prompting legal action and even the agent's arrest.

The agent was arrested by the police due to a complaint from the owner who thought the agent was aware of the illegal construction of the brothel. The agent was released unconditionally.

The agent had to deal with the sublet situation by negotiating with the subtenant and paying for their unexpired rent. The agent used their own practice income to resolve the matter.