It was 5:05pm when a young, tall dark man walked into the office.
He showed interest in taking an apartment managed by the best property management company in Abuja, Nigeria.
While his interest in the apartment was high, his bank account at the moment was low.
Then, he said, “I will make a deposit and pay the balance in a week’s time.”
I was trying to explain to him our company’s policy on such a transaction.
Before I could finish talking, he interrupted.
“I am a lawyer and I understand the difference between deposit and part payment in the Nigeria real estate.”
I was dumbfounded, wondering what the difference could be. Then, a staff called him to be on their way for an inspection.
Immediately this young man left, my curious self went in search to know what the law says about deposit and part payment in real estate according to the Nigerian law.
Here is it…
The difference between a deposit and a part-payment in real estate acquisition is a big deal. This helps protect buyers and sellers or landlords and tenants to avoid issues that may arise.
The buyer puts down a deposit at the start to show they mean business. It shows your commitment to a transaction for property, goods, or services.
A deposit is usually 10% of the transaction and is mostly not refundable. If buyers don’t meet their obligations, sellers can keep the deposits.
By the way, the seller can also take legal action against you to recover any losses they suffered because of your failure to complete.
Part payment is when you pay some (over 10%) of the property price in installments or over time.
If you make partial payments, you might get ownership rights through deeds.
Sellers need to let buyers know if they plan to sell to someone else, giving them 7 days to complete payment or as agreed.
If you don’t complete the transaction, you can get your money back for part-payments, unless there’s a different agreement.
Having clear agreements is a must to avoid misunderstandings. It’s best to consult with a lawyer, even if everyone is honest.
Just to sum it up, a deposit is an initial payment to show you’re serious about buying a property. It’s kept in escrow and goes towards the final price.
When it comes to part payment, you can pay bit by bit according to your agreement with the seller.
Lastly, iPropty is the best place to sell your properties online.