Auditing Before Depositing: Mitigating Your Risks

The appeal of a premium duplex in Sangotedo is compelling for diaspora investors, yet distance can conceal construction and legal risks. A 30% deposit—typically ₦36 million to ₦39 million—secures the unit but represents substantial capital.
Before authorizing the transfer, execute the following steps:

1. Verify the Title
A Governor’s Consent provides robust title assurance, but independent verification is essential—do not rely on developer-supplied photocopies.
Obtain the survey plan and land file number from the developer. Engage an independent Lagos-based lawyer or registered surveyor to perform a formal search at the Lagos State Land Registry in Alausa.
Verify the land is free from government acquisition, existing caveats, or disputes, and that the Consent matches the precise coordinates of Sherwood Court.
Ensure the selling entity matches the title holder or holds a registered Power of Attorney.

2. Evaluate the Developer Track Record and Financial Stability
Real estate investments hinge on the developer's track record of execution. Evaluate their history to assess long-term estate management.
Request a list of prior developments and dispatch a representative for on-site inspections. Assess road conditions, 24/7 power reliability, and security efficacy.
Review the management of existing projects. Internal handling by the developer with evident deterioration signals risks for Sherwood Court.
Confirm the developer’s active status and good standing via the Corporate Affairs Commission (CAC) portal.

3. Validate the Short-Let Yield
Marketing claims of "high yields" require scrutiny within the Sangotedo/Ajah market.
Commission a survey of short-let apartments within a 2 km radius of Vintage and Crown Estates. Determine average nightly rates for 3-bedroom duplexes and monthly occupancy rates.
Validate proximity to Lagos Business School (LBS) and other marketing promises. Cross-reference the LBS executive program calendar to gauge year-round demand and mitigate off-season vacancy risks.
Obtain a detailed monthly breakdown of the estate's service charges. For instance, a ₦100,000 fixed charge against ₦600,000 net rental income is viable; uncapped or variable fees demand caution.

4. Inspect the Infrastructure
Even for "completed" units, substandard finishes pose ongoing costs.
Drainage Evaluation: Sangotedo experiences seasonal flooding. Instruct your representative to inspect post-rainfall: confirm rapid water recession and adequate road drainage.
Commission a structural engineer for a unit walkthrough to detect issues like rising damp, concealed cracks, or inferior roofing.

5. Assess Your Exit Strategy
A sound investment facilitates resale.
Sherwood Court’s proximity to Novare Mall and key schools supports demand from end-users (e.g., relocating families to Lekki), providing liquidity if short-let yields soften.

Pro Tip: Direct all payments exclusively to the developer’s corporate account, as specified in the official offer letter—never to personal accounts

Mary Edet,
Private Real Estate Advsior.