Before You Buy Excision In Progress Land In Lagos Read This – The Risks And Advantages
If you have been observing, you might have seen a lot of real estate firms and agents promoting lands with EXCISION IN PROCESS or EXCISION IN PROGRESS and tagging it as the same thing as a land title.
And some of my investors who are looking for where exactly to invest in real estate, especially in Ijebu Lekki axis, have got my phone ringing every day, calling me up to ask me what an `Excision In Progress` means.
And some of them, even asking me if it is actually a good idea in buying a land awaiting excision approval.
That’s what this article will open you up to.
Well, in this article today, I will be giving an explanation of what `excision in progress` really means, and some core facts that you need to know before purchasing any land tagged as `excision in progress`.
In order to assimilate the real meaning of this estate term “excision in progress”, we first of all need to know what an excision really means.
What is Excision?
There is no way to explain the term `excision` without consulting this popular property law.
The Land Use Act of 1979 stipulates that every portion of land belongs to the government
This is exactly where the word excision comes in.
Excision means taking a part from a whole and that part that has been taken will be recorded and documented in the official government gazette of that state, making such portion of land legally free from government acquisition.
Now the next big question is
What is Excision in Process?
Before a land can be given back to indigenous communities, it demands that it should be excised.
Consequently, excision in progress or excision in process means the process of getting a land under government acquisition liberated back to the indigenous owners or villagers.
So What Are the Risks in Buying a Land that is Waiting Excision?
Now that we are well acquainted with the fact that an `excision in progress` land means the communities of the particular land is processing its liberation from the government, we need to know the risks and advantage of procuring this kind of land.
The points below are all that you will need to know about lands tagged excision in progress. Then you will be able to make an informed decision on your real estate journey.
POINT #1: Excision in Progress is not a Land Title
Firstly, you need to know that the term `excision in progress` or `excision in process` is not a legitimate land title.
I have seen a lot of real estate companies and developers tagging `excision in progress` as a title of their land, but this is very inaccurate. `excision in progress` is not a justifiable land title.
POINT #2: Buildings Are Not Allowed on `Excision in Progress` Land
As you already know, acquired land is in the ownership of the government.
And as such, building or erecting a structure on it is not allowed, as such building can be bulldozed down by the government at any given time.
POINT #3: Excision Approval is 50-50 Chance
Though, despite the fact that the land may not be committed, government may or may not give consent to the excision application. The reason is best known to them- Government.
Now the next question is, what then happens to the buyers of this land?
Well, the answer lies with the real estate company. Well trusted real estate companies will relocate thier previous buyers to another land that they own.
But if practically you had invested in a land owned by an un-trusted real estate company, then you might have lost your hard-earned money and your land as well.
POINT #4: Total Area Applied For May Not Be Approved
You see, government does not always give consent to an excision application on the whole area of land being submitted and the reason for this is best known to the government.
Here is what I mean, if the earliest owners of the land made application for 55 hectares to be excised, government may give consent to only 45 hectares of the said land.
This means that the companies that bought this said land will lose the remaining 10 hectares, thus, the investors that bought them.
Although, some trustworthy real estate companies usually have an insurance clause.
This clause is always being written in the Contract of Sales that would be given to you after making payment for the land. So always look out for companies with this insurance/indemnity clause.
Trust me, most of the real estate companies will not want to open this up to you, but is the absolute truth.
POINT #5 Government Do Not Give Red Copy Survey for `Excision in Progress` Land
I have seen some adverts promoting Ibeju Lekki properties that are awaiting excision approving claiming that the land has a Red Copy Survey.
Truth remains that, a land that awaiting excision cannot be given a red copy survey from the surveyor general’s office because the land doesn’t a valid land title.
With all these points made…
What then is the Advantage of Buying an ‘Excision in Progress’ Land?
Now, the truth is that land awaiting excision approval tends to be very cheap compare to land with title.
That’s just the simple answer!
I seriously need to point and stress out the risk that is involved in buying lands that awaiting excision for you to know before going to buy it. But all in all, it is a very profitable real estate investment venture.
Okay, take this now for instance…
A land with tag ‘excision in progress’ in the Ibeju Lekki axis of Lagos N800, 000 to N1.2m as at the time I was writing this article. As a real estate investor who wants to take chances (probably after being assured of company’s indemnity clause) perhaps bought a plot of this land. By the time the excision is approved, the same land will not sell less than N2.5m .
And no doubts, this is the major reason why so many investors are buying land awaiting excision – high capital appreciation!
Should I Buy an ‘Excision in Progress Land’ or Not?
You see, after giving an explanation of what `excision in progress’ means to my clients, I receive this very question like million times daily.
Well, so far so good, you’ve read it all up. You’ve definitely learnt the risk that is involved in buying land awaiting excision approval.
And you’ve also learnt how profitable these lands are.
So at this juncture, the decision is left for you to make, the ball is in your court now.
Consequently, in my own opinion, buying lands awaiting excision approval isn’t a bad investment move only if:
- You are dealing with a trusted real estate company
- The company gives indemnity clause
- You are buying for long term investment purpose and most importantly
- You can take the risk.
With this eye-opening article, I trust all your questions on what an excision in progress land means has been answered accurately, so whether to buy an ‘excision in progress’ or not depends on you…