Navigating the real estate market can be both exciting and daunting, especially if you don’t know the terms used in this industry. Understanding the terms of real estate is importance for both first-time homebuyers and investors seeking to expand their portfolios. In this blog post, we will decode some real estate terms enabling you to develop a more comprehensive understanding of the market.

These terms include:

1. Equity: The value of a property that belongs to the owner, calculated by subtracting any outstanding mortgage or loans from the property’s market value.
2. Certificate of Occupancy (C of O): The state government issues a Certificate of Occupancy, providing landowners with legal ownership rights. This document confirms that the land has undergone surveys and meets all the necessary requirements Having a C of O ensures that the land is free from government acquisition and allows for development.
3. Deed of Assignment: A Deed of Assignment is a legally binding document that signifies one party transferring ownership to another. It commonly comes into play when an individual buys a property from the original owner.
4. Survey Plan: A licensed surveyor creates a Survey Plan, which graphically represents the boundaries and dimensions of a piece of land. This document plays a crucial role in defining the size of the land and is vital for property purchases and land development.
5. Real Estate Investment Trust (REIT): This enable investors to pool their funds and invest in a portfolio of income-generating real estate properties. In Nigeria, individuals have the opportunity to invest in real estate without directly owning physical properties through REITs. These trusts can generate rental income and are publicly traded on the Nigerian Stock Exchange.
6. Property Management: The administration of rental properties on behalf of property owners, which includes tasks like maintenance, rent collection, and tenant screening
7. Down Payment: The initial payment made by the buyer when purchasing a property, usually a percentage of the total purchase price.