- Verify the seller and the land title before the first payment.
- Insist on a written contract that states the full price, schedule and what happens if you miss a payment.
- Pay only by traceable transfer to the named company account and keep every receipt.
The Short Answer
Instalment plans make land more affordable, but they also give sellers time to disappear or resell. Protect yourself by verifying everything first, putting the plan in writing and keeping proof of every payment. This is general information, so involve a lawyer.
Verify the Seller and the Land
Confirm the company is registered and has a real office. Have your lawyer check the title and run an official search at the land registry. Visit the land and confirm the plot and boundaries with a licensed surveyor.
Be careful with sellers who only show you a brochure or photos.
Read the Contract Closely
The contract should state the plot size and location, the total price, the instalment amounts and dates, any fees, the date you receive your documents and what happens if either side fails to meet the terms.
Ask what happens if you miss a payment and whether you can transfer or resell your plot.
Pay Safely
Pay only into the company account named in the contract and avoid cash or payments to personal accounts. Get a receipt for each payment and match it to your bank statement. Keep copies in more than one place.
Do not pay a large amount for an unclear reason such as a processing fee.
Know Your Protections
Make sure the contract says when you will receive the deed or other title documents and that the seller must deliver them after the final payment. Ask whether a part of the plot is allocated to you from the start.
If something goes wrong, keep records and seek legal advice early.
Before the Final Payment
Confirm that the documents are ready, the title is clean and the land matches the survey. Have your lawyer review them before you pay the last instalment.
After payment, register the transaction promptly and take proper possession of the land.
A Worked Example
Imagine a plot priced at 6,000,000 naira with a 30 percent deposit and the rest in twelve monthly payments. The deposit is 1,800,000 and each instalment is 350,000. Ask whether the total includes all fees, and what changes if the price rises during the plan.
Write the full schedule into the contract and check each payment against your bank statement.
Mistakes to Avoid
Do not pay a deposit before verifying the title. Do not accept a plan with no document delivery date. Do not rely on verbal promises or a sales agent alone.
Be careful when the seller offers a big discount for quick payment and will not let your lawyer review the documents.
Action Checklist
- Check company registration and the office address
- Have a lawyer verify the title and run a search
- Visit the land with a licensed surveyor
- Get a written contract with the full schedule
- Pay only to the named company account and keep receipts
- Have documents reviewed before the last payment
