In Nigeria, it is a recurrent practice to inherit property after the death of a parent or loved one. If you ever find yourself with an inherited property the question that pops into your mind is -what am I going to do with this property? Before you make the final decision of what you should do with the property, there are certain questions you need to answer.
What type of ownership do you have?
When you inherit a property, you need to find out if you have sole ownership or if the property belongs to you and others like your siblings or other members of your family. If you have sole ownership, the decision is for you to make.
However, if the house is jointly owned by you and others, you should try to work with a property agent who would help you understand how much of the property belongs to you as well as how to ensure it is properly valued. In cases of joint ownership, you cannot take decisions on the home on your own as you have to conduct meetings with others who inherited the home in order to ensure all decisions are collectively reached together.
Are you ready to pay Land Use Charge?
Land Use Charge(LUC) is the amount a landlord/landlady pays to the government for leasing out that particular land on which the property is built. The income generated from this tax is then used to develop the state. This tax is annually paid to the government.
Considering the payment of LUC is an important factor in deciding what you want to do with the inherited house.
What do you want to do with the inherited house?
The next question is- what do you want to do with the house? There are three options: rent, sale or reside in the house
You can decide on your own if you have sole ownership to rent, sell or live in the house but if the property is co-owned you have to deliberate with others on what decision to take concerning the inherited property.
The reality is that there are pros and cons to whichever decision you arrive at either rent or sell or reside in the inherited house. If you inherited a house in Nigeria today, what decision will you take – sell it, live in it or rent it out? Share your thought with other ToLet readers.