Property Exchange begins in Nigeria

Nigerians and other investors who crave for faultless and seamless acquisition of properties can now heave a sigh of relief, as what looks like a quasi-regulated institution for the trading of prime properties through mere exchanges of interest and offers has been hoisted and fully approved to begin operation in metropolitan Lagos.

The institution, managed by Nigerians in alliance with other experts across the world, which is prompted by Reliance S.F. Group Limited, a whole-sale business group that offers expedited services in critical areas of the economy, is managed by Engineer Segun Folorunso. According to the Group managing director, Property Exchange is an umbrella where people from different climes can exchange various range of properties and broker arrangements for the difference to be paid by the transacting parties. It offers a similar guarantee and security close to what obtains in the Stock and commodity markets, where very little commissions are paid per transaction as against the huge amount of agency fees that are paid in the conventional property market. According to him, the commission is so small, as little as about 1.5 percent per transaction.

The new business idea, which has gained ground in many emerging market economies, is generally seen as a clearing house for property deals with an open business approach, where deals are transacted as declared by members whose properties are provided with quotes for bids in the market. The transactions are undertaken by brokers who have been approved to participate, in line with the conditions contained in a government approval.

Folorunso indicated that the new deal will help control the issue of fake Certificate of Occupancy (C of O), as all purchases will be issued with covering notes as well as offered indemnity.” We are trying to bring government into it so that it can be generally accepted because it will assist people who put their money ignorantly into property investment. It is currently a private entity, it will obviously move from the level it is now to a development of huge public interest. We really want Nigerians to believe in it because it will eliminate all the unnecessary controls and hick-ups investors in the property market encounter.”

There are strong indications that the exchange will monitor the daily value of property across the country and will remain the authentic source of property valuation in the economy in an effort to eliminate arm-twisting from unscrupulous operators in the property business. There is no property clearing house in Nigeria today and that scares investors who want genuine investment in the market. It is believed that the scheme will offer Nigerians in the diaspora the opportunity of getting properties of their choice at a rate devoid of unforeseen discrepancies. Transactions and deals in the venture are gradually picking up.