THE ROLE OF ESTATE SURVEYOR IN PROPERTY MARKET TRANSACTION IN NIGER STATE

THE ROLE OF ESTATE SURVEYOR IN PROPERTY MARKET TRANSACTION IN NIGER STATE

ABSTRACT

This project is an attempt to evaluate the role of estate surveyors in property market transaction in Niger State. The specific objectives of this study is to evaluate how estate surveyor achieve a sustainable approach of providing their services to clients in property market transaction and  identify the roles of estate surveyor in property market transaction in the study area, identify the problems facing estate surveyor in discharging their responsibilities.. The reviews makes concerted effort to review past literatures on the research topic which covers concept of estate surveyor, estate agency, the rationale for estate surveyor involvement in property market transactions, major private actors in urban housing provision in Nigeria and impact of private estate development in the provision of affordable housing. Survey design was adopted for data collections, this enable the research to make use personal observation, interviews and questionnaire to gather relevant data for the purpose of the study. Data were presented and analyse using tables, percentages and descriptive statistics. The findings of the study reveals that Estate surveyor play significant roles in property market transaction in the study area which mostly achieved through mortgage financing and public private partnership. Based on the research findings the research recommends that the government should create enabling policy, provision of land and financing which will enhance the effectiveness of estate surveyor in discharging their duties in Niger state property market transactions and Nigeria at large.

CHAPTER ONE

1.0       INTRODUCTION

1.1       Background of the Study

The estate surveyor play significant role in property market transactions, property development, management and housing delivering at large.  Estate surveyor obviously perform a middleman function in that they bring buyers and sellers together. They build the bridges between people in search of landed properties and estate owners. Real estate is a special type of asset that almost everyone desire to own. Real estate agency was introduced by the British during the colonial era, although before then, there were middlemen in land transactions. Estate surveyor profession and Estate agency grew from the old auctioneers who were chattlemen attracted by the exciting prospects of selling large estates. These auctioneers were mainly the lawyers who had easy access to the available properties in the market and kept the lists of estates for sale and prospective purchasers. These real estate practices became visibly lucrative during England’s Industrial Revolution of the nineteenth century. During this period, new wealth and employments were created. The desires for homeownership were largely satisfied. New lands were explored and built-upon or bought and developed. The market for property development widened considerably and the property markets grew exponentially. Then as more lands were developed, more properties enlarged the market base, and property experts were needed as people began to realize the complications that arose from marketing or buying properties (Ajayi, 2017).

Notwithstanding, more self-styled or quack estate agents also emerged, and over time, the real estate business became marred by incompetence and unwholesome behaviors. Due to lack of control over the quack estate agents, there were many victims of obtaining and fraud. To safeguard public interests against unscrupulous practice of estate agency by quack estate agents and rogues in the 1970s and eagerly 1980s, the Nigeria government and the professional bodies governing estate practices have enacted the guidelines and laws guiding the practice of estate agency in Nigeria (Oni, 2010).

The law establishing the profession of estate surveying and valuation in Nigeria included the estate agency as part of the functions of estate surveyors and valuers in Nigeria. Notwithstanding, presently in Nigeria it is all comers affair and there is an association of estate agents (NIESV, 2011). Entering the real estate market is easy, and requires neither qualification nor previous experience, this gives every rank and files (quackeries) opportunities to practice or become estate agent without the requisite educational qualification and registration with the right professional bodies.

Property market is not dominates with one particular profession, although there can be no doubt that some of practicing estate agents are members of the Nigerian Institution of Estate Surveyors and Valuers, there have been increase in the number of quackeries with or without requisite educational background. One needs to comment on the cut-price estate agent. Many believing that estate agency was a way to make easy money and believing that existing charges were too high in which perhaps they were encouraged by the media and such bodies sought to set up business charging in a variety of ways, but at a level significantly below the charges by the established agents in the area. Some charged lower rates of commission, others set fee for a specific service (Akomolede, 2016). It is against this background that this study seeks to assess the role of estate surveyor in property market transaction in Niger state.

1.2       Statement of the Problem

The profession of Estate surveyor and valuer should be conducted by men and women with a background of professional knowledge who acknowledge and follow ethical standards prescribed by the leading professional bodies of the land (The Nigerian Institution of Estate Surveyors and Valuers NIESV) and the regulatory board the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON). The fundamental problem is that the term – Estate surveyor or Agent is not statutorily defined in the context of real estate agency practice in Nigeria. The Nigeria real estate market is overwhelm with increasing number of quackeries who are victims of circumstances and have to change their careers informally, they neither have formal training, educational qualifications, nor professional expertise in the art and science of real estate agency, and have taken advantage of an apparent lax in the system to encroach into the property market. Due to their numerical strength and lack of awareness on the part of the people, they are widely consulted and fall victims of several fraudulent practices and cheats which end up given the profession a bad image in the eyes of the public. It is against this back drop that this study seek to examine the role of estate surveyor in property market transaction in Niger state with the view enlightening the general public. 

1.3       Aim and Objectives of the Study

The aim of this project is to examine the role of estate surveyor in property market transaction in Niger State.

To achieve this aim, the following specific objectives were pursued:

1. To examine the services rendered by estate surveyor in property market transaction in Niger State.
2. Identify the role of estate surveyor in the study area
3. To ascertain the effects of quackeries on the role of estate surveyors in the study area
4. To identify the challenges affecting estate surveyor or real estate agency in the Study Area.

1.       Research Questions
2. What are the services rendered by estate surveyor in property marketing transaction in Niger state.
3. The are the role of estate surveyor in the study area
4. What are effects of quackeries on the role of estate surveyors in the study area?
5. What are the challenges affecting estate surveyor or real estate agency in real estate transactions in Niger state?

1.5       Significance of the Study

The need for this study arose because estate agency as a profession in this country has seen an influx of numerous quackeries because there exists a conflict between professionalism and commercialism in the practice. Quackeries people come in to provide agency services in the real estate market yet they have no knowledge of either real estate or the market within which it is traded. As a result, the real estate market and particularly in Niger State, is plagued by inefficiency and a lack of transparency. Transactions involving great sums of money are carried out in secret which keeps shrouding real estate in mystery and prevents many people from getting into such investments for fear of being defrauded.

The study therefore seeks to serve the needs of investors who may want to venture into the real estate market in Niger state and Nigeria at large. The role of the professional estate surveyors in  property market transaction will be addressed therefore contributing to the practice of real estate agency professionally and if the research findings are implemented, estate agents will understand better their job descriptions and cope with the changing needs of a more vibrant real estate market.

Developers/landlords and tenants will also benefit from this study since it will be brought to their attention why they should only do business with professional estate surveyor and therefore protecting them from fraudulent practices.

1.6       Scope and Limitations of the Study

This research is undertaken to carry out an indepth assessment of  the role of estate surveyor in property market transaction in Niger state.. The study is limited to Minna metropolis, the study seeks to understand how estate surveyor in Niger state can be made more professional and make the real estate market more accessible to investors by reducing the activities of the increasing number of quackeries in the study area.

Limitations

The researcher may face various problems when carrying out this field study. Some of these challenges include:

1. Some respondents were unwilling to fill the questionnaires since they were suspicious about the study. Many perceived it as sharing very vital information which they were not ready to furnish the researcher with.
2. Delays were experienced from the respondents who took very long to complete filling the questionnaires and constant postponement of the picking date proved to be very frustrating to the researcher. This could be attributed to busy schedules and had both cost and time implications on the researcher since the set timelines had to be changed and many follow-up calls and visits had to be made which was quite expensive.
3. Landlords were hostile and very suspicious of the research.
4. At times some of the respondents did not fill in the questionnaires adequately and ignored certain sections that required the giving of opinions which made it difficult for the researcher to make adequate conclusions.

1.7       Operational Definition of Terms

Estate: Cambridge English dictionary define estate as a property or a large area of land in the country that is owned by a family or an organization and is often used for growing crops or raising animals: It’s a typical country estate with a large house for the owner, farm buildings, and estate workers’ houses.

Estate agent: Collins Dictionary define estate agent assomeone who works for a company or clients that rents or sells houses and land for people.

Real estate: According to Investopedia Real estate is property comprised of land and the buildings on it, as well as the natural resources of the land, including uncultivated flora and fauna, farmed crops and livestock, water and mineral deposits.

Market: According to business dictionary a market is an actual or nominal place where forces of demand and supply operate, and where buyers and sellers interact (directly or through intermediaries) to trade goods, services, or contracts or instruments, for money or barter.

1.8       Background of the Study Area

            1.8       Historical Background of the Study Area

Niger state Minna, was part of the North western state under the Gowon administrations twelve state structure in 1967. in 1967, when a further state creation exercise was embarked upon by the general Murtala Mohammed administration, the previous North – western state was bifurcated into Sokoto and Niger state. Niger state is located between latitude 8, 20’N and 11, 30’N and longitude to the 3, 30’E and 7, 20’E. the state is bordered to the North by Zarnfara state, to the North-western by Kebbi state, to the south by Kogi state, to south — west by Kwara state, while Kaduna state and the feral capital territory border the state to the north-east and south-east, respectively. Furthermore the state shares a common international boundary with the republic of Benin at Babanna in Borgu local government area of the state. Currently the state covers a total land area of 76,000 sq. Km or about 9 percent in the country. Administrative areas: Although at inception in 1967 the state had only eight LGAS, the series of other state and local government creation exercise and boundary adjustments between 1979 -1996 have substantially increased the number of LGAS in the state to twenty five. For easy and effective

Administration, the twenty five LGAS, have been divided into five administrative zones. These include Minna, the state capital, bida, suleja, kontagora and new Bussa. There are eight Emirate councils. These include agaie, Bida, kontagora, suleja, lapal, kagara, Borgu and Minna. At the apex of this council is the Estu Nupe who is the chairman, Niger state council is the Estu Nupe who is the chairman, Niger state council of chiefs. This council plays advisory role to the state government.

Similarities / Differences between quantity surveyors and estate surveyors

Similarities between estate surveyors and quantity surveyors

The similarities between quantity surveyors and estate surveyors are as follows:
1. Both estate surveyor and quantity surveyors are management professional in field of environment studies.

2. Estate surveyors and other form of surveying and building related advices their client.

3. Both quantity survey and estate surveyors serves as project appraisal as the forecasting the future of proposed project.

4. Both estate surveyors and quantity surveyors look for their client or contractors working man office or on site, they are involve in project from the start, preparing estimates and cost of the project.

5. Estate surveyors and quantity surveyors are also referred to as construction cost consultant or commercial managers.

Differences between quantity surveyors and estate surveyor

1. Quantity surveyor seeks to manage and minimize the cost of project and enhance value for money to achieve the required standards and quality while estate surveyor tend to manage and value the interest of the project with a particular interest of the returned in the monetary value of the project.

2. The primary objectives of an estate surveyor is to carryout valuation of interest in landed properties for a particular purpose while that of the quantity surveyors cost management and provision of bill of quantity in the construction of a project.

3. Quantity surveyor manages all cost relating to buildings and civil engineering project from the initial calculation to the final figure. While the estate surveyor seek to value the period which it will take the project to receiving its initial capital investment in construction.