THE LAW AND PRACTICE OF MORTGAGE AND REAL ESTATE IN NIGERIA: AN APPRAISAL

Abstract

Real estate and mortgage finance are important to the economy. Residential real estate is one of
the largest asset classes and the largest asset held by the average family. It is therefore relevant
to macroeconomics, household finance, and policy makers. Mortgages are loans that are secured
by real estate and used to fund the purchase of homes. The mortgage market is vital in growth of
the real estate sector as it avails funds to this market which is capital intensive in nature by
encouraging savings through the institutions which in turn finance their projects. Everyone
dreams of owning property someday but with the constant rise in Nigerian property prices, saving
towards buying some piece of real estate seems almost impossible particularly for young people
in Nigeria. Although saving towards acquiring property is one option, it may often be
disheartening because each time a certain amount has been saved, one discovers that the property
prices have risen and once again the asset is just out of reach. Mortgaging property may break
this frustrating cycle. This article examines the law and practice of mortgage and real estate in
Nigeria.