SOLD BY: ASSESSMENT OF QUACKERY PRACTICE ON REAL ESTATE TRANSACTIONS IN ABUJA
ABSTRACT
This project assesses the effect of quackery practice on real estate transactions in Abuja. The study specifically seek to examine the activities of quackeries or quack estate agent, evaluate the effects of quackeries practice on real estate transactions in Abuja and identify the challenges affecting real estate agency in Abuja. The research method used was survey design. The sampling techniques adopted for this study is the random sampling techniques, the techniques give every member of the population the opportunity to be selected without any form of preferential treatment. A total of one hundred (100) copies of questionnaires were administered, and out of these, 80 copies of the questionnaires were correctly filled and returned. The researcher make use of statistical tools such as tables, percentage and descriptive methods to presents and analyzed the data gathered from the field survey which was considered appropriate for the research. The findings of the study shows that several quackeries are involved in real estate transactions in Abuja, this quackeries are mostly involved in fake list of properties excessive charges on the services there rendered among others, the study also shows that quackeries practice have significant negative impact on real estate transactions among which are black mail genuine estate agents, general negative impact on the real estate market, create lack of trust in real estate profession as client will generally see real estate agent and agency activities as fraudulent. Finally the study recommends that the capacity of the Estate Agents Registration Board should be enhanced to enable it better regulate the profession and unregistered and quack agents currently practicing should be tracked down and made to either go for training in the diploma or degree of Real Estate, work under a registered estate agent.
Key Words: Quackery, real estate, transactions, Agents.
CHAPTER ONE
INTRODUCTION
Background Of The Study
Real estate agents 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 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.
Real estate 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 quackery practice on real estate transaction in Abuja.
1.2 Statement of the Problem
Estate agency 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 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 landed profession. 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.
1.3 Aim and Objectives of the Study
The aim of this project is to carry assessment of quackery on real estate transaction in Abuja.
To achieve this aim, the following specific objectives shall be pursued:
- To examine the activities of quacks in estate agency in Abuja
- To evaluate the effects of quackeries practice on real estate transactions in Abuja.
- To identify the challenges affecting real estate agency in Abuja.
1.4 Research Questions
This study arose from the need to answer the following research questions:
- What are the activities of quackeries in real estate transactions in Abuja?
- What are the effects of quackeries on real estate transactions in real estate transactions in Abuja?
- What are the challenges affecting real estate agency in real estate transactions in Abuja?
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 Abuja Municipal Area Council, 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 Nigeria and particularly in Abuja. The needs of the professionals in the practice of estate agency 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 agents 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 quackery practice on real estate transaction in Abuja. The study is limited to Abuja Municipal Area Council, the study seeks to understand how estate agency in Abuja 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:
- 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.
- 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.
- Landlords were hostile and very suspicious of the research.
- 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
Assessment: According to Cambridge English Dictionary assessment is the act of judging or deciding the amount, value, quality, or importance of something, or the judgment or decision that is made
Quackery: Quackery is the characteristic practice of quacks or charlatans, who pretend to knowledge and skill that they do not possess, particularly in medicine. The quack makes exaggerated claims about his or her ability to heal disease, generally for financial gain.
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
Abuja was formally a town under traditional emirate of Suleja in Niger state, north central of Nigeria. The town is situated along the river Iku, a minor tributary of the river Niger at the foot of the Abuchi hills and lies at the intersection of several roads. The emirate’s savannas areas of approximately 2,980sqkm originally included four secondary Koro Cheifdoms that paid tribute to the Hausa kingdom of Zazzau. In the period 1804, Zaria, the capital of Zazzua (220km North-Northeast) was captured by warriors of the Fulani jihad (holy war). Muhamman Makau, the king of Zazzua (Sarkin Zazzua) guided a large section of the Hausa nobility to the Koro town of Zuba (10km southwards)
Abu Ja (Jatau) the brother of the king and later his successor, founded the town of Abuja in 1828 and a year later started the construction of the town wall. Abu Ja then proclaimed himself the emir of Abuja and withstood Zaria’s attacks, allowing Abuja emirate to remain an independent Hausa refuge. During the reign of Emir Abu Kwaka (1851-77), trade with the Fulani emirate of Bida (Westwards) and Zaria began. But the trade route between Lokoja (160km South-Southwest) and Zaria was disrupted by Abuja’s leaders, resulting in the British occupation of the town. During the reign of Emir Musa Angulu (1917-44) alluvial tin mining began.
A Hausa emir who retains advisory role oversees the traditional emirate, with its predominate Gbari (Gwari) and Koro population. During the administrative reorganization in 1976, Abuja town became the headquarters of a local government council. The town was renamed Suleja in the late 1970’s after development began on the urban area of federal capital territory of Nigeria (FCT). The new Federal capital adopted the name Abuja.
ECONOMY AND POPULATION OF ABUJA.
Abuja although is said to be bless with natural endowment such as; its rolling hills, isolated highlands and other endearing features which makes it a delight. The savannah grassland of the north and the middle belt, the riches of the tropical rain forest of the south and equable climate all combined make the city a soil rich agricultural and tourist heaven. But despite all this, the city is not economically buoyant due to absent of industrial activities.
Projection called for a population of more than one million early in the 21st century, the population estimate as at 2006 stand for a four million with annual growth rate of 2.8
PHYSICAL DEVELOPMENT OF ABUJA
Abuja created in 1976 by the federal military government of the late general Muritala Mohammed via decree No. 6 of the same year; it officially replaced Lagos in December 1991after fifteen years of planning and construction. The city was divided into two zones; central zones contains the national assembly, the city hall, national cultural institution, government related offices that include the administrative headquarters of all federal government ministries and parastatals, also major private sector organizations and foreign missions. The second zone provides housing, shopping facilities and other urban amenities.
GEOGRAPHICAL LOCATION
The federal capital is located in the geographical center of Nigeria.it has a land area of 8,000square kilometers.it is bounded on the north by Kaduna state, the West by Niger state, the East and Southeast by Nasarawa state and Southwest by Kogi state. It falls within latitude 70o20”north of the equator and longitude 60o45”and 70o39’.
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