Do you know that deposit is not the same thing as part payment.

The distinction between a deposit and a part-payment in the context of real estate acquisition is of fundamental importance. It warrants thorough comprehension to safeguard the interests of buyers and sellers alike.

A deposit denotes a buyer's commitment to a transaction for property, goods, or services. In most cases, deposits are non-refundable, particularly if they surpass 10% of the purchase price. Should buyers fail to fulfill their contractual obligations, sellers may retain deposits.

Part payments, conversely, are refundable payments exceeding 10% of the total price that may confer equitable ownership through Deeds. Sellers must apprise buyers of their intention to sell to another party, allowing a 7-day window for payment completion or as agreed. Unless otherwise stipulated, part-payments are refundable if the buyer fails to complete the transaction.

Given the complexity of the legal scenery, consulting legal experts is highly recommended to ensure compliance with Nigerian laws. Clear and concise agreements are essential to prevent misunderstandings, and legal consultation is advisable irrespective of the parties' integrity.

It is worth noting that non-refundable deposits assure sellers of buyer commitment and prevent the potential misuse of properties. Part-payments, generally refundable, represent a partial commitment from buyers and are subject to agreement terms. It is prudent to engage the services of a legal practitioner before embarking on any real estate transaction.

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