BACKGROUND OF THE STUDY
The terms real estate and real property are frequently used interchangeably to refer to land and everything permanently related to it. Property is made up of valuable rights that are held at the expense of others (Betty and Ely,2008). Land, fixtures (attachments) to land, anything incidental or appurtenant to land that benefits the land owner, and anything immovable by law are all included in the definition of real estate. Due to its particular qualities of spatial immobility, heterogeneity, fixity, indivisibility, and indestructibility, real estate is a readable commodity with a specialized market. Furthermore, real estate investment necessitates a significant financial commitment and is governed by a plethora of legal and government restrictions (Ventollo and Martha, 2001)
Most Nigerian investors are increasingly choosing to invest in real estate, which they perceive to be one of the most dependable kinds of investing. Furthermore, due to the significant rise in the price of real estate in Nigeria, many investors have turned to real estate as a source of income. In recent years, a new breed of investor has emerged in the Nigerian real estate market, focusing on capital growth/appreciation as the most important source of return on real estate investments.
In recent years, Nigeria has been inundated by developers bringing property to market for sale rather than to generate a stream of income through rent. According to Ventollo (2001), a
STATEMENT OF PROBLEM
In Nigeria, the practice of estate agency is not a new one. However, it has historically been linked solely with commercial transactions such as letting properties for landlords, purchasing and selling land, factories, residences, commercial buildings, and enterprises as going concerns hotels and the ownership rights associated with them. The agents act on behalf of the seller or the buyer in exchange for a fee. In this regard, there have been a considerable number of estate agents practicing without any background knowledge and/or understanding of real property as a commodity and the real estate market as a unique one, in addition to the firms registered to carry out this practice.
OBJECTIVES OF THE STUDY
The expansion of unregistered agents in the real estate sector is the study’s main goal.
(1) What is the definition of real estate?
(2) What does the real estate market entail?
(3) What is the role of a real estate agent?
(4) What is the rate of unregistered agents in the real estate market?
SIGNIFICANCE OF THE STUDY
The study provides a clear picture of the real estate market’s proliferation of unregistered agents. The need for this research arises from the fact that estate agency as a profession in this country has seen an influx of many unqualified people due to a conflict between professionalism and commercialism in the industry. These individuals enter the real estate market to provide agency services, but they have no knowledge of real estate or the market in which it is exchanged. As a result of unregistered agents, the real estate market is plagued by inefficiency and lack of transparency. The report also underlines the importance of enforcing a legislation that regulates real estate agents.
SCOPE OF THE STUDY
The study examines the rise of unregistered agents in the real estate sector.
Betty and Ely (2008), Thomson South Western, United States of America, Basic Real Estate Appraisal: Principles and Procedures, 7th edition.
Fundamentals of Real Estate Appraisal, L. Ventollo and R. Martha, Dearborn Real Estate Educator, Chicago, 2001.