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Legal Hurdles And Alternative Resolutions In Premises Recovery

by Dayo Ajala
2 years ago
in Business
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Simply put, recovery of premises refers to the lawful process through which a property owner or landlord regains possession of a property from a tenant, and this is mostly accompanied by conflicts associated with legal bottlenecks that may lead to financial losses to property owners except professionally handled.

Handling this delicate process, particularly when a well-informed occupier may pose a major snarl even when a tenant is found wanting in breaches of tenancy terms and agreement could be frustrating and can lure some overzealous and irritated property owners to embrace self-help or other unorthodox methods to recover their premises.

This process is typically initiated when a tenant breaches the terms of the lease agreement, such as non-payment of rent, violation of property rules, or other lease violations. In Nigeria, as in many jurisdictions, there are specific legal procedures and considerations for the recovery of premises by owners that follow the rules and are resolved satisfactorily in favour of both parties.

There are lawful grounds through which an occupier may be ejected, and the property recovered. Among those is when a tenant breaches the lease agreement in default of rent payment, subletting part or the whole premises without permission, or other violations as specified in the lease terms.

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Again, some occupiers have become recalcitrant in handing off tenancy of the facility even when the lease duration has expired, and the tenant does not renew or vacate the premises, at this point, the landlord often considers it appropriate to issue a notice to quit to take back full ownership of the premises.

Notice to Quit provides the tenant with a formal written notice to vacate the premises, specifying the reasons for the eviction and a reasonable period within which he or she must leave, but this must be in tandem with specific legal provisions outlined in Nigerian property and tenancy laws with which the landlord and the facility managers must be aware, and familiar.

When the tenant fails to comply with the notice to quit, the landlord is then at liberty to initiate legal proceedings by filing a case in court for the recovery of premises by engaging the services of qualified professional(s) such as estate surveyors and valuers who specialize in property management and tenancy related matters to navigate the process effectively.

While filing this, it is crucial to understand that the court was not a party to the matter before it and will only make its rulings based on the available facts presented by the parties. This is important so that all relevant documents, including the lease agreement, notices served, and evidence of lease violations are sourced and presented before the court to support the case.

Remember also that the tenant has the right to be heard in court, so the litigation process allows the tenant to also present their defence and if convinced based on the proofs presented before it, the court may rule in favour of the landlord and issue a possession order, directing the tenant to vacate the premises within a specified period.

Enforcing the Possession Order obtained from the court can also only be carried out with the assistance of law enforcement or court bailiffs to ensure the tenant complies with the court’s decision, and not via self-help as there have been cases where after getting the order, some uninformed property owners violated the rule by engaging hoodlums and unlawful persons to enforce the order.

Litigation related to the recovery of premises and lost rental returns on managed properties can pose significant challenges for property management in Nigeria given lengthy legal process. Legal proceedings in Nigeria can be protracted, leading to delays in recovering possession of premises and obtaining compensation for lost rental returns. This extended timeline can result in financial losses for property owners.

The legal framework governing property rights and tenancy agreements can also be complex and subject to interpretation. Navigating these complexities may require specialized legal expertise, contributing to delays and increased legal costs.

Considering that the tenants are also protected by law may also lead to court rulings in favour of some tenants thereby making it challenging for property owners or managers to take swift action in cases of default or breach of lease agreements.

In other cases, there could be evident insufficient or poorly drafted lease agreements and documentation which can weaken the landlord’s case in court while even if a favourable judgment is obtained in favour of the property owner, enforcement may be challenging. Local authorities may face resource constraints or be reluctant to enforce eviction orders, leading to further delays.

Tenant rights awareness and activism may pose challenges for property owners, especially if tenants are well informed about their rights and are willing to contest eviction orders and there are instances of corruption within the legal system which have been identified to impede the fair and efficient resolution of property-related disputes as bribery or other unethical practices may affect the outcome of litigation.

Again, economic downturns or financial challenges faced by tenants can impact their ability to pay rent necessitating that evicting them during such times may be met with resistance and legal obstacles.

However, realizing the complexity of a legal process, the associated costs and at times, the long process involved, parties are always advised to first pursue alternative resolution mechanisms where the issues are resolved amicably outside of the court through mediation and arbitration.

In some cases, negotiating with the tenant before resorting to legal action can sometimes lead to mutually agreeable solutions, such as a revised payment plan or voluntary withdrawal from the premises.

Before proceeding with any of these recovery models, property owners have the responsibility to keep abreast of any changes in property and tenancy laws in Nigeria, particularly in their immediate states and locations to ensure compliance with legal requirements throughout the recovery process.

Seeking advice from legal professionals or property management experts to navigate the legal landscape effectively is also recommended as it has become crucial for property owners and managers to approach the recovery of premises with a clear understanding of the legal framework, adherence to due process, and consideration for the rights of both the landlords and tenants. Legal advice and documentation are critical elements in ensuring a smooth and lawful recovery process.

Presuming that this method may take time and may not even be successful, thereby leading to the continuation of legal proceedings as property managers may face challenges in assessing and mitigating the risks of tenant default, screening tenants effectively before leasing properties can help reduce the likelihood of disputes.

Property managers may go the extra mileage to sieve through the backgrounds of the prospective tenants viz-a-viz their job and income record, criminal and moral ethics, if necessary to guarantee that such the occupant is responsible and peaceful.

Litigation and eviction processes can attract public attention and may negatively impact the reputation of property owners or management companies, even if they are in the right while frequent changes in property and tenancy laws can create uncertainty and may require property managers to constantly update their practices to remain compliant.

To address these challenges, property managers in Nigeria should prioritize thorough and well-drafted lease agreements, stay informed about relevant legal developments, consider alternative dispute resolution mechanisms, and work with legal professionals experienced in property law to drastically reduce risks and hurdles to recovering premises.

Additionally, proactive, and preventive measures, such as effective tenant screening and communication, will largely help minimize the risk of disputes and litigation in an attempt to ease out defaulting tenants.

* Esv Ajala (ANIVS RSV), an Estate Surveyor and Valuer, wrote from Abuja.


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