Real estate agent transaction

DEDICATION
I dedicate this work to Almighty God, the most high, the beginning and the end, the creator of heaven and earth, who made it possible and see me through the period of my I T and also to my beloved brother who make it a duty to finance my education, not only did I say thank you but I am forever indebted to you.

ACKNOWLEDGEMENT
I am deeply grateful to God almighty for his grace love protection mercy provision kindness and salvation over my life during the period of my Industrial Training. I want to acknowledge the effort of Mr. Jide Isaiah Babatunde and the entire staff and management of Babatunde and co for the love, care, support and privileged given to me during my Industrial Training. I want to acknowledge the pains-taking effort of my brother, family and finally, my sincere thanks go to all my friends and classmates for their love, encouragement and motivation. And to all members of Ushering Unit Fellowship of Christian Students FUT. Minna, thank you for your prayers. I wish you all the best things of life.

CHAPTER ONE

1.0 INTRODUCTION
The acronym SIWES means Student Industrial Work Experience Scheme. It is a skill training programme. It was established in the year 1973 to solve the problem of lack of adequate practical skill preparatory for employment in industries by Nigeria graduate of tertiary institution. The skill exposes students to industry-based skills necessary for the smooth transition from class room to the world of work. It also avoids the student the opportunity to familiarize themselves with the needed experience in handling equipment and machinery that are usually not available in their institutions. It is funded by the Industrial Training Fund (ITF) under decree 47 of 1971 in Nigeria. The Student Industrial Work Experience was solely funded by ITF during its formative years. The federal government handed over the scheme in 1979 to both the university commission (NUC) and the National Board of Technical Education (NBTE). Later the federal government reverted the management and implementation of the SIWES programme to ITF in July 1985 with the funding being borne by the federal government. The student Industrial Work Experience Scheme (SIWES) is known to all tertiary institution at various stages.

At the federal University of Technology where I am a student it is mandatory that all 400 level students of various faculty such as Environmental, Engineering, Agriculture e.t.c must proceed on a compulsory SIWES programme which usually last for either six (6) month or one (1) year depending on the faculty to which one belong, as it for part of the requirement of the award of Bachelor of Technology (B Tech) certificate in all Nigerian Universities and related citadels. The program commenced on 24th April 2013 and ended 31st October 2013. The programme has done a lot of good to the private sector, public sector, labour market and the country at large all of which are benefiting from the programme. AIM AND OBJECTIVES OF STUDENT INDUSTRIAL WORK EXPERIENCE SCHEME The aim of Student Industrial Work Experience Scheme (SIWES) is an effort to bridge the gap existing between theory and practical. OBJECTIVES

To enable student have practical knowledge of what has been taught theoretically in school and apply theoretical knowledge in real work and actual practices To enable student know the scope and the depth of their profession To help student developed a sense of goal, human relation as they will meet and interact with different type of people To expose student to the much- needed relevant professional experience in their chose of career To assess student interest and the suitability for their chosen career. And prepare student for the work situation they are likely to meet after graduation

CHAPTER TWO

THE FIRM
Babatunde and Company an astute firm of Estate Surveyor and Valuer is a fully registered estate firm by the Nigeria Institutes of Estate surveyors and valuer of Nigeria (NIESV) and the Estate Surveyors and Valuer Registration Board of Nigeria (ESVARBON) to practices real estate profession in Nigeria. The firm was established on the 1st of October, 1984 in Minna, Niger State, with other branch in Abuja and Lagos. The firm is owned by Mr. Isaiah Jide Babatunde FNIV, RSV, M.Sc, and PhD (In view). He has over 27 years of professional practice in Estate Management, which he generously share with his staff, I T students and other interested associates during the weekly meeting on Monday and in other interaction with him. The principal partner Mr. Jide Babatunde has earlier begin his professional practice with the firm of Alagbe and partners as a corper in the early 1980’s upon graduation from the university of Nigeria Usuka in the year1986. The firm is presently located at No.1 Ebitu Ukwe Road, Sanbel House along Bosso road Minna. The office in Minna is the main office, although the firm has a branch office in Abuja located at Citec Estate and in Lagos located at no 62, Faolu Road.

The firm holds management meeting every Monday between the hour of 10am to 12 noon, this is where the managing partner and the staff meet to discuss issues relating to all the department in the firm, ideas and experience are share during this meeting and also duties are assign and reassign to staffs. The management has a team which comprises of best minds with combine experiences together for the smooth running of the firm. The real estate group has experience valuer who are associate members of the Nigeria Institutes of Estate Surveyors and Valuer (NIESV) and the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON). Babatunde and Company offer the following services;

Valuation of property, Plant and Machinery
Feasibility Appraisal of Property Development
Letting and Sales of Property
Property and facility Management
G.I.S/Land Administration Consultancy
The various departments in the firm include;
Administration
Valuation department
Agency department
Property and Facility management department
Finance/Account department

Administrative department: this department consists of general office management, office supplies, human resources management, file management, co-ordination of receipt and dispatch of letter, etc. it is also concerned with welfare of the staffs. Valuation department: this department is concern with the valuation of all types of property it might be for financial purpose and transactions, insurance and taxation in respect of plant and machinery, and chattels. Agency department: this department is concern with letting and leasing of property, sales and purchase of land and landed property for and on behalf of the client. Property and facility management department: it involved maintenance and management of property, letting, leasing, management of facilities. Finance /Account department: the department is concerned with the inflow and out flow of cash in the firm, how money is properly remitted to the landlord’s account and proper recording and documentation of account record. BABATUNDE AND COMPANY ORGANISATION CHART

OBJECTIVES OF THE FIRM
The mission statement and/or philosophy of the firm:
“To be an outstanding firm of Estate Surveyors
And valuers in the delivery of service to client”

CHAPTER THREE

GENERAL EXPERIENCE AT BABATUNDE AND COMPANY
I resumed my Industrial Training on the 24th of April, 2013, on that day the principal partner ask me if I will be of good conduct, keep to rules and regulations guiding the office and above all if I will be punctual and hardworking which I replied yes and immediately handed over the valuation and asset register of Zion Baptist church located at Yoruba road Minna to me and introduces me to all the staff in the firm. I gained wealth of experience during my SIWES programme at Babatunde and co. the experience cut across every area of life and also in the area of my field of study. During my stay with the company I was actively involved in most of the activities that took place in the firm. I also had the opportunity of studying documents, files, paper of transaction, property management files and other files that serve as references, which were kept in the office cabinet. In the firm of Babatunde and co. as an I T student you are by default a member of the entire department in the firm. My experience can briefly be discuss under the following subheading:

1.0ESTATE AGENCY

Estate agency is not only being practices by the estate surveyors and valuer as presume it to be , agency market is so polluted, in other word estate agency is that aspect of Estate Management that is opened to touting. Part of the experience I had in the in–house of Babatunde and co. also came under Estate Agency.

a. Letter of instructions: The first thing in Estate Agency is the letter of instruction on a property either for sale or for letting form the owner of a property, after an instruction to let or sell is received from the owner the next thing is to inspect the property to know the location and the condition of the building or land as the case may be so as to fix the rent or price after which the property is included in the firm property bulleting.

b. Installation of letting or for sale board: Installation of either to let or sale boards is a form of advert informing passersby of vacancy or disposal intention. It is based on instruction, which has been confirmed, that is with the authorization to do so. To let or for sale signs are to notify all the interested buyers of whom to contacts for enquiries on the property mounted with these signs or board. Practically, the boards are normally mounted on the property until it is let to the client or sold as the case may be, when the property is sold or let the board is removed so as to let other know that the property is no longer in the market and to forestall misunderstanding between the parties.

c. Preparation of property bulleting: Property bulleting is the list of available property to be let or sold. I prepare property bulleting routinely and update accordingly. This property bulleting is useful when people come to our firm and are demanding for property to be let or sold, then we present them with the bulleting which contain all the property we have in our letting/sale portfolio.

d. Inspection: Inspection comes after a client has gone through the property bulleting and receives all necessary information regarding the property and assesses if the property meets his/her needs and decided that he/she may want to see the property physically. I was opportune to take clients round on a good number of inspections at different locations.

e. Preparation of letter of offer: A letter of offer states categorically the conditions and terms under which a property is to be let or disposed. Letters of offer were normally prepared for properties that prospective tenants have expressed interest. Letters of offer are the official letters that stand as preliminary basis of negotiation between the agent and the client. Once this is accepted by the client the other procedure of contract begins.

f. Professional fees on agency: This is normally included in the offer letter. I learnt that the professional fees on agency is 10% { 5% for the buyer and 5% from the seller}in case of sale and the case of letting 5% from the tenant and also 5% from the landlord.

1.1PROPERTY MANAGEMENT
Property management can be define as all the numerous activities carried out on a property at varying times including the supervision and controlling of resources to preserve the useful life of the property, keeping it in state to meet the objectives of the initial investment. Management is one of the most difficult tasks in Estate Management this is because it includes the management of property itself, human being and as well as issues and situations. I was privileged to learn some basic rudiment of property management during my period of Industrial attachment.

1. Selections of tenants: screening of tenant is base on several factors such as: use of the building, occupation of the intended tenant, compatibility of tenants, level of income of the intended tenant e.t.c. A form call tenant bio-data can also be use for this purpose.

2. Preparation of offer letter: After a client as shown interest in a property and offer letter is given stating the condition and terms at which the property is to be let and is accepted by the intended tenant then other documentation begins.

3. Preparation of lease agreement: After the completion of letting {i.e the tenant as paid} under management the lease agreement would be prepared wherein all the covenants, which are to be observed by both the lessor {landlord} and the lessee {tenant} is stated. Two copies of this document is produced one is duly signed by the tenant; a copy is kept with the tenant and the other copy that is sign is kept with the agent representing the landlord for record purpose

4. Preparation of schedule of furniture and fittings: This encompasses all the furniture and fitting in the property, before possession of property is handed over to a tenant, the schedule of furniture and fitting is taken by the agent. The agent and the tenant conform these fittings to be in proper condition, a copy of this is sign by the tenant to conform the acknowledgement and remain with the agent while the other copy is with the tenant. If there is any damage at the end of the lease period, the tenant or his/her guarantor will take care of such damages or any debt owned.

5. Correspondences: These are replies to letters from different tenants and landlord about any problem encounter in the property. Some tenant may complain about electricity, water, repairs, arm robbery, roof leakage e.t.c while landlord may complain about non-payment or late of rent/bills, the use or attitude of the tenant towards the property e.t.c

6. Preparation of notice to quit: A letter of notice to quit a property is prepared and sent to a tenant if after all measures as being taken to make the tenant pay his/her rent and is refuses or if the landlord is in need of the property for other purpose.

7. Preparation of rent reminder: Before the expiration of the lease, it is necessary to issue reminder notices to the tenants in order to notify him/her the time the next rent is payable.

1.2VALUATION

During my period of industrial training I gained invaluable experience in this important aspect of estate management, I was privileged to be involved in carrying out some valuation for different purposes. Normally when a client approach the firm for valuation, the question we normally ask the client is the purpose to which the valuation is to be carried out. The aspect of valuation I was involved in are listed below:

1. Valuation for sale
2. Valuation for mortgage
3. Valuation for C of O
4. Valuation for rental value
5. Valuation for recovery of bad debt
6. Valuation and assets register
1.3OFFICE ADMINISTRATION
In the course of my training, I was introduced to some basis and important aspects of an estate surveyor and valuers firm, which form the day to day activities of the firm. At Babatunde and co, I was exposed to a lot of experience as related to the management of an estate firm in an acceptable standard expected of a professional. I also learnt how to channel the available resources, human and non-human to achieve the expected outcome favorable. The daily job responsibilities are stated below:

a. Record keeping
b. Opening of new files and recording them in the file register c. Retrieving files that had to be work upon and refilling them back to the file cabinet. d. Making photocopies of office document.
e. Filling documentation.

1.4FINANCE/ACCOUNT DEPARTMENT
In the course of my training, I also learnt part of estate accounting. In Babatunde and co where I did my training all the 10% from property management goes to the company second account, this is use for the payment of salaries of staff. While money from the valuation and agency goes to the company first account. Every week there is an impress release; this is use for the smooth running of the firm. When a tenant pays his/her rent, after the deduction of the 5%, it is either remitted to the landlord in cash or through his/her bank account. If it is remitted by cash, it is normally accomplished by two copies of letter of remittance, of which one copy is signed and return to the agent while the other remain with the landlord. And if it is remitted through bank account the teller number is recorded in the firm record and account book and the teller is kept in the cabinet for future purpose. The administrative aspect of estate firm is very important and thus should be properly managed for the sake of accountability and preservation of the reputation of the firm.

CHAPTER FOUR

GENERAL REVIEW
The experience I gained during the course of my training with Babatunde and co. is totally invaluable, this is due to the understanding and knowledge I gained in my field of study, because in himself Mr. Jide Babatunde is a wealth of experience and knowledge when it comes to estate management.
PROBLEM AND DIFFICULTIES ENCOUNTERED

Estate agency
Some landlord are difficult to convince on the letting of their properties most would not permit the display of boards on their property for reasons of prestige Some clients were difficult to please as they could not make a choice out of all the good numbers of properties because they had a very high standard and taste and no property could satisfy them.

Property Management

Tenant complain about the services rendered being poor and yet will not comply with the payment of rent on time Tenants not adhering to their covenant especially when it comes to the payment of electricity bills Landlords not adhering to their lease covenants where it is their obligation.

Valuation
Some client especially in valuation for mortgage will want the opinion of value to suit their desire and there by dictating the amount the valuer will put as the opinion of value In some case when the client ask for the opinion of value and you tell him/her, they might not come back for the valuation report, and effort and resource is wasted General office administration

Here, some difficulties encounter includes:
Being sent to bank for lodgment, I have to stand the risk of carrying huge amount of money and also stand for hours in the banking hall some times throughout the whole day from one bank to the other. I often get too involved in office work that I sometimes can’t go out on field work. Over work sometimes and this make me get home sometimes around 8pm, 9pm.

CHAPTER FIVE

SUMMARY
In summary the need for SIWES cannot be over-emphasized from the need earlier mentioned. It has brought me into close terms with the profession of estate management. This report has been complied to highlight the training I received through the course of my industrial attachment.

RECOMMENDATION

Industrial training attachment program can be more effective if the department of estate management follow up these steps to improve the program:

1. Thorough supervision by the visiting supervisors from the school during the program.

2. Make sure that students are attached to or placed in good organizations or companies for the period of the program.

3. Re-orient the attaches to realize that the monetary benefit is secondary in the actual scheme of the program.

4. I would like to appeal to the federal government to ensure that there is prompt payment of bonus to SIWES students as this will spur them to put more commitment to their training

CONCLUSION
I say that I was able to achieve the aim and objectives of the programme by acquiring more practical knowledge by been involved in executing jobs at Babatunde and co. Industrial training in Babatunde and co.was very successful program. I really appreciate and enjoy my stay in the company as I enjoy the attention and co operation of the entire staff of the company.

Mr. ….,
Farm Centre,
Tunga Minna Niger State.
Dear Sir,
NOTICE OF ASSUMPTION OF MANAGEMENT OF THE EMPTY PLOT YOU ARE OCCUPYING AT FARM CENTRE TUNGA MINNA NIGER STATE.

1. The above captioned subject refers.
2. We write to inform you that your landlord has appointed us, Babatunde & Co. Minna as the management surveyors of the property you are occupying at Farm Centre Tunga Minna Niger State.
3. He has informed us in respect of your tenancy as follows.
4. You are therefore, henceforth to direct all correspondences, payments and complaints to us, Babatunde & Co., Sanbell House beside Gwari Motors Ltd Bosso Road Minna.
5. We look forward to having a cordial relationship with you. Yours faithfully,