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CHAPTER ONE
1.1 INTRODUCTION
1.2 BACKGROUND OF STUDY
Real estate has continued to play a significant role in man’s evolution. It is not a coincidence that food, shelter and clothing believed to be the three essentials that sustain mankind, also have some linkage to land. Food grows out of land while shelter is affixed to it, and man’s clothing is made largely from what grows out of land. Indeed, whether in ancient times or today’s modern system land constitutes a significant index for man’s wealth and as economic activities have assumed more sophistication over time, land has continued to play a central role in their development. There is hardly any business venture that does not require to be supported by some form of real estate or estate management, from the small business that requires real estate as offices from where its business can be organized, to the major venture that needs it for its factory. Economics and management studies have long established that production is dependent on four factors, out of which land is one, along with labour, capital and entrepreneur. It therefore simply stands to reason that to be true to his professional responsibility every commercial/business lawyer ought to have a proper grasp of estate management practice or real estate law. The client needs advise on this in one form or the other, for land.
Elementary economics teaches us that where there is a lot of demand, prices are bound to go up. What has further complicated the graph is the fact that, although a natural endowment, land is not finite. It accounts for only 20% of the whole surface of the earth. Consequently, against this backdrop major economics, through some very robust and well thought out land policies comprehensively address challenges they encounter in the real estate sector. This is not exactly our situation here in Nigeria and the result is that there is a myriad of problems in our real estate sector. Only very recently the minister of the federal capital territory announced the withdrawal of certificates of occupancy in the federal capital territory. Whether for good or bad, this is not intended have to pass judgment over this ministerial pronouncement. Rather, the aim is to draw attention to, and highlight some of the problems that are encountered in our estate management sector. In the course of this paper, the phrases “real estate”, “estate management” and “land” will be used interchangeably. After all, although not exactly synonymous, yet in its connotations, real estate means some connection to land.
The study, computer application in estate management practice in Nigeria, will be restricted to the real estate practice profession. Estate management is the direction and supervision of an interest in landed property. Landed property in this context includes real estate, which connotes property that is not moveable, such property includes land, building, structures, and river basin etc. computer evolved from the ancient use of counting with sticks, the use of the abacus, calculators and later, other form of electric computer. This project however be concerned with modern computer with such applications as the micro processor, e-mail, internet. The study covers such estate management function as property search etc.
1.3 STATEMENT OF PROBLEM
Estate management exists for the purpose of achieving certain goals and objectives, we therefore to know? What role computer plays in real estate practice? What are the benefits of computers applications in real estate practice in Nigeria? What is/are the relationship between computer application and real estate practice?
1.4 SIGNIFICANCE OF STUDY
The purpose of this study is to examine the contributions, the application of computers in the estate management profession we have on real estate practices it is proper to accept that real estate will climb to a height with judicious and effective use of the computer. Hence, this study is committed to accept that real estate will climb to a height with judicious and effectives to examine the following-
Whether firms where computers are deployed enjoy greater satisfaction by way of increase of property sales, letting, purchases. To know whether with the use of computer, if time, money is conserved and efficiency are actually in property market transaction. To know what stage in property market, computers can be used.
1.4.1 OBJECTIVE OF THE STUDY
It has been discovered over the years that in the property market (real estate) many have not availed themselves of the opportunity the computer offers. Besides, only very few people dare to investigate into this amorally. This is why this study is to bridge the gap and create more awareness and adaptability into the use and sustenance of computer application in real estate. Will in no small measure enhance the efficiency of service to customers and the role to the entire society.
1.5 SCOPE OF STUDY
This study shall deal with the application of computer in real estate in the property market. It will cover the concept of computer, area of computer in real estate, different area of real estate practice will be highlighted and we shall know the percentage of real estate firm who make use of computer and how they carry out their function using the computer.
1.6 LIMITATION AND DELIMITATION OF THE STUDY
Real estate types can be categorized as follows-
i. Agriculture real estate: These are used for the cultivation of crops and rearing of animals, example, farm land, farm houses, rancher, orchard etc. These factors that may affect the value of agricultural properties are.
a. Availability of nearby market where the farm produces will be disposed off.
b. The topography of the land and climate of the district
c. The size of the holding. Generally a smaller farm will yield a high next per hectare than a large one.
d. National features such as types and condition of the soil, level of the water table, and the type or condition of hedges.
e. The condition of fences and approach roads and efficiency of land drainage.
f. Availability of services such as water supply to the main drainage and electricity to farm building.
ii. Industrial real estate: In this category are every class of property primarily used for the production of goods and service, example factories and warehouse. Location in relation to transport system availability of labour, market, and raw materials are important factors including-
a. Construction condition and facilities of the building example car parking etc.
b. The general layout of the buildings. The building should have good facilities for delivery and dispatch of goods, storage and handling.
c. Provision of facilities for employees such as car parking, canters and social areas (e.g. bars and games centre)
iii. Residential real estate: They are classes of building that provide living accommodations for people. They include living flats, duplex, missonatte, bungalows, detached house, tenement building etc. They can be found in urban and rural areas, some of those properties which are found in urban slums and in some rural settings constitute the poorest living conditions because they lack modern amenities. Consequently, they are subject to create control by the government especially in urban center.
iv. Commercial real estate: They are let or develop purely for commercial purpose and their value depends on their locations rather than on the building or on the lease. Hence, the properties which are located in the center of cities or towns are regarded as very secure investment with evidence of capital appreciation. The management involve little difficulty because the business tenants meet their obligations.
Nevertheless, decline in the economic values of central areas and consequent charges in the transport system often off-set the locational value of commercial properties. Commercial properties comprise a lot of shops and department stores, petrol and service garage market and market stores, trade fair, site etc.
v. Recreation real estate: For example, amusement parks, relaxation spots and old spaces, tourist centers, hotels, game reserves, clubs and museums. Their attributes affect values through facilities provided, size etc.
vi. Special real estate: The special properties are variety of properties whose income depends wholly on the use and efficiency of their business management some of those properties such as that provide boarding facilities have speculative income while others such as entertainment properties have fluctuating income due to ragged in their functions. They composed of hotels, restaurants, public premises, theatres, finished apartment and other specialized apartment.
1.7 DEFINITION OF TERMS
Property: This include real property i.e land, building, estate. It is the bundle of rights and benefits derived from something owned to the exclusion of all other persons.
Market: A network of dealing in any factor or product between buying and selling.
Computer: A device or calculating machine which caries out a wide variety of operations under the control of a set of instructions (called programs) stored in its memory.
Estate: A legal entity denoting the character and quality of lights that an owner posses in a landed property.
Management: The science of organization and operations or at the practice level, act of directing and conducting affairs.
Software: Any program or group of instructions, which can be used to control a computer and its associated hardware to carry out tasks.
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