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EXAMINATION OF THE NATURE OF HOUSING IN NIGERIA

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CHAPTER TWO

LITERATURE REVIEW

INTRODUCTION

Housing as an essential need to man is classified into five (5) broad categories to include residential commercial industrial agricultural and special properties all of which increase in value and remain one of the best types of security for loans in Nigeria. Housing has several distinguishing feature which are considered by financing institution in financing. These are heterogeneity, indivisibility of supply cost of transfer, special problem of arrangement, special risk perpetuity imperfect knowledge, decentralized market government intervention and ability to create interest. These attributes makes financing institutions to protect their interest at the expenses of the developers. The developers on the others hands often have to take risk especially from its inelasticity of supply and government regulating finance is the process of obtaining funs or capital general for the purpose of supporting a development or investment by giving control over assets. Mortgage is of several types based on security and repayment currently. There are two types of mortgage arrangement in Nigeria. These are legal mortgage and equitable mortgage. Legal mortgage pertains to a deeds executed a borrower (mortgage). Changing the titter to land deposited as security to be held by the lender (mortgage). Unit the loan is filly repaid. The advantage of legal mortgage is that, mortgage can transfer in interest. (legal title ) as the case of auction of instance without resources is the count, with equitable the mortgage has no legal estate or interest.

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EXAMINATION OF THE NATURE OF HOUSING IN NIGERIA
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