How to Obtain a REDAN Certificate in Nigeria: A Step-by-Step Guide
how to obtain REDAN certificate in Nigeria ,The Real Estate Developers Association of Nigeria (REDAN) is the principal body responsible for the inspection and certification of real estate developers in Nigeria. Membership with REDAN signifies adherence to high standards and best practices within the real estate sector. If you are a real estate developer aspiring to gain recognition and build credibility in Nigeria, obtaining a REDAN certificate is imperative.
This article provides a comprehensive guide on how to obtain this valuable certification, as well as a supplementary SCUML certificate.
REDAN Membership Eligibility Criteria
Membership in REDAN is not open to everyone without restriction. It is limited to specific legal and corporate structures that are actively engaged in real estate development. The eligible entities include:
- Limited Liability Companies: These are companies incorporated under the Companies and Allied Matters Act (CAMA) 1990. A limited liability company must demonstrate active involvement in real estate development to qualify for REDAN membership.
- Registered Societies: Cooperative societies and other registered associations that engage in real estate development activities are eligible for REDAN membership.
- Partnerships: Business partnerships that are legally registered and have real estate development as their core business objective can also apply for membership.
- Parastatals of State Governments: Public agencies or parastatals under state governments that are engaged in the business of real estate development are welcome to join REDAN.
The objective of the business for all corporate applicants must relate directly to housing and real estate development. This ensures that REDAN members are focused on the sector’s growth and adhere to industry standards and guidelines.
Category of Membership: Class and Status
- Full Member
- Status: Real Estate Developer
- Probation Member
- Status: Professionals, Young Graduates, Students, Interns, and others studying the Real Estate Value Chain
Full Membership Costs and Breakdown
Joining as a full member of REDAN entails certain fees that are crucial for ensuring the smooth operation and continuous development of the association. The payments required include:
- Application Fee: N10,000.00
The process of becoming a full member begins with an application fee of N10,000.00. This nominal fee covers the administrative costs associated with processing your membership application.
- Registration Fee: N100,000.00
Following the application fee, new members are required to pay a registration fee of N100,000.00. This is a one-time payment, applicable only to new members, and is used to facilitate the integration of new members into the association.
- Development Levy: N140,000.00
In order to support the ongoing development initiatives of the association, each new member is to pay a development levy of N140,000.00. This levy contributes to various projects and programs aimed at promoting the growth and sustainability of the real estate sector in Nigeria.
- Annual Subscription: N100,000.00
Finally, to maintain full membership status, an annual subscription fee of N100,000.00 is mandatory. This ensures continued access to the benefits and resources provided by REDAN.
When summed up, the total financial commitment for a new full member in their first year amounts to N350,000.00.
Summary of First-Year Costs for Full Membership
- Application Fee: N10,000.00
- Registration Fee: N100,000.00
- Development Levy: N140,000.00
- Annual Subscription: N100,000.00
- Total for First Year: N350,000.00
Probation Membership Costs
For those who may prefer to start with a probation membership, the financial requirements are more modest yet still ensure active involvement in the association’s activities.
Annual Registration & Subscription Fee: N50,000.00
A probation member is required to pay an annual combined registration and subscription fee of N50,000.00. While more affordable, this fee still grants access to numerous resources, networking opportunities, and events facilitated by REDAN.
Step 1: Understand the Requirements
Before you begin the application process, it is crucial to understand the requirements and the eligibility criteria set by REDAN. Some of the principal prerequisites include:
- Registration with the Corporate Affairs Commission (CAC): Ensuring that your company is legally registered with the CAC is a fundamental requirement.
- Track Record: Demonstrated experience in real estate development projects.
- On going project :The information will be veriied by your state or zonal ofice. It is important the correct project Sites are listed here.
- Organizational Structure: Availability of a defined organizational structure, including key management and technical staff.
Step 2: Assemble Necessary Documentation
Documentation is a critical aspect of your REDAN certification application. Below is a list of the essential documents you will need:
- Written Application on Company Letterhead paper using the format attached.
- Copy of Certiicate of Incorporation, Memorandum and articles of Association (Forms Co2 & Co7)
- Audited accounts for last three Years.
- Company Proile including organization structure showing the positions of directors, key personnel, their qualiications and functions.
- Project Brochures
- Bank reference/Letter of introduction
- Bank Cheque for Registration and subscription fees.
- Tax Clearance Certiicate
- Evidence of National Housing Fund contribution (in compliance with the NHF Act and National Housing Policy)
- Photo Identiication of Major Shareholders and Directors
- Execution of REDAN Membership Code of Conduct form
Step 3: Submit Your Application
Once you have gathered all the necessary documents, the next step is to submit your application to REDAN. It is advisable to:
- Visit the official REDAN website and download the relevant application form.
- Complete the form with accurate and up-to-date information.
- Attach the required documents as outlined above.
- Pay the stipulated application fee at the designated bank, with proof of payment attached to your application.
Step 4: Application Review and Inspection
Upon submitting your application, REDAN will undertake a thorough review process. This includes:
- Document Verification: Verification of all submitted documents to ensure authenticity and compliance.
- Site Inspection: Representatives from REDAN may conduct an on-site inspection of your current or past projects to assess compliance with industry standards.
Registration with REDAN is a precondition to registering with the Special Control Unit on Money Laundering (SCUML)
Step 5: Obtain REDAN Certification
If your application meets all the necessary criteria, you will be notified of your successful certification. You can then collect your REDAN certificate. This certificate not only cements your legitimacy in the real estate sector but also grants you access to numerous benefits including networking opportunities, professional development resources, and advocacy support.
Conclusion
Obtaining a REDAN certificate in Nigeria is a rigorous but rewarding process. The certification not only legitimizes your operations but also opens the door to numerous opportunities within the real estate sector.
Supplementing this with a SCUML certificate further ensures compliance with anti-money laundering regulations, enhancing your credibility and trustworthiness.
By following the steps outlined above meticulously, you can secure these important certifications and establish your company as a reputable player in Nigeria’s dynamic real estate market.
The content presented in this blog post is intended solely for informational purposes and should not be considered as legal advice. It is not a replacement for seeking guidance from a qualified legal professional regarding any specific issue. Readers are advised not to make any decisions solely based on the information provided in this post without consulting with a lawyer to address the unique circumstances of their situation.
