Introduction
Buying land in Nigeria can be a profitable investment, but it also carries significant risks if proper checks are not carried out. Many people lose money in land transactions because they fail to verify the documents relating to the property before completing the purchase.
Before buying land, it is important to examine the relevant documents carefully to confirm ownership, ensure the land is free from encumbrances, and avoid future legal disputes.
You should also conduct a proper land search before purchasing propertyto verify the legal status of the land and confirm that the seller has the right to sell it.
Survey Plan
A survey plan shows the exact location, size, and boundaries of the land. It is usually prepared by a licensed surveyor and contains the coordinates of the property.
Before purchasing land, the survey plan should be verified to ensure that the land does not fall within an area under government acquisition or reserved for public use. The survey plan can also be used to conduct checks at the Surveyor-General’s office.
Right of Occupancy
Under Nigerian law, all land in a state or the FCT is vested in the Governor or the FCT Minister, who holds the land in trust for the people. Individuals and organizations therefore do not own land absolutely but are granted a Right of Occupancy to use and develop the land.
A Right of Occupancy may be either:
1. Statutory Right of Occupancy
This is granted by the Governor or the FCT Minister and is usually evidenced by a Certificate of Occupancy (C of O).
2. Customary Right of Occupancy
This is typically granted by a Local Government in rural areas and is often based on customary land ownership.
In Abuja and many urban areas in Nigeria, land transactions usually involve a statutory right of occupancy. Before purchasing land, it is important to verify that the seller has a valid right of occupancy and that the land has not been revoked by the government.
Certificate of Occupancy (C of O)
A Certificate of Occupancy is an official document issued by the government granting a person the right to occupy and use land for a specific period, usually ninety-nine years.
It is one of the most recognized documents used to prove title to land in Nigeria. Where land has a Certificate of Occupancy, it is important to verify its authenticity at the Land Registry.
Deed of Assignment
A Deed of Assignment is a legal document used to transfer ownership of land from the seller to the buyer. It contains important details such as the description of the property, the names of the parties, the purchase price, and the date of the transfer.
After purchasing land, the Deed of Assignment must be properly executed by the parties and registered at the appropriate Land Registry. Registration helps to formally record the transfer of ownership and protect the buyer’s interest in the land.
Power of Attorney
A Power of Attorney is a document that authorizes a person to act on behalf of another person in relation to property or other legal matters. In land transactions, it may authorize a person to sell, manage, or transfer land on behalf of the owner.
In Abuja and some other parts of Nigeria, Powers of Attorney relating to land are commonly registered at the Land Registry. Registration helps provide official notice that the person named in the document has authority to deal with the property.
Before purchasing land where a Power of Attorney is involved, it is important to verify that the document is genuine, properly executed, and registered where necessary. The buyer should also confirm that the person granting the Power of Attorney actually has valid title to the land.
Buyers should be cautious when dealing with land sold through a Power of Attorney and should ensure that proper legal advice is obtained before completing the transaction.
Governor’s Consent
Where land already has a Certificate of Occupancy, the transfer of ownership from one person to another requires the consent of the Governor under the Land Use Act.
Obtaining Governor’s Consent ensures that the transfer of the property is recognized by the government and properly recorded.
Excision and Gazette
In many parts of Nigeria, land originally belongs to communities or families and may fall within areas acquired by the government.
An excision shows that the government has officially released the land from acquisition. When the excision is published in an official government publication, it becomes a gazette.
Checking for an excision and gazette helps confirm that the land is legally available for private ownership.
Approved Building Plan
If the land already has a building on it or is located in a developed area, it is advisable to confirm that the building plan has been approved by the relevant town planning authority.
This ensures that the development complies with planning regulations and zoning laws.
Purchase Receipt
A purchase receipt serves as written evidence that payment has been made for the land. It usually contains the names of the parties, the description of the land, the amount paid, and the date of the transaction.
Although a receipt alone does not prove ownership, it is an important supporting document in land transactions.
Conducting a Proper Land Search
In addition to verifying land documents, it is also important to carry out a proper land search before completing any land transaction. A land search helps confirm ownership, reveal any encumbrances on the property, and determine whether the land is subject to government acquisition or legal disputes.
You can learn more about this process in our guide on how to conduct a proper land search in Nigeria before buying property.
Conclusion
Buying land without verifying the relevant documents can lead to serious legal and financial consequences. Conducting proper due diligence, verifying title documents, and carrying out a land search can help ensure that the transaction is safe and legally valid.
It is also advisable to consult a qualified lawyer who can review the documents and guide you through the process before completing the purchase.
Legal Disclaimer
This article is for general informational purposes only and does not constitute legal advice. Readers are advised to consult a qualified legal practitioner before making decisions relating to land or property transactions in Nigeria.
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