Introduction
Buying land in Nigeria can be a significant investment, but it also carries substantial legal and financial risks if proper investigations are not carried out before payment is made. A seller may appear to have valid documents and still lack the legal right to transfer the interest being offered. The land may also be subject to an existing mortgage, government acquisition, litigation, family or communal claims, planning restrictions, or another competing interest.
For this reason, a prospective purchaser should carry out proper due diligence before paying for land. The precise procedure may differ from one state to another, depending on the land administration system and the location of the property.
1. Obtain and Review the Seller’s Title Documents
The first step is to ask the seller for the documents upon which the seller’s claim to the land is based. These documents may include a Certificate of Occupancy, Right of Occupancy, Deed of Assignment, Power of Attorney, Deed of Conveyance, Deed of Gift, Letter of Allocation, vesting documents, probate documents or other documents showing how the seller acquired the interest in the land.
Do not assume that the existence of a Certificate of Occupancy automatically proves that the seller has an absolute or unchallengeable title. A Certificate of Occupancy is evidence of the grant of a right of occupancy, but it may not resolve questions concerning a prior or competing interest in the land. The history and root of the seller’s title should therefore be investigated.
Documents to request may include:
- Certificate of Occupancy or other evidence of title;
- Deed of Assignment, Conveyance, Gift or other instrument by which the seller acquired the land;
- Evidence of Governor’s Consent or other required consent to previous transfers;
- Survey plan or other approved survey information;
- Receipts and other documents connected with the acquisition of the property;
- Probate, Letters of Administration or other estate documents where the land forms part of a deceased person’s estate; and
- Corporate documents where the seller is a company or other corporate body.
2. Conduct a Search at the Appropriate Land Registry or Land Administration Authority
A search should be conducted at the appropriate Land Registry or land administration authority in the state or territory where the property is located. The purpose is to investigate the interest registered against the land and to determine whether the seller’s documents correspond with the official records.
The search may help reveal important information, including:
- Ownership and Title: Whether the records support the seller’s claim to the interest being offered for sale;
- Encumbrances: Whether there are registered mortgages, charges, liens, restrictions or other interests affecting the property;
- Previous Transactions: Whether the property has previously been assigned, transferred or otherwise dealt with;
- Consent and Registration: Whether relevant instruments affecting the land were properly consented to and registered where required; and
- Other Relevant Records: Whether the official records reveal issues that require further investigation.
A Land Registry search is an important part of due diligence, but it should not ordinarily be the only investigation carried out. A purchaser should also investigate the physical land, the survey information and the seller’s root of title.
3. Verify the Survey Plan and the Identity of the Land
A purchaser should obtain the survey plan relating to the property and ensure that the land being shown on the documents is the same land being offered for sale on the ground.
This step is particularly important because land descriptions, boundaries and physical representations can sometimes be misleading. The survey information should be reviewed by an appropriately qualified and registered survey professional, and relevant survey or geospatial records should be checked with the appropriate authority where necessary.
In the Federal Capital Territory, for example, the Abuja Geographic Information Systemsprovides survey and geospatial services and is an official source of geospatial and land-record information for the FCT.
4. Check Whether the Land Is Subject to Government Acquisition or Other Public Restrictions
A prospective purchaser should investigate whether the land is affected by government acquisition, revocation, public purpose, road schemes, utility corridors, urban renewal schemes or other restrictions that may affect the purchaser’s ability to use or retain the land.
The appropriate office for this investigation depends on the state or territory in which the land is located. Relevant enquiries may need to be made with the land administration authority, survey authority, planning authority or another government agency responsible for the particular land or development scheme.
Do not rely solely on a verbal assurance from the seller or an informal statement from an agent that the land is free from government acquisition. Where this issue is relevant, obtain appropriate documentary confirmation through the proper government channels.
5. Check Planning, Zoning and Development Restrictions
Before purchasing land for development, investigate whether the proposed use of the land is permitted. A purchaser intending to construct residential, commercial, industrial or other developments should check the applicable planning and development-control requirements.
Relevant questions may include:
- What is the approved use of the land?
- Is the proposed development compatible with the applicable planning requirements?
- Are there building setbacks, height restrictions or other development limitations?
- Does the proposed development require planning approval or other permits?
- Is the land affected by a proposed road, public infrastructure project or other development scheme?
Purchasing land without investigating planning restrictions can result in a situation where the purchaser owns or claims an interest in land but cannot lawfully carry out the intended development.
6. Inspect the Land Physically
A physical inspection is essential. Documents alone may not reveal whether another person is occupying the land or asserting a competing interest.
During the inspection, consider checking:
- Whether the land corresponds with the description and survey information supplied by the seller;
- Whether the boundaries and beacons can be identified;
- Whether another person is in possession of the land;
- Whether there are buildings, tenants, occupants or other physical interests affecting the property;
- Whether neighbouring owners recognise the seller’s claim to the land; and
- Whether there are visible signs of a dispute or competing claim.
Physical possession by another person should not be ignored. It may require further legal investigation before the transaction proceeds.
7. Investigate Family, Communal and Traditional Claims Where Relevant
In some parts of Nigeria, land may have been historically owned by a family, community or other traditional group. A person presenting himself or herself as the seller may not necessarily have the authority to transfer the land without the participation or consent of other persons.
Where the circumstances suggest family or communal ownership, further enquiries should be made to determine:
- Who has the legal authority to sell or transfer the interest;
- Whether the necessary family or community representatives have participated in the transaction;
- Whether there are internal disputes concerning the land; and
- Whether another person or group is asserting a competing claim.
Information obtained from community members may be useful as part of due diligence, but it should not replace documentary investigations and professional legal advice.
8. Investigate Whether There Is Any Pending Litigation or Dispute
Ask the seller whether the land is involved in any court case, arbitration, family dispute, boundary dispute or other legal proceeding. Where appropriate, further searches and enquiries should be made to investigate whether litigation or other disputes may affect the land.
A purchaser who proceeds despite an existing dispute may become involved in expensive and lengthy litigation. It is generally better to identify and assess a dispute before completing the purchase.
9. Confirm the Seller’s Capacity and Authority to Sell
In addition to investigating the land itself, the purchaser should verify that the person signing the transaction documents has the legal authority to transfer the interest.
This is particularly important where the seller is:
- a company;
- an attorney acting under a Power of Attorney;
- an executor or administrator of a deceased person’s estate;
- a representative of a family or community; or
- a person claiming authority to act on behalf of another owner.
Appropriate corporate records, probate documents, Powers of Attorney and other evidence of authority should be reviewed before the transaction is completed.
10. Have the Transaction Documents Prepared or Reviewed by a Lawyer
A land transaction involves more than paying money and collecting a document. The purchaser’s lawyer should investigate the title, review the terms of the transaction and ensure that the appropriate transfer documents are prepared and executed.
Depending on the transaction, the lawyer may assist with:
- investigating the seller’s title and root of title;
- conducting searches at the appropriate government offices;
- reviewing the survey information and title documents;
- identifying encumbrances and competing interests;
- preparing or reviewing the Deed of Assignment or other transaction documents;
- advising on any consent required for the transaction;
- arranging stamping and registration where applicable; and
- ensuring that completion is structured to protect the purchaser’s interests.
Professional legal advice should ideally be obtained before the purchaser makes substantial payment or signs binding documents.
11. Understand the Requirement for Consent to Transfers of Certain Interests
Under the Land Use Act, transactions involving certain rights of occupancy and interests in land may require the consent of the appropriate authority before the transaction can be validly perfected. In particular circumstances, consent may be required for the assignment, mortgage, transfer of possession, sublease or other alienation of a statutory right of occupancy.
The exact procedure and authority involved can depend on the nature of the land and the interest being transferred. A purchaser should therefore obtain legal advice on whether Governor’s Consent, Local Government consent or another approval is required in the particular transaction.
Important: A purchaser should not assume that obtaining a new Certificate of Occupancy is the automatic next step after every land purchase. The appropriate post-transaction process depends on the existing title, the nature of the transaction and the applicable land administration procedure.
12. Do Not Pay the Full Purchase Price Before Proper Due Diligence Is Completed
One of the most important practical precautions is to avoid rushing into full payment before the necessary investigations have been completed.
Where a deposit or initial payment is necessary, the terms should be properly documented. The parties should clearly understand what will happen if the title investigation reveals a serious defect or if the seller cannot satisfy the agreed conditions for completion.
A Practical Land Purchase Checklist
- Obtain the seller’s title documents.
- Investigate the root of the seller’s title.
- Conduct a search at the appropriate Land Registry or land administration authority.
- Verify the survey information and ensure that it corresponds with the physical land.
- Inspect the property physically.
- Investigate possible government acquisition or other public restrictions.
- Check planning and development restrictions.
- Investigate family, communal or traditional claims where relevant.
- Check for litigation, disputes and competing claims.
- Verify the seller’s identity, capacity and authority to sell.
- Have the transaction documents prepared or reviewed by a lawyer.
- Confirm the consent, stamping and registration requirements applicable to the transaction.
Conclusion
Buying land in Nigeria should not be treated as a transaction that can be completed safely merely by inspecting a document and making payment. Proper due diligence requires an investigation of the seller’s title, the official land records, the survey information, the physical property and any legal or regulatory restrictions affecting the land.
The most important objective is to identify problems before completing the transaction. A careful investigation may reveal defects that are not obvious from the documents initially presented by the seller and can help a purchaser make an informed decision before committing substantial funds.
Key Legal and Official References
- Land Use Act, Cap. L5, Laws of the Federation of Nigeria 2004, including provisions relating to rights of occupancy, alienation and revocation.
- Surveyors Council of Nigeria (SURCON), the statutory body responsible for regulating and controlling the practice of the surveying profession in Nigeria.
- Applicable State Land Registry and Land Administration Laws and Procedures, which may differ according to the location of the land.
- Applicable Planning and Development Control Laws, including relevant state and FCT planning requirements.
- Abuja Geographic Information Systems (AGIS), for relevant property search, legal search, land-record and geospatial services concerning land in the Federal Capital Territory.
Legal Disclaimer
This article is provided for general informational purposes only and does not constitute legal advice. Land laws, land administration procedures, registration requirements and planning regulations may differ depending on the state or territory in which the property is located and may change from time to time.
The information in this article should not be relied upon as a substitute for a proper investigation of a specific property. Before purchasing land or making payment in respect of a land transaction, you should consult a qualified legal practitioner and, where appropriate, other qualified professionals, including a registered surveyor.
No action should be taken solely on the basis of the information contained in this article without obtaining professional advice in relation to the particular facts and documents involved in the proposed transaction.
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