Every time stories and tales of complications in land transactions, whether it be land purchase, investment, sale or re-sale issues come up, there comes an even greater need to re-iterate the basic applicable and functional rules and principles of investing and playing in real estate waters in Nigeria. Sometimes it’s taken for granted even by intending investors and players themselves that this vast information is common knowledge, or people equip themselves with a surface, peripheral information as to how real estate in its entirety works, and what the rules of engagement are before entering real estate transactions. Therefore, the legal requirements to be aware of before buying land in Nigeria will be highlighted herein, as well as other key, related information.

Buying land in Nigeria is one of the common property law transactions, which is administered by various legislations depending on the jurisdiction in Nigeria. Conveyancing, as it is called, is the process by which ownership of land is transferred between a seller and a buyer. This can include both residential and commercial land transactions.

WHAT TO KNOW BEFORE BUYING LAND IN NIGERIA

A prospective purchaser of any property would have two major concerns. First, he must be absolutely certain that the vendor of the property is really entitled to sell it. Thus the buyer must first insist that the vendor proves that his title to the land is good and that he can pass to the purchaser the land/ property which he is offering to sell. Secondly, the purchaser will want to know whether any third parties have rights to the land which might interfere with his intended use of it. These third-party rights might include covenants restricting usage, a right of way, tree preservation order, or even mortgages. Concerns about these matters will lead the purchaser or his representatives, to make extensive enquiries before the purchase of the property is finally concluded.
There are however many factors one needs to consider before buying a land in Nigeria which range from:
• The size of the land,
• The soil type,
• The location of the land which is very key,
• The purpose which the land will be used for,
• Accessibility of such land i.e proximity to access road,
• The price of the land,
• The legal papers available in respect of the land,
• The environment, as well as the security conditions of the area, should be well evaluated before engaging in such a transaction.

In recognizing the above-mentioned factors, it is advisable to involve an expert who has the background, requisite knowledge and skills in this area of a property acquisition. Thus it is very important to have a lawyer who is grounded in property law practice before embarking on a land purchase. This is so because a lawyer would ensure you don’t run into legal troubles with land documents after purchase, and also by virtue of our enabling laws it is only a legal practitioner that is allowed to prepare legal documents (instruments) involved in these conveyance process which involves the transfer of interest from one person to another. Conversely, an easier way would be to engage the services of an experienced, and trusted real estate investment stop, who will serve as your one stop shop in handling all due diligence required to facilitate a valid, authentic land purchase from start to finish, saving you the arduous and risk-laden processes.

Furthermore, valid information needs to be gotten by the purchaser with respect to:

• Boundaries of the property
• Disputes over the property
• Guarantees in respect of the property
• Services supplied on the property
• Planning schemes of the property
• Insurance provisions and policies
• Reversionary title or interest

When all these have been satisfied, the purchaser can now proceed with the purchase of the property

DOCUMENTS REQUIRED FOR LAND PURCHASE IN NIGERIA. 

During the process of purchasing a land, there a number of crucial documents required from the seller in order to effectively validate the transaction. These documents are necessary as they are evident of title which the buyer possesses in relation to the land. It is important to note that there are different types of land documents in Nigeria. These documents include:

1. Approved survey plan: This is an important title document that helps to reveal the true ownership status in any land and landed properties’ transactions. It also helps to reveal if such land is not under any government acquired or committed lands/area.

2. Approved layout
3. Deed of assignment: This is a very important document that must be demanded and given to a purchaser after the conclusion of any land/property transaction between such purchaser/buyer and the owner/seller of the land/landed property in question. Section 2(v) of the Conveyancing Act 1881 provides the definition of conveyance as follows: “A conveyance includes any assignment, appointment, lease, settlement and other assurances and covenants to surrender made by deed of sale, mortgage, demise or settlement of any property or on any other dealing with or for any property; and convey, unless a contrary intention appears, has a meaning corresponding with that of conveyance”.

4. Purchase receipt: this is the evidence of due payment of the purchase of the land and it is usually required when registering the land.

5. Certificate of Occupancy: this is one of the most important land title documents that is used to certify the legal ownership status of any land in Nigeria irrespective of its usage. It is usually delivered to the owner of a parcel of land by the government attesting to the owner’s interest to the land where such interest is in accordance with the applicable laws. It is a legal document indicating that a person who has acquired an interest in land has been granted a statutory right of occupancy by the governor.

The first person on a Virgin Land that has neither been occupied by another person nor under acquisition by the Government is entitled to get a Certificate of Occupancy on that land. If that person with the C of O decides to sell his land to another person after so many years, that person must now obtain the Consent of the Governor before that transaction can be deemed legal in the eyes of the Government. If the new buyer now decides to sell the land again to a third owner in future, that Third owner must also obtain a new Consent of the Governor before that transaction can be deemed legal in the eyes of the Government and the process continues every time the property changes hands to a new buyer.

In other words, the first person on a land is the only person or group of persons entitled to obtain a Certificate of Occupancy. Every subsequent buyer of that land must get a Governor’s consent.

6. Power of attorney: this is usually required where a person is acting for another person, individuals or companies as his agent. It is a document that authorizes such person to act on their behalf.

These documents are essential as they are necessary to process a search in the land registry, the registration of title, registration of Deeds, as well as registration of Certificate of Occupancy. It is equally important to note the LEGAL CONSEQUENCES OF REGISTRATION OF LAND IN NIGERIA which is essentially three:

Non-registration may (i) render certain documents void, (ii) render them inadmissible as evidence in judicial proceedings, and (iii) make them lose priority against registered ones affecting the same land.
It must, of course, be noted that registration does not by itself cure the instrument( legal document) registered of any defect, nor does it confers upon it any effect or validity which the instrument, apart from the registration, would not otherwise have had.

Thus the most common way to prove land ownership is the production of a valid title. As such it is important that a person intending to buy a land must make sure to instruct his lawyer to perfect the title of the land or property.

 

READ: Buying Land In Nigeria? Common Mistake To Avoid

 

HOW TO WRITE LAND AGREEMENT IN NIGERIA

It is very instructive to note that it is only a legal practitioner that is entitled to prepare instruments relating to land. Such instruments include Deed of a lease, Assignment, Legal mortgage, etc. the name and address of the legal practitioner must be stated on the instrument and it must bear a seal of such legal practitioner, this is also known as Franking of such instruments. Why this is so is that where an instrument relating to immovable property does not contain the particulars of the legal practitioner who prepared it, it may not be accepted for registration at the land registry.

In conclusion, it is very essential and advisable to involve a lawyer when one intends to buy a land or acquire a property as role and responsibility of a lawyer in relation to this transaction including but not limited to the following:

1. Investigation of the title sought to be transferred from the appropriate registries
2. Advising on the viability or otherwise of the title of the property sought to be transferred.
3. Preparation of formal contract that encapsulates the agreement of the parties in respect of the property that is being transferred. Excellent drafting skills are required for this to ensure that the document reflects the full intention of the parties
4. Approval of the contract by the solicitor of the purchaser
5. Exchange of contract by the parties to the contract
6. Obtaining the consent of relevant authorities for permission to transfer the legal interest in the property
7. Preparing and ensuring the execution of the deed or the instrument that transfers the legal interest in the property.
8. Payment of stamp duties, fees and other taxes in respect of the property being transferred
9. Registration of the instrument that conveys the legal interest in the land

All of the above must effectively be carried out by the legal practitioner for the buyer of the property. However, it is the bulk of this work that authentic real estate investment companies take off you, and carry, providing you with an already good to go investment product that has undergone all of these checks. It is no wonder then that many choose to enlist the services of these reputable real estate investment companies to facilitate secure and well as convenient investment processes, while still electing to have their legal officer involved during the investment process.

However, whether for stand-alone investors, or for investors with a legal adviser assisting with the process of investing with real estate investment firms, it is very important to have a thorough understanding and comprehension of the firm’s terms and conditions, and how these translate in their different scenarios. This way investors have the right expectations, and go into investment with full knowledge of what is obtainable and how it all plays out.

Equipping oneself with all the knowledge that’s necessary and available when it comes to real estate investment in Nigeria is non-negotiable, less the painful effects of inexperience and obliviousness rears its head and costs any investor greatly.