Legal Guide to Buying Property in Nigeria

Buying land property is one of the dreams of every Nigerian. It is very exciting but hey! It can be a very scary and daunting process at the same time due to the various hurdles and detailing that need to be done.  Also the account of scam from victims of past fraudulent transactions make it all the same more.

 This guide is meant to explain the preliminary checks anyone who is interested in buying property in Lagos or anywhere in Nigeria should follow in order to ensure that it is done safely and properly.

VISIT THE PROPERTY LOCATION

Location is the central word in property acquisition and value appreciation. In acquiring a property, the first step is to visit the property location for the purpose being able to identify the property to specifics – nature of the property (dry, swampy, proximity to basic amenities and infrastructure etc.). Basically, you need to satisfy yourself that you are happy about the property or see the potential benefit.  Once you decide, and ascertained a budget and location, then you are good to go and you can move on to the next step – ascertaining the title to the property.

ASCERTAIN THE TITLE

This perhaps is the crux of any property transaction. Without good title, owning a piece of property is a sham!!! Yes, a sham!!! So after inspection, you must demand the documents the person seeking to sell the property to you has. The documents the person presents to you assists in tracing the root of title. How do you trace the root of title;

• Obtain requisite documents from seller
• Conduct Search
• Land Registry

This is where land registry of various states is responsible to all real estate issues. The Lands bureau has record of every registered land transaction in Lagos State. So depending on the nature of title document given to you by the seller (assuming that the title to the property is registered), a search of the title’s register at the Land’s Bureau will reflect the owner of the property or whether there is an encumbrance on the property.

• Surveyor General’s Office

As part of the search process, you must conduct a search in the Survey records of the state from the surveyor general’s office. This is important to ascertain that the survey for the property is not subject to any government restrictions or have an interest registered in the name of a person other than the seller. At the Surveyor General’s office, you request to do a charting information on the property with co-ordinates that you might have picked from the property location with the help of a surveyor.

• Court registry of property litigation

Court & Litigation court searches are necessary for a land acquisition to determine. If there is litigation that could affect seller’s ability to sell or transfer title in assets and reveal the existence and history of any claims against the targeted property.

• Probate registry

The probate registry is key in tracing the title of the seller particularly where the property to be sold is a gotten from inheritance. It is important to conduct search at the registry when purchasing properties that have correlation to Wills to be sure that there are no objections or caveat filed on such property. Probate registries are branches of the court which you need to deal with when applying for probate (Grant of representative). They are referred to the section of the high court that helps you get legal permission to carry out your role as an executor (if there is a will) or as an administrator (if there isn’t a will).

• Social or search “in-situ”

Never under estimate the power of “word of mouth” in conducting your search on the property. Visit the area where the property is located alone (without the person that introduced you to the property or the owner) to make additional findings. You may be surprised as to some revelations. Social or in-situ search are likely to reveal undocumented history of the property you seek to buy and this can go a long way in helping you make a decision.

PROCEED TO NEGOTIATION AND PREPARE DOCUMENTS.

Based on your findings and decision, proceed to offer what you are able to afford for the property, having in mind the going rate of similar property in the area. If negotiation goes well and you are agreed on price, then you can move to the stage of drafting and negotiating all the completion documents and make payment on agreed terms.

Nb: This write up addresses basic steps, variations are bound to apply in different situations (e.g when buy from an estate development or special schemes). Also, the process flow and government institutions in the process have different modes of operation in different states.