Do you know there are so many hidden Charges and taxes that you must pay when buying a land that could bankrupt you easily if your not careful? These taxes hide in plain sight and it is until you want to perfect your papers it will rear its ugly head. I have compiled a list of 4 Problematic fees that your not aware of and the earlier you start taking cognizance of it, the better:

1. Everybody wants to buy a land with a C of O but do you know that every owner of a C of O must pay a yearly fee per annum to the government for occupying that land. This fee is know as a GROUND RENT and it has a certain fee that holder must pay. For every year the person defaults in paying that GROUND RENT, the person incurs a penalty. But because of our very lax tax system, the holders of that C of O rarely pay that amount and in most situation, they are totally ignorant of the fees they are to pay.

The problem now arises when a new buyer is interested in buying that Land with a C of O. If you don't do a comprehensive check on that C of O, you will never know that your about to INHERIT SOMEONE ELSE'S DEBTS at once. The Land registry Tax department will compute the Ground rent from inception that the C of O was obtained, compute the penalties , value it at today's inflationary rates and give it to you before you can process your Governors Consent. That is why the cost of Governor's consent is so high in some people's case because they don't know that they are carrying the load and problems of other people's taxes as their own burden.

The best way to avoid this scenario is to make sure the Lawyer doing the search for you carries out a comprehensive check at the tax registry to know exactly how much the holder of the C of O is owing the Government. Once you have an idea of the costs owed, you can now use that as a veritable bargaining tool to deduct money from the asking price of the property. I have used this method so many times for my clients to obtain a reduced fee for the Land transaction. Whenever i hit the owner of the C of O with his Ground Rent Charges, he is always eager to sell the land quickly at a reduced price so as not to continue holding on to a burden that could ruin him at any given time. Sometimes Sellers are willing to share the Ground Rent so as to make it equitable and both parties suffer the penalty.

Make sure you know the Ground Rent of any property that has a C of O before hand , lest you suffer the consequences of it.

Below is a C of O of a property that was not properly investigated to know how much ground rent the previous owner was owing. After the New purchaser bought it and wanted to perfect his own papers, the Tax Office hit the new buyer with a N315,000 LAND USE CHARGE that was totally unexpected and unprepared for. Learn to avoid such silent deadly taxes by doing a proper search before you fall victim of the Tax office

2. If your buying a Land with a Governor's Consent or you just bought a land and want to perfect the Governor's consent, make sure you ask the person selling the land to you; be it a private seller or Omonile to produce their Tax clearance and give it to you unless be ready to Fork out N200,000 as the Tax clearance for that person to be paid on his behalf. The rules in Lagos state and Ogun state that before you process your Governor's consent you must produce the Tax clearance of the Seller and you the buyer. Failure to do so will attract a one off Fee which would serve as the Tax clearance for that person. 3 years back it used to be 60,000 Naira that was the tax clearance for a seller who did not have a Tax clearance. Now its N200,000 and its rising astronomically yearly.

So before you buy that land and you know you want to perfect your papers soonest, make sure you disturb that person or Family for their Tax clearance unless be ready to pay their tax clearance and pay your own tax clearance of N200,000 too. If there are more family members, you will pay for their own tax clearance too (Note that). Minimum of 2 family members per community. So shine your eyes well and be ready to hold their shokoto to produce that tax clearance for you unless na die you de so for Government hand.

Below is a sample tax clearance you must produce before you can perfect your documents

3. Another sneaky land tax that doesn't go into the Government coffers is the Omonile Signing Fee. This money reeks of fraud, corruption, wickedness etc but it must be paid no matter how loathsome and repugnant the who thing seems. A lot of people just rush into buying a land without knowing the attendant costs involved in buying a land from Omoniles. This signing fees can range between N50,000 to N1Million Depending on how developed and posh the area is. Apart from paying the Omonile signing fees, You would pay for Foundation fees, Community development fees and Youth Fees etc. These are compulsory fees you must pay before they will agree to sign your documents.

The best way to approach this Evil is to start negotiating the cost of these fees before you buy the land. It gives you a stronger leverage power over these Omoniles because they are looking for your money here and now and would do anything to reduce the fees. The mistake is not knowing the cost or negotiating it in advance and when they have received money for the cost of the land, they know they have you by the balls and would drive up the price of the Signing fee because they smell your desperation to sign that document.

(Picture below is an Omonile signing a receipt for a land at Ibeju Lekki after a Fee of N150,000 was negotiated before they could sign the documents.)

If you don't negotiate the money in advance and know the exact Omonile Signing fee you are to pay to the Omoniles, you will be seriously outpriced with a mandatory Omonile Signing Fee when you have purchased the land and you will have no negotiating power to wiggle through it

4. Another silent but deadly Land tax is the SERVICE CHARGE that private real estate developers levy on their prospective subscribers who buy into their Estates. Because of the scourge of Omoniles, alot of people are running to private real estate developers estates to escape that mad world of Omonile fees and their attendant wahala. These estates offer them the serenity and peace of mind that is non existent when buying a family or Omonile land but there is a catch.

In exchange for the Amenities that you are to enjoy in that estate, you are being levied either a monthly or yearly service charge. These Private real estate companies load all sorts of silent charges such as water charges, Light charges, security charges, refuse charges, maintenance charges etc and it could range between N50,000 to N1Million per annum depending on how posh the estate is. Some go as far as charging in thousands of dollars per annum and its all there in the tiny fine print of your contract of Sale given to you.

Have you ever wondered why a Contract of Sale is so bulky and filled with Legal rubbish Grammar so as to deflect you from seeing these charges and percentages that would accrue yearly? Its because if it is the first thing you see when you open the contract of sale, you will be discouraged and won't subscribe to be a member of that estate. I know so many people living in these estates groaning under the extremely high service charges that are being levied on them and they are not getting the service worth.

A way out of this is by making sure you give a lawyer your contract of sale to vet and read through before you sign anything. Ask questions about the service charges and let them know how you feel. You could be given a reduced fee so as to accommodate you in the estate but if you don't talk and choose to be ignorant, be ready to pay your children's school fees yearly as Service charge till you no longer have the strength to keep up with the Jones and pack out to Mowe/ofada.

For more resources on how to avoid being scammed by Land fraudsters and daily land related information, log on to www.omonilelawyer.com to get more details. Cheers

Now I'm scared! I have a plot of land within a private estate. This estate is covered by a global C of O. I don't remember the date it was issued. Since it is a global, and not my personal C of O, will I be charged from d date it was issued, or the charge only applies after I process the C of O for my plot?

Thanks for this enlightenment.

whirlwind7: Now I'm scared! I have a plot of land within a private estate. This estate is covered by a global C of O. I don't remember the date it was issued. Since it is a global, and not my personal C of O, will I be charged from d date it was issued, or the charge only applies after I process the C of O for my plot?

Thanks for this enlightenment.

If it is A Global C of O, You won't be liable to pay a Land Use charge because there are so many people that are deriving title from the Global C of O, but the Government will get their money from the double taxation you would incur when perfecting your papers when you pay the tax clearance of the seller and yours. Also the Neighbourhood Improvement charges and a host of other side charges to make up for the state land use charge. So either way you pay heavily!

Thank you for the prompt response. At least i have a little comfort (just a little)

Please lawyer keep up the good works may God reward you for all the wonderful messages you have brought to this site.

Thank you

Tooked

hmmmmm. one chance. government sef na thief!!!!!!!!!! Abah!!!!!!! everybody dey dupe. even d government. which one be ground rent? i buy land, i go still dey pay rent for the land!!!!!!

Thanks for the heads up

Nice one.

@Lawyer, thanks for sharing. Have u heard about those advertising an acre of land for N650,000, how true is it?

THE YELLOW DOCUMENT!

this is what FASOLA is good at ..Revenue generations from the already impoverish masses...and what is he doing with all of the money?
funding his 'Oga' political machinery!.
My grouse with Fasola is that He runs LAGOS as a CEO rather than as a governor. Not in terms of functions but in objectives. A CEO is concerned with growing the front end of his company and reducing the back end. That is exactly FASOLA LASG is doing and that is where he missed it totally.
A governor should be concerned with WELFARE and SECURITY of the people he governed. so taxes are used not to make the state very liquid but to provide welfare to the citizenry ESPECIALLY THE vulnerable and the less privilege..but in all to all the citizens.
in developed countries, you can trace where almost every penny of the land use and other taxes are applied for the benefit of the citizens.
for instances, taxes in the Uk are largely used for healthcare, social security and provisions of other assets and maintenance of these assets.
etc.
in the USA , taxes are used for social security, healthcare(Medicaid ) and food subsidy . the US govt subside farmers to keep food at very low cost prices while the farmers are well paid..
in other European countries, taxes are used to subside housing and education while healthcare is free and taxes are also used for social security and provisions pof other public utilities such as fire service, police etc.
in the US tax is generally at 8% while it is 13 % in Canada because of free healthcare.
so when you pay taxes in these countries , you know why. The land tax are used to run part of the local government services and the maintenance of the infrastructure of the land you occupy. Such as road , street light and general cleaning
in Lagos, FASOLA takes all these taxes from you , yet no returns. Schools are expensive, no good healthcare systems(infact, Lagos state hospitals are more expensive than some private ones), roads are bad, no light , , no security,no water, local government services are non existent save for tax collection..
so in nutshell, FASOLA LASG is a fraud because you collect taxes and no benefit whatsoever to the tax payer..more like someone collect money form you to by you a hjosue and furnsh it yet, no house , no furniture, no land nothing,,, that is fraud and that is what FASOLA is doing..
Nigerians, this is the real oppression and fraud and same people want to rule in federal ..God forbid

Thanks Op.
The laxity in every sector in Nigeria has made people to be ignorant of many things.

Pls how can I process a CofO, or Governor consent on a piece of half plot of land at ijegun. Currently i have four bed bungalow on the land.

Pls how do I go about the CofO tins, and what's the cost involved?

Owning a property in this country is so discouraging. I'm already tired and discouraged of both processing my own C of O and even completing the project. Yet some Nigerians wonder why some folks don't look back when they step foot outside Nigeria.

@Op: is there any problem in buying a land that has no "C of O"? If there is, kindly state it. Thanks.

Nice. Good to know

P.M.B

This is one of the necessary evils that scare people away from investing in real estate......

thanks!

Pls help answer this as a matter of urgency:

A property was gotten from federal govt in d 80s & fully paid for through mortage in the 90s. The property is located in an estate built/allocated by the federal govt.
Of a sudden, 2yrs ago a notification comes from state govt asking for land rent. Is this legitimate?
1. Does the state govt hv the right, justification to collect any monies on such properties?
2. Do u suggest I start paying? As there is a group of old men association of landlords/property owners but are yet to come up with tangible reasons to pay or not to pay. Its turning to an 'each man for himself'

Thank you. Pardon my ignorance and educate me on this.

All such problem are exclusive to south west only.

prince_onx: Owning a property in this country is so discouraging. I'm already tired and discouraged of both processing my own C of O and even completing the project. Yet some Nigerians wonder why some folks don't look back when they step foot outside Nigeria.

Such is happening in festac.
I will advice you not to pay any thing to the state gov.

bknight: Pls help answer this as a matter of urgency:

A property was gotten from federal govt in d 80s & fully paid for through mortage in the 90s. The property is located in an estate built/allocated by the federal govt.
Of a sudden, 2yrs ago a notification comes from state govt asking for land rent. Is this legitimate?
1. Does the state govt hv the right, justification to collect any monies on such properties?
2. Do u suggest I start paying? As there is a group of old men association of landlords/property owners but are yet to come up with tangible reasons to pay or not to pay. Its turning to an 'each man for himself'

Thank you. Pardon my ignorance and educate me on this.

adejodan: @Lawyer, thanks for sharing. Have u heard about those advertising an acre of land for N650,000, how true is it?

Which of the lands are you referring to and what area is it located? Is it one of those installment payment plan estates? If yes read this before you venture into a cheap nonsense and fall prey to their scams: http://omonilelawyer.com/the-serious-dangers-of-buying-cheap-promo-lands-advertised-as-spread-your-payments-over-24months/

bknight: Pls help answer this as a matter of urgency:

A property was gotten from federal govt in d 80s & fully paid for through mortage in the 90s. The property is located in an estate built/allocated by the federal govt.
Of a sudden, 2yrs ago a notification comes from state govt asking for land rent. Is this legitimate?
1. Does the state govt hv the right, justification to collect any monies on such properties?
2. Do u suggest I start paying? As there is a group of old men association of landlords/property owners but are yet to come up with tangible reasons to pay or not to pay. Its turning to an 'each man for himself'

Thank you. Pardon my ignorance and educate me on this.

The matter is still in court and i advise you not to pay till they settle it. The lagos state Government is berating the Fg for owning lands in lagos and still taking control of them and wants to takeover FG Lands located in lagos via taxes that should be paid to them instead of FG. I know the FG will vehemently disagree with that proposal, so i will advise you to wait for the final outcome of their fight.

akonucheinfo: Pls how can I process a CofO, or Governor consent on a piece of half plot of land at ijegun. Currently i have four bed bungalow on the land.

Pls how do I go about the CofO tins, and what's the cost involved?

Please wait for my next article. I will be addressing the issue of the new process of obtaining a C of O now called an E-C of O ( Electronic C of O) And its attendant costs and procedure.

Read this if your in Ogun State http://omonilelawyer.com/ogun-state-set-to-assist-land-owners-who-have-no-papers-regularise-their-documents/

With this you should be safe and i think the Governor last week also said the Land Bureau will offer a huge discount in the forthcoming year for people trying to perfect their papers in Ogun. Its a Good development and lets keep our fingers crossed.

bbdexk: @Op: is there any problem in buying a land that has no "C of O"? If there is, kindly state it. Thanks.

Well it depends on the buyer and the level of toughness you possess when dealing with crooked Sellers and Civil servants. There is nothing wrong buying a land without a C of O but you must take adequate steps to perfect your papers immediately you buy it unless your just looking for trouble from both Omoniles and the Government. Make sure you buy the one that has either a Global C of O or a Gazette, at least that will keep you covered. Don't Go and buy the one Under Government Acquisition ooo! I can't Shout. To know more about the kinds of Documents you need to look ouut for before you buy a land read this carefully:http://omonilelawyer.com/the-list-of-the-best-and-worst-kinds-of-landed-documents-you-should-always-look-out-for-before-you-buy-a-land/

Cheers

Omonile lawyer, please kindly advise me. I am interested in purchasing a plot of land inside a federal housing estate. The portion of land as been allocated to someone before, and this person wants to sell it to me.What documents do you advice me to ask to perfect the transfer it to me without any hitch.

This has been most educative.
Thanks a bunch.

Omexonomy: All such problem are exclusive to south west only.

To some extent! But if you ever wake up one day and decide you want to process a C of O for even a land in your village, you'll find out that it's not a joke!
I've done this same paper work for 3 properties here in US by my self without a lawyer and all came in the mail in less than a month!

A white man make complicated things simple while a black man make simple things complicated!