Tips From A Property Lawyer About Renting & Sale Of Property Especially In Lagos

Great post

spot-on

applause ,applause, without a doubt you have educated most of us in this short piece even those of us who felt we knew already, thanx man , you definetly are goin on my list to call.

To all of you that replied and commended me, i am eternally grateful and i hope you all become sucessful landlords too! I'll always do my best to help you out to know your rights and help you not make the same mistakes that have led to thousands of land law suits. Every body needs to sleep easy at night once they know the right thing to do as it relates to owning, leasing or buying a property.



@Luckyme

Yes i know about getting a C/O and i'll break it down for you in a very simple way: (Although it might be a little bit lenghty but i think its worth the while)


Essential points of obtaining the C-of-O


Private property/ land:


An applicant must present:

1.   The land information and payment receipt
2.   Provide 4 survey plans ( 3 in cloth form and the other one in paper form)
3.   Current tax clearance certificate
4.   levy receipt
5.   5 passport photographs
6.   Building approval ( if the property is already developed)
7.   Obtain the Form 1 ( C-of-O form)
8.   Duly stamped purchase receipt
9.   Evidence of payment of tenement rate if the property was already developed
10.   Capital contribution fee is paid together with the newspaper publication fee


State Government Allocation:

 An applicant must present:

1.   the letter of allocation
2.   the survey plan from the survey department
3.   current tax clearance certificate
4.   all payment receipts pertaining to the allocation
5.   the vital information form
6.   4 passport photographs

All payments are already included in the allocation fees


C-of-O should be normally delivered within 6 months (At the earliest possible date)



Full Explanation + Required Fees:

1 Conduct search on property files at Lands Registry (1 day to get it done) = N20,000 (Minimum depending on the lawyer and his professional fees included)

2 Obtain Application Land Form 1C (1 day to get it done)= N 1,500 (Form 1C) + N100 (Economic development levy)


3 Execution of Deed of Assignment/Conveyance and Land Form 1C (1 day to get it done) Free


4 Assessment of the Deed of Assignment at the Land Registry (1 day to get it done) Free


5 Obtain Certified True Copy (CTC) of title document (2 days to get it done) N3,750


6 Obtain a copy of the building plan (1 day to get it done) Free


7 Submit application for Governor’s Consent to the Assignment (1 day to get it done) Free
 
8 Payment of the Charting Fee, Administrative Fees, Endorsement fee, Consent Fee and Registration fee at a designated bank (1 day to get it done) N 7,500 (Charting fee) + N3,000 (administrative fees) + 8% Consent Fee + N1,500 (Endorsement fee) + 3% of property value (registration fee)


9 Submit the receipt of payment of Charting Fee, Administrative fees, Endorsement fee and Consent fee to the Lands Registry (1 day to get it done) Free


10 Submit the Receipts of the Charting fee, Endorsement fee, and Economic Development Levy to the office of the Director for Land Services 1 day (submission) + 60 days (to obtain final Governor’s consent) No additional cost


11 Assessment of the Deed of Assignment at the Stamp Duty Office (1 day to get it done) Free

12 Payment of stamp duty fees at a bank 5-7 days  3% property value


13 Stamping of the deed of assignment (1 day to get it done) Free

14 Registration of Certificate of Occupancy or Deed and Title conferred 2-3 days No extra cost






Procedure 1.

Conduct search on property files at Lands Registry Time to complete: 1 day

Cost to complete: N 2,500 (search at Registry) + Legal fees as follows: N7,500–10,000 + 7.5% of values above N20,000 if acting for the buyer (5% of values above N 20,000 if acting for the seller)

Comment: The application letter to conduct the search is accompanied by a sworn declaration of the status of the party and purpose of search. A lawyer is required to perform the registration of property. Legal fees are charged based on the Scale of Fees for Conveyancing Matters [Legal Practitioners (Remuneration for Legal Documentation and Other Land Matters) Order 1991]. This is a sliding scale , and averages out at about 7.5% of the consideration. The fees include all the steps required until the new title is registered under the buyer’s name.

Procedure2.

Obtain Application Land Form 1C

Time to complete: 1 day

Cost to complete: N1,500 (Form 1C) + N100 (Economic development levy)

Comment: One can obtain the application from the consent section of Lands Services Department. Form 1C is the application form to request later the Governor’s Consent to the transaction ). It can be paid either at a designated branch or to the bank’s Officer at the Lands Department.



Procedure 3.

Execution of Deed of Assignment/Conveyance and Land Form 1C

Time to complete:1 day

 Cost to complete: No extra cost

Comment: The assignor and assignee complete and sign Land Form 1C and five (5) copies of the Deed of Assignment.


Procedure 4.

Assessment of the Deed of Assignment at the Land Registry 

Time to complete:1 day

Cost to complete: No extra cost

Comment: The deeds presented by the assignee’s lawyer to the Land Registry for assessment of property value to determine stamp duties, Capital Gains tax, registration fees, and consent fees at the Land Registry or Stamp Duties Office (agency of Inland Revenue Services).

Procedure 5.

Obtain Certified True Copy (CTC) of title document

Time to complete:2 days

Cost to complete: N3,750

Comment: The assignor/assignee issues a Letter of Authority to the Director of Land Services of the Lands Registry, authorizing the lawyer to apply for and obtain CTC of title document, required for Governor’s Consent. It takes a minimum of 2 days to obtain certified copies of title documents because the Land Registry recently requested, as an additional requirement, that the lawyer applying for a CTC should be present an affidavit to that effect. This is very very important for the prospective buyer because a CTC (Certified True Copy) of the search report actually gives you an idea of whether the property is free from defect or not and whether you should proceed with the transaction.




Procedure 6.

Obtain a copy of the building plan

Time to complete:1 day

Cost to complete: No extra cost

Comment: Parties obtain a copy of the Building Plan, as approved by the Town Planning Authority, required for Governor’s Consent.

Procedure 7.

Submit application for Governor’s Consent to the Assignment 

Time to complete:1 day

Cost to complete: no cost

Comment: procedures and documentation requirements include: • Covering letter with Address and Telephone Nos.

 • Completed Form 1C

 •Certified True Copy (CTC) of Title Document of Assignor

 • Current Tax Clearance Certificates of the Assignor and Assignee

 • For Limited Liability Companies, the Internal Revenue Certificate of PAYE for its Staff and Current Tax Clearance Certificate for the Directors

 • Four (4) copies of the Deed of which Consent is sought should be attached.

 • Copy of the Building Plan, as approved by the Town Planning Authority

 • Evidence of payment for Charting fee, Endorsement fee, Form 1C (admin fees), Consent fee, Stamp Duty, Capital Gains Tax and Registration fee • Evidence of payment of Land Use Charge

 • Where the Property is covered by a State Leasehold or Certificate of Occupancy, evidence of payment of Ground Rent, up to date.

Procedure 8.

Payment of the Charting Fee, Administrative Fees, Endorsement fee, Consent Fee and Registration fee at a designated bank

Time to complete:1 day

Cost to complete: N7,500 (Charting fee) + N 3,000 (administrative fees) + 8% Consent Fee + N 1,500 (Endorsement fee) + 3% of property value (registration fee)

Comment: A Charting Fee of N 7,500 and administrative fees of N 3,000 are to be paid to any of the designated banks. A receipt is issued, together with the paying-in slip to the designated bank. A bank draft made payable to Lagos state for an amount equal to 8% of the transfer the consideration as deposit for Consent Fee. In Lagos consent fees are assessed at 8% of the value of the property, as deterimined by the State Government. If land directly allocated to the seller by the government is resold within 10 years of its initial allocation, then a penalty consent fee of 15% of the value is charged (supposedly to deter land speculators). This procedure is required for Governor’s Consent.

Procedure 9.

Submit the receipt of payment of Charting Fee, Administrative fees, Endorsement fee and Consent fee to the Lands Registry

Time to complete:1 day

Cost to complete: no cost

Comment: The receipts obtained, together with the paying-in slip to the designated bank, are to be submitted to the cashier at the Lands Registry who issues another receipt.

Procedure 10.

Submit the Receipts of the Charting fee, Endorsement fee, and Economic Development Levy to the office of the Director for Land ServicesTime to complete:1 day (submission) + 60 days (to obtain final Governor’s consent)

Cost to complete: No additional cost

Comment: The receipts obtained previously are to be submitted to the office of the Director for Land Services. The Land Services department then continues with several internal procedures to finalize Governor’s Consent. The practice is for the assignee’s lawyer to follow up on the application to ensure that it receives the required attention. The file is forwarded for charting either to: • The surveyor attached to the Lands Department if the property is “State Land”; or • To the Surveyor-General’s office if the property is on “private” land. The objective of “charting” is to ascertain that the survey plan attached to the title document is the correct one. After Charting the file is sent back to the Director of Land Services who then sends it to a Land Officer to verify that all the documents are in order. Approval and endorsement of documents is done by the Honourable Attorney-General and Commissioner for Justice.

Procedure 11.

Assessment of the Deed of Assignment at the Stamp Duty Office

Time to complete:1 day

Cost to complete: no cost
Comment: The Stamp Duty Office typically uses the figure as indicated by the Lands in their assessment, so basically this is a formality and one picks up the demand notice for payment at the same time.

Procedure 12.

Payment of stamp duty fees at a bank 

Time to complete:5-7 days

Cost to complete: 3% property value

Comment: Your lawyer must go to a designated bank to pay the stamp duties. Payment is by bank draft payable to any of the designated receiving banks. It takes some days (between 5-7 days) for the Registry to receive the confirmation of payment. Ad valorem stamp duties for transfers between companies are 3% in Lagos State, subject to adjudication by Commissioner for Stamp Duties. Every state may have a different rate.

Procedure 13.

Stamping of the deed of assignment

Time to complete:1 day

Cost to complete:no cost

Comment: Deeds are presented by assignee’s lawyer for stamping at the Stamp Duties Registry (agency of Inland Revenue Services). Stamping takes place only after Registry receives confirmation of receipt of payment. The documentation shall include: receipts confirming payment of stamp duty.

Procedure 14.

Registration of Certificate of Occupancy or Deed and Title conferred

Time to complete:2-3 days

Cost to complete: No extra cost

Comment: After paying the registration fee, the assignee’s lawyer then follows up for the certificate of occupancy or deed to be filed to the Lands Registry. The receipt and paying-in slips evidencing payment are given to the cashier at the Lands Registry, who in turn issues a receipt. With proof of payment, a lands officer is assigned to enter the Certificate of Occupancy/Deed into the Registry records.


GUIDELINES/REQUIREMENTS FOR OBTAINING GOVERNORS CONSENT

The following documents are required for the purpose of processing Governor’s Consent:

A duly completed application made on Land Form 1C. The form 1C can be obtained at the Directorate of Land Services.  The form must be dated and signed by the parties to the transaction and sworn to before a magistrate or notary public


A cover letter by the agent or person filing the application for Governor’s Consent. This covering letter must contain the following contact details; address, telephone numbers, mobile phone numbers and where possible, e-mail address


A certified true copy of the Assignor’s/Donor’s title. Where the title is a Certificate of Occupancy or Conveyance, the Certified True Copy can be obtained from the Land registry


A bank certified cheque made payable to Lagos State Government for an amount equal to 5% (this applies to deed of gifts and special transaction only); or 16% (where Right Occupancy covering a State land is less than 10 years of the capital value of the property/land). Please note that where the application relates to a private Certificate of Occupancy, the fees payable shall be 8% regardless of its date of issue.


Where the application is in respect of a mortgage, the fee payable is 0.20% of the mortgage transaction, (ie =N=20,000.00 in every =N=1,000,000.00) and this shall be a bank certified cheque made payable to the Lagos State Government. It is now mandatory that the Mortgage Deeds are stamped for the monetary value stated on the Form 1C


A bank certified cheque for =N=1,500.00 (Ten Thousand Five Hundred Naira) made payable to Lagos State Government representing Charting fee, Endorsement fee and Form 1C. Also, receipt of payment of =N=100.00 (One Hundred Naira) as development levy for the parties


Current Tax Clearance Certificate of the parties. As regards Mortgages, only the Mortgagor’s Tax Clearance Certificate is required


Where one of the parties is a Limited Liability Company, the Internal Revenue Certificate of Pay As You Earn for its staff and current Tax Clearance Certificate of two Directors are required


If the subject matter of the application is a State Land or covered by a Certificate of Occupancy, evidence of up-to-date payment of Ground Rent and Land Charges must be submitted


In case of an underdeveloped land, an affidavit in lieu of Tenement Rate is necessary


Only 4 (four) copies of the Deed of Assignment/Power of Attorney/Sublease/Deed of Mortgage are  required to be submitted instead of six copies

Please note that acceptance of applications for the processing of Governor’s Consent is at the request of the applicant and does not cure any defect in the title. It is the responsibility of the applicant to ensure that title to the land that is the subject matter of the application is confirmed to be in order prior to submitting their application at the Directorate of Land Services. Purchasers or Applicants are  strongly advised to make proper inquiries at the Office of the Surveyor General as well as Land Registry prior to purchasing any property or land. unless such an application will not be accepted for processing.


I hope i have been able to give you a brief idea on how to get a C/O. Its looks a little bit complicated but it isnt. Once the bureacracy is out of the way, your good to go if you start the process in earnest.

One more thing, a C/O has been held in court not to be a total guide or defense when there is a dispute in property or land between 2 or more people. It simply means you own an equitable right to the property, whereas a person who has a C/O coupled with the Governor's Consent has a legal right to that property and has a better right to that person in dispute over the person who has a C/O.

But once you get your C/O, you can sleep peacefully at night but only with one eye sha! Your better than someone who has nothing or just a simple deed of assignment.

Cheers Y'all and thanks for the compliment, Always at your service!

Good information lawyer

Hello lawyer,

For once clarity has been brought to a process that has been in my experience deliberately shrouded in bureaucratic hurdles and secrecy, thank you.

Because we have so many inconsistencies in our processes it’s very difficult to know if there are genuine mishaps or delays as opposed to outright intended misinformation and deception. Considering that not all lawyers will be transparent and honest, when dealing with a lawyer in this context, when should alarm bells should start ringing.

Basically a few warning tips. 

@megastu

Thanks too for the additional tips. Everybody needs to be educated and thanks for filling in the blanks i forgot. Although i hear there is a new law to abolish the state land use charge. I'll probably get that fact tomorrow hopefully.

As it relates to governors consent, i know why you are running away from it, lol, it is a cumbersome process filled with bureaucracies but it has to be done eventually. Most banks are getting bolder to ask for a property with governors consent before they can give you a mortagage. Too many fake C/O's flying around that puts potential buyers in distress without adequate search at the land registry. Like today, i was intimated about a property in Banana Island and i had to go and look for the direct owner of the property. It came as a rude shock when almost every agent i met had a photocopy of the C/O of the same property that was being advertised and nobody could trace the original owner. After an agressive investigation by me at the lands registry, i found out that the property in question is actually a subject of dispute and is in court and potential buyers were already lining up, paying fees to agents to secure an inspection and probable sale of a disputed property.

I can imagine the poor chap that would eventually fall for the sweet toothed agent that ends up selling the property to him and handing over a fake C/O to him and after 6 months, a court order would chase him out of that property and his millions would have disappeared into thin air.

Moral of this story, it is not everything that is being advertised as a property that is a good property. Always check, cross check and counter check unless your going to throw away a huge check in future to the wind!


@komekn

lol at your post and thanks all the same. Yes i wont deny that lawyers have also played a huge role in destroying the confidence reposed on them by potential sellers and buyers due to sharp practices and i would give you tips on how to avoid them when engaging in a property matter with them.

1. A lawyer who tells you about a property for sale without having a proper power of attorney from the direct owner should be avoided like a plague. It is your duty to ask him to show you the power of attorney to sell that property and if he refuses and concotes a cock and bull story, zap asap.

2. A lawyer who says he is affilated to the direct agent (Not direct owner ) of the property and does not have any letter of offer in writing from the direct agent in person or through his company is just trying to play tricks with you because he is after his commission for "finder fee". Ask him if he has the letter of offer signed by the direct agent. If he refuses, know what his game plan is.

3. A lawyer that takes you for inspection to a property and he is just as puzzled as you when you discover either the land is defective in some way or some amenities in such property is not as advertised to you, really isnt the kind of lawyer you should deal with. He ought to know everything about the property he intends to sell.

4. Always ask the lawyer at first before inspection whether the property is free from defect and if he says yes, ask him for the search report. If he tells you to go and confirm it yourself, then know he is probably telling you the truth and you should still go and do the search personally through your own lawyer but if he continues to beat around the bush and tells you that he is giving you an assured gurantee that the property is free from defect, abeg run fast. The lawyer is not the land registry and in the absence of a search report, he cannot unilaterally give a guarantee about a property he doesnt own.

5.When a lawyer introduces you to a family land without the requisite C/O or minimum basic like a survey plan or allocation letter, ask him to trace the title of the property through traditional family evidence. this is very important because family lands like the ones in Epe, Ajah, Badore or Deep Badagry have been partitioned by the family a long time ago. Sometimes the partioning agreement could state that property cannot be sold until the head of the family and other members of the family have given their consent, while others might just give it to the head of the family.

If the lawyer is content with dealing with either a local native of the area claiming to be either the head of the family or a member of the family, the lawyer is not doing his job properly because that local native is just interested in selling the property quickly so as to see ogogoro money and later on put you in trouble with the family and authorities. Being a serious buyer, you should always demand to see the head of the family to clarify things or direct your lawyer to do so. If not your own your own when Fashola's bull dozers come running.

6. the rule of conveyancing states that it is the sellers lawyer who drafts the deed of assignment. He is only entitled to 10% and nothing more. If he ends up charging you above that scale of fees, abeg run fast. The 10% covers his professional fees, the drafting of the conveyance and little inspections here and there minus the search fees at the registery. If he demands for extra fees, abeg tell him to behave himself. 10% only nothing more!

7. The buyers lawyer can also draft the deed of conveyance as long as the seller gives him a go ahead. He is only entitled to the above 10% only. If he doesnt draft it himself, his 10% could be negotiated to below 10% because he is only doing the search and negotiation to drop down the price of the property thats all.

8. As a buyer, always be wary about a lawyer who advises you to buy a property at exactly the same amount of the asking price. E.g if the property is going for N100 million asking and he says it is a good deal without attempting to beat the price lower through a counter offer, know that he is thinking of the 10% of the N100 million only and not your interest.

9. If you tell your lawyer to help you perfect your title of the property through a C/O or Governor's consent, he must always periodically send you a statement of activities including the photocopy of the reciepts paid to the government for what ever he has paid on your behalf. This is important because it is your money and your property and at anytime, this statements and proof of reciepts, bank drafts or documents could actually come in handy tomorrow e.g a fire out break or loss or theft of the C/O. These reciepts could actually help you validate the existence of such a previous C/O.

If he just brings the C/O, challenge him. It is your right to have everything with you and for you to know the price of the reciepts paid. It is better for him to say that " The C/O costs N100 and his professional fees is N500 than for him to collect N800 at a go and just hand you the C/0 after 7 months. Thats pure theft and unethical practices.

Anyway if i remember more, i'll post it. Once again abeg make una shine una eye o! property sweet to advertise but know what your buying into. I no know no de o!

Cheers y'all

@dnative

Well said. There is always a need to negotiate the terms of agreement with any body and its not a standard fee per se. The 10% just grew over the years according to custom and usuage in Nigeria due to the high inflationary market in Nigeria. The key word in your post is business continuity. If you have an accord with a lawyer to help you out with the large volume of market you have, there is no need paying him 10% for each one. You could negotiate between 5-7% with him and it can be done. Most lawyers that charge above 10% do that because they are afraid of their confidence in their job and low cliente base. There is no reason why i shouldnt bring down my fees if i have an accord with you based on personal friendship and terms.

So your very right with your analysis and a very good observation. One more thing. You are not naive and don't ever say so. If you have questions about anything, continue to ask and ask till you get it right. We all learn everyday and from your questions, i see your going to be a very successful Realtor in future. Keep it up

Cheers!   

Yes its N40,000 FOR THE LEGAL FEES if the property is being sold and conveyed by the sellers lawyer. Sometimes the buyers lawyer is also entitled to roughly 5% for procuring the sale by looking out for a good property for the buyer and doing the required legal search of the property.