₦airaland Forum

Land purchase in Nigeria; especially in the urban areas, is a very delicate issue. Everyday people lose money in land transactions simply because they fail to do some simple things that could prevent this loss.
In this special report, we have listed “5 mistakes you should avoid when buying in land in Nigeria” Let’s go over them quickly.

Mistake #1: Not Knowing the Status of the Land

A major mistake people make when buying land is, paying for land without knowing the status of the land. A piece of land could free or committed. If a land is free, this means that it is free from government acquisition and has been given out for use. On the other hand, if a land is committed, it means that the government has registered an interest in the land and intends to use it for a specific purpose. E.g construction of airport, roads etc.
NOTE: All lands in urban areas are under government acquisition until deemed “not committed”. This means that a piece of land that is said to be under acquisition today may be released for use tomorrow if the land is not under committed acquisition. If you buy a piece of land that happens to fall under a committed area, the penalty for this mistake is a repossession of your land. If you already have a building on such land, the government will come one day and ask you to move out or earmark it for demolition. How can you find out if a land is committed? The simplest way to avoid buying a committed land is by conducting a Survey plan search. First, ask for the survey plan of the said land and take it to the office of the surveyor general where you can do a search. This is where you’ll find out if the land is free or committed. NOTE: if the land is committed, then just forget it entirely but if it is under acquisition but is being sold then it should have an excision file number which you can take to the lands bureau/land registry to confirm if the land is actually undergoing an excision.

Mistake #2: Not Going For Physical Inspection

Another mistake that could cost you your money is; not going for a physical inspection of the land you are about to buy. Whether it is an Omo-onile land or an estate sold by a property development company, it is only wise that you go and see what you are buying. Or at least send someone you trust to go and see the land after confirming that the land is genuine. The risk of not going for physical inspection is that you may end up buying a land that does not exist and this happens mainly when dealing with Omo-oniles. “Omo-onile is a word used to describe land owners in a particular area”

Mistake #3: Paying cash for land transactions

This is something you should never do! In fact, if you are buying within a property company’s estate, the company advises you to pay into their account to avoid unnecessary stories. Similarly, if you are buying from an omo-onile, do not be tempted into paying cash for any land transaction. The reason is, when you pay cash, you do not have an evidence that you actually paid the money and it becomes very easy to defraud you of your money. In most cases when you pay cash to omo-oniles, you will find out that they start sharing the money in your presence. So who will you hold if you eventually have issues with the land? On the other hand, when you pay through the bank, you have a proof that you have made payment for the land.

Mistake #4: Not Collecting a Deed of Assignment

A deed of assignment is the most important document you should get after buying a piece of land. Sadly, most people do not know this and ignore it. This is the document that shows that there has been a transfer of property from the buyer to the seller. In the event of a land dispute, for example if your land has been resold to another person, it is the person who has a deed of assignment that is seen as the rightful owner of the land. This could happen if you buy an omo-onile owned land. When buying an omo-onile land, it is wise that you get a lawyer to prepare a deed of assignment for you, which you can take to the omo-onile family where all the parties involved can sign. Property development companies on the other hand, make this document available to buyers when they make a complete payment for their lands. So you don’t have to get a lawyer to do that for you.

Mistake #5: Not Doing a Proper Registration of Your Land after Purchase

If you are thinking that all you have to do to be a land owner/landlord is to pay for land and collect the necessary document from the seller, then just go and sit at home. I’m sorry you are wrong. It doesn’t end there. Why? Because the government doesn’t know about your land yet. In the eyes of the government, the land still belongs to the seller (the original owner). How can you change that? You can change that by taking your deed of assignment to the land registry and register your land in your name. This is when the government starts seeing you as the owner of the land. Upon doing this, you will get a governor’s consent for that land which allows you take total possession of your land. This means you can now sell your land if you wish without having to go through the company that sold it to you.

The 7 Land Documents that you must know about before buying a land in Nigeria
It is imperative that any individual who intends to purchase landed property must know and understand the types of documentation that governs land transactions. It is a pity that only about 12% of land purchasers know and comprehend what land documents truly mean and the purposes which they serve.
One of the most significant methods for making a claim for land ownership as well as in any landed properties’ exchange is by having title documents that are important and recognized by different government rules and laws on such landed properties.
The introduction of any of these title documents will help make the claim of ownership or transaction become legitimate after confirmation from the appropriate government agency accountable for all landed property issues in Nigeria.
There are 7 Basic title documents relevant to landed property ownership in Nigeria and they are:
• CERTIFICATE OF OCCUPANCY
• DEED OF ASSIGNMENT/CONVEYANCE
• DEED OF LEASE
• DEED OF SUB-LEASE
• LAND CERTIFICATE
• DEED OF MORTGAGE
• SURVEY PLAN
1. CERTIFICATE OF OCCUPANCY(C of O)
A C of O is the officially recognized Land Document for demonstrating Right to a Land. It is a Land Document given by the State Government which officially leases any land under the state to the applicant for 99 yrs. As previously known, all lands belong to the Government. This is the most powerful title document that you can get for any property in Nigeria. It is the main title document that you can use as collateral for any transaction with a major financial institution.
2. DEED OF ASSIGNMENT/CONVEYANCE
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 Buyer and the Seller of the property in question.
The Deed of Assignment contains very pertinent information for a real estate transaction. For one, it spells out the date when the ownership of the property transfers from one owner to the other. The deed also gives a specific description of the property that is included in the transfer of ownership.
3. DEED OF LEASE
It is also known as Governor’s Consent. This land document is obtained whenever you buy land with C of O. It’s the land document that lets the Governor and the general public know that the land in question has changed hands.
The Deed of Lease was used to transfer property especially government properties in Ikoyi, Surulere, Victoria Island axis of Lagos state during the mid-70s and 80s after the promulgation of the Land Use Act. These lands were mostly federal government lands and high profile lands and it was the first foray into the issuance of the certificate of occupancies for the first time to people.
4. DEED OF SUB-LEASE
This is another relevant legal document duly signed and stamped indicating land and landed property transaction between a leaseholder of land sub-leasing his/her unexpired lease term to a third party.
5. LAND CERTIFICATE
This is a document of title as to the ownership of a piece or large parcel of land. Prior to the promulgation of the Land Use Act of 1978, it was issued by a government’s land registry for registered freehold or leasehold lands in Nigeria. Land Certificate was usually issued to owners of landed properties when the Property Conveyance Law of 1959 was still in effect.
6. DEED OF MORTGAGE
It is a security for a loan with an undertaken for repayment and ceases upon recovery. The common types of mortgage transactions are; Equitable Mortgage and Legal Mortgage
Legal mortgage is a type of mortgage which transfers the legal interest one has in the property, whether leasehold or freehold in consideration for loan advancement while Equitable Mortgage transfers just an equitable interest in the property to the mortgage.
7. SURVEY PLAN
This land document shows the boundary measurements of a parcel of land to give an accurate measurement and description of that land. It reveals the true ownership status in any properties’ transactions. It also helps to reveal if such land is not under any government acquired or committed lands/area.
Surveyors are the people who handle survey issues and they are being regulated by the office of the Surveyor-General of the state where the property is located.
4point property is a property development company in Nigeria that offers a complete portfolio of real estate investment services in Lagos, Nigeria.
We are a team of enthusiastic and dedicated real estate professionals always on hand to provide property investment opportunities and insightful advice on all your property needs.
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