If you’ve always wanted a better understanding of all the Land titles in Nigeria and property documents in Nigeria. The most important thing to know about land in Nigeria is that every piece of land is owned by the state government (except those vested in the Federal Government or its Agencies) according to the LAND USE ACT 1978.
The Land Use Act entrusts all urban lands comprised in the territory of each State in Nigeria solely to the Governor to hold in trust for the people and allocate to individuals and organizations for residential and industrial uses amongst others.
How Business Was Done Before the Land Use Act
Prior to the Land Use Act of 1978, there were three major land tenure systems, that coordinated how people buy and sell land in Nigeria
1. The customary.
This was essentially based on the customs and traditions of the various communities with the Chief, Obas, community, or family head holding the land in trust for family or community use;
2. The non-customary.
This was Based on the received English Law (operational mainly in the then Lagos Colony) which vested the land on the British Queen but also allowed for either freeholding or lease holding with tenured occupancy.
3. The Special native.
This was a favored system of Northern Nigeria which put the land under the control of the Governor for the use and benefit of the Natives of the Region.
It should be noted that before the 1978 Land Use Act, all the existing tenure systems encouraged land holding without an obligation to develop them, hoarding speculatively for value appreciation was common practice, and there was not any precise documentation as well.
Before 1978, One can only imagine the huge number of hurdles you’ll have to cross to buy land for sale in Lagos for example.
How Is Business Done Today After The Land Use Act?
The government leases any land purchased for a period of 99 years after which such title can be renewed by the owner. Land can either be free or under government acquisition. A piece of land free from government encumbrances makes it easy to obtain a certificate of occupancy or any type of good land title.
It is important for anyone that wants to buy real estate or land for sale in Nigeria to search for the title of such property at the appropriate land registry in the state where the land is located.
Types Of Land Titles In Nigeria.
1. Excision & Gazette.
Excision simply means the government releasing a parcel of land that has been under global acquisition in the past. A family or an individual interested in such land can process a government-approved excision. Documentation for the land can be processed up to the governor’s consent level.
Gazette is the official record book that spells out all details of an expanse of land that has been excised and given back to the community. The details include the name of the community and details of the expanse of land given excision.
With a gazette, a person can apply for a certificate of occupancy or governor’s consent.
2. Certificate of Occupancy (C of O)
A Certificate of Occupancy is an authorized document issued by the State Government. It is Issued to individuals, and companies, to confer ownership and right of occupancy in land for all purposes for a term not exceeding 99 years subject to renewal.
The Certificate of Occupancy is a document issued only once. This is Issued to the first person to own and purchase such land as ‘virgin land’.
Therefore, this document prevents multiple owners from claiming ownership of that piece of land. The C of O is usually issued for all governments’ land allocations and properties.
3. Governor’s consent
Governor’s consent simply refers to the approval of the Governor of every State in Nigeria on any transaction concerning land. It is an integral part of land transactions, as consent is usually required for the perfection of any land transaction.
The purpose of obtaining a Governor’s Consent is so that the state government is made aware of the transfer of ownership rights.
This consent can be applied for and obtained multiple times. As long as possession of such land is being handed over to multiple purchasers over time.
Therefore, as long as consent is obtained by the buyer, the ownership rights will be properly secured.
4. Probate & Letter of Administration
When a person who owned a piece of land dies. The representatives of such person must obtain a Grant of Probate and letter of Administration.
Before exercising control or ownership over the property of the deceased.
Both documents can be obtained via the Probate Registry of the State High Court, or the High Court of the Federal Capital Territory.
Important documents you should know before buying properties in Nigeria.
When you have made the decision to invest or buy land for sale in Nigeria.
It is crucial that you are aware of the documents involved in any land transaction in Nigeria. This is to ensure you don’t get scammed.
The land Titles as mentioned above are formal documents that show and outline your right of ownership on a piece of property.
Apart from being used to confirm ownership of a property. Land titles help buyers and sellers understand their rights and boundaries.
If the property does not have your name on its title it doesn’t belong to you by law. Another person can legally claim the property even if you paid for the property.
But as long as you possess the relevant title documents recognized by the government then you have nothing to worry about. The office of the land registry records all legally recognized land titles.
The controversy over ownership of land in Nigeria is extreme even among family members, on a daily basis, people are trooping into The Nigerian High Court to settle land disputes.
To ensure you don’t fall victim, There are very important documents you need for a successful transfer process from the seller to you.
1. Receipt
We all know how relevant a receipt is, a receipt in a real estate transaction is a document that confirms that a land seller has received the agreed amount of money from the buyer. Without this document, the seller can wake up one morning and say he was never paid the complete amount even if he was fully paid, and win the case if taken to court. This document shows the amount paid and the name of the person paid to. It is often required when registering land.
2. Deed of Assignment:
This is a document that shows you are the new owner of the property. The document is an important one and that should not be overlooked.
It is also referred to as ‘deed of conveyance ‘ which means the process of transfer of ownership. It shows evidence that the seller has transferred all ownership, right, and title on the land to the buyer.
The deed of Assignment contains important information. Information like the date the land was transferred to the new owner and a clear description of the land.
After the exchange of the deed between both parties. It has to be recorded in the land registry to show legal proof that the land has exchanged hands.
3. Survey Plan:
A survey plan details the exact measurement and description of land including its length and breadth. It also helps to reveal if the land is under any government acquisition, which is also known as committed land. A committed property is one that the state or federal government has earmarked for a particular project.
Conclusion
You should note that a receipt is not the same thing as a deed of assignment. While a receipt proves that money was involved in the transaction. A deed of assignment proves ownership of a piece of property.
Before you carry out any real estate transaction be sure to collect a receipt that states the right amount paid and the right person paid to.
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