In the ever-changing realm of the Nigerian real estate sector, the importance of legal and title information cannot be overstated. Aspiring homeowners and seasoned investors alike are often confronted with a myriad of complexities when it comes to property transactions.
Understanding Property Titles:
In Nigeria, property titles serve as the bedrock of real estate transactions. The title of a property establishes ownership and legal rights, and it comes in various forms. One of the most common titles is the Certificate of Occupancy (C of O), issued by state governments. This document confers exclusive rights to the holder to use and develop the property for a specified period.
Another prevalent title is the Deed of Assignment, which signifies the transfer of ownership from one party to another. It is crucial to ensure that the deed is properly executed and registered to guarantee its legal validity. Additionally, prospective property buyers must be vigilant about verifying the authenticity of titles, as cases of fraudulent titles have been reported in the past.
Lands that the government have designated as Urban areas are under the government acquisition until they are declared committed or free.
- There are 2 acquisitions;
- Committed acquisitions; A parcel of land under committed acquisition means the government has indicated interest in it for specific purposes like social amenities e.g road, railway, airports, drainage systems etc. If you do not verify this and go ahead, getting an express and stress-less land title will pose some issues. Also, going ahead to purchase and develop your land, will make your land to be subjected to demolition by the government.
- Global/General acquisitions; This refers to lands that have already been acquired by the government but have no given purpose and are declared free. These types of land pose no threat, demolition and stress to get a land title.
- Legal Due Diligence:
Before diving into any property transaction, it is essential to conduct thorough legal due diligence. This involves investigating the property’s history, confirming the legitimacy of the title, and checking for any encumbrances or legal disputes associated with the property. Engaging the services of a qualified legal professional is strongly recommended to navigate the often complex web of legal intricacies.
- Land Use Act and Its Implications:
The Land Use Act, a critical legislation in Nigeria, vests control of land in each state government. This implies that even with a Certificate of Occupancy, the land is technically leased from the government. Understanding the provisions of the Land Use Act is pivotal, as it influences the rights and limitations of property owners.
In some instances, properties may have irregular titles or face challenges in obtaining a Certificate of Occupancy. This emphasizes the need for title regularization, a process that brings the title documentation in line with legal requirements. Property owners should proactively pursue this to avoid complications in the future.
Navigating the legal landscape of property transactions in Nigeria requires a careful and informed approach. From understanding the nuances of different property titles to conducting thorough legal due diligence, stakeholders must be diligent in safeguarding their interests. Seeking the assistance of legal professionals is not just advisable but often indispensable in ensuring a smooth and legally sound real estate journey.
The realm of legal and title information in Nigerian real estate demands attention to detail and a commitment to due diligence. By arming oneself with knowledge and seeking professional guidance, one can confidently navigate the legal waters and secure a foothold in the vibrant and promising real estate market of Nigeria.
