It is usual for humans to make mistakes at the start of a new journey. Like a toddler learning to walk, beginners in real estate are not excluded.
The real estate industry in Nigeria is riddled with tales and wails of former property owners who lost custody of their asset(s) due to improper land documents.
This problem largely stems from a lack of knowledge, and we have taken it upon ourselves to explain the documents that signify the validity of a real estate property, and the use case of each.
A Land Title is a formal document that shows the rights you hold on your piece of property.
It may also refer to a formal document, such as a Deed, that serves as evidence of ownership.
In no particular order, the following paragraphs will cover the FIVE (5) most important land titles in Nigeria.
Buckle up. Shall we?
Certificate Of Occupancy
Certificate of Occupancy, or the “C of O,” is a document issued to landowners and property buyers as a legitimate proof of ownership by the state government in Nigeria.
This document also specifies the property’s possible uses, including residential, commercial, or mixed construction.
The Government is the only body able to issue the Certificate of Occupancy because all lands in the state are vested in the Governor of the State.
This is detailed in the Land Use Act 1978.
The biggest unique feature of the C of O is that it can only be issued once in 99 years.
Once it is issued to an owner, it cannot be vested to another individual or body until 99 years later. What happens then? We have not lived long enough to find out.
Details found on a Certificate of Occupancy:
- Certificate of occupancy number
- Size of the plot
- Date issued
- Plot number
- File number
- Location
- Survey plan
- Terms and conditions
- Date issued
- Term of lease
- Purpose of land use.
Importance of having a Certificate of Occupancy
- It prevents the Government from revoking rights to your property without proper compensation.
- It is suitable to serve as collateral in cases where needed.
- It increases the value of a property.
- It specifies actual ownership of a Real Estate property.
- It allows for the conversion of property use.
- It is needed for approvals of property construction plans.
A Certificate of Occupancy is one of the most important land titles in Nigeria. However, a lack of one does not render a property invalid.
The next paragraphs will explain other land titles, and how they fit.
Governor’s Consent
Whenever the owner of a Real Estate property (with a C of O) decides to sell or transfer ownership to someone else, the seller must obtain a Governor’s consent to legitimize the transaction.
As you already know, the Governor can never issue another Certificate of that particular property to the new buyer.
Hence, his office can only issue a ‘Governor’s Consent.’
Every transaction on a property with a C of O needs to be approved by the Governor’s office. A lack of this renders the transaction unrecognized and illegal.
This very important process is statutorily provided for in Section 22 of the Land Use Act 1978 as amended, it provides thus:
“it shall not be lawful for the holder of a statutory right of occupancy granted by the governor to alienate his right of occupancy or any part thereof by assignment, mortgage, transfer of possession, sublease or otherwise howsoever without the consent of the governor first had and obtained”
Transactions that require the Governor’s Consent
- Assignment
- Mortgage
- Sublease
- Lease
- Gift
Benefits of obtaining The Governor’s Consent
- It shows evidence of ownership
- It guarantees the security of existing land title
- It facilitates ease of transaction
- It influences higher property value.
It is advisable to always get the governor’s consent over any Real Estate transaction as it applies.
The long-term benefits far outweigh the hurdles that may be pertinent to getting the land title.
Excision and Gazette
Excision is the process where the Government releases an allotment of land back to the indigenous owners, for residential and commercial development.
A family or individual interested in that land can process an excision approved by the Government, and documentation for the land can be processed to the Governor’s consent level.
Gazette is a legal record book that explicitly details the characteristics of a parcel of land that has been excised and recovered by the family or community.
The name of the community and details of the land used in the excision process will be included in this document.
A person or community can apply for a Certificate of Occupancy or Governor’s Consent with a gazette.
When the excised land is declared in the government official gazette, such land is said to have Gazette as the title. The Gazette then becomes the title of the land.
Excision is a valid title with regards to Real Estate properties, eliminating any doubts regarding ownership of the property. In cases where it applies, this Land Title should not be skipped.
Deed of Assignment
A Deed of Assignment is a land title transferring ownership of a real estate property from one body to another. Extensively, it transfers the ownership of land or property from a seller (an assignor) to a new buyer (the Assignee).
A Deed of Assignment can only be prepared by a lawyer. Because it acts as the primary legal agreement between the vendor and the buyer, a deed of assignment is essential.
It indicates that they have finished all talks, research, and other required due diligence.
In addition, it demonstrates that the parties to the transaction have satisfied all other requirements and have paid the purchase price. Additionally, the vendor has given up all his ownership interests in the property.
The deed of assignment must be filed with the state Government by all parties. Once all parties to the land transaction have signed it, they should execute it where the land is located. According to the land-use legislation, the governor’s approval is required before registering a land’s title (Governor’s consent).
Registered Survey
A Registered Survey Plan is a document that measures the boundary of a parcel of land to give an accurate measurement and description of that land.
It is simpler to examine or search from the office of the Surveyor-General whether the land is genuinely under any government purchase or not thanks to the descriptions and coordinates on the survey document.
A Registered Survey is not a land title. However, it demonstrates that a Real Estate property is exempted from government acquisition, and makes it possible to file a C of O or perfect the title.
The five land titles explained above are commonly used to facilitate Real Estate transactions across different states in Nigeria, and cover almost every category of transaction there is.
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