One of the most important steps that any property buyer must take before committing money to a transaction is understanding land ownership in Nigeria. Many buyers are only concerned with the physical features or location of land and do not adequately determine who actually owns it, the quality of the seller’s title or whether the land is subject to government acquisition, litigation or encumbrance. This lack of due diligence has led to innumerable cases of fraud, double sales, demolition of structures and long drawn out litigation. Therefore, it is very important that every prospective buyer understands the basic principles that govern land ownership in Nigeria before buying any property.
In Nigeria, land ownership is regulated by the Land Use Act 1978. Under the provisions of the Act all land in a state is vested in the Governor of that state and he holds it in trust for the common use and benefit of Nigerians. That is not to say that people can’t own land. Rather, individuals have interests in land through statutory or customary rights of occupancy granted directly by the government or recognised under customary law. Thus what most people call ‘ownership’ is legally a recognised right to occupy and use the land.
The first thing a buyer needs to realise is the importance of title documents. The person selling land must be able to show how they got title to the property. Some of the common title documents in Nigeria are:
Certificate of Occupancy (C of O), Governor’s Consent, Registered Deed of Assignment, Registered Conveyance, Deed of Gift, Court Judgment Gazette, and Excision documents.
But it is important for buyers to realise that just seeing a document is not enough. In the property market there are many fake and defective documents circulating. The seller’s documents should be checked professionally with the appropriate Land Registry and government agencies.
Another big issue buyers need to understand is government acquisition. Lands in many states, notably Lagos, Ogun, Abuja and areas experiencing rapid development, are often under government acquisition. Some acquisitions are committed, others excised or released. Land acquisition can lead to demolition or forfeiture without compensation. Accordingly, a land status search is necessary prior to making payment.
Buyers also need to understand the importance of family and customary land structures in Nigeria. In many communities, land is not owned by one person, but by a whole family or community. Problems often arise when one family member sells family land without the consent of the principal family members secretly. Later on, such sales can be challenged in court and declared void. Therefore, it is necessary to obtain the agreement of all the necessary family representatives to the transaction and for them to sign the relevant documents.
And possession is no proof of ownership either. Many buyers are misinformed that if someone is occupying the land, they automatically own it. Nigerian law requires valid title, lawful transfer and proof of ownership. So a buyer has to see how the seller obtained the land, if the land is disputed or not, if there is any litigation pending, if there are any mortgages, encumbrances or government interests on the property.
It is therefore essential to make searches at the Land Registry, courts, surveyors’ office and to inspect the land physically.
Survey plans are just as important. The buyer should insist on a copy of the survey plan and have it charted by a professional. Charting helps to identify whether the land is subject to government acquisition, whether it overlaps with another property, whether it is within committed government areas and whether the coordinates are authentic.
Overlapping surveys and fake coordinates or multiple allocations on the same parcel of land are the cause of many land disputes in Nigeria.
Another serious matter is the perfection of the title. Many buyers don’t perfect their title documents once they buy land. In the case of registered land, the buyer typically needs Governor’s Consent and registration of the deed. Failure to perfect title may lead to problems later when the buyer wishes to re-sell the property, use it for security to obtain loan for example, change the ownership, or defend the ownership in a court of law.
Also, perfection of title enhances the buyer’s legal protection and establishes a proper public record of ownership.
Buyers also need to be aware of fraudulent real estate scams. Some developers sell land without title, and some sell the same property several times. Sometimes it’s people impersonating landowners, or sometimes it’s complete document fabrication. Buyers should therefore not make payments without proper legal documentation, professional due diligence, and independent verification by a lawyer experienced in property transactions.
Importantly, hiring a competent property lawyer is not optional, it is necessary. A lawyer will help you with searches, review title documents, prepare closing documents, confirm ownership and identify any legal risks that the average buyer might miss. Proper legal due diligence costs a pittance compared to the financial loss that can follow a defective transaction.
Ultimately, understanding land ownership in Nigeria involves more than just knowing what property is out there. Buyers must understand the legal structure of land before allocating funds, investigate the seller’s title thoroughly, confirm government status and ensure proper documentation. Property transactions are costly and errors can have lasting legal and economic ramifications. The safest guard for any property buyer in Nigeria is careful due diligence, professional guidance, and proper documentation.
. Michael ‘Lekan Odunlami, a property law expert and Managing Partner at Claybrook Attorneys in Lagos, can be contacted via [email protected] and 09028978494.
