I get calls every week from would-be land buyers asking me the same question: “The land has a Certificate of Occupancy. So is it totally safe to buy? Right?” Others ask: “Can I build without a C of O?” Some even believe that once they get their Certificate of Occupancy, no one can dispute their ownership.
Many Nigerians unfortunately spend millions of naira on property based on these misconceptions. The result is unnecessary litigation, financial loss, and, in some cases, demolition of buildings. Knowing what a Certificate of Occupancy (commonly known as a C of O) really means can save you years of legal trouble.
The Certificate of Occupancy is one of the most recognised land documents in Nigeria. It is a document issued by the Governor of a State under the Land Use Act that a person has been given a statutory right of occupancy on a parcel of land for a specified period usually ninety-nine years subject to the conditions contained in the certificate.
In essence, the C of O is the government’s formal recognition of a person’s right to occupy and work a piece of land. It is more than just a pretty document to hang on the wall; it is evidence that the holder has been granted legal rights to the land.
But having a C of O does not mean that all the problems regarding that land are over. This is where many people get it wrong.
Picture a young professional in Lagos who chooses to invest his savings in a plot of land in Ibeju-Lekki. The seller proudly shows a Certificate of Occupancy and the buyer pays the full purchase price without asking any further questions. Some months later another family surfaced, claiming that the land belonged to them in the first place and that the seller had obtained the C of O by fraud. Soon everyone is in court. Many people would immediately think that if there is a C of O, the buyer wins the case automatically. And that is not always the case.
A Certificate of Occupancy provides good evidence of title but it is not conclusive proof of ownership. The Nigerian courts have consistently held that where it is shown that a Certificate of Occupancy was obtained by fraud, misrepresentation or where another person had a better legal title before it was issued, the certificate can be challenged and, in appropriate cases, set aside. This explains why lawyers always advise their clients to undertake proper due diligence before buying land, regardless of what documents are presented to them.
Another common misconception is that all landowners must have a Certificate of Occupancy before they can validly own the land. That is not correct.
In many communities in Ogun, Oyo, Osun, Edo, Delta, Anambra and even parts of Lagos, families have owned land for generations without ever receiving a Certificate of Occupancy. Ownership may still be recognised under customary law where reliable evidence such as family history, traditional boundaries, acts of long possession, and other recognised methods of proving title are available.
A C of O is not a title to land, and the lack of one does not mean the land is unowned.
Another popular myth is that if you get a Certificate of Occupancy, the government can never take your land. Again this is wrong.
The Land Use Act 1978 gives the government the power to revoke a right of occupancy for overriding public interest such as road construction, public infrastructure, schools or hospitals. A Certificate of Occupancy does not bar government acquisition of the land but compensation may be payable in appropriate cases.
Many are surprised to learn that even after a Certificate of Occupancy is issued there are still duties to be performed. Most Certificates of Occupancy include conditions that the holder must pay ground rent, comply with planning regulations and use the land for the approved purpose. Non-compliance with these conditions can expose the holder to sanctions and in some cases revocation.
There is also this idea that once a seller shows a photocopy of a Certificate of Occupancy, there is no need to check anything else. This may be one of the most expensive mistakes buyers make.
The forgery of land documents has become more sophisticated. There are now unscrupulous people who are making fake Certificates of Occupancy that look real to the untrained eye. Some even sell the same plot of land to several buyers, using different copies of the same document.
The smart purchaser will always inspect the Certificate at the appropriate State Lands Registry to ensure it is genuine, to confirm that the survey plan matches the property being sold, to check that there are no current disputes over the land, and to confirm that the vendor actually has the right to transfer the property.
Another problem that comes up quite often is the Governor’s Consent. There are many buyers who believe that if a property already has a Certificate of Occupancy, they don’t need to get the Governor’s Consent after they purchase it. That’s a legal risk.”
The Land Use Act generally requires the Governor’s Consent to perfect the transaction where land covered by a statutory right of occupancy is transferred from one person to another. If you do not obtain the required consent it may create legal problems especially if the purchaser wants to sell the property at a later date, use it as security on a loan or establish title in a court of law.
Never should property ownership become a race for document collection. Asking if there is a certificate of occupancy is far too simplistic for a real property transaction. The history of the land, the ability of the seller, the authenticity of the documents, physical inspection, survey verification, planning approvals and legal due diligence are just as important.
As lawyers we always say that buying land is one of the only investments where spending a little money on legal advice can save millions in future litigation.
Get an experienced property lawyer to do proper searches and advise you accordingly before you pay for any property. A legal fee that seems high today may be a bargain in the years of avoided litigation tomorrow.
A Certificate of Occupancy is definitely an important land record. It increases the value of the property, strengthens the proof of title and gives buyers more confidence. But it should never be assumed to be an ironclad guarantee against all potential legal challenges.
Paperwork is important in real estate transactions, but more important is doing your due diligence properly. A Certificate of Occupancy is not the safest investment. The safest investment is the one whose title has been properly investigated before a single naira exchanges hands.
Land transactions should never be based on assumptions or the mere sight of a Certificate of Occupancy. Every property has its own legal history, and a seemingly valid document may still conceal defects capable of leading to costly disputes. Before paying for any land or property, always seek proper legal advice and carry out thorough due diligence.
Before buying or selling any property, always seek legal advice from an experienced property lawyer. Proper due diligence can save you from costly mistakes and avoidable litigation. If you have any questions about a land transaction or property documents, feel free to reach out to me for a free consultation. Prevention is always better and cheaper than litigation.
. Michael ‘Lekan Odunlami is a Property and Litigation Lawyer based in Lagos at Claybrook Attorneys. He can be Contacted via [email protected] and 09028978494.
