When buying property in Nigeria, verifying the title is one of the most crucial steps to safeguard your investment. Real estate fraud is prevalent, and the failure to conduct due diligence can lead to significant financial losses. A recent report by the Economic and Financial Crimes Commission (EFCC) shows that over 70% of real estate fraud cases in Nigeria involve issues with property titles. This article explores the step-by-step process of verifying property titles in Nigeria, offering insights and examples that go beyond the basics.
What is a Property Title?
A property title is a legal document that serves as proof of ownership of a piece of land or real estate. It defines the rights of the owner to use, sell, lease, or transfer the property, and it also establishes the owner’s legal claim to the property.
Key Features of a Property Title:
- Proof of Ownership: The title confirms who legally owns the property.
- Description of the Property: It provides details like the property’s boundaries, location, and size.
- Rights and Restrictions: It specifies the owner’s rights, such as the ability to sell, lease, or develop the property, and may include restrictions like zoning laws or covenants.
- Encumbrances: It may list any claims or liens (e.g., mortgages) that affect the property.
Why Verifying Property Titles is Crucial
Before diving into the process, it’s essential to understand why title verification is crucial. A property title is a legal document that serves as proof of ownership. Verifying it ensures that:
- The seller is the rightful owner.
- The property is free from encumbrances like legal disputes, mortgages, or other third-party claims.
- The property is properly registered with the Nigerian government.
Skipping this step can result in legal complications, financial loss, and, in extreme cases, the total loss of the property.
Key Steps to Verify Property Titles in Nigeria
1. Confirm the Land Ownership Status
The first step is determining the ownership status of the property. Is it privately owned, state-owned, or subject to community or ancestral claims? Community land is common in rural areas, and disputes over ownership can easily arise. For example, prospective buyer once purchased land in Lagos, only to discover it belonged to the local community. After a lengthy legal battle, they lost the land because no ownership verification was conducted.
2. Conduct a Legal Search at the Land Registry
Visiting the Land Registry is crucial. You need to carry out a formal search to confirm the authenticity of the property title. This is where you verify if the property is registered, and whether it has any encumbrances such as a mortgage, government acquisition, or legal disputes.
- How to Conduct a Search: You must apply to the Land Registry in the state where the property is located (e.g., Lagos Land Registry for properties in Lagos State). Once submitted, officials will conduct the search, usually taking 5–14 days.
- Cost of Search: The fee for conducting a search varies by state. For example, a title search in Lagos could cost around ₦15,000, while in Abuja, it may be slightly higher.
3. Check for a Certificate of Occupancy (C of O)
A Certificate of Occupancy (C of O) is one of the most important documents that a property owner should possess. It is issued by the government and legally validates ownership. Properties without a C of O may have dubious origins.
A property without a valid C of O could be under government acquisition, meaning it might be reclaimed by the state in the future. In 2021, over 2,000 properties in Abuja were demolished because they did not have valid titles.
4. Verify the Survey Plan
The survey plan is a document that outlines the exact measurements and boundaries of the property. Ensure that the plan is legitimate by cross-checking it with the relevant land ministry.
- How to Verify: An independent surveyor can be hired to map out the land and confirm that it matches the original survey plan filed with the government.
5. Obtain a Governor’s Consent
In line with the Land Use Act of 1978, every property transaction involving the transfer of ownership must have the Governor’s Consent. If this consent is missing, the transaction may be deemed illegal. This applies to both properties with a C of O and those without. The process of obtaining the Governor’s Consent can take between 3 to 12 months depending on the state, but it is mandatory for transferring property rights.
Hire The Trusted Advisors to facilitate the swift processing of Governor’s Consent for your land.
6. Conduct a Court Search for Legal Encumbrances
Aside from checking the Land Registry, conduct a court search to ensure that the property is not involved in any litigation. This is often overlooked but can save buyers from inheriting legal disputes. Visit the High Court in the state where the property is located to conduct the search.
7. Use the Services of a Property Lawyer
Given the complexities involved, it’s highly recommended to engage a property lawyer who understands the intricacies of land law in Nigeria. They can assist with verifying all documents, conducting due diligence, and ensuring compliance with all legal requirements.
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Common Property Title Documents to Verify
When verifying property titles in Nigeria, there are specific documents you should expect the seller to provide:
- Certificate of Occupancy (C of O)
- Deed of Assignment: A document that shows the transfer of ownership from the seller to the buyer.
- Survey Plan: Outlines the property’s dimensions and boundaries.
- Governor’s Consent: Proof that the transaction has the state government’s approval.
- Receipt of Purchase: Proof that the current seller purchased the property.
Each of these documents must be carefully scrutinized for authenticity and validity.
Advanced Tips to Avoid Property Fraud
- Cross-Verify Seller Identity: Fraudsters often pose as property owners using fake identities. Request multiple forms of ID and cross-check them with the information on the property documents.
- Third-Party Claims: Some properties may have third-party claims like unresolved debts or inheritance disputes. Always check for any such liabilities.
- Independent Surveyor Inspection: Hiring an independent surveyor to measure the land and verify the accuracy of the survey plan is a good practice.
- Deed of Assignment Registration: After the transaction, ensure that the Deed of Assignment is registered at the Land Registry. This finalizes the transfer of ownership and prevents future disputes.
People Also Ask
1. What documents should I verify before buying land in Nigeria?
You should verify the Certificate of Occupancy, Deed of Assignment, Survey Plan, and Governor’s Consent. These are essential documents that legally validate the transaction.
2. How much does it cost to verify a land title in Nigeria?
The cost depends on the state and the type of search. For instance, conducting a land title search in Lagos could cost around ₦15,000 to ₦20,000, while other states may vary.
3. How long does it take to verify a land title in Nigeria?
Verifying a land title at the Land Registry typically takes 5–14 days. However, processes like obtaining the Governor’s Consent may take up to 6–12 months.
4. What is Governor’s Consent in Nigeria?
Governor’s Consent is an approval from the state government required for the legal transfer of property ownership in Nigeria, in line with the Land Use Act.
Conclusion
Verifying property titles before purchase in Nigeria is not just a precautionary step; it is essential for protecting your investment. From conducting searches at the Land Registry to hiring a property lawyer, each step ensures that you avoid fraud and potential legal issues. Taking the time to verify titles can save you from costly mistakes and guarantee a smooth property transaction.
Also Read:
How to Buy Land in Nigeria: A Legal Guide for First-time Buyers
Understanding the Land Use Act in Nigeria: A Comprehensive Guide
How to Avoid Real Estate Fraud in Nigeria: Legal Guide
How to Obtain Certificate of Occupancy in Nigeria: A Comprehensive Guide