Purchasing a house in Lagos, Nigeria, involves some very important steps to render the transaction process easy and bring about a valid transfer of title from the seller to the buyer. Since lawyers are the only ones who have the expertise to conduct a proper title investigation, prepare the necessary transfer documents, and effect the necessary transfer of ownership, part of the process must be conducted by legal practitioners.

Below are the key steps to be undertaken in acquiring real estate in Lagos, Nigeria:

Key Stages in Acquiring a Property in Lagos

1. Physical Inspection

Once the buyer identifies a property of interest, a physical visit is undertaken thereafter. One may do this himself or herself or delegate a representative, such as a lawyer or relative. This exercise helps to reveal any defects that are visible, assess the potential disputes, and determine whether the property is clear and available for possession.

2.Title Search and Investigation

Upon inspection, the buyer must research the property’s title to ascertain the ownership status. The majority of properties in Lagos do not have registered titles, even though this does not necessarily render them unsuitable for sale. In the event that a property lacks a registered title, an investigation of the root title must be carried out to determine if the vendor has the right to sell the property and transfer ownership.

3.Preparation and Signing of Contract of Sale

Where the buyer is satisfied with the condition of the property, a Contract of Sale is drawn up and signed by the two parties. It has the terms and conditions of the sale and is utilized particularly where payments are to be in installments. Because of the challenges of getting mortgage loans in Nigeria, installment payments are generally preferred by the majority of buyers. A Contract of Sale will guarantee that the seller does not dispose of the property to another bidder at a better price within the contract period and also establish the seller’s agreement to cooperate on future title registration. If the full purchase price is paid upfront and all conditions met, a contract may not be necessary.

4.Preparation of Deed of Assignment

On payment of the full purchase price, a Deed of Assignment is prepared and executed by the seller (Assignor) and buyer (Assignee). It vests the property legally in the buyer subject to the obtaining of the Governor’s Consent under the Nigerian law. The transaction is now complete.

5. Title Registration and Perfection

To formalize ownership, the buyer needs to register the property with the Lagos State Government and obtain the Governor’s Consent, pursuant to the Land Use Act. The process entails stamping the deed, obtaining consent, and registering the title to obtain legal ownership.

Through these steps, buyers can complete a legally valid and conflict-free property transaction in Lagos.

Types of Property Titles and Documents in Lagos

Different property title documents are very important in Lagos real estate transactions. They are evidence of ownership and legal rights to a property.

1. Certificate of Occupancy (C of O): Given by the government, this document establishes legal ownership of land or property for a definite period of time (normally 99 years according to the Land Use Act).
2. Deed of Assignment: This document permanently vests ownership from one party to the other subject to the Governor’s Consent.
3. Deed of Conveyance: Similar to a Deed of Assignment, this document was used before the Land Use Act of 1978 to transfer the ownership of property.
4. Deed of Gift: Used where property is transferred by way of gift, this document creates transfer of ownership without monetary consideration.
5. Power of Attorney: Invests legal authority in an individual (Attorney) to act on behalf of an owner of a property in deals such as sales, leases, or registration of title.
6. Survey Plan: A valuable document showing the exact boundaries, dimensions, and location of a property to ascertain compliance with the government’s zoning laws.
7. Contract of Sale of Land: States the terms of the sale of land, including terms of payment. Ownership is legally transferred only, however, with the signing of a Deed of Assignment.
8. Grant of Probate: Issued to executors of the will of a deceased individual, giving them the authority to administer and distribute the estate, including landed property.
9. Letter of Administration: Issued when an individual dies without a valid will, and it permits appointed administrators to manage and distribute the property of the deceased.
10. Deed of Assent: Utilized by an executor or administrator to legally transfer property from the estate of a deceased to beneficiaries.
11. Judgment: A court judgment that confers ownership of a property, usually resulting from disputes, inheritance claims, or recovery of property cases.

Legal Advice for Property Transactions in Lagos

Due to the complexity of property transactions, it is highly advisable to use a qualified real estate attorney in buying property in Lagos. This will ensure that all legal requirements are met and avoid possible controversies regarding ownership and title validity.

By following these legal precautions, investors can safeguard their investments and avoid common pitfalls associated with Nigerian real estate transactions.