Historically, all lands belong to the indigenous families dwelling on such lands but the Land Use Act, enacted in 1978 vested all urban land within a state in the state governor to hold on behalf of the people, and as such the governor is therefore responsible for allocation of land in all urban areas to individuals resident in the state or to organizations for residential, agricultural, commercial, and other purposes.

When buying land, it is important to understand property rights. Owning a piece of land simply is not enough. Your knowledge of laws, policies, and obligations goes a long way to avoid land controversies. These land-linked issues include; false ownership, inheritance issues, fraud, and demolition of land by government authorities, among others, which make prospective land owners weary of making a wrong decision.

Fundamentally, the land is owned by the state government and can be passed to individuals, corporations, or bodies through a structured leasing process. To facilitate this, land titles and documents are core requirements for the seamless transfer between entities.

Land titles in Nigeria:

Property titles are legitimate documents that serve as evidence for ownership of land. These titles should be vetted before investing in a property as they provide security, value, and conformational proof to real estate investors.

The following are land titles that should be acquired by prospective purchasers and land owners:

Certificate of Occupancy (C of O)

A Certificate of Occupancy (C of O) is a state government-issued document used to prove ownership of land. Without a C of O, your land or property can be seized at any point in time without compensation. A Certificate of Occupancy would be needed when beginning property development, converting the use of the property, and changing the ownership of a property. This document has different sections such as file number, plot size, location, date of issue, lease term, terms and conditions, land use purpose, and many more.

A Certificate of Occupancy is presented to land owners who held a piece of land before 1979. C of O’s are only issued to the first person to purchase the land and cannot be issued again. It is presented for all government properties and land allocations.

Right of Occupancy

Right of Occupancy (R of O) is the right of an individual or community to occupy or use land lawfully according to the Land Use Act provisions. The R of O title grants a person, community, or corporate organization rights over parcels of land in government-consented layouts. This doesn’t proclaim ownership rights. A customary right of occupancy can be accorded by the local government primarily in pastoral areas and is the right of an individual or community to legally use land or occupy land under the customary laws. This is granted for agricultural, residential, and other uses. The state of government is entrusted with the authority to bestow the right of occupancy for any purpose, regardless of whether it is a rural or urban area.

Differences Between Certificate of Occupancy and Right of Occupancy

• Unlike a Certificate of Occupancy, a Right of Occupancy only presents an offer to the property, not the official ownership rights of that land.
• The R of O can have its rights revoked without indemnity, whereas in such cases, compensation is granted to the owners of the C of O.
• A Certificate of Occupancy title can be used as a collateral document, while a Right of Occupancy title is not an ideal title for loans. It has been subject to abuse because of the favoritism in land allocation and is hence not desirable.
• R of O is a weaker title and hence cheaper and more vulnerable in disputes, while C of O is a superior title and goes through a strenuous process, hence why it is expensive and desirable, especially in Abuja and Lagos, Nigeria.
• A customary R of O is commonly granted by a local government authority (such as Abuja, a municipal), which is different from a C of O issued only by the state government and signed by the governor.

Governor’s Consent

The consent of the governor is required when land with a Certificate of Occupancy is resold before it is deemed legal. As the name implies, the governor consents to the transfer of ownership of lands and properties when a Certificate of Occupancy is issued. There can only be one owner of the Certificate of Occupancy.

Hence, all subsequent buyers of that property or land are obligated to acquire a governor’s consent. To legalize the transaction and gain rights to that property or land, this consent must be approved by the governor of that state. The reason behind this is to inform the government of the new possession of the land.

Excision and Gazette

Excision is the process of the government releasing an allotment of land back to the original owners for commercial and residential developments and activities. 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. 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.

 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. Excision and gazette are good titles connected to land ownership and transfer, and they ensure that land is safe to buy and develop.

Differences between Excision and Gazette

• Excision features the community granted land for commercial or residential purposes, while a Gazette details all necessary information, including the special government details such as the village or family accorded the rights, the acres of land, and the purpose of the land amongst others.
• Without a Gazette, excised land can be seized or revoked from the owners. Hence, a Gazette is superior and must be obtained for security purposes.
• An Excised title shows the land left for a community by the government, while a Gazette publishes legal notices to comply with lawful requirements for public information and will detail the acquisition process between the government and the community, including land still owned by the government.

Government Allocation

Government Allocation documents are for properties within government acquisition that the government allocates to a person or organization. These government-acquired land either have clear plans or are yet to be assigned by the government.

Real estate companies, multinational corporations, hospitals, government parastatals, etc. usually approach the government to partake in this opportunity, and when the government approves their request to use this land for a defined goal or plan, the government allocates This document is solely for this purpose.

Property documents you must not joke with:

Land Purchase Receipt: A purchase receipt in a real estate transaction is a document or receipt acknowledging the payment for land or property. This receipt has to clearly show the name(s) and signature of the purchaser.

Typically, vendors confer a purchase receipt on the buyer upon the sale of a property. However, the receipt may be ruled out where the clause for receipt is contained in the document transferring the land. A Land purchase receipt must also show the amount paid and the full name of the buyer and seller. It is usually required when registering the land.

Deed of Assignment: This document explains that a section of the property is covered by the C of O, and a specific portion of the plan has been assigned to the purchaser. This deed must be signed and stamped accordingly, with all details made clear. The Deed of Assignment document is drawn up by a real estate attorney liaising between the new buyer and the current title holder of that property. The assignor (seller of the landed property) uses this deed to prove the permanent transfer of property to the assignee (the buyer). Either party can draft and review this document.

A Deed of Assignment with the Governor’s Consent is released to an individual who takes over land through sale rather than a new Certificate of Occupancy. A deed of assignment or deed of conveyance is different from a receipt, and the two documents should not be confused for the same document. A receipt proves that money was paid, while a deed of assignment certifies ownership of a piece of property. However, every real estate transaction should have a receipt that shows the right amount paid and the right person to whom the amount was paid.

This deed contains the date of the transaction and the specific details of the property included in the transfer of ownership. For legal evidence, it is pertinent for a deed of assignment to be recorded at the right Land registry in charge of that state. This ensures that the transaction is public and made known to the government as well.

At the Land Registry, the document will be approved and authenticated through a Registered Conveyance or Governor’s Consent after it has been stamped at the Stamp Duty office in that state.

 

Contract of sale

A contract of sale is a legal document that gives the full property of what is being purchased and accounts for payments to be made at intervals. The contract of sale of land is used by parties to agree on some terms before the finalization of the transaction. It is relevant when a property is to be purchased by anyone. It is not a registrable instrument and must be preceded by other documents transferring title to the applicable property.

Survey Plan

A survey plan measures the boundary of a piece of land. The land is mapped out accordingly to show the type of title such land has. That is, if it is excise, gazette, C of O, etc., it also shows if the land is still under government acquisition. This plan does not need to be registered. This type of survey plan is used when a customer buys land or property from a developer who has a survey for the entire estate or acres of land with a preceding approved survey plan. This is required for the land to be resold or used for other purposes.

Survey Plan

A survey plan measures the boundary of a piece of land. The land is mapped out accordingly to show the type of title such land has. That is, if it is excised, gazette, C of O, etc. it also shows if the land is still under government acquisition. This plan does not need to be registered. This type of Survey Plan is used when a customer buys land or property from a developer who has a survey for the entire estate or acres of land with a preceding Approved Survey Plan. This is required for the land to be resold or used for other purposes.

 

Allocation Letter

Allocation is the process of being granted a specific parcel of land. This document shows the detailed information linked to the property purchased. Without allocation, the process of buying land is not complete. Until your land is marked out and demarcated, you cannot use or sell the land. Allocation is done after land cost payments and all statutory fees are paid. This is done in batches at intervals in a year, which vary by real estate company.

Conclusion

Every potential or aspiring owner of landed property must ensure they conduct due diligence on the title, accessibility, and usage of the land to be bought. Other than having the right land title and document, land may be impeded for various reasons, such as criminal forfeiture of landed property or a pledge on the property. Understanding the different types and how they apply to you can hedge against the risk of bad investment experiences and fraud.

The process of acquiring these titles and documents can be complex, tedious, and meticulous.

Hence, you should consider having a reliable real estate company conduct this process on your behalf. Hanifar Dynamic Co. Ltd partners with an independent property law firm that verifies all properties that are sold, and only verified properties are posted on our website or YouTube.

Contact

You can call us at +2348131578586, send a WhatsApp message, or email us at info@mynaijaproperties.com if you need assistance or recommendations.

In the meantime, kindly click on any of the links in this article to review the properties and lands we have currently for sale or visit our website for more opportunities with Hanifar Dynamic Co. Ltd

Don’t wait for the opportunity to knock; build a door. No goodbyes, but next time!!