LAND OWNERSHIP IN NIGERIA

Land ownership in Nigeria is regulated by the Lands Use Act Cap 202 Vol.11 Laws of the Federation, 1990. The law vests ownership of all land within a state (except those vested in the Federal Government or its agent) in the Governor of the state who holds land in trust for the people and allocate same as far as the urban area is concerned, to individuals and corporate entities for residential, commercial, agricultural and other purposes allowed by law. Land located in rural areas is under the control of local government authorities. Documentary evidence of ownership is called title deeds or title documents. Ownership of land before the Land Use Act was either by settlement, conquest, sale, gift or larches and acquiescence. With the promulgation of the Land Use Act, ownership acquired by the above methods became extinguished and became vested in the Governor of the state. Freehold interest acquired prior to the Act became converted to leasehold, the Governor becoming the lessor. A lease granted by the Governor is usually for 99 years, subject to review upon expiration. The terms of the lease are, under the Land Use Act, contained in a Certificate of Occupancy (C of O) granted by the Governor. The C of O, which is the document of title provided for under the Act, grants a right of occupancy for the leasehold term stipulated therein.

Documents of title obtained and registered at the lands registry prior to the advent of the C of O do not by that fact lose their validity. They remain valid subject to the general condition that freehold interests purportedly conveyed in them have now been converted to leasehold held at the Governor’s mercy. Holders of such title documents, usually called a Deed of Conveyance, Deed of Gift etc. are deemed by law to have a statutory right of occupancy over the land. Even where title to land, prior to the operation of the Land Use Act, is not evidenced by a registered document, or held under customary law, the holders of such title are also deemed to have a statutory right of occupancy. Such title-holders are however at liberty (and advisable) to apply to the Governor for a C of O as written/registered evidence of their title to the same.

The Land Use Act does not abolish any prior interest in, or the right of the holder of a title to, land to freely transfer or deal with the same. The only condition imposed on such right is that it is exercisable subject to the consent of the Governor, in line with his ownership thereof. Therefore, in order to validate a transfer of title, the transferor by law (but usually the transferee in practice) must apply for the Governor’s consent to the Deed of Assignment duly executed by the parties. This is followed by stamping at the Stamp Duties office and registration at the Lands Registry.

1. INVESTIGATION OF TITLE

Before a person accepts to buy a property, it is proper to determine the authenticity and validity of the seller’s title. Where the title to the property is covered by a registered document, a search will be conducted at the Lands Registry to investigate the same. The search will reveal the name of the registered owner of the property or person(s) entitled by law to deal with the same, its size, in some cases, its history, and any encumbrances such as a mortgage, charge, caution or caveat, if any. Where land is not covered by a registered document, investigation is informal. This is done by making inquiries from those expected to know about the history of the land, and around the locality of its situation, with a view to determining who is legally entitled to deal with the land.

2. CONCLUSION OF TRANSACTION

Where a search reveals any encumbrances, the buyer will be advised to tread with caution. Where all doubts have been allayed and title found to be clean and satisfactory, the process continues to the negotiation of the purchase price (if not previously agreed) and preparation of an Agreement to sell and a Deed of Assignment. The documents are, normally, prepared by the purchaser’s solicitors. The execution of the transfer documents then follows, accompanied by the surrender to the buyer of all documents relating to the property by the seller.

3. OBTAINING THE GOVERNOR’S CONSENT

After the exchange of the payment for the purchase price with the executed Deed of Assignment and other relevant documents, the purchaser must take steps to obtain the Governor’s consent to the transaction. An application is made on the prescribed form to the Governor’s office. In Lagos State, for instance, an application is made on Land Form 1C and is accompanied by the following:
i. A covering letter forwarding the documents.
ii. Certified true Copy of the title document
iii. 6 copies of the Deed of Assignment
iv. Receipt for the payment of tenement rate (where land is developed) or affidavit in lieu.
v. Initial deposit on consent fee (final payment determinable upon independent valuation of property by the Governor’s office).
vi. Tax clearance certificate of parties to the transaction.
vii. Evidence of payment of ground rent.
viii. Payment of Development Levy, Charting and endorsement fees.
ix. 6 copies of survey plan.

After endorsement of the Governor’s consent, stamp duty is paid on the document and the same registered at the lands registry. It is worthy of note that the requirements differ from state to state and are subject to review from time to time.

4. OBTAINING A CERTIFICATE OF OCCUPANCY

This becomes necessary only where land purchased is not already covered by a registered document. The common procedure is to obtain and fill the necessary form and accompany the same with other documents which may include:
i. Land information.
ii. Survey Plan.
iii. Evidence of title (e.g. purchase receipt etc) duly stamped.
iv. Tax clearance certificate of applicant
v. Passport Photograph of the Applicant (4 copies)
vi. Bank Draft for the publication fee. An advert is placed in the national newspaper
asking for any objection to the transaction.
vii. Bank draft for capital contribution.
vii. Approved Building plan (if property is developed)
viii. Covering letter forwarding the documents.
The above requirements are essentially those stipulated by Lagos State. The stipulations differ from state to state and are subject to review from time to time.
The average processing time for obtaining a C of O or Governor’s consent is six months from the submission of the application, all other things being equal. This, as usual, is subject to variation from state to state