A certificate of
occupancy (CofO) is an official document that acknowledges the right
to ownership of a certain property. It is proof that the
governor of the state has obliged his consent and is aware that a right of
possession has been given to the individual, corporate entity or group of
persons to whom a Certificate of Occupancy has been issued.
In Nigeria today, Certificate
of Occupancy is issued by State
governments to a land/property buyer as a proof of ownership. The
1999 Constitution of the Federal Republic of Nigeria (as amended) and the Land
Use Act vest the power to issue the Certificate of Occupancy in the Governors
of the states. It is therefore the responsibility of every property owner to
approach the government within which state the property is located for the
issuance of a Certificate of occupancy.
WHAT
EVERYONE NEEDS TO KNOW ABOUT A CERTIFICATE OF OCCUPANCY
It then follows that whoever lays claim to
any land must do so with the consent of its trustee – the Governor. It is for these
reason financial institutions which still regard landed property as the most
reliable form of collateral for its facilities, do have preference for
Certificate of Occupancy over other land documents.
The Supreme Court
confirmed this position when it held in the case of GRACE MADU VS DR.
BETRAM MADU (2008] 2-3 S. C.(PT. II) 109, that “The settled
law in grant of C of O, is that once a person is granted a C of O over a parcel
of land, he is entitled to hold that parcel of land to the exclusion of any
other person unless the C of O is for good reasons, revoked by the same
authority that granted it…”
The above position
consolidated an earlier Supreme Court’s decision in the millennium case
of SUNMONU OLOHUNDE & ANOR VS PROFESSOR S.K. ADEYOJU (2000)
6 S.C. [pt. iii] 118 where the Court toed the line
of OGUNLEYE V. ONI 1990 2 NWLR PT 135
733 that a Certificate of Occupancy is not
a conclusive evidence of title in favour of its holder, when it held that-
“The point must be
stressed that a certificate of statutory or customary right of occupancy issued
under the Land Use Act, 1978 cannot be said to be conclusive evidence of any
right, interest or valid title to land in favour of the grantee. It is, at
best, only a prima facie evidence of such right, interest or title without more
and may in appropriate cases be effectively challenged and rendered invalid and
null and void”
Conversely, it is
common knowledge that every seven out of ten houses or properties have not
successfully obtained their Certificate of Occupancy. Several reasons have been
adduced to this reluctance by those who kept their distances from this all
important document. First of all, landlords and property owners are unaware of
the importance of the Certificate of Occupancy until the question of TITLE
comes up.
Whoever a buyer buys
the property from, be it from the government or individual, the state
government’s consent is needed to legitimize such purchase. For landlords and
would-be Real Estate operators, it is important to be aware of the necessity to
have the Certificate of Occupancy.
Individuals or
corporations seeking to buy land in Lagos have several options: They can buy
straight from the government in the case of government acquired land or buy
from individuals who have bought from the government or bought from the customary
land owners (popularly known as Omo o’nile in Lagos), upon verification of the
authenticity of the land from the land bureau office.
It is thus trite
that where a Certificate of Occupancy is irregularly issued to a holder, the
court has the power to declare the Certificate of Occupancy a nullity and same
can be set aside. This position was well adumbrated by the Court of Appeal in
the following cases: In OFOEZE V. OGUGUA (1996) 6 NWLR (Pt 455) 451,
the Court held that Certificate of Occupancy does not confer an indefeasible
title to land. This trend was followed in ANGBAZO V. SULE &
Ors. [1996] 7 NWLR 285 while in MBASHINYA V.
LIMAN (1996) 3 NWLR (Pt 434) 62, the
court held that the right of an existing holder or occupier of a parcel of land
is not automatically extinguished by a mere issuance of a Certificate of
Occupancy to another person under the color of a person in occupation. It does
not extinguish the right of any other person having a customary right over the
land.
Consequently, any
person without title to a parcel of land in respect of which a Certificate of
Occupancy was issued acquires no right or interest, which he did not have
before “ex Nihilo Nihil Fit” that
is, we cannot build something on nothing.
It must be noted
that a Certificate of Occupancy may be a good title, where there exists a valid
right of occupancy by the holder before the advent of the Land Use Act.
However, where a Certificate of Occupancy is issued to a holder without due
regard to the rights and interest of an occupier or holder of a right of
occupancy, such a Certificate of Occupancy evidences nothing and does not
confer any right or interests in the affected land.
The procedures and
requirements for obtaining the certificate vary
from jurisdiction to jurisdiction and on the type of structure in question. The Lagos State
Government has said that new applicants for Certificate of Occupancy on
properties would be issued the document within 90 days of payment. The state
government stated that
the speed is to ensure that the process of applying and getting the copy of the
C of O is not only less cumbersome but treated within the stipulated time.
A Certificate of
Occupancy issued by the Lagos State Government is for a lease period of 99 yrs.
NOW THE CRUCIAL QUESTION: WHAT HAPPENS
AFTER 99 YEARS?
This question is
still an area under discussion among experts. Most of who have adopted a
wait-and-see position. Others propose that as the new owner of the land, the
buyer can renew the certificate of occupancy when it expires. That seems logical,
but for now is largely a case of “Until then”.
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