This guide is meant to explain the process to anyone who is interested in buying property in Lagos in order to ensure that it is done safely and lawfully. Acquiring land or developed property is one of the dreams of every Man; it can be very exciting and very scary all at the same time. This is especially so because in Lagos, Nigeria there is always the risk of deception.
DECIDE ON A BUDGET AND LOCATION:
Buying a property is a big step concerning an important lasting financial obligation, so be considerate about what you can afford. Also, if you intend to live in the property, then you need to be sure that it is in a location you are happy at and can be for a long time. Once this is decided, then you are good to go and can move on to the next step.
HIRE A COMPETENT LAWYER:
Yes, all lawyers have some idea about property law, but there are some nuances and issues which someone who is not a specialist in property matters would easily miss. Not all lawyers are experts in property transactions; it is not enough that you hire a lawyer. Therefore it is critical that the lawyer you hire can prove to you that they know what they are doing, so it is important that you hire the right lawyer. Let you decision to hire a lawyer be based not on convenience or price, but on competence and experience.
LOOK FOR THE ideal (OR ALMOST ideal) PROPERTY
The next step is to begin the search for properties which match your budget and location. At this point, you can engage the services of an estate agent, who will look for properties which match your criteria, create a shortlist for you, and then organise for you to inspect the properties shortlisted. Your lawyer can also assist you in recommending a trustworthy estate agent, he/she should have several estate agents they work with and can recommend to you.
INVESTIGATE THE SELLER
This phase is where your lawyer will conduct the proper searches, ask the right questions, and request for the right documentation to determine if the person you are speaking to about the property, has the right to sell. This is EXTREMELY important especially when the property in question is family land. When you find a property you are interested in, you should always ensure that the person you are dealing with is the owner of the property or someone who has the valid authority to sell the property.
INVESTIGATING THE PROPERTY
At this stage, the lawyer will conduct the relevant searches and examine the appropriate documentation to ensure that the property is free from any encumbrance or pending litigation, that the property is not the subject of any Government acquisition, and that the property is not subject to any overriding interests.
PHYSICALLY INSPECT THE PROPERTY
At this stage, if you have confirmed that the person you are dealing with has title, and the property is free from any issues, then you should visit the land to physically inspect it. At this stage you want to ensure that the land and the environment meet your expectations. It is also advisable to conduct a site visitation with a registered surveyor who will look at the survey plans and advise on the property as well.
NEGOTIATION:
At this stage, it is now a matter of agreeing on an acceptable price for the land. Your lawyer will also be able to give you a solid indication of what future liabilities will exist for you (stamp duty fees, other government fees), so you can factor that in when making an offer. It is also a good idea to have an independent valuation of the property carried out in order to have a guide regarding the value of the property and whether the amount being negotiated represents fair market value of the property.
DOCUMENTATION:
If the negotiation goes well and the offer is accepted, then your lawyer (and the seller’s lawyer) can move to the stage of drafting and negotiating all the completion documents. In land transactions in Lagos, there are 3 main documents – the contract of sale, the receipt, and the Deed of Assignment. The lawyers will deal with this, and ensure that the interests of both parties are addressed.
COMPLETION, EXCHANGE & POSSESSION:
At this stage, the land transfer process is gathering pace, the buyer and the seller have signed and exchanged contracts, and the buyer is now in possession of all the original title documents and transfer documents. The purchase price of the property has also been made at this stage. Once all that is complete, the buyer becomes the owner of the property and can take possession.
POST-COMPLETION:
Once the buyer has taken physical possession of the property, the next step is to file all the necessary documentation with the appropriate government authority and then commence the process to obtain Governor’s consent of the transaction. Once Governor’s consent is obtained a Certificate of Occupancy is issued, and the property transaction is then complete.
Please note that by virtue of the provisions of the Land Use Act, ownership of all property in a State vest in the Governor, and a right of occupancy is given to a person for a maximum of 99 years.
At this stage, the lawyer will conduct the relevant searches and examine the appropriate documentation to ensure that the property is free from any encumbrance or pending litigation, that the property is not the subject of any Government acquisition, and that the property is not subject to any overriding interests.
PHYSICALLY INSPECT THE PROPERTY
At this stage, if you have confirmed that the person you are dealing with has title, and the property is free from any issues, then you should visit the land to physically inspect it. At this stage you want to ensure that the land and the environment meet your expectations. It is also advisable to conduct a site visitation with a registered surveyor who will look at the survey plans and advise on the property as well.
NEGOTIATION:
At this stage, it is now a matter of agreeing on an acceptable price for the land. Your lawyer will also be able to give you a solid indication of what future liabilities will exist for you (stamp duty fees, other government fees), so you can factor that in when making an offer. It is also a good idea to have an independent valuation of the property carried out in order to have a guide regarding the value of the property and whether the amount being negotiated represents fair market value of the property.
DOCUMENTATION:
If the negotiation goes well and the offer is accepted, then your lawyer (and the seller’s lawyer) can move to the stage of drafting and negotiating all the completion documents. In land transactions in Lagos, there are 3 main documents – the contract of sale, the receipt, and the Deed of Assignment. The lawyers will deal with this, and ensure that the interests of both parties are addressed.
COMPLETION, EXCHANGE & POSSESSION:
At this stage, the land transfer process is gathering pace, the buyer and the seller have signed and exchanged contracts, and the buyer is now in possession of all the original title documents and transfer documents. The purchase price of the property has also been made at this stage. Once all that is complete, the buyer becomes the owner of the property and can take possession.
POST-COMPLETION:
Once the buyer has taken physical possession of the property, the next step is to file all the necessary documentation with the appropriate government authority and then commence the process to obtain Governor’s consent of the transaction. Once Governor’s consent is obtained a Certificate of Occupancy is issued, and the property transaction is then complete.
Please note that by virtue of the provisions of the Land Use Act, ownership of all property in a State vest in the Governor, and a right of occupancy is given to a person for a maximum of 99 years.
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