Introduction

Acquiring property in Nigeria is one of the most significant financial decisions an individual or business can make. It is also a transaction that carries significant legal risk if not properly conducted. This article outlines the key legal considerations every prospective property buyer in Nigeria should understand before committing to a purchase.

Understanding Title

The nature and quality of title to land in Nigeria is governed primarily by the Land Use Act 1978, which vests all land in each state in the Governor of that state, to be held in trust for the people. As a result, private individuals and businesses do not own land outright — they hold rights of occupancy granted by the relevant authority.

Before purchasing any property, a buyer should understand what form of title is being offered — whether a Certificate of Occupancy (C of O), a Right of Occupancy, a Deed of Assignment or another instrument — and verify its validity.

Conducting Due Diligence

Thorough due diligence is essential before any property purchase. This should include:

  • Title verification at the relevant land registry
  • Confirmation that the seller has the right to sell
  • Search for encumbrances, charges or court orders affecting the property
  • Physical inspection and survey
  • Confirmation of planning and development approvals where relevant

Governor's Consent

Under the Land Use Act, any assignment, mortgage or sub-lease of a right of occupancy requires the prior consent of the Governor of the relevant state. A transaction completed without the required Governor's Consent is void. Obtaining Governor's Consent is therefore a critical step in any property transaction and should not be overlooked.

The Purchase Agreement

A well-drafted purchase agreement (typically a Contract of Sale or a Deed of Assignment) should clearly set out the agreed purchase price, payment terms, completion date, conditions precedent, representations and warranties, and the consequences of default.

Conclusion

Property transactions in Nigeria require careful legal attention. Engaging a qualified property lawyer before committing to a purchase can protect your investment and avoid costly complications.

This article is for general informational purposes only and does not constitute legal advice.