Real estate in Nigeria is a venture that is governed by a lot of legal complexities and technicalities. It is important for one to have a full grasp of these legal aspects before going into real estate investment, buying, and selling. What these ensure is easy and smooth transactions every time a real estate deal is under way. Essentially, there are some key legal considerations that one must have in mind in exploring the real estate industry in Nigeria. These key considerations include:
Ownership and Title Verification
Every buyer must ensure that the seller of the property they are about to acquire has documents showcasing legitimate ownership of the property or the right to sell the property. Some of these documents include the Certificate of Occupancy (C of O), Deed of Assignment, or Governor’s Consent, depending on the status of the property. There may also be the need to engage a lawyer to do an in-depth title search at the appropriate land registry to uncover disputes that may be attached to the property.
Land Use Act of 1978
The Land Use Act is the legislation highlighting land ownership and transactions in Nigeria. This act sees to it that all the land in a state is handed over to the governor of that state to hold it in trust for the people. This would then require buyers to seek a document verifying the governor’s consent to also transfer ownership of the property in question.
Legal Documentation
These documents establish the rights and obligations of all parties. Some of these documents include the deed of assignment, which transfers ownership of the property from the seller to the buyer. There is also the survey plan that defines the exact boundaries and precise location of the property. With the contract of sale, there is an outline of the terms and conditions of the transaction, including the purchase price, payment schedule, and the responsibilities of both the buyer and the seller.
Tenancy laws and lease agreements
These documents are necessary for rental properties. A lease agreement should include, in clear terms, the rent, duration of stay, renewal basis, and the responsibilities of both the landlord and tenant. In Lagos State, for instance, the Lagos State Tenancy Laws regulate these agreements to ensure that the rights of both parties are safeguarded and neither is trampled upon.
When it comes to the legal aspect of real estate in Nigeria, there is the need to be extra attentive and careful to ensure that no errors are made to avoid further disputes in using the property. The best way to go is to engage legal professionals. It will be a lot more beneficial if investors cover all ends by fully engaging a real estate expert, possibly the services of Pryme Point Real Estate Company, to ensure that all legal grounds are strongly covered.
