Avoid Getting Scammed: 6 Crucial Land Title Documents Every Investor Must Know in Nigeria

Tale of Wisdom

Wisdom is a successful businessman who invested in real estate to diversify his portfolio. He discovered what appeared to be the ideal plot of land, which was both fairly priced and well-located. He paid millions of naira for the land after some negotiating, sure of the success of his recent profitable initiative. However, Wisdom's joy was short-lived.
The government authorities notified him that the land was subject to the Land Use Act 1978. Under this legislation, the government had reserved the right to reclaim certain lands for public use without compensating the current owners. Even with Wisdom's resources and legal efforts, the government's legal claim was successful.
The fraudsters were gone, leaving Wisdom with remorse and a costly lesson — he had been fooled.
Wisdom's story is a reminder of the importance of understanding and verifying land title documents in Nigeria. Proper paperwork is necessary, and it serves as your main line of defence against fraud. Every investor needs to be aware of the land title documents needed in Nigeria to stay clear of such dangers.

Title Documents in Nigeria

The necessary title documents used for real estate transactions in Nigeria are as follows :-

Receipt

A receipt shows that you purchased an item from the seller. In a real estate transaction, it confirms that the land seller has received the agreed amount of money from the buyer. Without it, the seller could bring up the claim that they were never paid in full and possibly succeed in court.
The receipt shows the amount paid, and you who made the payment, providing enough evidence that a transaction was made.

Survey Plan

A survey plan measures the boundary of your piece of land. It includes essential details such as the name, address, size, drawn-out portion, beacon numbers, plot numbers, and other specifics of your land. It should also show the surveyor who carried it out and include their stamp. This document is essential for preventing future boundary disputes, as it allows you to verify ownership through the Ministry of Lands registry.
Keep in mind that while a few real estate firms offer this service for free, some may charge you for it.

Deed of Assignment

A Deed of Assignment is a legal document drawn up by a real estate attorney that transfers ownership of the property to you, the assignee. This document is very crucial in land transactions as it shows the date when the transfer was made and contains detailed property descriptions.
Depending on the state in Nigeria, a Deed of Assignment is also known as a Deed of Conveyance or Land Sale Agreement.

Gazette

According to the Land Use Act of 1978, all lands in the state are controlled by the state government of each state in Nigeria. This act gives the state government the power to grant you the statutory right of occupancy as deemed appropriate. However, the act also recognizes ancestral landowners and gives them the right to reclaim ownership of the land through a process called Excision.
If your land is outside the excised area, it is under government acquisition and could be seized without compensation, even if you bought it legitimately. However, the government must compensate you if excised plots are re-acquired.
After excision, the process needs to be documented in the government record called a Gazette.

Certificate of ownership (C of O)

The Certificate of Occupancy (C of O) is only issued to the first purchaser of the land and cannot be reissued.
It certifies that the government has granted you the right to occupy and use the land. This requires the governor's signature. A C of O includes a Governor's consent, which allows the owner to transfer ownership.
It's recommended to buy land with a C of O rather than without one. If the land doesn't have a C of O, you would need to obtain it yourself. However, if the land already has a C of O, it covers you when purchasing a portion of it.