The current land ownership system in Nigeria is based on the trust of the Governor to allocate land as far as urban areas are concerned, and the control of local government authorities over rural areas. This system came into effect after the enactment of the Land Use Act, Cap 202, Volume 11, Laws of the Federation (1990). Prior to this law, land ownership was primarily based on settlement, conquest, sale, gifts or acquiescence.
The importance of having up-to-date and properly executed documentation in any real estate transaction cannot be overstated. In fact, it is estimated that upwards of seventy-five to eighty percent of real estate transactions are conducted legally, meaning that all relevant documents need to be current and appropriately signed in order for a deal to proceed.
As an investor in Real Estate or as a Real Estate firm, it is important to note what governs land ownership and the legal documents used in conveying title for land ownership in the state.
Below are Some of the documents required in real estate Transactions.
●Certificate of Occupancy (CofO)
●Letter of Allocation
●Registered Title Deed of Assignment/Sub-lease/Indenture
●Deed of Assent (Registration by Administrators/Executors of an Estate)
●Power of Attorney
●All these documents should be duly registered at the appropriate registry.
●Other documents that are needed in a real estate transaction include but are not limited to;
Sale/Purchase Agreement: This is another important document which contains the terms and conditions governing the sale and purchase of a property. This document serves as a guideline for the transaction between a buyer and seller. It covers purchase price, type of title, the date the agreement would become unconditional, any deposit the buyer must pay or cost that must be paid if the seller defaults. This document protects both the buyer and seller from any breach of contract as referrals can be made to this document, which serves as a binding and a legal contract once it is executed
Receipt of payment: This serves as evidence that monies or other forms of consideration have been exchanged between the buyer and seller.
In land ownership for example, a registered document is usually obtained by customary occupants of a land registering such land at the Land Registry. This is usually done before ownership of the land can be transferred to another owner. After that, a deed of assignment is prepared and issued to the new owner who is expected to get a Governor’s consent for the Deed. Upon the grant of a Governor’s consent, a landowner can proceed to request for a Certificate of Occupancy (CofO). It is important to note that a C of O in its self is not sufficient to claim ownership of a property without a Governor’s consent for properties in which ownership has been transferred from the initial owner.
The importance of knowing what title documents cover for land ownership in your state, guides a buyer when carrying out due diligence on a property. All verifications of title documents are done at the State’s Land Registry.
Why it is important to have accurate documentation in real estate?
1. Title documents when verified give the buyer confidence to use the land without fear.
2. Title documents that have been verified are legal documents that are admissible in a court of law in the event of any dispute that may arise in
3. Title documents also serve as a form of collateral which an individual can use to access loans from financial institutions.
4. For the Real Estate Firm, having all necessary title documents gives the firm the edge over their competitors as prospective buyers have confidence in your property listings. It creates a trust level between you and your client.
5. Documentation plays a pivotal role in ensuring that the Real Estate Firm keeps track of its progress and list of clients, take note of flaws if any, in previous transactions and enable the firm measure its sales progress by the years.
It is important that both parties read all documents carefully and fully understand the full content of the documents before signing. It is strongly recommended that professional legal advice is sought prior to entering into any contractual agreement.