BUYING LAND IN LAGOS: A COMPREHENSIVE LEGAL GUIDE

Lagos, Nigeria's bustling commercial capital, is a city of vibrant growth and endless opportunity. As the country's largest city and economic hub, Lagos attracts countless individuals and businesses seeking to invest in real estate. Buying land in Lagos can be a rewarding investment and the beginning of steps to secure a personal residence, but it requires careful planning and due diligence. This comprehensive guide explores the essential steps and considerations for purchasing land in this dynamic metropolis.

1. Understanding the Lagos Real Estate Market

Lagos is a city marked by its rapid urbanization and development. With a diverse range of neighbourhoods, from upscale areas like Ikeja, Lekki, Ikoyi and Victoria Island to more affordable zones such as Ajah, Ibeju Lekki, Agege, Ikorodu and others, the real estate market caters to various needs and budgets. Understanding the local market dynamics, property values, and future development plans can significantly impact your investment decisions.

2. Legal Considerations

Before purchasing land in Lagos, it's crucial to understand the legal framework governing property transactions in Nigeria. Here are some key aspects to consider:

• Land Tenure System: Nigeria operates under a land tenure system that deals only with leasehold interests. Most lands in Lagos are held under leasehold from the Lagos State Government. Therefore, the highest level of interest or title that can be transferred or assigned in Lagos State, and of course in all parts of Nigeria, is a leasehold.
• Title Documents: Verify that the land has a valid title. Common titles include the Certificate of Occupancy (C of O), Governor's Consent, Unregistered Deed of Assignment, Excision, and Assent, among others. Each title has its significance and legal standing. The C of O and Governors' consent are the most authoritative titles confirming ownership.
• Land Use Act: The Land Use Act of 1978 governs land ownership and usage in Nigeria. It vests control of land in the state governor and mandates that all land transactions require the governor's consent or approval.

3. Conducting Due Diligence

Due diligence is a critical step in ensuring a smooth property transaction. Here's how to go about it:

• Verify Ownership: Confirm the seller's ownership of the land by checking the title documents and conducting a search at the Lagos State Land Registry. Ensure the land is free from encumbrances, such as disputes or mortgages.
• Site Inspection: Visit the site to physically inspect the land. Check for any environmental issues or planned developments that may affect the property's value or intended use.
• Check for Genuine Attorneys: Engage a reputable real estate lawyer or agent to facilitate the transaction. Avoid dealing with intermediaries without proper credentials or verification.

4. Negotiating and Making an Offer

Once due diligence is complete, negotiate the terms of the sale with the seller. This includes the price, payment terms, and any conditions of the sale. It's advisable to have a lawyer draft or review the sale agreements, such as the contract of sale and deed of assignment, to ensure that all terms are legally binding and clear.

5. Securing Financing

If you require financing for the purchase, explore options such as bank loans and mortgages. Nigerian banks offer various real estate financing products but be prepared for stringent requirements and possibly high interest rates.

6. Finalizing the Purchase

After agreeing on the terms and securing financing, proceed with the following steps:

• Payment: Make the payment as agreed in the sale contract. Ensure you use a traceable payment method, such as bank transfers, and obtain receipts for all transactions.
• Legal Documentation: Execute the necessary legal documents, including the Deed of Assignment, which transfers ownership from the seller to you. The Deed of Assignment must be signed by both parties and witnessed.

7. Registering the Property

After acquiring the land, you must register the property with the Lagos State Land Registry. By law, all land transactions must receive the consent of the Governors of Lagos State. This consent will be obtained during the registration. Registration provides legal recognition of your ownership and is essential for future transactions, such as selling or using the land as collateral for loans.

8. Planning for Development

If you plan to develop the land, you will need to obtain various permits and approvals from the authorities, especially the Lagos State Physical Planning Permit Authority. This may include building permits, environmental impact assessments, and compliance with city planning regulations. Engage with architects, engineers, and contractors to plan and execute your development project efficiently.

9. Dealing with Challenges

Buying land in Lagos can present challenges such as bureaucratic delays, corruption, and disputes. To mitigate these risks:

• Work with Professionals: Engage experienced real estate lawyer and surveyor who are familiar with the Lagos property market and its complexities.
• Stay Informed: Keep abreast of local developments, policy changes, and market trends that may impact your investment.
• Be Patient: Real estate transactions in Lagos can take time. Patience and persistence are key to navigating the process successfully.

?

CONCLUSION

Buying land in Lagos offers significant opportunities for investment and development, but it requires careful planning and thorough due diligence. By understanding the local market, adhering to legal requirements, and working with experienced professionals, you can make informed decisions and achieve a successful property transaction. Whether you're looking to build a home, start a business, or make a long-term investment, Lagos provides a dynamic and promising environment for real estate ventures.

?

By Property Law Team at Resolution Law Firm

Email: info@resolutionlawng.com

Tel/WhatsApp: +2348099223322