C of O - What It Is And Why It Is So Important

A Certificate of Occupancy (C of O) is a fundamental title document for property buyers and landowners in Nigeria issued by the state government along with other documents like the survey plan and the deed of assignment. C of O is a document that proves you have the right ownership of the land or property that you own.

There are several steps to follow for obtaining a Certificate of Occupancy (C of O) in Nigeria and throughout this article, you will learn everything you need to know about how to obtain one, including the steps to take.

What is a Certificate of Occupancy?

A Certificate of Occupancy is a land title document that is issued by the government to landowners, as legal proof of land ownership in Nigeria. A plot of land or property which does not have a Certificate of Occupancy can be seized at any time and without compensation.

According to Section 9 of the Land Use Act 1978, the State Governor of the state in Nigeria where the land is located may authorize the issuance of a C of O. This act introduced the notion of land use (residential, commercial, mixed-use, etc.) when “any person shall be entitled to a statutory right of occupancy, to issue written evidence indicating such right of occupancy.”

There is one feature that makes a Certificate of Occupancy different from all other title documents in Nigeria. No land can have two Certificates of Occupancy because it is the first title document issued on land, whether bare or developed, that has never been registered at the Land Registry.

With this act came the abolishment of all existing freehold systems, in favour of a leasehold system. These leases are usually granted for a maximum period of 99 years after which one must apply for renewal.

Characteristics of the Certificate of Occupancy

C of O’s are issued to the land which has first been registered with the Surveyor-General of the State or the Federation when the land is Federal land. An important part of charting the ground is determining if it is free of government acquisitions.

Here are some of the things found on the C of O:

1. Certificate of Occupancy number
2. File number
3. Plot number
4. Location details (district details)
5. Plot size
6. Survey plan or graphic (plot shape)
7. Date of issue
8. Lease term
9. Initial annual ground rent fees
10. Land use purpose
11. Terms and conditions

Purpose of having a Certificate of Occupancy

The benefits of having a C of O are listed below:

1. Having a Certificate of Occupancy (C of O) proves ownership of a property.
2. It stops the Government from repossessing or revoking your right to the property without compensation.
3. C of O is accepted as collateral for loans from financial institutions such as banks (mortgage, retail and commercial.)
4. Having a C of O increases the market value of a property, especially in Lagos and Abuja where the process for obtaining a C of O can be time consuming and expensive
5. It stops people from claiming ownership of the same property.

When do you need a Certificate of Occupancy?

There are a number of reasons for needing a Certificate of Occupancy including:

• Property development: In order to get building approval for new construction projects, a Certificate of Occupancy is one of the title documents needed.
• Converting a property: When you want to change the use of a property, a C of O is usually required. For example, a commercial warehouse is being converted into residential units.

How to obtain a C of O in Nigeria?

The individual that you are buying the property from determines how you will get your Certificate of Occupancy. If you are buying land from omo onile (natives) in Lagos, you have to first confirm that the land or property you are about to pay for has not been acquired by the government

After you must have confirmed from the authorities that the land being sold to you is legally owned by the seller, then you find out if the owner already has a Certificate of Ownership for the land. If the person or entity you are buying from already possesses a C of O all you have to do is proceed to change the ownership title at the land registry.

When you buy directly from the government or a reputable?real estate company in Nigeria, obtaining the C of O would be straightforward since it will be initiated as soon as the sale is confirmed.

What is the cost to acquire a C of O?

The cost of acquiring a C of O?varies from state to state. The certificate of occupancy fee is dependent on what phase of the city the plot is sited in. Getting a C of O in Lagos or Abuja is somewhat more expensive compared to other states.

In some parts of Nigeria such as Abuja and Lagos, the fee is calculated per square meter of land but generally, the cost is related to the actual Fair Market Value (FMV) of the land you want to acquire.

Conclusion

For any type of structure be it a bungalow, mansion, office building, hospital or skyscraper etc. the Certificate of Occupancy is what proves that you legally own the land upon which the property stands.

Despite this, there are other title documents that you should verify (where appropriate) such as the deed of assignment when undertaking land or property transactions in Nigeria.