In Nigeria, purchasing a property entails a number of legal regulations and processes to guarantee a seamless and legal transaction. This comprehensive legal reference will help you understand the process of purchasing real estate in Nigeria. The Land Use Act is the main law that regulates land transactions in Nigeria. State-specific Land Instruments Registration Laws and Property Conveyancing Laws are further relevant laws.
- Title Verification: Before purchasing property in Nigeria, it is crucial to verify the title to ensure the seller has legal ownership. This involves checking the land registry, conducting searches at the state's land registry office, and confirming the property's title status.
- Due Diligence: Conduct due diligence on the property to ascertain there are no encumbrances such as mortgages, liens, or disputes that could affect the sale. This can be done through searches with relevant authorities and by engaging legal professionals. You may also need to visit the property to check for any visible encumbrance, such as a caveat in front of the property.
- Offer and Acceptance: Once satisfied with the property's status, negotiate the terms of sale with the seller or their agent. A purchase agreement is drafted outlining the terms and conditions, including the purchase price, payment terms, and any other specific agreements between the parties.
- Payment of Purchase Price: Typically, the buyer pays a deposit upon signing the agreement. The balance is usually paid upon completion of the transaction. It's essential to use secure payment methods and ensure all financial transactions are documented. The buyer also has an option of paying the entire lumpsum once it is available. Where the payment is to be made in instalments, it is paramount that the parties sign a contract of sale.
- Execution of Transfer Documents: Both parties execute the necessary transfer documents, including a deed of assignment or conveyance, which legally transfers ownership from the seller to the buyer. These documents must be stamped and registered at the appropriate land registry or land bureau.
- Stamp Duty and Registration: Payment of stamp duties is mandatory on transfer documents, calculated based on the property's value. Registration fees are also payable to register the transfer and ensure the buyer's ownership is recognized under Nigerian law.
- Governor's Consent: Obtaining the governor's consent is required before the transfer of land can be completed. This involves submitting the transfer documents for approval of the state governor. By virtue of the Land Use Act, all transfers of landed properties within a state in Nigeria must receive the consent of the governor of such a state to be valid and legally completed. The procedure for the governor’s consent, stamping and registration are usually done together across all states in Nigeria.
- Legal Advice: Engaging a qualified legal practitioner throughout the process is advisable to navigate legal complexities and ensure compliance with local laws.
- Physical Planning Approval: Due diligence must be conducted concerning land physical planning or land use regulation of a particular area before the property can be bought. A good title is not enough to deal on property transactions; the seller must conduct due diligence, ensuring the property will be approved for intending purposes by the government.
Buying property in Nigeria involves a structured legal process aimed at protecting both buyers and sellers. It is crucial to conduct thorough due diligence, ensure all documents are properly executed and registered, and comply with legal and regulatory requirements to secure a valid and enforceable property transaction. Seeking professional advice and guidance can help you navigate potential challenges and ensure a successful property purchase in Nigeria.
By Real Estate Law Team at?Resolution Law Firm
Tel/WhatsApp?:?+2348099223322
