Bear the following in mind when purchasing land in Nigeria:
Following the passage of the Land Use Act in 1978, all land became State Property. The Governor of the State is responsible for the administration of this area on behalf of the people of this state. As a result, individual land ownership is impossible. The Governor’s assent is required for the conveyance of title to use, occupy, and enhance property that is supported by a statutory certificate. This certificate does not allow the right to sell, give, or rent the property, which would require additional approval from the State Governor.
It should be emphasised that the Consent Fee is a significant component of the Nigerian real estate market, notably in Lagos. Because the state owns the land, any transfer or assignment of ownership, such as a lease, must be approved by the Governor. Additionally, a Capital Gains Tax of 10% of the difference between the sale price and the tax paid on the original purchase is charged. The Ministry of Finance makes this determination.
Governor’s permission is the approval necessary by a state’s governor or his delegate for any transaction involving the transfer of ownership or other interest in land or landed property that is legally valid.
On the other hand, real estate sales do not entail the act of selling and purchasing. All that occurs is a transfer of rights from one one to another. The term “assignment” is frequently used to refer to this type of transaction. The seller transfers the legal right to use and occupy the purchased land to the purchaser. After the transaction is completed, the buyer receives a new (statutory) certificate in his name. The seller serves as the assignor in this scenario, while the buyer serves as the assignee. Before proceeding with the deal, the buyer’s or assignee’s attorney must verify the title and other documents submitted by the seller or assignor. Be cautious, as a title carries several restrictions and conditions, and the purchaser must be confident of the item being purchased. Indeed, there have been instances in which the assignor sold property that he or she did not genuinely own.
Purchasing property in Nigeria also has the danger of expropriation. Two laws in Nigeria raise doubt on land ownership. Despite the fact that comparable legislation exists in the vast majority of countries. Both the 1969 Petroleum Act and the 1978 Land Use Act empower the government to seize land through eminent domain. The Act specifies that the reimbursement mechanism is limited to “undepleted improvements” to the land. The value is determined by reference to a set rate enacted during the year the statute was passed. Corruption and dictatorial control have resulted in widespread unjustified land and property expropriation.
Always get your conveyance in Nigeria handled by a qualified lawyer.
Leave a Reply