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By Sandra Adeniran, Principal Partner

To legally buy property in Nigeria, your first step is not making an offer, but engaging a lawyer to conduct a thorough title verification and due diligence. The foundation of the real estate law basics for buying property is ensuring the seller has the legal right to sell and that the property is free from undisclosed problems. This process involves a formal search at the relevant land registry, a physical inspection, and confirming there are no government acquisition or community disputes attached to the land. Without this, you risk purchasing a defective title, future litigation, or a total loss of your investment.

What Nigerian Real Estate Law Actually Is

Real estate law in Nigeria is the legal framework that governs the acquisition, ownership, use, and disposal of land and buildings. It is not one single law but a combination of federal statutes, state laws, case law, and local customs. The cornerstone of this framework is the Land Use Act of 1978, which vests all land within a state’s territory in the Governor, who holds it in trust for the people. This means that individuals and entities own a ‘right of occupancy’ for a specific term (typically 99 years for new grants), not the land itself in absolute terms.

Our work in this area involves navigating these regulations for clients. As a firm with a dedicated full service property department, we manage the entire conveyancing process, which is the legal term for transferring property ownership from a seller to a buyer. This includes:

• Sales and Acquisitions: Structuring the transaction and advising on the legal implications of different property types.
• Contracts and Agreements: Drafting and reviewing the Contract of Sale and the Deed of Assignment to protect your interests.
• Title and Ownership Transfer: Conducting due diligence to verify the seller’s title and perfecting the buyer’s new title after purchase.
• Financing and Mortgages: Reviewing loan agreements and ensuring legal charges are properly registered.
• Zoning and Land Use: Ensuring the intended use of the property complies with government regulations.

Who This Process is For, And Who It Is Not

Legal guidance is essential for most property transactions, but it’s crucial to know if you are at the right stage to begin.

This legal process is a good fit for:

• First-time homebuyers in Lagos: Who need guidance through an unfamiliar and complex process.
• Nigerian and foreign investors: Requiring formal due diligence to secure significant capital investments in property. We regularly undertake work for this demographic.
• Companies acquiring commercial real estate: For offices, factories, or development projects.
• Individuals purchasing land: Especially in areas with known issues involving local land speculators (‘omo onile’).
• Anyone buying from a family member; even when navigating legal steps, a formal legal process prevents future disputes.

This process is likely not a good fit for:

• Individuals just browsing: If you have not identified a specific property, it is too early to engage a lawyer for a transaction.
• Those not financially ready: You should have a budget that covers the property price, professional fees, and statutory fees for title perfection before starting.
• Buyers intending to bypass formal registration: Attempting to save costs by avoiding Governor’s Consent and registration creates a legally unenforceable title.

How the Property Purchase Runs, Step by Step

The property buying process in Lagos follows a distinct legal sequence. Each stage has a specific function, and skipping a step can invalidate the entire transaction.

Step 1: Due Diligence and Title Investigation

This is the most critical stage. Before any money changes hands, we investigate the property and the seller’s title. What we do is conduct a comprehensive search at the Lagos State Lands Bureau and other relevant registries. We verify the authenticity of the title documents (like a Certificate of Occupancy or Deed of Assignment), check the survey plan, and confirm the property is not subject to government acquisition or a court dispute. What you do is provide us with all available details and documents from the seller. This stage typically takes 5 to 10 working days, depending on the registry’s efficiency.

The most expensive property you can buy is the one with a hidden legal problem. Due diligence isn’t a formality; it’s the foundation of a secure investment.

Step 2: Drafting and Reviewing the Contract of Sale

Once due diligence is satisfactory, a Contract of Sale is prepared. This document doesn’t transfer ownership yet. Instead, it obligates the seller to sell and the buyer to buy at an agreed price and on specific terms. It defines the payment schedule and the responsibilities of each party. We draft or meticulously review the seller’s proposed contract to ensure it includes protective clauses for you, the buyer. You will review the terms with us and, once approved, sign the contract and typically pay an initial deposit to the seller.

Step 3: Execution of the Deed of Assignment

Upon payment of the full purchase price, the document that legally transfers the property’s title is the Deed of Assignment (or Deed of Conveyance). The seller ‘assigns’ their remaining interest in the property to you. Both parties and their witnesses sign this document. At this point, you take physical possession of the property and receive the original title documents from the seller.

Step 4: Perfecting Your Title

Owning the Deed of Assignment is not the end. To have a legally secure and publicly recognized title, you must ‘perfect’ it. This is a three-part process:

1. Obtain Governor’s Consent: Under the Land Use Act, any transfer of interest in land requires the consent of the State Governor. We apply for this on your behalf at the Lands Bureau. This is a mandatory and often lengthy part of title and consent.
2. Stamping: The Deed of Assignment must be stamped by the Federal Inland Revenue Service (FIRS) within 30 days of execution. This involves paying stamp duty, which makes the document legally admissible in court.
3. Registration: The final step is to register the stamped Deed and survey plan at the Lagos State Lands Registry. This puts the world on notice that you are the new owner and ensures your title appears in any future property searches.

What Happens After You Enquire

Once you decide to proceed, the initial steps are straightforward. Within 24 hours of contacting our firm, a member of our real estate law team will reach out to schedule an initial consultation. This can be a call or a meeting at our office. During this meeting, we will listen to your objectives and explain the legal process as it applies to your specific situation. We will then ask you to provide the documents needed for due diligence and provide a clear quote for our professional fees.

What You Need to Have Ready

To make the first conversation productive, it helps to have the following information or documents on hand, if available:

• The address and description of the property.
• A copy of the seller’s title document (e.g., C of O, Deed of Assignment, or Governor’s Consent).
• A copy of the property’s survey plan.
• The name and contact information of the seller or their agent.
• Your approved budget for the purchase and associated costs.

Understanding the Costs and Legal Fees

Our professional fees for conveyancing are typically calculated based on the property’s value and the complexity of the transaction. We provide a detailed fee proposal after the initial consultation, so you have complete clarity before committing.

Beyond legal fees, buyers must budget for statutory costs. These include fees for Governor’s Consent, Stamp Duty, and registration fees, which are set by the government. While these vary, it’s also important to understand specific financial regulations. For example, Section 4 of the Tenancy Law of Lagos State 2011 regulates advance rent payments. It makes it an offense for a new tenant to offer or pay rent in excess of one year. According to the law concerning advance rent, anyone violating this provision is liable on conviction to a fine of One Hundred Thousand Naira (N100,000.00) or three months imprisonment. This highlights the importance of adhering to all property-related financial laws, not just transaction prices.

Further reading

• The Home Buying Process in Colorado | Division of Real Estate
• Home Buying & Moving | Office of the Attorney General

Frequently Asked Questions

How long does the entire property buying process take in Lagos?

The timeline varies significantly. The initial due diligence can take 1-2 weeks. The perfection of title, particularly obtaining Governor’s Consent, is the longest phase and can take anywhere from three months to over a year, depending on the government’s processing times at the Lagos State Lands Bureau which can be viewed on their website.

What is a Certificate of Occupancy (C of O)?

A Certificate of Occupancy is the primary document issued by the state government that proves a right of occupancy over a piece of land for a set period (usually 99 years). It is the most secure form of title. When you buy a property with a C of O, the transfer is done via a Deed of Assignment, and you will perfect this new deed in your name.

What are the risks of buying property without a lawyer?

The risks are immense. You could buy property from someone who isn’t the real owner, purchase land that is designated for government use, inherit massive unresolved land tax bills, or buy a property with a defective title that you cannot legally resell or use as collateral for a loan. The involvement of a lawyer mitigates these risks through professional due diligence.

What is ‘Governor’s Consent’ and why do I need it?

Governor’s Consent is the approval from the state governor required for any legal transfer of land ownership, as mandated by the Land Use Act. Without it, your Deed of Assignment is incomplete and considered an equitable interest at best, but not a fully legal title. It is essential for a secure and registrable title.

What are the common issues with ‘omo onile’ in Lagos?

‘Omo onile’ (a Yoruba term meaning ‘children of the landowner’) are local land speculators who often demand illegal fees from property buyers before, during, and even after construction. A lawyer can help by ensuring you are buying from the legitimate family or entity and help manage these issues if they arise, often by confirming that all official and customary payments were settled by the original seller.

Can I use a property search from the seller’s agent?

No. You should always insist on your own lawyer conducting an independent search. A search report provided by the seller or their agent may be outdated, incomplete, or fraudulent. Independent verification is non-negotiable for protecting your investment. For corporate sellers, this may also involve a search at the Corporate Affairs Commission to confirm the company’s status and authority, which can be checked through the CAC’s official portal.

Understanding the real estate law basics for buying property is the first step toward a secure investment. The process in Nigeria, and especially in Lagos, is detailed and requires careful navigation. To ensure your transaction is handled correctly from the start, you can schedule a consultation with our property law team.