Must-Have Documents for a Smooth Property Transfer in Nigeria
In Nigeria, the transfer of properties can be an exciting yet very daunting process, especially for first-time buyers or sellers. Properties are commonly transferred through sales, gifts, or inheritance, but without the right documentation, these transactions can lead to disputes and legal complications.
About 70% of property transactions and transfers fail due to missing or improperly executed documents. In order not to experience failed property transfers and transactions, it is important to understand the necessary paperwork involved in this process.
In this article, we have highlighted the must-have documents for a smooth property transfer in Nigeria and how they facilitate a hassle-free process.
Common Ways Properties Are Transferred in Nigeria
To start with, there are a number of ways in which properties are transferred in Nigeria. Typically, they occur through the following methods:
- Sale of Property: This is the most common method, where ownership is transferred from the seller to the buyer in exchange for payment.
- Gifts: Properties can also be transferred as gifts, oftentimes within families, where no monetary exchange occurs.
- Inheritance: When a property owner passes away, their assets are transferred to heirs through legal documents like wills or letters of administration.
Although these methods of property transfer seem straightforward, complications often arise due to incomplete documentation or misunderstandings between parties.
Many property transfers fail or lead to disputes because certain important documents are either missing or improperly executed.
These issues can result in prolonged legal battles, financial losses, and even loss of property rights. Therefore, it is very important to have all the necessary documents so as to ensure a smooth transfer process.
READ ALSO: What You Should Know About the Land Tenure System in Nigeria
Essential Documents for Property Transfer
To facilitate a seamless property transfer in Nigeria, here are the must-have documents you need:
1. Certificate of Occupancy (C of O)
In Nigeria, this document stands as the most important land document. This document certifies that you have legal ownership of the land and is issued by the state government.
The document is really important because it shows that someone has been granted a statutory right of occupancy by the governor of the state where the land is located.
If the land is in a rural area, it might instead be a customary right of occupancy, which is issued by the Local Government chairman.
So, to put it simply, if you’re dealing with land in a city or urban area, the state government gives you that statutory right, while in rural areas, it’s the local government council that issues the customary right.
2. Deed of Assignment
Once a land or property transaction is finalized between the buyer and the seller (the property owner), a Deed of Assignment must be requested and provided to the buyer. Basically, it is a formal agreement between the seller (who is called the assignor) and the buyer (known as the assignee).
In this document, the assignor outlines all the details of the transaction, including their commitment to transfer ownership of the property or land to the assignee starting from a specified date.
Furthermore, the deed clearly lays out important information, such as the exact date when ownership changes hands, a detailed description of the property, and its location. Essentially, it serves as proof that the buyer is now the rightful owner of the property.
3. Right of Occupancy (R of O)
The Right of Occupancy, commonly known as the R of O, is an important document that was introduced by the Land Use Act and is essential for anyone looking to transfer property in Nigeria. It grants a person or organization the right to use and occupy a piece of land in line with the provisions of the Land Use Act.
However, it’s important to note that having an R of O doesn’t equate to owning the land outright. This right is granted for a set period of up to 99 years for residential purposes, while for other uses, it can range from 35 to 70 years, depending on the value of any improvements made to the property.
4. Survey Plan
A survey plan provides a detailed layout of the property’s boundaries and measurements. It helps prevent disputes over land encroachments and ensures clarity regarding property lines.
Also, it helps you determine if the land is located in any government-acquired or designated area. If the land is vacant or nothing has been built on it, you may need to conduct thorough research just to ascertain that the land has not been acquired by the government.
5. Power of Attorney
A Power of Attorney is a legal document that allows one person to act on behalf of another in real estate transactions. This can be really helpful if the buyer or seller can’t be there in person to complete the deal.
It’s essential that the Power of Attorney is clearly written such that it outlines exactly what powers are being granted and how long those powers will last. This way, everyone knows what to expect, and the transaction can proceed smoothly.
6. Receipts of Payment
Receipts are proof of payment for any item and that also includes landed properties and real estate. These receipts serve as proof of financial transactions between the buyer and seller and should detail the amount paid and date of payment.
7. Deed of Mortgage
A deed of mortgage is an important document used in mortgage transactions. It essentially shows that a piece of land or a house has been temporarily transferred from the borrower (known as the mortgagor) to the lender (the mortgagee).
Think of it as a way to secure the loan. The borrower hands over the property as collateral, but don’t worry because the transfer is temporary. Once the borrower pays off the total loan amount plus any interest, they have the right to reclaim their property from the lender.
8. Deed of Gift
A deed of gift is a document that officially records the transfer of land or property from one person (the donor) to another (the donee) as a gift. This means that the donor is giving away their interest in the property permanently.
Also, it’s a straightforward way to ensure that everyone knows the property now belongs to someone else without any financial exchange involved.
9. Governor’s Consent
When it comes to transferring land in Nigeria, especially if the property has a Certificate of Occupancy, it is a must to obtain the Governor’s Consent. According to the Land Use Act of 1978, any future transactions involving such land require the governor’s approval. This step is crucial because it ensures that the state recognizes and authorizes the transfer of ownership.
Without this consent, your property transfer could be deemed invalid, leading to potential disputes or even loss of ownership down the line. So, if you’re planning on buying or selling land in Nigeria, make sure you have this essential document sorted out.
10. Tax Clearance Certificate
The Tax Clearance Certificate is another vital must-have document for property transfer. It shows that the seller has settled all the necessary taxes on the property up to the date of the transaction.
For you as the buyer, this document is essential because it ensures you won’t end up with any unexpected tax liabilities from the sale. In other words, it gives you peace of mind knowing that you’re starting on a clean slate without any hidden financial burdens.
Conclusion
With the presence of all these essential documents, the process of property transfer becomes smooth. Also, it will protect you from potential disputes and legal issues down the line.
Always consider consulting with a legal professional to guide you through this process and ensure compliance with local laws and regulations.
Have you engaged in one form of property transfer or the other? We would love to hear your experience.