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5 Things to Check Before Buying Land or Property in Nigeria

Buying land or property is a significant financial decision. While a property may appear genuine and the seller may have convincing documents, buyers can still encounter disputes, competing claims, defective titles or other legal complications after payment.

Before committing your money to a property transaction, it is important to carry out proper legal checks and obtain professional advice.

Here are five important things to consider before buying land or property in Nigeria.

1. Verify the Seller's Ownership

One of the first questions to ask is: Does the person selling the property actually have the legal right to sell it?

Do not rely solely on statements from the seller, family members, agents or intermediaries.

Depending on the circumstances, the seller may need to establish their interest in the property through relevant title or ownership documents.

A lawyer can assist with reviewing the documents and conducting the appropriate searches with the relevant land registry or other authorities.

2. Investigate the Property's Title

A property should not be purchased simply because the seller produces a document that appears official.

The title should be investigated to determine whether the interest being offered is genuine and whether there are issues affecting the property.

Depending on the property and location, relevant documents may include a Certificate of Occupancy, Deed of Assignment, registered conveyance, survey plan or other title documents.

The appropriate documents will depend on the nature and history of the property.

3. Conduct a Proper Search

A property search can reveal information that may not be obvious from an inspection of the property.

For example, a search may help determine whether there are competing interests, registered transactions, encumbrances or other issues affecting the property.

This is one reason why legal due diligence should take place before substantial payment is made.

The precise search process will depend on the location of the property and the applicable land administration system.

4. Confirm the Survey and Location

The physical property should correspond with the relevant survey and title documents.

A buyer should establish the property's location, boundaries and other relevant details before completing the transaction.

It is also important to investigate whether the land is affected by issues such as government acquisition, planning restrictions or other limitations that could affect its use.

Where necessary, appropriate professionals should be engaged to assist with the technical aspects of the investigation.

5. Have the Transaction Documents Properly Prepared

Even after confirming that the property is suitable for purchase, the transaction still needs to be properly documented.

Depending on the circumstances, documents may include a contract of sale, deed of assignment, deed of lease or other relevant instruments.

The documents should accurately reflect the transaction, the parties involved, the property, the consideration and the obligations of the parties.

A lawyer can also advise on the steps required for perfection or registration of the purchaser's interest where applicable.

Don't Wait Until a Dispute Arises

One of the most expensive mistakes a property buyer can make is to seek legal assistance only after a problem has occurred.

Legal due diligence before purchase can help identify potential problems early and allow the buyer to make a more informed decision.

Before paying a substantial amount for land or property, consider having the transaction and relevant documents reviewed by a qualified legal practitioner.

Buying Property?

If you are considering buying land or property in Nigeria and would like legal assistance with title verification, due diligence, documentation or the transaction process, you may wish to obtain independent legal advice before proceeding.

Contact Akinnisola-Olubodun & Co to discuss your property transaction.

Disclaimer: This article is provided for general informational purposes only and should not be treated as legal advice. Property transactions are fact-specific, and the appropriate legal process may vary depending on the location, nature of the property and documents involved.