Buying land or a house in Nigeria is a big dream for many. It means security and a good future. But the path to owning property can be full of problems if you don’t know the rules. Stories of people losing their Real Estate Investment In Nigeria to land cheats or fighting in court for years are common. Don’t let this be you.
Knowing and following these six simple rules is your best protection. They will help you buy safely and sleep peacefully.
1. Check the Property Papers Very Well (Title Check)
This is the most important step to protect your real estate investment in Nigeria. Never skip it. You must be 100% certain that the person selling the land or house is the true owner and has the right to sell it. Here’s what to do:
- Get the Real Papers: Ask for the Certificate of Occupancy (C of O) or Governor’s Consent. These are the main papers proving ownership, especially for land you buy forever (freehold). Make sure they are real and come from the government office in that state (like Lagos Land Bureau or Abuja FCDA).
- Look for Problems: Is the property free? Check that no bank has a loan on it (mortgage) and that no one else is claiming it in court. Ask the Lands Registry office to search their records for you.
- See the Real Land: Don’t just look at papers. Take a licensed surveyor (a land measuring expert approved by SURCON) to the land. They will check if the map (survey plan) matches the actual ground. Make sure the boundaries are clear with proper marks, not just from the big tree.
- Is the Seller the Owner? Confirm the seller’s name matches the name on the ownership papers. If someone else is selling for the owner, they must show a real Power of Attorney letter.
How: Go to the State Lands Registry yourself or send someone you trust. In Lagos, you can also use the e-Title website. Pay for a proper search. This step might cost some money and time, but it saves you from buying trouble.
2. Only Work with Registered People and Companies
Avoid helpers, friends of friends, or unknown agents promising easy deals when you want to protect your real estate investment in Nigeria. They often cause big problems. Always use:
- Real Estate Agents: Make sure they are registered with the Corporate Affairs Commission (CAC) and belong to all necessary real estate associations. Ask for their license and check it.
- Building Companies (Developers): Good developers are usually members of REDAN (Real Estate Developers Association of Nigeria). Check their past work and if they have government approval for the project.
- Builders/Engineers: If building, use people registered with COREN or CORBON.
Why it Matters: Registered individuals are familiar with the laws and rules. They have a license to protect your real estate investment in Nigeria, so they are less likely to cheat you. Unregistered people might sell you land that doesn’t exist, use fake papers, or disappear with your money. Using a registered agent or company gives you safety and someone to complain to if things go wrong.
3. Write Down Everything in a Clear Agreement (Contract)
Your word or a handshake is not enough for land deals in Nigeria. You must have a written contract. This paper is your proof if anything goes wrong later with your real estate investment in Nigeria.
What the Paper Must Say:
- Exactly What You’re Buying: Full address, land size, plot number, survey plan number.
- Who is Involved: Full names, addresses, and ID of buyer, seller, and witnesses.
- Price and Payment: Total cost, how you will pay (cash, bank transfer, in parts), and when each payment is due. Always get a receipt.
- Who Does What: What the seller must do (give clean papers, hand over the keys) and what the buyer must do (pay on time).
- When You Get the Property: The exact date and conditions for handing over the land or house.
- What Happens if Someone Breaks the Deal: Penalties for late payment or if the seller backs out.
- How to Solve Fights: Agree now how to settle disagreements – maybe through an arbitrator (like Lagos Court of Arbitration) or going to court.
- Nigerian Law Rules: State that Nigerian law applies.
Make it Official: After writing it, take the contract to the Stamp Duty Office in the state to pay stamp duty (a small government tax). Then, register it at the Land Registry. This makes it strong legal proof. Never rely on spoken promises, even with family. Get it on paper and stamped to protect your real estate investment in Nigeria
6 Must-Have Land Titles in Nigeria: What Every Property Buyer Should Know
4. Think About Protecting Your Property with Insurance
Insurance for property is becoming more popular in Nigeria. It helps cover you if bad things happen to your real estate investment in Nigeria, which you didn’t plan for:
- Property Insurance: Covers damage to the building from fire, flood, storm, riots, or vandalism.
- Title Insurance (New but Useful): Protects you if someone later comes claiming they own the land because of a hidden problem with the papers you didn’t know about when buying.
- Rent Insurance: For landlords, if your tenant refuses to pay rent, this insurance can cover the loss for a while.
- Legal Trouble Insurance: Can help pay your lawyer if you have a property fight.
How to Get It: Talk to well-known insurance companies like Leadway, AIICO, or AXA Mansard. They have special plans for houses and land. Tell them what you need protected. It costs some money every year, but it can save you huge losses, especially for expensive property or shops you rent out. It is also important to protect your real estate investment in Nigeria
5. Pay Your Taxes and Government Fees Correctly
Don’t ignore government taxes and fees. Not paying can cause big trouble, fines, or even make your purchase invalid and that’s not good for protecting your real estate investment in Nigeria. Know these common ones:
- Stamp Duty: Paid when you sign the contract. It’s a small percentage (0.5% – 3%) of the property price, depending on the state. Pay it at the Stamp Duty Office.
- Capital Gains Tax (CGT): 10% tax on the profit the seller makes. Often, the buyer holds back this money from the payment to the seller and pays it to the tax office (FIRS).
- Value Added Tax (VAT): 7.5%. Usually not on selling your own home, but might be on shops, offices, or the fees agents and lawyers charge. Ask to be sure.
- Ground Rent: Yearly fee paid to the state government for land you own with a C of O.
- Registration Fees: Paid to the Land Registry to put your name officially on the property papers.
Keep Records: Save every receipt for payments and taxes. Trying to avoid paying is very risky. The government is checking more closely now. Talk to a tax person if you are unsure. Paying correctly keeps you safe and legal.
6. Get a Good Real Estate Lawyer (Very Important)
This is not a place to save money by using your uncle or friend who knows a little law. A special real estate lawyer is your best friend when buying property. Their fee is an investment, not a cost.
What They Do For You:
- Check Everything: They do the deep search on the property papers, check for problems at the Lands Registry, and confirm everything is okay.
- Write or Check Your Contract: They make sure the agreement protects you and follows all Nigerian laws.
- Handle Government Work: They know how to get the Governor’s Consent (very important!), pay stamp duty correctly, and register your papers – saving you stress and time.
- Help with Area Boys/Family Issues: They can advise on dealing with local claims (“omo-onile”) or family disputes over land.
- Fight for You: If a problem comes up, your lawyer speaks and acts for you, whether talking to the other side, going to arbitration, or going to court.
Why Worth It: Think of it this way: paying a lawyer (maybe 5-10% of the property price) is much cheaper than losing the whole property or paying huge court fees later. Get the lawyer involved right at the start, before you pay any big money.
Final Advice On Simple Rules To Legally Protect Your Real Estate Investment In Nigeria
Owning property in Nigeria is a great goal. But to do it safely, you must follow these rules. Be careful. Check papers properly. Use only registered people. Write everything down clearly. Think about insurance. Pay your taxes. And most importantly, get a good real estate lawyer. Doing these things turns the risky journey of buying property into a safe and successful one. Protect your dream investment – do it the right way from the beginning.