HOW TO TRANSFER PROPERTY OWNERSHIP IN NIGERIA

 

HOW TO TRANSFER PROPERTY OWNERSHIP IN NIGERIA

INTRODUCTION

Transferring property ownership in Nigeria is an important legal process that ensures the proper handover of land or buildings from one person to another. Whether you are buying, selling, inheriting, or gifting property, following the correct legal steps protects you from fraud, disputes, and future legal issues. Properly transferring property ownership is what finalizes the deal and protects everyone involved.

Legal Framework for Property Transfer in Nigeria  

The Land Use Act of 1978 is the main law governing land ownership and transfers in Nigeria. Under this law:  

- All land is held by state governors, who manage it for the people.  

- Governor’s Consent is required for any valid transfer.  

- Property transactions must be registered at the state Land Registry to be legally recognized.  

STEP-BY-STEP PROCESS TO TRANSFER PROPERTY OWNERSHIP

Step 1: Verify the Property Title  

Before proceeding, confirm that the property has a valid title. In Nigeria, this is your first defense against scams or legal troubles.  

- What to Check: Ensure the seller has a Certificate of Occupancy (C of O), Governor’s Consent, or a registered deed of assignment. A C of O is the gold standard, proving the land was legally granted by the government. If the seller only has a deed, verify it at the state’s land registry.  

- How to Verify: Visit the land registry in the state where the property is located. You can also hire a lawyer to do this for you. This step confirms the property isn’t in dispute or has no claims against it (e.g., serving as collateral for a loan).

Step 2: Negotiate and Sign a Sale Agreement  

Once you’re sure the title is clear, it’s time to agree on terms and put them in writing.  

- Draft a Sale Agreement: Work with a lawyer to create a clear contract that includes the purchase price, payment terms, property description, and any conditions (e.g., repairs before handover). Both parties must sign this document.  

- Include Key Clauses: Protect yourself by adding clauses about penalties for default, payment timelines, and steps to take if the title is later found to be defective.

Step 3: Obtain the Governor’s Consent  

According to Nigeria’s Land Use Act, the state governor must approve any transfer of property ownership. This step is necessary for properties with a C of O or other official titles.  

- Prepare Documents: You’ll need to submit:  

  - A completed application form (available at the state land registry).  

  - Copies of the seller’s title documents (C of O or deed).  

  - The signed sale agreement.  

  - A survey plan of the property.  

  - Proof of payment for taxes (e.g., stamp duties, capital gains tax).  

  - Passport photos and IDs of both buyer and seller.  

- Submit to the Land Registry: In Lagos, for example, you’d go to the Directorate of Land Services in Alausa. Other states have similar offices. Some states now allow online submissions, so check for digital options to save time.  

- Pay Fees: Expect to pay for the governor’s consent (usually 1-3% of the property’s value), stamp duties, and registration fees. Costs vary by state—Lagos and Abuja tend to be more expensive.

Step 4: Pay Taxes and Fees  

Taxes are an essential part of property transfers in Nigeria, and ignoring them can lead to penalties or make the transfer invalid.  

- Capital Gains Tax (CGT): The seller pays 10% on the profit made from the sale. For example, if they bought the property for ₦20 million and sold it for ₦30 million, they pay CGT on the ₦10 million gain.  

- Stamp Duty: This is paid on the sale agreement, usually 0.75-1.5% of the property value, depending on the state.  

- Registration Fees: These cover registering the new title documents, usually a small percentage of the property value.

Step 5: Execute the Deed of Assignment  

The deed of assignment is the legal document that officially transfers ownership from the seller to the buyer.  

- Draft the Deed: Your lawyer will prepare this, detailing the property, involved parties, and transfer terms. Both buyer and seller must sign it, and it should be witnessed.  

- Register the Deed: Submit the signed deed to the land registry for registration. This makes it legally binding and updates the state’s records to show the new owner.

Step 6: Obtain a New Certificate of Occupancy (If Applicable)  

If the property has a C of O, the buyer may need to apply for a new one in their name after the transfer.  

- When It’s Needed: This applies if the property is on government-allocated land or if the C of O was issued directly to the seller. For subdivided land (e.g., in estates), a deed of assignment is often sufficient.  

- Process: Submit the old C of O, the deed of assignment, and other documents from Step 3 to the land registry. You’ll also pay extra fees for the new C of O.

Step 7: Update Records and Take Possession  

Once all documents are processed, finalize the transfer and move in.  

- Update Land Registry Records: Ensure the land registry updates its records to show you as the new owner. This protects you from future disputes.  

- Take Possession: Collect the keys and any other property-related items (e.g., gate remotes, estate access cards). Inspect the property to confirm it matches the agreement.

COMMON PITFALLS TO AVOID

Transferring property in Nigeria can have challenges. Here’s how to stay safe:  

- Avoid Unverified Sellers  

- Don’t Skip Legal Help  

- Double-Check Documents: Ensure all documents are stamped, signed, and registered. Unregistered documents can lead to legal problems.

WHY USE A PROFESSIONAL?

While you can handle some steps yourself, a real estate lawyer or agent is extremely helpful. They can:  

- Conduct title searches to prevent fraud.  

- Navigate the governor’s consent process, which can be complicated.  

- Ensure all documents are legally correct and registered.  

- Save you time and stress by managing paperwork and follow-ups.

CONCLUSION

Transferring property ownership in Nigeria is an important legal process that requires patience, careful checking, and strict compliance with the law. From verifying the seller’s title to obtaining the Governor’s Consent and registering the transfer, each step is critical to prevent fraud, disputes, or future legal issues.

You can Also Send a Direct message here to schedule an Inspection with Notredame Estates Limited.

Signed 

Propertyhub
For,
Notre Dame Estates Limited.