Legal Matters To Consider When Buying Property In Lagos - Part Two

 
In continuation of part one of our series discussing legal issues to consider when buying property in Nigeria, we bring you some more essential information worth knowing before entering into any property or land agreement in Lagos.

5. Among the documents for exchange, evidence that no tax encumbrances exists over the land must be presented. Clearance from the government agencies that all land charges and other demands have been made are also essential. If there are building plan approvals and land/soil tests, the results must also be handed over at final exchange.
6. Prior to the exchange, and if you have not done so yet, a physical visit to the land is very important.
7. Once an exchange has been made and payment for the original titles, conveying documents and documents listed in (5) above are completed, then you should immediately take over physical possession of the land/property purchased. The law says that possession is 90% of ownership.

The next step is to register your title or interest over the property at the appropriate land registry.
Purchase of land covered by a registered private sublease
Notice that we mentioned private sublease. We define this as the sublease between two private persons (whether individual or corporation). Where you are offered a property that has been sublet to a sublease (in the previous private transaction) and (sublessor in the current transaction with you). In such a situation, you must take the following steps:

1. Demand for the Head lease
2. Conduct a search at the land registry where the sublease is registered and ascertain:

1. Who the appropriate parties are and that you are taking a lease from the appropriate party
2. How many years is left on the sublease? This is important, so you are not sold/leased what does not exist. Some dishonest people seek to sublet beyond their term and if you fall victim of this, you would have bought NOTHING because – nemo dat quod non habet (one cannot give what he does not have)
3. You should get your agent (if he or she is conversant in such matters) or legal practitioner, to interpret for you the terms of the head lease to ensure that the proposed lessor has the power to a sale.

Purchase of a registered land
(In the case of transaction by two private individuals)
When you are offered a land by a person who has bought and has registered his/her title:

1. You are to sight the original registered documents, which in that case, will comprise of a Deed of Assignment, sublease etc.
2. Conduct a search at the lands registry at which the said land was registered
3. Take all the steps listed on our earlier article on this subject (Find it here) relating to the purchase of land covered by a C of O.
4. In addition to the above, and most importantly, you should get the survey plan attached to the Deed of Assignment, subjected to a chart. The technical reasons for this can only be revealed on a more detailed consultancy
5. We also recommend a physical visit to the land (if you have not done so) to feel the topography of the land and ensure there are no encumbrances present on the land. You must also have other professionals in the building industry check that the land is good for a purpose.

To be continued…