Real Estate Contracts in Nigeria: Demystifying the Legal Jargon (And Why You Should Care)

Let’s be honest: signing a real estate contract can feel like trying to decode a secret language!

Terms like “caveat,” “freehold,” and “conveyance” may sound fancy, but they can also leave you scratching your head.

Don’t worry—you’re not alone.

In this post, we’re breaking down the key legal terms in Nigerian real estate contracts and explaining why they’re crucial for you. Understanding these terms can save you from making costly mistakes and protect your investment.

Whether you’re buying land in Lagos, Abuja, or your hometown village, these insights will help you navigate the process confidently.

1. Deed of Assignment: Your Property’s Birth Certificate

A Deed of Assignment is the legal document that transfers ownership of the property from the seller to you.

Think of it as the birth certificate for your land or house.

Without this document, you have no legal proof that you own the property. It’s not enough to have a receipt or handshake agreement—without a Deed of Assignment, your purchase isn’t legally recognized.

Why Is It Important?

If you don’t have this document, it’s like throwing your money into thin air. There have been numerous cases where people lost their land or property because they didn’t secure this vital legal document. For example, a buyer in Lagos purchased a plot of land without a Deed of Assignment, only to find out later that the seller had sold the same property to multiple buyers.

Pro Tip: Always ensure you receive a properly signed and stamped Deed of Assignment when you purchase property. It should clearly outline the details of the transaction and be registered at the land registry to avoid future disputes.

2. Governor’s Consent: The Big Boss Approval

In Nigeria, all land technically belongs to the government, and the Governor’s Consent is required to validate any transaction involving the transfer of land ownership.

This approval is a critical step in finalizing your property purchase. Without it, your transaction is not legally binding. It’s like getting permission from the “big boss” before using the company car—you need that green light to proceed.

How Does It Work?

Once you sign a property contract, the Governor's Consent ensures that the government acknowledges and approves the transfer of ownership. This process is not just a formality; it’s essential to protect you from any legal challenges in the future.

According to Nigerian law, without the Governor's Consent, a property transaction is considered void. This can lead to serious legal consequences, including the possibility of losing the property entirely.

How Long Does It Take?

Obtaining the Governor’s Consent can take anywhere from a few weeks to several months, depending on the state. It’s crucial to work with a reliable real estate lawyer or a trusted agency like CalledOut Estates Limited to navigate this process smoothly.

3. Survey Plan: Your Property’s Google Maps

A Survey Plan is an official map that outlines the exact boundaries of your land. It’s like Google Maps but for your property!

This document shows the precise size and location of your property, including its boundaries relative to other properties. The surveyor will measure the land and create a map that indicates its position and size.

Why Do You Need It?

Without a proper survey plan, you risk building your fence or structure on someone else’s property, leading to legal disputes. In extreme cases, entire buildings have been demolished because they encroached on a neighboring plot of land.

Having a Survey Plan helps you:

Avoid land disputes with neighbors.
Ensure you're not trespassing on government land or restricted areas.
Clearly define what you’re paying for, so there are no surprises later.

Did you know? The Lagos State government demolished hundreds of buildings in 2019 due to boundary disputes and lack of proper survey plans. Always make sure your property is surveyed before making any moves!

4. Land Use Charge: Not Your Usual Tax

The Land Use Charge is an annual fee you pay to the government for owning land in Nigeria. Yes, even after you’ve bought the land, you still have to pay what can be considered “rent” to the government!

This tax is used to maintain public infrastructure and provide essential services, so it’s important not to overlook it. The Land Use Charge applies to properties in most Nigerian states, including Lagos and Abuja.

How Is It Calculated?

The Land Use Charge is typically based on the market value of your property. Each state has its method for calculating the charge, so it’s essential to check with local authorities to know how much you owe annually.

Failing to pay the Land Use Charge can result in heavy fines or even property confiscation, so make sure you stay on top of your payments!

5. Certificate of Occupancy (C of O): The Golden Ticket

A Certificate of Occupancy (C of O) is the most important document you can have when owning land in Nigeria. This certificate is issued by the government and proves that you have the legal right to occupy and use the land.

Why Is It So Important?

Without a C of O, someone could show up years later claiming they own the land. Holding this certificate is like having a “golden ticket” that ensures your property remains yours without any legal challenges.

A common scenario in Nigeria involves disputes over land ownership, where people who thought they had purchased land legally discover that the true owner has a C of O. In such cases, the person with the C of O is usually recognized as the rightful owner.

Always ensure the property you're purchasing either has a C of O or that you're able to obtain one.

Why Should You Care?

You might be wondering: Why is understanding all this legal jargon important? Can’t you just let the lawyers handle it?

Well, not quite. If you don’t understand these terms, you could easily make costly mistakes when purchasing property. A lack of knowledge might lead to issues like:

Purchasing land that isn’t legally owned by the seller.
Building on land that belongs to the government.
Losing money due to invalid contracts.

By understanding these legal terms, you empower yourself to make informed decisions and protect your hard-earned investment.

Partner with CalledOut Estates Limited: We Simplify Real Estate in Nigeria

At CalledOut Estates Limited, we know that navigating real estate contracts in Nigeria can be overwhelming. That's why we've made it our mission to simplify the process for you.

From securing your Governor’s Consent to ensuring your Deed of Assignment and Survey Plan are in order, we’ll guide you every step of the way.

Don’t risk your future by signing contracts you don’t understand. Reach out to us today to secure your real estate investment with confidence.

📧 Email: [email protected]

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🌐 Website: www.calledoutestates.com

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