This article perfectly explains the top 5 documents used in real estate transactions in Nigeria. These documents are so important that if you don’t get them after real estate transactions in Nigeria, you could run into trouble over time.
In the real estate markets in Nigeria, where various opportunities exist, understanding the important documents used in real estate transactions is needed for successful transactions. Whether you’re a property buyer or seller, having the right documents in order ensures a smooth and legally sound transaction. Land or property ownership is a complex issue in Nigeria.
There are various titles and documents involved; understanding these titles and documents is important for dealing with Nigeria’s real estate transactions.Â
The Top 5 important documents used in Real Estate Transactions in Nigeria.
As mentioned earlier, this article will provide an overview of the top 5 important documents used in real estate transactions in Nigeria for smooth and legal transactions.
Before we proceed, you might want to check out our article on the Top 6 most affordable cities to live in Nigeria.
1. Deed of Assignment
Deed of Assignment remains one of the top 5 important documents used in real estate transactions. It is a legal document that formalizes the transfer of ownership rights from the current owner (assignor) of a property to the new owner (assignee). It outlines the agreement between the seller and buyer, providing legal clarity on the transaction.
Real Estate lawyers and organizations emphasize the importance of this document to ensure a transparent and secure transfer of ownership rights. It is usually drafted by a legal practitioner and is registered at the Land Registry.
2. Certificate of occupancy
A certificate of occupancy is a legal document issued by the government to indicate that the holder has the legal right to own and use a particular piece of land. It is one of the most important documents used in real estate transactions in Nigeria.
It can be used to certify the legal ownership of a piece of land in Nigeria. It indicates that an individual has been granted a right of occupancy by the Governor of the state or a customary right of occupancy by the Local Government Chairman, where the land is situated.
3. Survey plan
This is one of the important documents available in Nigeria. A survey plan is a document that shows the exact measurements of a piece of land. It is used in cases where a land transaction is being carried out.
A Survey Plan is crucial for verifying property boundaries and dimensions.
To get a survey plan, you must hire a surveyor. It is the surveyor who would help you with taking the necessary measurements and also document your property with the government at the Ministry of Lands.
Remember to get a red copy of your survey plan from the surveyor and at will, you can also visit the Ministry of Lands to verify the documents issued to you by the surveyor. Please note that the Ministry of Lands in this case also refers to the Federal Ministry of Housing and Urban Development.
As a real estate company, we emphasize the importance of accurate surveys, particularly in the competitive Lagos, Abuja, and hot real estate markets across Nigeria, to avoid disputes and ensure that buyers get what they expect in terms of land boundaries and size.
4. Governor’s consent
This is a document that the state government gives through the consent of the governor and allows the transfer of land ownership from one person to another. It is required for the transfer of land ownership that is subject to certain restrictions. This is one of the most important documents used in Real Estate Transactions in Nigeria.
Abuja, being a state with specific rules and regulations, requires the Governor’s Consent for certain property transactions. This document signifies the state government’s approval and is particularly significant for investors looking to secure their interests in the evolving Abuja real estate landscape.
In some cases, it might be necessary in Lagos, too. But for other states, it might not be important. Just make sure you do your findings before closing any deal on real estate transactions.
5. The Sale and Purchase Agreement and receipt.
Last, on the top 5 important documents used in Real Estate Transactions in Nigeria is the sale and purchase agreement and receipt.
Who does a transaction without getting a receipt? The receipt solidifies an agreement. It helps to show that there was a transaction between the buyer and the seller. So, ensure you get your receipt of purchase.
The contract of sale and Purchase Agreement, on the other hand, consists of a list of terms and conditions that are agreed to by both the buyer and the seller.
It outlines the terms and conditions of the property sale, protecting both buyers and sellers. In Abuja, where real estate transactions are rapid, having a comprehensive contract is essential. Abuja Real Estate agents pay close attention to creating agreements that address the unique aspects of the Abuja real estate market.
An excellent example of this would be the negotiation for the price of a flat. The agreement would contain the agreed amount of the flat by both the buyer and the seller of the flat, amount paid, the name and signature of the people involved, the address, and the witnesses.
Please, friends, don’t take this list as a joke, as it could save you some big stress over time.
Conclusion
In the dynamic real estate markets of Lagos or Abuja, understanding and prioritizing the significance of important documents is non-negotiable. Real Estate agents underscore the significance of these documents to safeguard investments, promote transparency, and ensure a thriving real estate ecosystem in this dynamic city. Whether dealing with properties in Lagos, lands in Abuja, or any part of Nigeria, having the right paperwork or documents is the key to success in the ever-evolving real estate market.