PROCEDURE FOR REGISTRATION OF PROPERTIES IN NIGERIA

In Nigeria,  the Land Use Act, 1978 vested all land in the urban areas in the Governor and the lands in the rural parts on the Local Government Chairman to hold on behalf of the people as a trustee.[1] Consequently, to own land in Nigeria, there must be evidence or proof of ownership of the land. This can be obtained in various forms like a statutory or customary right of occupancy, Deed of Assent (made under a grant of probate, or letters of administration over an estate), amongst others.

A landowner in Nigeria is required to register his interest in any land or real properties acquired at the relevant state lands registry. This is a statutory requirement as transactions over lands may be rendered inchoate for non-compliance with the statutory provisions for the registration of title to land. This process of registering one’s interest in land in Nigeria is also referred to as the “perfection of title”

Therefore, property registration in Nigeria is a crucial process in securing ownership rights and protection over real estate assets in Nigeria. Various laws and regulations govern this process and involves several steps that must be meticulously followed to avoid future disputes or mishaps. Registration provides proof of ownership, protects against fraudulent activities, and facilitates the easy transfer of property. This article, therefore outlines the procedure for property registration in Nigeria.

Outline of the major Procedures for  Property registration in Nigeria.

The process of registering interests in land typically concludes with the perfection of title, signifying the full acquisition of legal ownership or interest in the property. This marks the final stage in a land sale transaction. The perfection of title involves three key stages: obtaining the Governor’s consent, stamping the relevant documents, and registering the title at the land registry.

Stage One:  The Governor’s Consent

Before purchasing any property, it is crucial to conduct a thorough search at the Land Registry of the state where the property is located. This search will help verify the property’s ownership status and reveal any existing encumbrances such as mortgages, liens, or other third-party interests. Conducting this search is vital to ensure that the seller has a valid title and that the property is free from legal disputes or obligations that may affect your ownership rights. The
Deed of Assignment, which is a formal legal document that transfers ownership of the property from the seller to the buyer, must be drafted by a qualified legal practitioner and duly executed by both parties. The deed should include a comprehensive description of the property, the parties’ identities, and the transaction’s terms and conditions. Proper execution of this document is essential for establishing the buyer’s claim to ownership.

After these preliminary steps have been observed, the parties are to begin the perfection processes in registering the property in question. Obtaining the Governor’s consent is a legal prerequisite for the perfection of title to land, and non-compliance carries significant legal consequences. This consent represents the formal approval granted by a State Governor to a person holding an interest in land, allowing them to alienate that interest—whether by assignment, mortgage, transfer of possession, sublease, or any other means, either in whole or in part. It is important to note that any such transaction carried out without the Governor’s consent is considered incomplete and legally invalid.[2]

Documents Required for Application for Governor’s Consent.

• • Form The prescribed form for application of Governor’s consent);
  • A cover letter (usually addressed to the Commissioner of Lands and Housing);
  • Documents evidencing tax clearance for 3 years for the assignor and assignee;
  • Documents evidencing payment of development fee;
  • Documents evidencing payment of land use charge, ground rent, and tenement rates (where developed);
  • Copies of the Deed of assignment or title documents;
  • Survey plan;
  • Document evidencing payment of consent fee;
  • Approved building plan;
  • A certified original copy of the Title document of the property;

Additional documents are required where a company is involved in the purchase of properties:

• Resolution of the board of directors;
• Memorandum and articles of association;
• Certificate of incorporation;
• Proof of payment of Annual returns;
• 3 years Tax clearance certificate for two or more directors;
• Form CAC 1.1.

Upon the grant of the Governor’s consent, the assignee can proceed with stamping.

Stage Two: Stamping

Stamping is regulated by the provisions of the Stamp Duties Act of 1939 and must be carried out within 30 days of executing the Deed of Assignment or any other registrable instrument intended to transfer title or ownership of land or property. Failure to comply with this timeframe attracts statutory penalties.[3] It is important to note that an unstamped instrument will not be accepted for registration at the land registry.[4]

Final Stage: Property Registration.

This stage marks the final step in the perfection or registration of title to land. In the case of a Deed of Assignment, registration serves as constructive notice to the entire world and confers priority on the instrument that is registered first in time over subsequent registrations.[5] Upon successful completion of the registration process, the title is deemed perfected or legally recognized.

Conversely, failure to register an interest in land means that the instrument of transfer does not confer legal title, but only an equitable one. In such cases, the document may not be admissible as evidence to establish legal ownership of the land; however, it remains admissible to demonstrate the existence of equitable interest and to prove payment of the purchase price.

Procedure for the Registration of Title to Land

• Cover letter/Application and other accompanying documents are to be forwarded to the land Registry by the applicant
• Upon receipt of the application, same is referenced for identification purposes at the Lands Registry.
• Thereafter, an investigation of the status of the land through charting is conducted at the office of the Surveyor General.
• The officials of the Lands Registry then access the property to determine the fees payable.
• The applicant thereafter pays and forwards treasury receipts of payment of fees to the accounts department of the lands Registry.
• Approval and endorsement of documents by the Governor or Commissioner[6][.
• The necessary documents are thereafter stamped at the Lands Registry.
• Finally, the necessary documents are then taken to the appropriate Land registry for registration.

Conclusion

Perfection of title is essential to securing a purchaser’s legal interest in their properties. Accordingly, where a purchaser fails or neglects to perfect their title, they risk losing the property to another bona fide purchaser for value who has taken concrete steps to perfect their own title in respect of the same land. It is, therefore, strongly recommended that property owners diligently perfect their titles, as doing so not only confers legal interest but also ensures priority over any competing claims—provided there is no defect in their root of title.

This article is for informational purposes only and should not be considered legal advice. For specific legal guidance, please contact our team directly.

For expert guidance regarding your Real Estate & Property Transactions, please contact our specialized team in the Part of our Real Estate practice from our full-service offerings across Lagos, Abuja, and Abakaliki. Please contact our partner Hans Offia on [email protected] 

Email our general team on [email protected] for general inquiries on the subject matter.

 

Footnotes

[1]  Section 1 of the Land Use Act 1978.

[2] Section 22 and 26  of the Land Use Act, 1978

[3] See section 23 (3) (a) of the Stamp Duty Act 1939.

[4] See section 23 (3) (a) of the Stamp Duty Act 1939.

[5] See section 23 (3) (b) of the Stamp Duty Act 1939.