How To Register A Property In Lagos Nigeria

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Lagos Nigeria
With a current population of 170 million and a substantial percentage of working adults, demand for housing far outstrips supply. And there are enormous opportunities waiting to be tapped in the Nigerian housing sector. Nigeria is currently one of the world’s major investment destinations and one of the fastest growing economies in the world.

In this article we give you a step by step procedure necessary for a buyer to purchase property from a seller and transfer the property title to the buyer’s name. The purchase will be considered complete when the buyer can use the property,use it as collateral for a bank loan or resell it.
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      Listed below are the procedures hope it helps in your endeavour good luck!

File Sworn affidavit for search at the Commissioner of Oaths

Agency: High Court of Justice, Ministry of Justice, Notary public

Before you can carry out a search at the Land Registry, you must file a sworn Affidavit must at the High Court. You must register the  affidavit before 12, to enable the lawyer to proceed with the search. Otherwise it will be have to be done the next day.

estimatted time:1 day  Approximate cost: NGN 250

Conduct a Property title search at the Land Registry

Your primary objective at this stage is to ascertain that the Vendor has a good root of title. A good root of title in this context means the following:
that the Vendor is the rightful owner of the land.
that the land is free from any encumbrance or pending litigation.
that the land is not the subject of any Government acquisition.
that the land is not subject to any of the overriding interests in land (e.g. short leases, easements, licenses, road or right of way).

The application letter to conduct the search is accompanied by a sworn affidavit signed by the Commissioner of Oaths of the status of the party and purpose of search. A lawyer is generally used to perform the registration of property. Legal fees are charged based on the Scale of Fees for Conveyancing Matters [Legal Practitioners (Remuneration for Legal Documentation and Other Land Matters) Order 1991]. This is a sliding scale , and averages out at about 7.5% of the consideration. The fees include all the steps required until the new title is registered under the buyer’s name.

Agency: Lagos State Lands Registry

1 day NGN 3,750 (search at Registry) + Legal fees as follows: NGN 7,500–10,000 + 7.5% of values above NGN 20,000 if acting for the buyer (5% of values above NGN 20,000 if acting for the seller)

Execution of Deed of Assignment/Conveyance and Land Form 1C

Agency: Lands Bureau (Form 1c) and Lawyer's office (Deed of Assignment)

Representatives of the firms (assignor and assignee) complete and affix their seals on the Land Form 1C and four (4) copies of the Deed of Assignment.

The Land Form 1c is a document obtained at the Land Registry to be completed by the parties and duly notarized by a Notary Public or signed by a Commissioner of oaths. Lawyers often have the Form in their office. The Deed of Assignment on the other hand is as legal instrument conveying the interest/tile in a property to another. This is prepared by a lawyer and is to be executed by both parties in the presence of a witness.

1 day no cost

Obtain Certified True Copy (CTC) of title document and a Certified True Copy of the Survey plan

Agency: Land Services Department
The application letter to obtain a Certified True Copy of the title of ownership and a CTC of the land survey plan are accompanied by a sworn affidavit of purpose to support an application. Without these two documents the application for the Governor's consent would not be admitted.

Parties obtain a copy of the survey Plan, as approved by the Office of the Surveyor General, which is required for the Governor's Consent. Under Nigerian law, a clear proof of the identity of the land plot is needed. The survey plan gives the coordinates of the plot and must fit in the official map of Lagos. It identifies the boundary of the property. If using a private surveyor, he must be a registered one.

3-5 days NGN 5,625 + NGN 1,875

Payment of the Charting Fee, Endorsement fee and Form 1C at a designated bank

Agency: Government accrediated bank

Payment advice to be obtained from the Revenue Office for the purpose of PID Number generation after which is affected in the Bank. Payment for the above can be made to any Government accreditated bank either by a bank draft, cheque or cash. The Bank then issues a Government Revenue receipt. The receipts is what is submitted together with the application for Governor's Consent. 1 day Charting Fees (NGN 7,500) + Endorsement Fees (NGN 1,500) + NGN 1,500 for Form 1C

Submit application for processing Governor's Consent and obtain the Title

Agency: Directorate of Land Services

By virtue of the Land Use Act, promulgated in 1978, all land in each State in the Federation became vested in the Governor of that State, who’s prior Consent is mandatory for the legal validity of any transfers or alienation of interest in landed property. In August 2005, the Governor’s Consent procedure underwent major reform, with the aim that Consent should be granted within 30 working days following submission of a duly completed application. Incomplete applications are not accepted. New procedures and documentation requirements have been widely published. The Land Services will also conduct their own checking for encumbrances on the property and whether the land has no government dispute.

Obtaining the Governor’s consent require the following documentation:

• Covering letter with Address and Telephone Nos.
• Completed Form 1C
• Certified True Copy (CTC) of Title Document of Assignor
• Current Tax Clearance Certificates of the Assignor and Assignee
• For Limited Liability Companies, the Internal Revenue Certificate of PAYE Directors
• Four (4) copies of the Deed of which Consent is sought should be attached.
• Copy of the Survey Plan, as approved by the surveyor General office and a picture of the Building
• Evidence of payment for Charting fee, Endorsement fee, Form 1C
• Evidence of payment of Land Use Charge
• Where the Property is covered by a State Leasehold or Certificate of Occupancy, evidence of payment of Ground Rent, up to date.
• A photograph of the property
• A copy of the applicant and/or his agent/legal representative’s identification

61 days (simultaneous with procedures 7, 8, 9, 10 and 11) Administrative Fee of NGN 3,000

Charting of survey plans attached to the Deeds

Agency: Surveyor General's office

Upon submission of the application documents and payment of the administrative fee, the application is given a unique reference number, processes and delivered to the Surveyor General's office for charting to ensure that plans were prepared in accordance with survey rules and the property is free from the government acquisition. If there are no queries, the Deeds are returned to the Directorate of Lands service for issuance of the Assessment Notice. Where the survey plan is queried, a notice of the query is issued to the applicant. 5 - 14 days (simultaneous with procedures 6, 8, 9, 10 and 11) no cost

Obtain Demand Notice for Registration fees, Consent fees, Neighborhood improvement charge at the Land Registry

Agency: Directorate of Land Services

After investigation and assessment of the true value of the property, the applicant will be issued with an assessment letter. The Letter will contain the amount for the Registration fee, Consent fee, Neighborhood improvement charge and the Capital gains tax that should be paid to the Lagos State Government Account.

3 days (simultaneous with procedures 6, 7, 9, 10 and 11) no cost

Obtain Demand Notice for Stamp Duty

Agency: Federal Internal Revenue service (FIRS)
After investigation and assessment of the true value of the property, the applicant will be issued with an assessment letter. The Letter will contain the amount for Stamp duty verified with Federal Internal Revenue Service. Payment of the Stamp duty should be paid to the Lagos State Government Account. 1 day (simultaneous with procedures 6, 7, 8, 10 and 11) no cost

Payment of Stamp duty , Registration fees, Consent fees, Neighborhood improvement charge at a commercial bank

Agency: Designated bank

The applicant pays the remaining fees at the designated bank by means of certified cheques:

Consent Fee 1.5% + Registration fee 0.5% + Stamp duty 0.5% + capital gains tax of 0.5% is also paid. Receipts are provided to the applicant, who will make copies of those receipts before submitting the original receipts to the Land Registry for verification.
On January 5, 2015, the Government of the Lagos State of the Federal Republic of Nigeria adopted the Executive Bill No EO/BRF/001 of 2015. The Order, which takes immediate effect, reduces Consent Fees from 6 percent to 1.5 percent while Capital Gains tax, which was previously 2 percent, is reduced to 0.5 percent. Also cost of Stamp Duty has been reduced from 2 percent to 0.5 percent while Registration Fees has been reduced from 3 percent to 0.5 percent.

However, the Executive Order provides, among others, that "unless otherwise indicated, the valuation of landed property for the determination of tax and other charges payable shall be by reference to the Statement of Fair market Value produced by relevant professionals, adopted by the State Government and published from time to time in the Official Government Gazette".

1 day (simultaneous with procedures 6, 7, 8, 9 and 11) Consent Fee 1.5% + Registration fee 0.5% + Stamp duty 0.5% (Capital gains tax of 0.5% is also paid, but are not included in the calculation).

Submit the Receipts of the Registration fees, Consent fees, Neighborhood improvement charge, Stamp duty

Agency: Directorate of Land Services
Receipts obtained from the bank are submitted as proof of payment to the Land Registry. These receipts are internally forwarded to the Account Department for reconciliation. The lawyer retains copies of the deposit/payment slip is retained for his/her record. The Land Registry manually confirms these payments to the relevant departments. Once payment is confirmed by the Accounts Department, the Land Services Department sends the file directly to one of the designated commissioners to grant the Consent on behalf of the Governor.

1 day (simultaneous with procedures 6, 7, 8, 9 and 10) no cost

Stamping of the deed of assignment

Agency: Stamping duties office
Deeds are presented by assignee’s lawyer for stamping at the Stamp Duties Registry (agency of Inland Revenue Services). Stamping takes place only after Registry receives confirmation of receipt of payment. The documentation shall include: receipts confirming payment of stamp duty. 1 day Already paid in Procedure 10

Registration of Certificate of Occupancy or Deed and Title conferred

Agency: Land Registry
The lawyer will then follow up on the deed to be filed to the Lands Registry. The receipt and paying-in slips evidencing payment are given to the cashier at the Lands Registry. With proof of payment, a lands officer is assigned to enter the Deed into the Registry records.

Source: World bank doing business project

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