Property registeration process In Nigeria

Registering Property in

Nigeria

 

Below is a detailed summary of the steps, time and cost involved in registering property in Nigeria. It assumes a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 185 economies. The most recent round of data collection was completed in June 2012.

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  • Standard Property Transfer

  • Property Value: NGN 10,143,182.22
  • City: Lagos
No. Procedure Time to Complete Associated Costs
1 Conduct a Property title search at the Land Registry

The application letter to conduct the search is accompanied by a sworn declaration 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.

The 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).

Agency: Land 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)
2 Obtain Application Land Form 1C

One can obtain the application from the consent section of Lands Services Department. Form 1C is the application form to request later the Governor’s Consent to the transaction required by Nigerian law. The Form 1C must be dated and signed by the parties to the transaction and sworn to before a magistrate or notary public.

Agency: Land Services Department

1 day No cost
3 Obtain Certified True Copy (CTC) of title document

The assignor/assignee issues a Letter of Authority to the Registrar of Titles, authorizing the lawyer to apply for and obtain CTC of title document, required for Governor’s Consent. It takes a minimum of 2 days to obtain certified copies of title documents as the lawyer should also present an affidavit to that effect.

Agency: Land Services Department

2 days NGN 5625
4 Obtain a Survey plan

Parties obtain a copy of the survey Plan, as approved by the Town Planning Authority, which is required for the Governor’s Consent.

Agency: Town Planing Authority

1 day no cost
5 Execution of Deed of Assignment/Conveyance and Land Form 1C

The assignor and assignee complete and sign Land Form 1C and four (4) copies of the Deed of Assignment.

Agency: Lawyer’s Office

1 day No extra cost
6 Payment of the Charting Fee, Administrative Fees, Endorsement fee at a designated bank

A Charting Fee of NGN 7,500 and the Endorsement fee of NGN 1,500 are paid to the designated banks. A receipt is issued, together with the paying-in slip to the designated bank. A bank draft made payable to Lagos State Government. This Procedure is required for Governor’s Consent.

Agency: Commercial bank

1 day Charting Fees (NGN 7500) + Administrative fees (NGN 3000) and Endorsement Fees (NGN 1500)
Capital gains tax of 2% is also paid, but are not included in the calculation
7 Process Governor’s consent to the Assignment

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 days following submission of a duly completed application. Incomplete applications are not accepted. New Procedures and documentation requirements have been widely published.

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 for its Staff and Current Tax Clearance Certificate for the Directors
• Four (4) copies of the Deed of which Consent is sought should be attached.
• Copy of the Survey Plan, as approved by the Town Planning Authority and a picture of the Building
• Evidence of payment for Charting fee, Endorsement fee, Form 1C (admin fees), Consent fee, Stamp Duty, Capital Gains Tax and Registration fee
• 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.
• 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

Agency: Directorate of Land Services

61 days no cost
8 Obtain notice of Stamp duty , Registration fees, Consent fees, Neighborhood improvement charge at the Land Registry

After investigation and assessment of the true value of the property, the conveyancer will be informed of the amount for the Registration fee, the consent fee, Stamp duty, Capital gains tax, that should be paid at the Designated Bank.

The parties will also pay an administrative fee of NGN 3,000 once the documents have been verified for completeness.

Agency: Lands Registry

7 days no cost
9 Payment of Stamp duty , Registration fees, Consent fees, Neighborhood improvement charge at a commercial bank

The Conveyancer pays the remaining fees at the designated Bank by means of Certified Checks: 8% Consent Fee + 3% of property value for the registration fee + 2% of property value for the Stamp duty + (Capital gains tax of 2% is also paid). Receipts are provided to the Conveyancer, who will make copies of those receipts before submitting to the Land Registry.
If Land directly allocated to the seller by the government is resold within 10 years of its initial allocation, then a penalty consent fee of 16% of the value is charged (to deter land speculation).

Agency: Commercial bank

1 day 8% Consent Fee + 3% of property value for the registration fee + 2% of property value for the Stamp duty (Capital gains tax of 2% is also paid, but are not included in the calculation).
10 Submit the Receipts of the Registration fees, Consent fees, Neighborhood improvement charge, Stamp duty

The 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 records. 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 the office of the Honorable Attorney General of the State.

Agency: Lands Registry

1 day no cost
11 Obtain file from the Land Services Department

The Conveyancer will make follow-up calls or visit personally the Land Registry to follow-up on the progress of the file. The Honorable Attorney General and Commissioners of the State grant consent on behalf of the Governor by signing on the deed of transfer. The lawyer will then transmit this file to the Stamp duty offices for stamping.

Agency: Governor’s Office

1 day No extra cost
12 Stamping of the deed of assignment

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.

Agency: Stamping duties office

1 day No extra cost
13 Registration of Certificate of Occupancy or Deed and Title conferred

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.

Agency: Land Registry

3 – 10 days No extra cost

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