If you are considering buying a property in Lagos, knowing the right documents to ask for can make it a highly rewarding journey. Lagos offers a vibrant real estate market with diverse opportunities, but navigating this market can be complex.
This is where knowledge comes to play. Many have spent a lot buying properties in Lagos only to lose their investment because of an oversight. In almost all of those times, the oversight was because of certain documents that they don’t have in their possession.
One crucial aspect of the property buying process is ensuring that you have all the necessary documentation in place.
In this article, we’ll explore nine essential documents you should ask for when buying a property in Lagos. This will empower you to make informed decisions and safeguard your investment.
1. Certificate of Occupancy (C of O)
The Certificate of Occupancy is perhaps the most critical document when buying property in Lagos. It is issued by the state government. The C of O signifies legal ownership of land or property.
It provides details such as the location, size, and permissible land use.
Before finalizing any transaction, ensure that the seller presents a valid and verifiable Certificate of Occupancy.
2. Survey Plan
A survey plan is a graphical representation of a property’s boundaries and dimensions. Why is a survey plan important during a real estate transaction? It helps you to verify the accuracy of the land size and ensures that there are no encroachments or boundary disputes.
A survey plan lets you know the extent of your property. In the case of encroachments, the document will help the court rule in your favour.
Requesting a survey plan is crucial to avoid potential conflicts with neighboring properties. It confirms that the land you’re purchasing aligns with your expectations.
Also Read: Difference between Gazette and Excision Land Titles in Lagos
3. Deed of Assignment
The Deed of Assignment is a legal document that transfers ownership of a property from one party to another. It serves as evidence of the transaction between the seller and the buyer.
In the eyes of the law, the deed of assignment tells the court the owner of a property. It also shows to the court if the property was legally acquired or not.
Ensure that the Deed of Assignment is properly executed, signed by all relevant parties, and duly registered with the appropriate authorities to validate the transfer of ownership.
4. Governor’s Consent
In cases where the property has changed hands multiple times, obtaining Governor’s Consent is essential. Governor’s Consent is a formal approval from the state governor validating the transfer of land or property rights.
It adds an extra layer of security to your ownership rights and protects you from future disputes.
Land disputes arise from time to time. When you notice that the property you intend to buy has changed hands multiple times, go for the governor’s consent.
5. Receipt of Purchase
A Receipt of Purchase is a document that acknowledges payment for the property. It serves as proof of transaction and should include details such as the purchase price, payment method, and date of transaction.
This is an essential document you must ask for when buying a property in Lagos. This is to eliminate issues that may arise concerning a property. Your possession of the receipt of purchase proves you are the right owner of the property.
Always insist on receiving a valid Receipt of Purchase to document the financial aspect of the property acquisition.
6. Building Plan Approval
LASPPPA is the body in Lagos that is responsible for giving building plan permit. They give this permit to developers (government or private) or landowners.
If you’re purchasing a developed property or intend to make alterations or additions, ensure that the building has valid approval from LASPPPA.
Building Plan Approval confirms that the structure complies with zoning regulations, building codes, and safety standards.
This document is essential to avoid legal issues and ensure that your investment is secure.
Also Read: 15 Terminologies and their Meanings in the Nigeria Real Estate Market
7. Tax Clearance Certificate
Verify that the property seller has a valid Tax Clearance Certificate, which confirms that they are up to date with their tax obligations. Acquiring property from a tax-compliant seller reduces the risk of future liabilities and demonstrates the legitimacy of the transaction.
Requesting a Tax Clearance Certificate is a prudent step in due diligence.
8. Certificate of Incorporation (For Corporate Sellers)
If you’re buying property from a corporate entity, request a Certificate of Incorporation. This validates its legal existence and authority to sell the property.
Certificate of Incorporation helps you to verify the authenticity of the corporate seller. This ensures that you’re dealing with a legitimate entity. It minimizes the risk of fraudulent transactions.
9. Power of Attorney (If Applicable)
There are cases where the person you are buying from is not the owner of the property. The person is only selling on behalf of the owner of the property.
In such a case, request a valid Power of Attorney. This document grants the seller the legal right to act on behalf of the property owner in real estate transactions.
The reason why this document is so important is the danger it can pose. The real owner of the property may come up later with allegations that he or she did not authorize the seller to sell the property. But with the power of attorney, this kind of case is unlikely to come up. The power of attorney delegates the seller to sell the property.
In addition to that, ensure that the Power of Attorney is properly executed and authenticated to avoid complications.
Also Read: How to Know If a Land is Free from Government Acquisition in Lagos
Conclusion
The above are the nine documents you must ask for when buying a property in Lagos.
The reason why these nine documents are important is because of potential lawsuits that can come up in the future. The best way to prepare for the law suits is to have these nine documents in your possession.
Buying a property in Lagos requires careful attention to documentation. This is to protect your interests and investment. By requesting and verifying these nine essential documents, you can navigate the real estate market.
Remember, thorough due diligence is key to a successful property acquisition in Lagos.
