If you’re looking to get involved in the Nigerian real estate market, understanding the terminologies is the first step.
Whether as a buyer, seller, developer, or agent, real estate terminologies help you participate effectively in the industry. This article gives you 21 real estate terminologies you must know to get started in the industry.
Why You Should Understand Real Estate Terminologies
Understanding the terminologies in the Nigerian real estate market is vital for your success as a property seller, buyer, developer, or agent. It helps you communicate effectively with other market participants, ensuring you’re on par with them in every transaction.
Secondly, it helps you, as a buyer or seller, to make informed property decisions. As an agent, it helps you inform your clients better, helping them make favorable decisions.
Understanding real estate terminologies also helps you make sound legal and financial decisions in all your transactions.
15 Terminologies in the Nigeria Real Estate Market and their Meanings
Here are some terminologies you must pay attention to if you want to play in the Nigerian real estate market:
1. C of O
A Certificate of Occupancy (C of O) is a legal document the government issues to an individual or firm, certifying them as the legal owner of a property or piece of land. The C of O is the most important land document in Nigeria, and for many reasons. It is issued once on a piece of land by the state government; any subsequent transfer of ownership of the land gets the governor’s consent.
Another benefit of a C of O is that it gives you full legal ownership of the property. Even the government can’t encroach on your land without duly compensating you.
2. Deed of Assignment
A deed of assignment is a legal document that transfers the ownership of a real estate property from one person to another. It proves that a sale has been made and the ownership title moved from the previous owner to a new owner (the current holder).
3. Contract of Sale
A contract of sale is an agreement between a buyer and seller of a property. It specifies the terms and conditions of the sale of the property.
4. Land Titles
Land titles are documents proving the ownership of a piece of land and outlining its rights of ownership. It contains vital information like the land owner’s name, the property’s description, and encumbrances on the land, such as mortgages or easements.
5. Land Size
Land size refers to the dimensions of a piece of land or property. In Nigeria, land size is measured in acres, hectares, square feet, or square meters. For instance, a standard plot of land in commercial cities like Lagos is 60ft by 120ft or 648 square meters. To put this into perspective, a plot of land in Lagos provides enough space to build a four-bedroom en suite duplex with a little compound space.
6. Omonile
The term Omonile means “the one who owns the land.” In Lagos, the Omoniles are a dreaded group. They claim to be children of the traditional landowners and use that as an avenue to extort people who own properties in the state.
7. Gazette
A gazette is a formal document proving the return of a land ownership title from the government to the indigenous landowner. It proves the holder has the excision title, which is as powerful a land title as the C of O and the governor’s consent.
Also Read: Difference between Gazette and Excision Land Titles in Lagos
8. Excision
Excision is the government’s return of a land ownership title to indigenous landowners. It’s a powerful title, granting the holder the right to use the land for 99 years. It’s as powerful as the C of O and the governor’s consent, and is documented in the gazette.
9. Land Survey
A land survey is a report of land’s dimensions or properties. Surveying land involves measuring and mapping out these dimensions and properties. The primary purpose of a land survey is to establish accurate land boundaries, create maps, and provide other vital information for land development, construction, or legal disputes.
10. Governor’s Consent
A governor’s consent is a document issued by the government granting the transfer of ownership of a piece of land to an individual or corporate entity. It is issued on land with a C of O, as a C of O can’t be issued twice on the same property. A governor’s consent confers equal ownership rights as a C of O.
11. Free Hold
As the name implies, a freehold property is any property that is “free from the hold” of any party besides the owner. It’s a type of land ownership in Nigeria that grants the property owner full ownership of the land and the buildings or structures on it.
12. R of O
A right of ownership (R of O) is a legal document the government issues to an individual or corporate entity, giving them temporary ownership of a property. It gives the holder the right to use the land for specific purposes pending when the government intends to take back its ownership.
13. Land Use Act
The Land Use Act is an act that vests the ownership of all the lands in a state in the hands of the state governor, who holds the land in trust for the people. The governor is responsible for allocating the lands in urban areas to individuals and corporate entities in the area. This Act was enacted in 1978 and has contributed to the peaceful allocation of landed properties in Nigeria.
14. Inspection
This is the act of visiting a property to physically assess its condition. You can conduct an individual inspection on a property or contract with a real estate company or lawyer.
Also Read:
15. Land Purchase Receipt
The land purchase receipt is a document a property owner issues to a buyer confirming they’ve received payment for the property. It can also be issued by a real estate company, especially when they’re in charge of property management.
Conclusion
In Nigeria, knowing these terminologies in the real estate market is a sign that you understand the industry. You can’t meaningfully get the best deal in your real estate investment if you are not conversant with these terms.
