Are you looking to invest in the vibrant Nigerian property market? Whether you’re a Nigerian living abroad or a foreign investor, navigating the process can seem daunting. This post will guide you through two crucial aspects: verifying property ownership and the steps involved in buying property from overseas.  

Part 1: Verifying Property Ownership in Nigeria - Due Diligence is Key  

Before you commit to any purchase, it’s absolutely critical to verify the legitimacy of the property and the seller’s claim to ownership. Here’s a step-by-step approach:  

Engage a Reputable Real Estate Lawyer: This is arguably the most important step. A qualified lawyer specializing in Nigerian property law can conduct thorough searches and ensure your interests are protected. They can:  

Conduct a Title Search: This search, done at the relevant Land Registry, reveals if the seller is the rightful owner, if the property is encumbered (e.g., has a mortgage), and any other claims against it.  

Review Documents: They will scrutinize documents such as the Certificate of Occupancy (C of O), Deed of Assignment, survey plan, and others to verify their authenticity.  

Offer Legal Advice: They can advise you on the terms of the purchase, identify any potential issues, and guide you through the legal processes.  

Verify the Certificate of Occupancy (C of O): The C of O is the most crucial document.  

Authenticity Check: Verify its authenticity at the relevant land registry.  

Ownership Details: Ensure that the name of the seller matches the owner recorded on the C of O and other related documents.  

Land Use: Confirm that the land use permitted (e.g. residential, commercial) aligns with your intended use.  

Conduct a Physical Inspection of the Property: If feasible, visit the property or engage a trusted representative to do so. Ensure the property matches the description in documents. Check for boundary disputes and any potential encumbrances like illegal structures or squatters.  

Check with the Local Government: Enquire with the local government authority to confirm any unpaid taxes or levies associated with the property.  

Be Wary of Unscrupulous Agents: Sadly, real estate scams exist everywhere. Be cautious of deals that seem too good to be true, and always verify information through independent channels.  

Part 2: Steps to Buy Property in Nigeria from Abroad  

Purchasing property from overseas adds another layer of complexity, but it’s entirely achievable. Here’s a general guide:  

Research and Identify Your Needs: What kind of property are you looking for? What is your budget? Which location suits you best? Thorough research is vital.  

Engage a Real Estate Agent: Partner with a trusted agent who understands both the Nigerian market and the challenges faced by international buyers.  

Engage a Real Estate Lawyer (as mentioned in Part 1): This is critical for due diligence and ensuring your rights are protected.  

Funding and Payment:  

Open a Nigerian Bank Account: This simplifies transactions. Many banks offer accounts for non-residents.  

Arrange International Transfers: Be aware of transfer limits and fees. Work with reputable services for transferring funds securely.  

Payment Schedule: Negotiate a clear payment schedule with the seller, typically involving initial deposits and final payment upon completion.  

Due Diligence: (This is crucial, as outlined in Part 1)  

Documentation and Contract:  

Sale Agreement: Your lawyer will draw up a sale agreement outlining all terms and conditions. Review this carefully.  

Deed of Assignment: This document officially transfers ownership to you upon completion of payment.  

Completion and Registration:  

Payment of All Fees and Taxes:  Be sure to allocate for Stamp Duty, legal fees, and other taxes.  

Registration of the Property: Ensure the Deed of Assignment is registered at the Land Registry.  

Key Takeaways:  

Due Diligence is Paramount: Never skip the steps involved in verifying property ownership.  

Engage Professionals: Lawyers and reputable real estate agents are your best assets.  

Be Patient: The process can be time-consuming. Be patient, thorough, and don’t rush.  

Ask Questions: Don’t hesitate to ask questions until you feel comfortable.  

Investing in Nigerian property can be rewarding. By following these steps and seeking professional assistance, you can navigate the process confidently and secure a valuable asset.  

Disclaimer: This blog post is for informational purposes only and should not be taken as legal or financial advice. Always consult with qualified professionals for specific guidance tailored to your situation.