Purchasing a land in Nigeria?
Getting scam is a pain…
Not because there are not genuine land to buy(worse case you can just hire a realtor or real estate agency), but due to the fact that no one can guarantee 100% a land is real or not.
This makes it even worth seeking knowledge for, right?.
Imagine you spend all this time inspecting a property, but it’s not guarantee whether you are on the safe side or not.
So, I thought it will be fun to get into what it takes to purchase land in Nigeria and how is a significant investment that requires careful planning and thorough investigation.
From understanding legal requirements to evaluating the land’s suitability for your intended purpose, many factors need to be considered. Here are 12 essential things to know before buying land in Nigeria:
Understanding land Legal Requirements and Land Titles
A big thing in common during land investment is their title even though land titles are more powerful than each other.
Understanding the different types of land titles in Nigeria is crucial.
Common titles include:
- Certificate of Occupancy(C of O): Issued by the state government, this document certifies that the holder is legally entitled to occupy and use the land for a specified period, usually 99 years.
- Governor’s Consent: Required for any land transaction involving land with an existing C of O. It ensures the transaction is recognized by the state government.
- Deed of Assignment: A legal document that transfers ownership from one party to another. It should be registered with the state land registry.
- Excision and Gazette: Excision refers to the process by which the government releases a portion of land back to the indigenous community. Once excised, the land is documented in a government gazette, confirming its status.
Verification of Titles
When it comes to purchasing property, it’s essential to verify the authenticity of the land title.
This involves conducting a search at the relevant land registry to ensure there are no disputes, encumbrances, or legal issues associated with the land.
When looking at this situation you can dig a bit just by engaging Legal Assistance.
In this case, hiring a competent lawyer with experience in land transactions can help navigate the complexities of the property acquisition, verify documents, and ensure all legal requirements are met.
Location and Accessibility
Before I break down how you can know a land that can generate higher returns over time, keep this in mind.
Make sure it has Proximity to Essential Services
In this case, you can evaluate the land’s proximity to essential services such as schools, hospitals, markets, and public transportation.
The reason is simple…
Convenient access to these services can significantly enhance the land’s value and suitability for development.
Road Access
Good road access is vital for any land purchase.
You should never purchase a property with no good road network to neighborhoods.
First of all, ensure that the land is accessible via well-maintained roads, as this can impact transportation, ease of development, and future resale value.
Future Development Plans
Is there any government future plans in the area? If yes
You can investigate any future development plans coming up in the area.
Beacause upcoming infrastructure projects, commercial centers, or residential developments can increase the land’s value and desirability.
Land Use and Zoning Regulations
Zoning laws dictate how the land can be used, whether for residential, commercial, agricultural, or industrial purposes.
That’s why it’s advisable to ensure the land’s zoning aligns with your intended use.
Land Use Act
The Land Use Act of 1978 governs land ownership in Nigeria.
It vests all land within a state in the hands of the governor, who holds it in trust for the people.
So knowing this ACTS can help you familiarize yourself with the provisions of the Act to understand your rights and obligations as a landowner.
Land Size and Topography
Land Measurement
Accurate measurement of the property is essential.
You can achieve this by engaging with a licensed surveyor to conduct a detailed survey and provide a survey plan.
This ensures you are aware of the exact size and boundaries of the land.
Topography
The land’s topography determines its suitability for your intended use.
Factors such as soil type, drainage, and terrain can impact construction costs, agricultural potential, and overall feasibility.
Flood Risk
This situation is essential…
You can determine if the property is in a flood-prone area by checking local flood maps and seeking expert advice.
Land in flood-prone zones may require additional precautions and higher construction costs.
Conducting Due Diligence
Land History
In this situation, you can investigate the history of the land to uncover any past disputes, ownership issues, or legal battles.
This can help you avoid potential problems and ensure a smooth transaction.
Community Rights and Claims
In some areas, local communities may have traditional claims or rights to the property.
So, ensure that any such claims are resolved before proceeding with the purchase to avoid future conflicts.
Neighboring Land Use
You can study or evaluate the use of neighboring lands to understand the area’s overall character and potential for future development.
This can influence your decision and the land’s future value.
Financial Considerations
Budgeting
You can establish a clear budget that includes the land purchase price, legal fees, survey costs, and any other associated expenses.
Also you can make extra preparation for additional costs that may arise during the transaction process.
Payment Plans
Some sellers offer flexible payment plans for land purchases.
If available, go ahead and study and understand the terms and conditions, including any interest rates or additional fees, to ensure it fits within your financial plan.
Hidden Costs
Stay aware of hidden costs such as taxes, development levies, and community fees.
These can add up and affect your overall budget.
Survey Plan and Beacon Certificates
Survey Plan
A survey plan is a detailed drawing that shows the exact boundaries and dimensions of the land.
To get the better deal you have to ensure the survey plan is prepared by a licensed surveyor and matches the land’s description in the title documents.
Beacon Certificates
Beacon certificates indicate the placement of beacons that mark the land’s boundaries.
These physical markers help prevent disputes with neighboring landowners and ensure you are aware of the exact extent of your property.
Cross-Verification
Cross-verify the survey plan and beacon certificates with the physical site to ensure there are no discrepancies.
This helps avoid future boundary disputes and legal issues.
Engaging Professional Services
Real Estate Agents
The good thing is that you can hire a reputable real estate agent or realtor with local market knowledge who can assist in finding suitable land, negotiating prices, and handling the transaction process.
Keep in mind. You must ensure the agent is licensed and has a good track record.
Surveyors
Engaging a licensed surveyor is crucial for accurate land measurement and boundary demarcation.
They can also provide valuable insights into the land’s topography and suitability for development.
Lawyers
A competent lawyer can also guide you through the legal aspects of land acquisition, verify documents, and ensure compliance with all legal requirements.
Their expertise can prevent potential pitfalls and protect your interests.
Community and Social Factors
Community Relations
Building good relations with the local community can be beneficial, especially in rural areas.
Growing a relationship with community leaders and understanding local customs can help facilitate a smooth transaction and avoid conflicts.
Social Amenities
Evaluate the availability of social amenities such as schools, healthcare facilities, markets, and recreational areas.
Access to these amenities can enhance the land’s value and suitability for residential or commercial development.
Security
Study the security situation in the area.
High crime rates or security concerns can impact the land’s desirability and future value.
Consider areas with adequate security measures in place.
Future Development Potential
Infrastructure Projects
Research any planned infrastructure projects in the area, such as new roads, bridges, or public transportation systems.
These developments can significantly increase the land’s value and potential for future growth.
Commercial Developments
Identify any upcoming commercial developments such as shopping centers, business parks, or industrial zones.
Proximity to commercial activities can enhance the land’s value and appeal.
Urbanization Trends
Understanding urbanization trends can provide insights into areas with high growth potential.
Regions experiencing rapid urbanization may offer better investment opportunities and higher returns.
Land Disputes and Litigation
Conflict Resolution
You can investigate any ongoing or past disputes involving the land.
Resolving conflicts before purchase is essential to avoid future legal battles and ensure a smooth transaction.
Legal Counsel
You can seek a legal counsel which can help you navigate any disputes and ensure all necessary legal procedures are followed.
They can provide advice on how to resolve conflicts and protect your interests.
Court Judgments
Check if there is any court judgments or legal rulings related to the land.
This information can help you understand any potential risks and make informed decisions.
Environmental and Health Considerations
Soil Quality
You can check the soil quality to determine its suitability for your intended use, whether for agriculture, construction, or other purposes.
As you know, poor soil quality can impact development costs and feasibility.
Water Availability
The availability of water resources is important, especially for agricultural or residential purposes.
Access to clean and reliable water sources is crucial for any development.
Environmental Hazards
Identify any potential environmental hazards such as erosion, landslides, or pollution.
These factors can affect the land’s usability and safety.
Conclusion
As you know, buying land in Nigeria requires careful consideration of various factors, from legal requirements and financial planning to community relations and environmental considerations.
By thoroughly researching and understanding these aspects, you can make informed decisions and secure land that meets your needs and investment goals.