Land inspection is a crucial step in real estate investment, particularly in Nigeria, where land laws, ownership rights, and community customs can vary widely across states and regions.
Understanding these elements can help buyers avoid costly mistakes and ensure they secure legitimate ownership of their property.
This article covers 20 essential factors that every potential land buyer should consider when inspecting land in Nigeria.
So, let’s dive in…
Understanding Nigerian Land Ownership Laws in Land Inspection
The Land Use Act of 1978 is central to understanding land ownership in Nigeria.
This law vested all land in each state to the Governor, who administers it for the benefit of the people.
Land can only be leased for a maximum of 99 years under this act.
In this case, buyers must verify that they are acquiring land with a legally valid title, as the Land Use Act limits outright ownership.
Real-life example:
In Lagos, there’s a buyer who purchased land without investigating its compliance with the Land Use Act and later faced difficulties when the government reclaimed the land for public use.
Identifying the Right Location
Choosing the right location involves assessing development prospects, infrastructure, and proximity to essential amenities.
In Nigeria, locations like Lekki in Lagos are popular due to ongoing infrastructure projects and their growing potential for both residential and commercial real estate.
Real-life Example:
A developer selected land in Lekki for its proximity to the new Lekki-Epe expressway, which enhanced accessibility and attracted higher investment returns.
Confirming Land Titles
Different land titles in Nigeria include the Certificate of Occupancy(C of O), Governor’s Consent, and Deed of Assignment.
Confirming these titles is crucial to prevent disputes or government repossession.
Real-life Example:
A buyer in Enugu purchased land without verifying its C of O status, only to find it was under government acquisition, which nullified his ownership claim.
Land Survey Verification
A land survey defines the property’s size and boundaries, and verifying the survey is essential.
A survey plan should be cross-checked with the local government to ensure accuracy and to avoid encroachment issues.
Real-life Example:
In Ogun State, a buyer realized after purchasing that the survey was inaccurate, leading to boundary conflicts with neighboring plots.
Physical Land Inspection
It’s essential to visit the land in person to inspect the terrain, elevation, and proximity to key landmarks. Photos alone may not reveal topographical issues like flooding risks or steep inclines.
Real-life Example:
A buyer skipped a physical inspection, only to discover post-purchase that the land was located in a flood-prone area in Port Harcourt.
Soil Testing and Terrain Assessment
Soil type affects construction costs, so a soil test should be conducted. For instance, areas with rocky soil may require more investment in foundation work.
Real-life Example:
In Abeokuta, a buyer discovered that the rocky terrain would significantly increase the cost of building a foundation, a factor he hadn’t anticipated.
Confirming Land Size and Boundaries
To avoid encroachment disputes, buyers should confirm the land’s size and boundaries with a licensed surveyor.
This is particularly important in urban areas where land disputes are more common.
Real-life Example:
A buyer in Ikeja, Lagos, found out that his plot was smaller than he paid for due to inaccurate boundary demarcations by the seller.
Investigate Past Land Use
It’s important to research whether the land was previously used for activities that could impact its suitability.
Land near industrial waste sites or old burial grounds may have issues affecting its value or usability.
Real-life Example:
In Port Harcourt, a buyer purchased land close to an industrial area, later realizing the soil was contaminated with chemicals, rendering it unsuitable for residential use.
Check for Existing Encumbrances
Encumbrances like unpaid mortgages, liens, or family claims can complicate ownership.
Buyers should check with local authorities to ensure the land is free of any legal claims.
Real-life Example:
In Ogun State, a buyer purchased land that had outstanding bank loans against it, resulting in a legal battle to secure ownership.
Community and Cultural Concerns
In some Nigerian communities, land ownership is shared among family members or governed by traditional practices.
Buyers should confirm that all stakeholders are in agreement before purchasing.
Real-life Example:
A buyer in Anambra bought family land, only to have the sale contested by extended family members who had not been consulted.
Security of the Area
Security is a significant factor, especially in rural or less-developed areas.
Some buyers prefer gated communities or areas with security arrangements in place.
Real-life Example:
In Abuja, investors prefer gated estates due to higher security, while rural areas may have minimal security measures.
Accessibility and Infrastructure
Access to roads, water, and electricity can significantly influence the value and desirability of land. Areas with well-established infrastructure command higher prices.
Real-life Example:
Land in Ajah, Lagos, with excellent road access, attracted more buyers than more remote plots.
Confirming Land Zoning Restrictions
Each region has zoning laws regulating land use.
Some areas are zoned for agriculture, residential, or commercial use, and violations can lead to government intervention.
Real-life Example:
A buyer intending to build apartments in Ibadan found the land was zoned for agriculture, forcing him to abandon the project.
Investigating Potential for Resale or Development
Assessing the area’s potential for development is vital for long-term investors.
Buyers should evaluate future development plans, population growth, and infrastructure projects.
Real-life Example:
An investor purchased land in Ibeju Lekki due to its proximity to the new seaport, anticipating high returns in the future.
Engaging a Qualified Land Surveyor
A professional surveyor can verify property boundaries and ensure the land matches the survey documents.
Inaccuracies can lead to costly disputes.
Real-life Example:
A buyer in Lagos faced encroachment issues because his surveyor had overlooked a boundary discrepancy with a neighboring plot.
Land Pricing and Negotiation
Understanding land prices and negotiating effectively can save buyers significant money.
Consulting a local expert like us helps buyers avoid overpaying.
Real-life Example:
An investor in Ibeju Lekki negotiated the price of land down by 15% after discovering the seller was under pressure to sell.
Working with a Real Estate Lawyer
A lawyer is essential for verifying documents and ensuring the transaction complies with Nigerian law. This can prevent issues with fraud and forgery.
Real-life Example:
In Anambra, a buyer’s lawyer discovered that the seller had altered the land title, preventing a potential scam.
The Role of Community Leaders
Engaging community leaders is essential, especially in rural areas where customary land ownership practices may apply.
These leaders can affirm the authenticity of a land sale.
Real-life Example:
A buyer in Enugu sought the approval of local leaders before finalizing his purchase, preventing future community disputes.
Understanding Environmental Laws and Requirements
Nigeria has environmental regulations regarding the use of land, especially near waterways and natural resources. Failing to adhere to these can lead to penalties or land repossession.
Real-life Example:
A buyer in Lagos wanted to build near a lagoon but was informed by environmental authorities that certain construction restrictions applied.
Finalizing the Land Purchase
Once all verifications are complete, it’s essential to register the land with the local government to establish legal ownership.
This step finalizes the buyer’s right to the land and prevents future disputes.
Real-life Example:
A buyer in Kaduna delayed registration, only to have another party claim the land in the interim.
Conclusion
Thorough land inspection in Nigeria involves understanding legal, environmental, and community aspects to avoid pitfalls.