Land investing is one of the most lucrative types of real estate investments; in time past, people’s wealth were sometimes measured by how many lands they had. however, while this is not the primary determinant of wealth today, it is still a very effective way of accumulating wealth, especially in a developing country like Nigeria.
Acquiring lands in Nigeria involves specific steps and stages that the seller and buyer must follow accurately before successfully transferring a landed property from its original owner to a new one.
In addition, before purchasing land, it is advisable to involve a solicitor to guide you through the legal processes of land acquisition so you will have a smooth transaction. Here are the steps to take for land investments in Nigeria.
Make Enquiries on the Land
This is not just the first step to purchasing land but also a crucial step that must be taken seriously. In this stage, you are expected to find out the details of the land, if there are any defects, and if it is suitable for residential or commercial purposes.
In addition, find out if there are existing disputes and encumbrances regarding the land. Also, if you can keep the land safe for as long as you want, or you will be required to build on it immediately to maintain your ownership.
All these enquiries will help you know whether or not this land is the right one for your investment; your solicitor can also help you with the findings.
Deducing of Title
The process of deducing title is just for the vendor to prove that he has the right to sell the land and has a good title to the land. It is the responsibility of the vendor’s solicitor to deduce the title and prepare the necessary documents for the purchaser or the purchaser’s solicitors. The documents needed are listed below.
- Abstract of title, which analyses all transactions done on the land.
- The epitome of title, which contains all the particulars, list and copies of documents that concerns the land.
Investigation of Title
After deducing the title and providing the necessary documents, the next proper thing to do is to investigate it. The purchaser’s solicitor does this to confirm the title and proof that the records provided are accurate. Investigation of the title is carried out in the following step;
- Collection of the abstract and epitome of title from the vendor’s solicitor and examination of the documents.
- Physical inspection of the land.
- Check for the traditional history of the land.
- Confirmation of the land from the Land Registry, Probate Registry, Court Registry and Corporate Affairs Commission.
- The purchaser’s solicitor will prepare a search report detailing the outcome of his investigation.
Contract of Sale
A formal Contract of Sale of Land must be prepared to officially show interest and willingness towards the land acquisition. This is done if both parties have carried out all the necessary documentation and investigations and it can be done by the purchaser’s or vendor’s solicitor. Then both parties should inspect the document and confirm if they are satisfied with the terms, after which they can proceed with the following events:
- Payment of a deposit of the agreed price for the land by the purchaser to the vendor.
- Both parties sign the contract of sale in the presence of their eyewitnesses.
- Issuance of purchase receipt to the purchaser by the vendor.
- The vendor hands over all documents and information concerning the land to the purchaser.
Preparation of Deed of Assignment
In this stage, the parties are to finalise the land acquisition and prepare a deed of assignment. It is done in the following steps:
- The purchaser’s solicitor prepares a Deed of Assignments, and the vendor’s solicitor reviews it.
- If the vendor is satisfied with the terms in the Deed of Assignment, he will set up a meeting.
- In the meeting, the purchaser will pay the balance money for the land.
- The execution of the Deed of Assignment by the parties and their witnesses will follow.
- Lastly, the vendor’s solicitor hands over all original copies of documents, copies of executed deeds of assignment, a registered survey plan and a completed Form 1 for government’s content.
Perfection of Title
So finally, this is the last stage of land acquisition in Nigeria; it usually involves getting the governor’s consent, stamping and registration. These 3 three processes must successfully be carried out to complete the perfection of the title. Once they are done, the land is officially yours.
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In conclusion, it is also essential to know that when trying to invest in land, you don’t have to go through all these processes by yourself; you can do this safely through a real estate company, the land will still be entirely yours, but you will need to pay a commission for their services. So as long as you find a reliable real estate firm, your land investments will be smooth and easy.
