If you are a property owner in Nigeria, you need to understand the property rights theory. You should know and understand your rights and responsibilities as a landowner. If you are planning to acquire lands or landed property, you should also study these theories and read about the steps involved in acquiring properties.
This article highlights the theory and explains the statutory laws that govern property rights in Nigeria's real estate industry. Here is what you should know about Nigeria property rights:
What Should I Know About Nigeria Property Rights?
The Nigerian Property rights concept is not straight forward. It is a combination of laws and traditions. The complex nature of property rights has always been a source of confusion. Property rights combine customs or traditions, statutory laws, and common laws. Variation also exists from one state or region to another.
However, the nationwide recognized Nigerian Constitution provides laws at the federal and state levels. The Land Use Act of 1978 is the most important regulation for property ownership in the country. According to this Act, lands belong to the government and they hold it in trust for the people. This means there is no freehold property ownership system in Nigeria. An individual cannot own a property out rightly.
When obtaining land rights under the Land Use Acts, there are two popular types:
Statutory Right of Occupancy
This is the type that you get from the state government. It shows and highlights your leasehold rights of the property. Based on this Act, the lease period is 99 years. After this, the land returns to the government, and it is renewable for another term.
Customary Rights of Occupancy
Customs and tradition play a major role in property rights and ownership in Nigeria. Local customs provide you with these rights and they are recognized within the local area or community. Most customary rights of occupancy do not carry the same legal weight, but they are necessary when dealing with locals.
Understanding Nigeria's Property Rights and Responsibilities
Based on the Land Use Act, and the many laws that govern property use in the county, you have certain rights as a property owner. These rights also come with certain responsibilities. Let’s discuss these rights and responsibilities:
Property Owners Rights
Here are the three major rights that you should know as a Property rights owner.
Right to Use
This right establishes the power of the owner to use the acquired land however they deem fit. Remember that the land is still under government regulations. Hence this right only exists within the limits of local laws and directives.
Right To Transfer
This right gives owners the choice to either sell, lease, or transfer the property using landholding trusts.
You can do any of these under the country’s regulations and procedures.
Right to Compensation
The government can reacquire the land for public use either temporarily or permanently. In such cases, you have the right to receive compensation for your property use.
Responsibilities of Property Owners in Nigeria
With rights come responsibilities. While you maintain your ownership and right over such property, note the needed responsibility. Note that your power of ownership is not supreme, there are limitations. One limitation is your responsibility to obey zoning laws and customs.
Another responsibility is tax requirements. Consult a trusted real estate agency to understand the tax laws that govern your land. There are often penalties and the government will impose these penalties regardless.
How Do I Acquire Properties in Nigeria?
It is an exciting step if you are inline to acquire property in the Nigerian real estate industry. You should note that each step is crucial and important. Due to the cultural influence of various ethnic tribes, it is best to follow all steps carefully.
Here are some major steps when acquiring property in Nigeria.
Pre-Purchase Phase
Before initiating the purchase of a property, be sure to do in-depth research. Landed properties are often a source of controversies and it is best to be slow and meticulous when doing research. Here are the steps involved in the pre-purchase phase:
Confirm Ownership:
Be sure to confirm the owner of the land or property. There is should clear and enough legal backing to confirm ownership of the property. Confirm from multiple sources to verify your findings. The land should also be free of issues regarding debts or bank claims on the assets.
Confirm Proper Land Use
After confirming ownership, be sure to check the proper land use zone of the property. If you are acquiring a piece of land, confirm that the property is suited to your purpose. Does the intended plan match your plans for the property? Is the property useful in the long run? Is it best suited to residential or commercial purposes?
Review Documents
The last step before initiating the purchase is to check the validity of the documents. The title documents and other necessary details should be up to date.
Negotiation Phase
The negotiation phase is crucial. The advice is that you should take this phase with all care and ensure to allow professionals to smoothen the process. Before the actual negotiation, be sure to involve a trusted real estate agency or agent in your negotiation. They provide insight regarding appreciation potential, property value, and best deals.
You should also involve lawyers to help handle the legal side of the deals. When the help of all important parties, you can go ahead with your negotiation and purchase the property.
Post-Purchase Phase
After negotiation and purchase, the next step involves due diligence in completing the sale and contract terms. If you are obtaining the land on lease, obtain approvals such as building permits from the government. Some parts of the country also require land use approval.
Complete the transaction by making payments and having the transfer of property. You should transfer ownership by registering the properties.
Conclusion
You should learn to protect your properties through security and insurance. You should also remain updated about different happenings in the real estate industry. Such information will help you now and in the future. A trusted agency like the Land Republic remains atop choice to help you acquire property and guide you on the steps to protecting your assets.
