In a country like Nigeria where you can get away with certain crucial things, taking important things for granted is easy. Several land and property owners do not know the importance of a certificate of occupancy, let alone having one. Unfortunately, this could be a ticking time bomb waiting to explode. 

Failure to own a certificate of occupancy nullifies proof of property ownership. The first thing is for you to know what a certificate of occupancy is and its importance. Ensure you read this to the end to find out.

 What is a Certificate of Occupancy?

A certificate of occupancy is a document issued by the Nigerian government to a landowner as legal proof of ownership. According to Section 9 of the Land Use Act of 1978, every state Governor in Nigeria is the custodian of all the Land in his/her state. The governor also reserves the exclusive right to issue a certificate of occupancy.

The Land Use Act reads: "The terms and conditions of a Certificate of Occupancy granted under this decree and which has been accepted by the holder shall be enforceable against the holder and his successors in title, notwithstanding that the acceptance of such terms and conditions is not evidenced by the signature of the holder or is evidenced by the signature only or, in the case of a corporation, as evidenced by the signature only of some person purporting to accept on – behalf of the corporation."

Additionally, the act embeds conditions and provisions implied in the Certificate of Occupancy, stating that “Every Certificate of Occupancy shall be deemed to contain provisions to the following effect that the holder binds himself to pay to the Governor the amount found to be payable in respect of any unexhausted improvements existing on the land at the date of his entering into occupation and that the holder binds himself to pay to the Governor the rent fixed by the Governor and any rent which may be agreed or fixed on revision in accordance with the provisions of Section 16.”

While the Governor has the responsibility to issue a certificate of occupancy, the act gives allowance for delegation to the commissioner-in-charge. However, the commissioner cannot delegate the task to another person. Simply put, delegatus non potest delegare.

Dangers of Not Having a Certificate of Occupancy

Several challenges often come up as a result of not having a certificate of occupancy. Some of the challenges that often arise include:

1. Difficulty in Proving Ownership

As a land owner in Nigeria, it is essential for you to always be ready to prove ownership of your landed properties. If not, you could get ejected by omo-onile and fraudsters. Additionally, it could make it difficult to sell or transfer your property to a new owner.

Certificate of Ownership is one document that can save you if disputes arise. It has the backing of the government and duplicate copies with government officials. If a dispute arises, the validity and authenticity of the document can be confirmed at the surveyor-general's office.

2. Inability to Access Loan Facilities

Banks and financial institutions recognize the importance of a certificate of occupancy. Hence, a certificate of occupancy is an essential collateral for loans to property owners. Without a certificate of ownership, it will be difficult to access loans for personal and business purposes. This will limit you and restrict you from accessing finances that could be used to scale up.

3. Puts Your Buildings at a Risk of Demolition

Properties on lands are at risk of demolition by the government. Such properties are usually considered as illegal and unsafe for residents in the community. Considering the amount of resources that would have gone into the construction of the buildings, that could be devastating for the owner. Unfortunately, it is difficult to obtain a certificate of occupancy in Nigeria after a building has been marked for demolition. To save yourself from the trauma and damage, it is best to get the Certificate of Occupancy before construction or any form of development begins on land.

4. Restriction of Resale Value

These days, several land buyers do their due diligence before buying a property. Due to this, many of them know the importance and implications of a certificate of occupancy. The impact of this on sellers without a certificate of occupancy is difficulty in selling their properties. Buyers find it difficult to purchase properties with incomplete land documents. Those who will attempt to buy such lands, want to acquire the property at a price that is lower than the market value of the land. As a seller, this will reduce your profit and could make you get frustrated.

Unfortunately, the ability to resell such lands will continually drop as Nigeria gets more structured and developed. Regardless of how old or new a property is, it needs to have a certificate of occupancy.

5. Exemption from Insurance Eligibility

Insurance companies are aware of the vulnerability of properties without a certificate of occupancy. Hence, they do not want to put their resources on the line. Without the certificate of occupancy, Landowners will not be able to obtain insurance for their properties. This in turn makes them vulnerable to losses as a result of natural disasters, theft and other types of damages.

6. Exclusion from Government Programs

Sometimes, the government organizes incentives and programs for land owners. However, the only recognized landowners are owners whose properties are registered by the government. For a property to be registered by the government, the certificate of occupancy is important. Hence, property owners without a certificate of occupancy will not be able to participate in such programs. This is because they are considered as illegal landowners.

7. Unclear Property Boundaries

The certificate of occupancy contains intricate details about a property. One of such details is the boundaries of the properties. Without the certificate of occupancy, property owners may be unable to tell the boundaries between their property and their neighbours. This often leads to encroachment and sometimes, disputes.

8. Vulnerability to Fraud

Property owners who do not have a Certificate of Occupancy, are at the risk of losing their properties to fraudsters. Such properties could be sold to unsuspecting buyers. Unfortunately, when such happens, it will be difficult to recover the land because your ownership is not registered.

Common Things to Expect in a Certificate of Occupancy

There are several important details in a certificate of occupancy. These details include:

1. Certificate of Occupancy number

Every certificate of Occupancy has a unique number. This number can be used to trace the property and the details about it when and if the need arises.

2. Size of the Plot

The size of the plot makes it easy to trace the boundaries of the property. This helps prevent encroachment and quarrels among neighbours.

3. Date Issued

The date issued refers to the day the certificate of occupancy was issued.

4. Plot Number

The plot number is not the same as the occupancy number. Rather, it refers to the position of the plot concerning other plots in the community.

5. File Number

The file number is the unique number that identifies the document of your Certificate of Occupancy.

6. Location

The location of the property refers to the latitudinal and longitudinal margin of the property.

7. Survey Plan

The survey plan is a graphic view of the plot shape.

8. Terms and Conditions

The terms and conditions speak about the terms by which the Certificate of Occupancy stands. It also includes the conditions under which the certificate of occupancy may be revoked.

9. Term of Lease

The term of the lease includes the conditions the landowner ought to abide by during the period of ownership. The Nigerian Land Act states that each landowner is allowed to use the property for 99 years.

10. Purpose of Land Use

Before the issuance of the certificate of occupancy, you will be required to state the purpose of the land use. This purpose will be included in the certificate of occupancy issued to you.

Frequently Asked Questions About Certificate of Occupancy in Nigeria

There are several questions people ask about the certificate of Occupancy. Some of such questions include:

1. How Much Does it Cost to Get a Certificate of Occupancy?

The price of a certificate of Occupancy varies across different states. Hence, you will need to contact the Land use allocation section of the state to get the cost.

2. Where Can I Get the Certificate of Occupancy?

You can get the certificate of occupancy at the Government’s office/state secretariat. You could make this trip easier by acquiring it through a real estate company. Land republic helps make such acquisition processes easier.

3. Can I Get a Certificate of Occupancy for all my Lands?

Definitely! All properties on Nigerian soil require a certificate of occupancy.

Conclusion

The importance of a certificate of occupancy cannot be undermined. Having it will save you a lot of stress and damage. You can ease the burden of getting your certificate of occupancy by acquiring your land through the Land Republic. We are a company that derives joy in seeing our clients become established property owners.

To learn more about us, you can catch up with the numerous real estate resources on our website. For more details and enquiries, contact us via +2348122222283 and support@landrepublic.co.