Nigeria:
Overview Of Property Law In Nigeria – Real Estate Law In Lagos Nigeria
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Various property laws in Nigeria regulate the process of
acquisition, enjoyment and disposal of real properties, and also
any interest in land. The property transactions that transfer
interest in real property can range from outright sale of a
property, lease, donation of power, charge, assent, and mortgages
in Nigeria.
There are various sources of laws that apply to property
transactions in Nigeria which shall be briefly explained below.
- Customary Laws-
these laws apply to ownership and transfer of properties under
native laws and customs. Under customary laws, transfer of property
is deemed to be complete and valid where the purchaser is in
possession, there is evidence of payment of the purchase price and
there are witnesses to the transaction. It is important to state
that a customary law concerning property transactions does not
recognize documentary evidence of transfer such as deeds, it is
more of an oral transaction-based. - Case laws– judicial
decisions of the superior courts, especially the Supreme Court of
Nigeria in respect of the cause of actions arising from disputes
over properties have been recognized and accepted in property law
practice in Nigeria. Those court decisions form part and parcel of
various laws governing real estate in Nigeria. For instance, in the
case of Ogunleye v. Oni, the Supreme
Court of Nigeria held that the Certificate of Occupancy (CofO) is
not a complete title to land, and a weak title cannot be made
stronger by the issuance of Certificate of Occupancy. Also, in the
case of Idundun v. Okumagba, the Court
laid down how to proof a title to landed property in Nigeria. - Received English
Laws– these comprise of English Common Laws, Doctrines of
Equity, and Statutes of General Application. They regulate property
practices in Nigeria about the cause of actions that have been
instituted and determined by the High Court and other superior
courts of record, especially where there is a lack of comparable
local law that can apply to the transaction. Some of the received
English laws are the Conveyancing Act 1881, the Wills Act 1837, and
the Statute of Fraud Act 1677. However, some of these foreign laws
have now been domesticated in Nigeria and the ones not yet
domesticated only have persuasive effect.
Meanwhile, the direct Nigerian laws that govern property
transactions in Nigeria include the followings;
- The Constitution of the
Federal Republic of Nigeria 1999 (as amended)- the
Constitution guarantees the right of every Nigerian to own and
acquire real estate in any part of the country. Section
43 of the Constitution provides that
“subject to the provisions of this Constitution,
every citizen of Nigeria shall have the right to acquire and own
immovable property anywhere in Nigeria”.
Section 44 of the Constitution also further enacted the Common
law principle that cautions against taking away proprietary vested
rights without specific legal authority and also makes the
provision of compensation.
- The Land Use Act 1978 Cap L5,
Laws of the Federation of Nigeria 2004– the Act was
enacted to standardize land administration in Nigeria, where all
land in various state arere vested in the state governor.
Section 1 of the Act provides
that“all lands comprised in the territory of each
state in the Federation are vested in the Governor of that State
and such land shall be held in trust and administered for the use
and common benefit of all Nigerian in accordance with the
provisions of the Act”. By the provision of this
section, the governor is responsible for allocating land in urban
areas to individuals for residential, commercial, or agricultural
purposes. The Act is applicable throughout the Federation as it is
one of the principal laws that govern property related
matters. - Property and Conveyancing Law
(PCL) 1959– this law applies to the Western region of
Nigeria. The most important provision of the law is that no sale of
land shall be enforced except there is a note or memorandum in
writing, which contains the terms of the sale and subsequently
signed. The law also emphasises on the importance of land
transaction instruments to be by deed, as Section 67(1) of the law
provides that “all conveyances of land or interest
in land for the purpose of creating any legal estate are void
unless they are made by deed”. The PCL governs
ownership of properties in Ogun, Oyo, Ondo, Osun, Ekiti, and some
parts of Lagos State. - Illiterate Protection
Act– illiterate laws are enacted to protect those that are
unable to read, write, or fully understand a particular property
document that is involved in property transactions from fraud. It
makes provisions for illiterate jurat in every property transfer
document. - Registration of Titles Law
2004 of Lagos State- this Act is applicable in some parts
of Lagos State, which includes Victoria Island, Ikoyi, Lagos
Island, Surulere and few others. It requires titles to land to be
registered as first or subsequent registrations. Registration
serves the purpose of ensuring that title has been registered and
investigated by the Registrar of titles so that land purchasers can
rely on the registration to determine that a land vendor has the
right of title to sell. - Land Instrument Registration
Laws of various States- these laws apply to states in
Nigeria; it defines registrable instruments and the effect of
non-registration. The Land Registration Law of Lagos State 2015
provides for the procedure for registration of property in Lagos
State. There are 36 states in Nigeria, and of these states have
laws that govern the procedures for property registrations and
usage of lands. - The Stamp Duties Act LFN
2004– the Act regulates stamp duties imposed on land
transaction instruments and paid within 30 days to the Federal or
State government on land instruments such as a deed of assignment,
leases, or mortgages. The rate of stamp duty payable is dependent
on the type of property and value of the land transaction. - Administration of Estate Laws
of States– in relation to real estate, this law regulates
the administration of the estate of a deceased person who dies
intestate (without leaving a will) and testate (with a will). Many
states in Nigeria have laws that regulate the estate of deceased
persons. In Lagos State, for example, the Administration of Estate
Law of Lagos State makes provisions for the administration of the
estate, devolution of the estate on personal representatives, the
rights and duties of the representatives, and the process of
obtaining a grant of probate and letter of administration. - Companies and Allied Matters
Act Cap 2020– by the provisions of the Act, companies
registered with the Corporate Affairs Commission (CAC) are
permitted to mortgage their properties by creating debentures over
the assets of the company. Section 191 of the Act
provides that a company may borrow money for its business or
objects and may mortgage or charge its undertaking, property, and
uncalled capital and issue debenture, stocks, and other security
for any debt, liability, or obligation of the company. - Wills Laws of
States– this law aims to guarantee the freedom to make
wills and dispose of the estate. Wills are to be made following the
requirement of the will to ensure its validity.
In closing, the above-listed laws govern ownership and control
of properties in Nigeria. It is important to state that property
law is broad as it regulates various transactions on a property.
Apart from all of the mentioned laws, various states also have laws
that govern properties within those states. Most states also enact
laws that limit foreign ownership of properties within their
territories.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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