Buying land is a major step for many people, whether for building a home, starting a business, or as an investment. These seven crucial things to know before you buy any land in Nigeria will help you navigate the process smoothly. In Nigeria, the process can be tricky, and without the right knowledge, you might face legal issues or fall into the hands of scammers. It’s important to research properly, understand the laws, and ensure everything is in order before buying.
Whether you’re purchasing a small plot or a larger area, checking all the necessary details can save you from future problems. This article will guide you through the seven key things you should know before buying land in Nigeria to help you make a safe and smart investment.
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1. Budget
The most important thing to consider when buying land in Nigeria is your budget. You must be sure what your budget is. Your budget will determine what to buy. The cost of land in Nigeria is different depending on the size and location of the land. For example, the cost of land in Abuja is not the same as that in Lagos. However, it is important to research all the costs of buying land; legal fees, agency fees, the cost of putting up a fence, the cost of getting all the required documents from the Government, and more.
2. Location
Location is a key factor when buying land in Nigeria. Seven crucial things to know before you buy any land in Nigeria include understanding how location affects value, accessibility, and potential uses. You would want to ask yourself what the growth of a particular area would look like in 10 to 20 years. Since land does not depreciate, having a good location would increase your chances of making more value on future sales. For example, getting land in a city could be more valuable than land in a rural area. You’ll benefit from its value increasing as the area becomes more populated and developed. You should also find out if the area is well connected by either the road or train networks. Finally, you should find out if the area provides utilities like telephone and internet connectivity, streetlights, and recreational areas.
3. Land Size
As an aspiring landowner, it’s important to know the size of the land you need based on your purpose. The land is measured in various terms like plots, acres, and hectares, so you must familiarize yourself with these terms.
Plot: A plot in Nigeria is 50ft by 100ft, but measurement can change depending on the state in which you are purchasing the land. For Example. A standard plot of land in Lagos State is 60ft x 120ft. It’s very important to understand the standard size to avoid being scammed when purchasing property.
Acre: An acre is made up of six plots of 60×120 feet each. An acre only makes up around 40% of a hectare.
Hectare: A hectare is 10,000 square meters, or 100 meters by 100 meters (328 feet by 328 feet), which is roughly 15 plots. But in some states of Nigeria, a hectare is 10,000 square meters, making 1 hectare (11,000/900) equal to 11.1 plots. Whichever it is, clear communication between the buyer and seller is essential to ensure a shared understanding of these measurements.
4. Security
Security is an important factor to consider when buying land in Nigeria. It does not matter whether you are buying for commercial or residential purposes. You should research the area’s crime rate and ask neighbours questions to ensure it is safe and secure because the security of an area also adds importance to your property.
5. Legal Documents
Buying land without getting the necessary documents is a recipe for disaster. This is one of the common mistakes or traps people tend to fall into from fraudsters or land grabbers. It’s essential to have all the necessary documentation to protect your land. Below are the five important documents you need when purchasing land in Nigeria.
- The Survey Plan
The survey plan is a document that provides a detailed map of the land, including its boundaries, dimensions, and other important features. This document is essential when purchasing land in Nigeria, as it helps to verify the accuracy of the land’s size and location. The survey plan should be prepared by a licensed surveyor and approved by the relevant government agency.
- The Deed of Assignment
The Deed of Assignment is another essential document that you need when purchasing land in Nigeria. This document is used to transfer ownership of the land from the seller to the buyer. It is a legal agreement that outlines the terms and conditions of the sale. Both the seller and the buyer must sign this document, and a legal practitioner must witness it.
- Certificate of Occupancy (C of O)
The Certificate of Occupancy is an important document you need when purchasing land in Nigeria. This document is issued by the state government, it serves as proof of ownership of the land. The C of O provides legal recognition of the land and outlines the rights of the owner. While it’s important to ensure that the C of O is authentic and valid, it’s not always a compulsory document at the time of purchase. You can obtain it later, but it’s essential to keep this in mind as part of your long-term land acquisition plan. Having the C of O eventually will give you more legal security over the property. The C of O should contain the name of the owner, a description of the land, and the location.
- The Tax Clearance Certificate
The tax clearance certificate is a document that shows that the seller has paid all the necessary taxes on the land. It is also not a compulsory document when purchasing the land. You can always obtain it later. It is important to ensure that the tax clearance certificate is authentic and up-to-date before proceeding with any land transaction.
- The Purchase Receipt
The receipt of payment is a document that serves as proof of payment for the land. This document should contain the name of the seller, the amount paid, the date of payment, and other relevant information.
6. Building Plan Approval
If you plan to build on the land, you will need to obtain building plan approval from the relevant government agency. This document outlines the building requirements, such as the size, design, and materials used in construction. Obtain the building plan approval before starting any construction work, and ensure it remains valid and up to date.
7. Payment Method
The payment method plays a crucial role in purchasing land and protects you from being scammed. Instead of using cash, which might lead to losing money to fraudsters, it’s better to pay through cheques or bank transfers. This way, you can easily keep track of your payments if any issues arise with the land purchase. Make sure you have proper records for all transactions when you buy, including the land cost and survey fees.
Having a lawyer involved is important because they prepare a purchase receipt that all parties sign, acknowledging bank payments. This prevents the seller from denying the amount, timing, and purpose of the payments.
Conclusion
Buying land in Nigeria requires careful consideration. Seven crucial things to know before you buy any land in Nigeria include understanding key factors like budget, location, land size, security, and proper documentation. This ensures a safe and successful investment. Involve experts, do thorough research, and start your land-buying journey with confidence.
