Nigeria - Purchase a Property
- 1 Procedure
- 2 Required Documents
- 3 Office Locations & Contacts
- 4 Eligibility
- 5 Fees
- 6 Validity
- 7 Documents to Use
- 8 Sample Documents
- 9 Processing Time
- 10 Related Videos
- 11 Instructions
- 12 Required Information
- 13 Need for the Document
- 14 Information which might help
- 15 Other uses of the Document/Certificate
- 16 External Links
- 17 Others
These are the procedures to follow when Purchasing a property in Nigeria.
1.The fist thing is to Obtain the property tax statement from the Tax authority in Nigeria.
- Before you transfer of a property,
- it is required by law to obtain an official property tax statement from the Property Tax Authority office.
- This tax certificate is a part of the application at the Land registry based on national requirement of Law ACT.
- The purpose of this document is to serve as a proof that the property has undergone a tax assessment and is registered by the property tax authority.
2.Request for the registration form that was submitted by the buyer to the Real Estate Registry
- After the negotiations and the agreement on all material terms of the contract,
- The buyer pays the seller the requested price,
- The buyer subsequently goes to the Real Estate Registry to request registration.
- At this point in time , the buyer pays the NI 7500 registration fee.
- The request is subsequently internally transferred to the Nagerian Surveying Authority to complete a survey of the land.
3. Site inspection by the Nigerian Surveying Authority is done.
- The Nigerian Surveying Authority inspects the property and also conducts the survey of a property, and prepares the report of its findings on the property .
- The report is subsequently delivered to the Measurement Department.
- This is done within 15 day at no cost.
4. The next step is to Obtain the Measurement Departments approval of the inspection report and the Real Estate Registrys acceptance of the request for registration on the property.
- Following the Nigerian Surveying Authoritys inspection, the report produced must be approved by the Measurement Department.
- The entire report is then internally transferred to the Real Estate Registry for acceptance of
- (1) the inspection report and
- (2) the request for registration.
- The Real Estate Registry also conducts an engineering and legal review of the request and grants approval by stamping the documents approved to be authenticated.
- The approved documents are then released to the parties that is the buyer and seller.
- At this stage, the parties also obtain a special, stamped form from the Real Estate Registry, on which they will subsequently print their contract agreement.
- This takes around 21 days at no cost.
5.The final contract is presented to the lawyers syndicate for verification and ratification
- The parties lawyer drafts contract, on the special form obtained from the Real Estate Registry.
- The parties/their lawyer subsequently deliver(s) the contract to the lawyers syndicate for verification:
- The lawyer who drafts the contract ascribes his syndicate identification number to the form, and the lawyers syndicate must verify/certify that the involved lawyer is indeed registered with the syndicate.
- This normally takes around 4 days at a cost 0.5% of the property value.
6.Obtain the Real Estate Registrys approval of the sale contract.
After collecting the contract from the Lawyer, the parties then deliver the contract to the Real Estate Registry for review and if it accepted, the documents will be stamped by the Real Estate Registry as approved to be registered.
This normally takes around 10 days at no cost.
7.Authentication before the State Governor Public
- After receiving the contract and stamped approved to be registered by the Real Estate Registry,
- The parties proceed before the competent State Governor to sign and authenticate the contract.
- This done with one day at no cost.
8.Buyer delivers the contract to the Real Estate Registry for Legalization of the contract and the registration number is received.
- The buyer delivers the contract to the Real Estate Registry for review of the notarized contract.
- The Real Estate Registry will make a final decision as to the Legalization of the contract, because the Registry retains the authority to suspend the contract notwithstanding its notarization.
- Once the Registry has granted its approval, the registration number is issued and the registration process is complete.
Supplies paperwork relating to the title, boundaries,
- Planning permission,
- Building license,
- Furniture pack and rental guarantee option.
- In the case of purchases of the land, owner will handle the contract and renewing of a 99year lease to the buyer, and for this service the vendor pays 5% of the value of the contract when purchased.
Office Locations & Contacts
- NATIONAL AGRICULTURAL $ LAND DEVELOPMENT
Plot 802, Tafawa Balewa
Malunfashi Close Area 11
P.M.B. 215, Garki, Abuja
Tel: 09-2340185; 2340186
- FEDERAL HOUSING AUTHORITY (FHA)
Sekou toure Crescent
Off ECOWAS Secretariat
P.M.B. 101, Garki, Abuja
Tel: 09-2344964; 2344961
- To be eligible land must be registered with the Governor of the state or signed or approved to be authenticated
- There must be signature of validity applied for in the land registry in the name of the new owner.
- To be Eligible the lay down the conditions relating to the payment of the purchase price.
- If you are foreigner you must be having an entry visa in Nigeria.
Legal fees are around NGN7,500 (US$47) to NGN10,000 (US$62), plus a flat rate on the property value exceeding NGN20,000 (US$161). Legal fees are levied at a rate of 7.5% for the buyer, and at a rate of 5% for the seller.
Real Estate Agents Fee The real estate brokers commission can be calculated according to the following scale, as regulated by the Securities and Exchange Commission.
REAL ESTATE AGENTS COMMISSION CONSIDERATION, NGN (US$) RATE
- Up to 500,000 (US$3,106) 2.75%
- 500,000 1,000,000 (US$6,211) 2.25%
- 1,000,000 3,000,000 (US$18,634) 2.00%
- 3,000,000 5,000,000 (US$31,056) 1.50%
- Over 5,000,000 (US$31,056) 1.00%
The document is valid for a long time
Documents to Use
Please attach documents that can be used by people. e.g. links
Please attach sample completed documents that would help other people.
The process takes 3 months or more depending on the complexity of the matter.
Videos explaining the procedure or to fill the applications. Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites. Please remove the "&" inside the tags during implementation. Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, sevenload, viddler, vimeo, youku, youtube width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed. e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M".
- To obtain an official property tax statement from the Property Tax Authority office.
- Buyers must know that there is an extra fee known as 'buyers commission'.
- you will need to recruit a good Nigerian lawyer at every stage.
- Contracts with the Lawyer should always be in English and Any Local language.
- If you are a foreigner you must have an entry visa.
- As this is needed to complete the residence procedure in Nigeria to give your lawyer power of attorney to go to court on your behalf and register your property.
- You must also apply for residency Entry Visa which are usually valid for one year in case you are a foreigner.
- You are not entitled to resell your property unless 5 years have passed since the date of purchase.
- Conditions relating to the payment of the purchase price.
- Official property tax statement from the Property Tax Authority office.
- Information from Real Estate Registry to confirm if the property was registered.
Need for the Document
There no Freehold properties available in Nigeria only Lease hold for foreigners because all the land belongs to the state. There is land for lease for 99 years in different parts of Nigeria like in Lagos and if you are considering to buy a property in Nigeria you should consider two issues
- To Buy a new Property "Off plan" or property Under construction and this is usually expensive.
- To buy an Old property buying from a new development, often prices are set with no room for negotiation. However,
- if purchasing property in in different parts of Nigeria a resale, there is often room for negotiating on price.
A lot of Nigerian property owners/ developers prefer 'cash' payments which is more beneficial to the buyer as it often means a discount on the sale of around 5% and/or can include longer term credit arrangements on repayments.
Foreigners can obtain leases from the State for a maximum of 99 years for the use of land.
Nigeria condominiums for sale. The Land Use Act of 1978 converted all land to State Land.
The Governor of the State is responsible for the management of this land on behalf of the people.
Therefore, land cannot be owned privately in Nigeria . The Governors consent is needed for the assignment of title to use, occupy, and improve property with a statutory certificate. This certificate does not include rights to sell, give, or sub-let, which requires further consent from the State Governor.
Information which might help
A peculiarity about purchase of property in Nigeria, particularly in Lagos, is the Consent Fee. The logic is that the state government is the owner of land and therefore any change in ownership or assignment, in case of a lease, should have the consent of the Governor.
There is also a Capital Gains Tax levied at 10% of the difference between the sale price and the original acquisition tax. This is assessed by the Ministry of Finance.
Nigeria real estate for sale Before purchasing, it is importa
Other uses of the Document/Certificate
Please explain what are other uses of obtaining this document/certificate. e.g. Birth Certificate can be used as proof of identity.
Place some external links which might help.
More information which might help people.