Conduct a Property title search at the Land Registry
Agency: Lagos State Lands Registry
A lawyer is generally used to perform the registration of property. Legal fees are charged based on the Scale of Fees for Conveyancing Matters [Legal Practitioners (Remuneration for Legal Documentation and Other Land Matters) Order 1991]. This is a sliding scale and averages out at about 7.5% of the consideration. The fees include all the steps required until the new title is registered under the buyer’s name.
The primary objective at this stage is to ascertain that the Vendor has a good root of title. A good root of title means the following:
- That the Vendor is the rightful owner of the land.
- That the land is free from any encumbrance or pending or threatened litigation.
- That the land is not the subject of government acquisition.
- That the land is not subject to any overriding interests in land.
Time and cost: 1 day, NGN 2,363,391.55 (NGN 3,750 (search at Registry) + Legal fees for the entire process as follows: NGN 7,500–10,000 + 7.5% of values above NGN 20,000 if acting for the buyer (5% of values above NGN 20,000 if acting for the seller))
Draft and Execute the Deed of Assignment
Agency: Lawyer’s office (Deed of Assignment)
Representatives of the companies (assignor and assignee) complete and affix the Companies’ seals on the Land Form 1C and three (3) copies of the Deed of Assignment.
The Form 1C is a document obtained at the Land Registry to be completed by the parties and duly notarized by a Notary Public or signed by a Commissioner for Oaths. Lawyers often have the form in their office and it can also be obtained online at https://landsbureau.lagosstate.gov.ng/wp-content/uploads/sites/153/2017/05/lands-bureau.pdf.
The Deed of Assignment on the other hand is a legal instrument conveying the interest/title in a property to another. This is prepared by the lawyer and is to be executed by both parties in the presence of a witness.
Time and cost: 1 day, included in cost from procedure 1
Obtain Certified True Copy (CTC) of title document and a Certified True Copy of the Survey plan
Agency: Land Registr
An applicant only needs to pay the required fee to obtain a Certified True Copy of the title of ownership. Parties obtain a copy of the survey plan drawn in respect of the property, as approved by the Office of the Surveyor General of the State. Under Nigerian law, a clear proof of the identity of the plot of land to be sold is needed. The survey plan gives the coordinates of the plot and must fit in the official map of Lagos State. It identifies the boundary of the property. Where a private surveyor is used to draw the survey plan, such surveyor must be a registered one.
Time and cost: 4 days, NGN 7,500 (NGN 5,625 + NGN 1,875)
Payment of the Charting Fee, Endorsement fee and Form 1C at a designated bank
Agency: Government accrediated bank
Payment of the Charting, Endorsement, and Form 1C fees is to be made in a government accredited bank. This payment can be made either by bank draft, cheque, or cash whereupon the Bank then issues a Government Revenue Receipt. The receipts are submitted along with the application for Governor’s consent.
Time and cost: 1 day, NGN 10,500 (Charting Fees (NGN 7,500) + Endorsement Fees (NGN 1,500) + NGN 1,500 for Form 1C)
Submit application for processing Governor’s Consent and obtain the Title
Agency: Directorate of Land Services
By virtue of the Land Use Act 1978, all land in each state of the Federation except land belonging to the Federal Government became vested in the Governor of that State whose prior consent is required for the validity of any transfers or alienation of interest in land. In August 2005, the procedure for obtaining the consent of the Governor underwent major reform, with the aim that consent should be granted within 30 working days of the submission of a duly completed application.
The following documents are required for the process:
- Cover letter with address and Telephone No
- Completed Form 1C
- Certified True Copy of Title Document of the Assignor
- Current tax clearance certificates of the Assignor and the Assignee. Where any of the parties is a company, the tax clearance certificate of two directors.
- Three (3) copies of the deed on which consent is sought.
- Copy of the survey plan as approved by the Office of the Surveyor General and a picture of the land/property showing date and time.
- Evidence of payment of Charting fee, Endorsement fee, and Form 1C fee.
- Evidence of payment of Land Use Charge.
- Evidence of payment of Ground Rent up to the date of the application where the property is covered by a Certificate of Occupancy.
Time and cost: 90 days, no charge
Charting of survey plans attached to the Deeds
Agency: Office of the Surveyor General of the State
Upon submission of the application documents, the application is given a unique reference number, processed and delivered to the Office of the Surveyor General of the State for charting of the survey plan attached to the application. This is to ensure that the property is free from government acquisition and is the actual property mentioned in the Deed of Assignment. If there are no queries, the Deeds are returned to the Directorate of Lands Services for issuance of the Assessment Notice. Where the survey plan is queried, a notice of the query is issued to the applicant.
Time and cost: 10 days, no charge
Obtain Demand Notice for Registration fees, Consent fees, Neighborhood improvement charge at the Land Registry
Agency: Directorate of Land Services
The Directorate of Lands Services will assess the Property based on the fair market value of the properties based on the area in which such a property is located. After the assessment is completed, the applicant will be issued with an assessment, which contains the Consent fee, Capital Gains Tax, Registration Fee, Stamp Duty, and Neighborhood Improvement Charge. Consent Fee, Registration Fee, and Neighborhood Improvement Charge are to be paid into the designated Lagos State Government Account.
Since the parties to the transaction are companies, payment of Stamp Duty and Capital Gains Tax is to be made into the Federal Inland Revenue Service Account.
Time and cost: 3 days, no charge
Obtain Demand Notice for Stamp Duty
Agency: Lagos State Inland Revenue Service or Federal Internal Revenue service (FIRS)
After investigation and assessment of the true value of the property, the applicant will be issued with an assessment letter. The Letter will contain the amount for Stamp duty verified with Federal Internal Revenue Service.
Time and cost: 1 day, no charge
Payment of Stamp duty , Registration fees, Consent fees, Neighborhood improvement charge at a commercial bank
Agency: Government Designated Bank
The applicant pays the assessed rates by means of cash, cheque, or bank transfer at the Government Designated Bank. The Applicant is then provided with receipts and is expected to make copies before submitting the original receipts to the Directorate of Lands Services for verification.
On January 5, 2015, the Government of Lagos State adopted the Executive Bill No. EO/BRF/001 of 2015. The Order, which took immediate effect, reduced consent fees from 6 percent to 1.5 percent while Capital Gains Tax which was previously 2 percent, was reduced to 0.5 percent. Also, the cost of Stamp Duty was reduced from 2 percent to 0.5 percent while Registration Fees was reduced from 3 percent to 0.5% percent.
The Executive Order provides, among others, that unless otherwise indicated, the valuation of landed property for the determination of tax and other charges payable shall be by reference to the Statement of fair market value produced by relevant professionals, adopted by the State Government and published from time to time in the Official Government Gazette.
Time and cost: 1 day, NGN 1,108,930.72 (Consent Fee 1.5% + Stamp duty for Legal Entities 1.5% + Registration fee 0.5% + the Neighborhood Improvement Charges (N.I.C) (for private and excised lands), which is calculated by taking the size of land x N2 per square meter, x number of years of relevant title (10 years in our case scenario). Capital gains tax of 0.5% is also paid, but are not included in the calculation per methodology.)
Submit the Receipts of the Registration fees, Consent fees, Neighborhood improvement charge, Stamp duty
Agency: Directorate of Land Services
Original receipts obtained from the Bank are submitted to the Directorate of Lands Services. These receipts are internally forwarded to the Accounts Department for reconciliation. The lawyer retains copies of the deposit/payment slips for his/her record. Once payment is confirmed by the Accounts Department, the Directorate of Lands Services sends the file directly to one of the designated commissioners to grant consent on behalf of the Governor.
Time and cost: 1 day, no charge
Stamping of the deed of assignment
Agency: Office of the Commissioner for Stamp Duties and Capital Gains Tax
The deeds are presented by the lawyer processing the consent for stamping at the Office of the Commissioner for Stamp Duties and Capital Gains Tax located in the Directorate of Lands Services. Stamping takes place only after the office receives confirmation of payment of the duty.
Time and cost: 1 day, already paid in Procedure 9
Registration of Certificate of Occupancy or Deed and Title conferred
Agency: Land Registry
After the Commissioner signs the deed on behalf of the Governor and the deed is stamped at the Office of the Commissioner for Stamp Duties and Capital Gains Tax, the lawyer will submit the deed at the Lands Registry for registration. The receipt evidencing payment of the registration fee is given to the cashier at the Lands Registry. An officer of the Registry is then assigned to enter the Deed into the Registry records.
Time and cost: 7 days, already paid in Procedure 9
