SOME THINGS TO NOTE WHEN PURCHASING PROPERTY IN LAGOS

• Real Estate
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• REAL ESTATE

Here’s everything you need to know about purchasing property in Lagos. Property prices in Lagos state vary depending on location. In 2021, the number of Lagos real estate projects under construction increased by 19%, according to Estate Intel. Buying property can be a daunting task in any location, and this is especially true in Lagos State.

In the following discus, we will discuss four important aspects of purchasing property in Lagos, which are:

• Planning and regulatory laws to be aware of
• Bill establishing a Real Estate Regulatory Authority (LASRERA). This law forbids any unregistered or unlicensed person from engaging in real estate transactions in its state. While unlicensed real estate agents previously led the charge in terms of real estate transactions in Lagos, identifying licensed agents in the market has been made easier through several platforms such as Estate Intel, where you can search the directory page for various top real estate professionals as well as their contact information.

The Law on Land Use Charges (2018). This law mandates that a land-based charge be levied and collected on real properties in Lagos State, Nigeria, with each Local Government Council Area designated as the Collecting Authority to levy and collect the charge.

Lagos State Land Registration Law. This law, which was passed in 2015, restores balance to the registration of land titles, documents, and transactions. Previously, land registration was not uniform, but the enactment of this law provides for the registration of title to land in Lagos state, as well as the harmonization of laws relating to land registration in Lagos state. The conveyancing procedure has been streamlined. While the conveyancing process is typically the most difficult aspect of purchasing a home. Lack of knowledge about the main documents required can make it even longer. The major documents you’ll need to complete your property purchase are highlighted below.

1. Certificate of Compliance (C of O). This is a document issued by the government to the lessee of the land that allows the lessee to own and use the land a maximum of 99 years. A parcel of land can only have one C of O. This means that if a C of O owner decides to sell his property, another C of O cannot be assigned to the same property. The purchaser would require another document proving his ownership of the land, usually with the consent of the Governor.
2. Consent of the Governor. This is a document signed by the governor to grant permission for the transfer of property from one person to another. This is especially important when agents sell land to a large number of people at the same time. According to the state government, the entire process should not take more than 30 days. In reality, it can take anywhere from 3 to 6 months.
3. Deed of Assignment. This is proof that the vendor has transferred all of his rights and interests to the purchaser. It is typically prepared by the purchaser’s lawyer, vetted by the vendor and his lawyer, and then signed. This document contains the transaction details and a description of the property being sold, and it is only considered legal after it is registered in the land registry and approved by the governor.
4. Deed of Conveyance. This document is similar to a deed of assignment. It was previously considered proof of property/land ownership until the Land Use Act of 1978 went into effect. Some older houses in Lagos still have these as title documents.
5. Survey Strategy. This is a document that shows the boundaries of a parcel of land, as well as its dimensions and description. It is usually obtained from the Surveyor General’s office in Lagos.
6. Mortgage Deed. In the event that financing is required, this document is required. It gives the mortgagee (loan lender) a stake in the property. If the borrower fails to make loan payments, the holder of the document may seize the property.
7. Contract of Sale, Allocation Letter and Receipts. The contract of sale document indicates the purchase of a property, whereas the letter of allocation document shows that a property or land has been allocated to an individual, either by the state or a private developer. A payment receipt, on the other hand, indicates that the vendor has received a specific amount of money for the sale of the property in question. Although these three documents are important evidence of a land or property transaction, they are not legal title documents and cannot be interpreted as a deed of assignment.

Property prices in Lagos state vary depending on location. The most expensive areas in Lagos are usually found on the islands, such as Lekki Phase 1, Victoria Island, and Ikoyi. On the mainland, major residential areas include Yaba, Surulere, Ikeja GRA, Magodo, and Ikorodu, among others.

Aside from prices, a purchaser should consider the following fees:

• Fees for professionals and agents. This is typically between 2-7%, depending on the property’s sale price.
• Legal expenses. These are typically between 2-5% of the sales price, depending on the property’s value.

Other taxes that the purchaser should be aware of are:

• Omo-Onile attacks.These are typically incurred when purchasing land from communities, particularly in Ibeju-Lekki. They include development levy, foundation fees, decking fees and community fees. If these fees are not paid, the purchaser will be unable to take possession of the land.
• Charge for service. This is a common charge for the provision of amenities and facilities in planned estates.
• Checks for Due Diligence. This is the process of double-checking the title and ownership of a piece of land or property to ensure there are no encumbrances or other claims on the land. It is usually carried out by a lawyer and includes the following types of searches:
• Search the Land Registry
• CAC (Corporate Affairs Commission) search
• Search the Probate Registry
• The traditional community search
• Court rulings
• Physical examination.

Bodija is the most desirable real estate location in Ibadan. Over the last five years, Bodija’s rental and sale prices have increased by 4.5% and 3.01%, respectively. Bodija is the most desirable real estate location in Ibadan. Bodija is a prestigious neighbourhood in Ibadan, Nigeria’s third-largest city by population after Lagos and Kano.

The area is bounded to the North by Ojoo, to the South by Agodi, to the East by Akobo, and to the West by Sango and Eleyele. Bodija is near other popular areas such as Dugbe (the commercial centre), the government secretariat and prestigious educational institutions such as the University of Ibadan and Ibadan-Polytechnic.

In addition, one of the most popular markets in Ibadan is the Bodija market, which is known for its low food prices. When compared to other areas in Ibadan, the residential market in Bodija is considered prime. However, it still lags behind in comparison to prime areas in Lagos such as Ikoyi, which is ten times more expensive.

The neighbourhood is primarily defined by old government residential quarters, some of which date back to the colonial eras. These quarters have accounted for significant refurbishment efforts by market developers. Among the notable residential properties we monitor in Bodija are:

1. Oyo State Investment and Public Private Partnership Agency’s Konmi Prime Estate
2. Oyo State Government’s Bodija Premium Estate and Project Scope
3. Tiger Beach Nigeria Limited, 8/14 Oba Olagbegi Street Close, Dejo Oyelese

According to our research, the average rent for a three-bedroom apartment is $1,866,667, and it currently sells for $39,666,667, representing a 3.01% annual yield. Over the last five years, Bodija’s rental and sale prices have increased by 4.5% and 3.01%, respectively. As a result, we believe the market will move in a neutral direction over the next year.