When you buy a property that already has a certificate of occupancy, then you would need to process or obtain the Governor’s Consent on the property. At the end of the sale transaction, the previous owner would sign a document known as the Deed of Assignment. It is this document that you would need to process the Governors consent upon.
Governors consent simply has to do with the stamp of approval given by the Governor of Lagos State over a property transaction. Without processing the Governor’s consent, your ownership process is not complete. It is a requirement of the law that you should process it when you buy a property.
We have discovered that a lot of real estate investors when they buy a property they keep their deed of assignment away and believe that they have done all that needs to be done.
However, property purchase goes beyond just signing the deed of assignment and keeping the copies in your house or at the office. It is important that you process your title.
In this article, we would explain in detail what the Governor’s consent is, who needs to process it, how it is done, the benefits of processing it and what it costs.
Kindly reach out to us if you have any questions, comments or requests.
What is Governor’s Consent
It is the approval of the Governor of Lagos State given to a transaction on a property. Just like the name depicts, the Governor’s consent is the consent of the Governor.
What you should know is that the Lagos State Governor is the owner of the land in the Urban areas of Lagos. That means you cannot buy or sell land in these areas without the Governor’s approval. This approval is what is known as the Governor’s consent.
Anyone who owns any piece of land in Lagos as the first owner is given a certificate of occupancy by the Governor. Any subsequent owner would then require the consent of the Governor.
The Governor’s consent is simply the stamp and signature of the Governor on your title document. In most cases, the Governor himself doesn’t sign and stamp the document. Rather he delegates the job to the commissioner of justice.
Who Needs To Process Governor’s Consent
You need to process the Governor’s consent if you buy a property that has a certificate of occupancy or a registered deed of assignment with a governor’s consent. It does not matter whether the property is a piece of land, a fully detached or semi detached duplex, or even an apartment. Even if you are buying a one bedroom apartment or a studio apartment in a highrise building with 10 floors, you are still required to process the Governor’s consent.
Once you have purchased a property and the title document has been given to you (usually a deed of assignment), then you are required to process the Governor’s consent. At the conclusion of a property sale transaction it becomes your duty as the purchaser to process the Governor’s consent.
The reason for this is that there is a law in Nigeria that says no transaction shall be done with respect to land or landed property without first obtaining the consent of the Governor of the state.
Please note that Governors consent in property transactions is not only applicable to Lagos State. It applies to all states in Nigeria including the FCT Abuja. Also, Governors consent is not only restricted to purchase and sale of property transactions. It also applies to other types of transaction on property such as mortgage, lease etc.
Please note also that although the law says that the consent of the governor should be obtained before the transaction is concluded but in reality the Governor’s consent is usually processed after the transaction has been concluded.
How To Process Governor’s Consent
The procedure for obtaining Governor’s consent is laid down by the Lagos State Government. However, we would outline the details in this article.
Documents You Would Need To Process Governors Consent
The following are the documents required to process the Governors Consent in Lagos State:
- Duly completed Land Form 1C
- Certified True Copy (CTC) of root of title
- Deeds/Instruments of transfer (3Nos.) with clear survey plans attached.
- 4Nos Passport photographs (5×5) with white background
- Certificate of Incorporation for Company and form showing particulars of Directors.
- Site photographs with date
- Site Location Sketch.
- Receipt of payment for NGN 10,500.00 (Charting, endorsement and form 1C).
- Letter of Authority by the applicant and means of identification (where application is being processed on behalf of applicant)
- Covering letter with functional telephone line(s) and e-mail address
The Cost of Processing Governors Consent
The true cost of processing the Governors consent is derived from calculating the fair market value (FMV) of your property. After submitting the application with attached documents to the Directorate of Land Services the Lagos State government would then issue you a “Demand Notice”. The demand notice is usually a letter requesting you to pay certain fees regarding your application.
The fees you would be asked to pay are listed below:
- Consent fee at 1.5% of assessed value;
- Capital Gains Tax (CGT) at 0.5% of assessed value;
- Stamp duty at 0.5% of assessed value;
- Registration fee at 0.5% of assessed value.
- The Neighborhood Improvement Charges (N.I.C). (for private and excised lands) assessed at size of land X N2/m2 X number of years of relevant title
Benefits of Processing Governors Consent
- Legal Ownership: Processing Governors consent has some benefits and the most important is that your ownership is recognized by the Government. Once you process the governor’s consent on your documents, you are recognized as the legal owner of the property.
- Bank Loans: When you process your title, you will also be able to use your documents to process a bank facility such as a mortgage or other type of loan from the bank. In processing this loan or mortgage, you would have to surrender your title documents to the bank. The bank would then conduct a search at the land registry to be sure you have obtained the Governor’s consent. If you have not processed your title (this can be either Certificate of Occupancy or Governor’s consent ) the bank is likely not going to grant your request.
- It’s easier to sell: It’s easier to sell your property if you process the Governor’s consent than if you just have the deed of assignment and you have not processed your title. The Governor’s consent is a very good title and it boosts the confidence of the potential buyer signaling to them that there is no issue with the property.
- Avoid Disputes: Your title documents would be a strong evidence of your ownership of the property if you have processed the Governors consent. Processing your governor’s consent can help you prove ownership and thereby avoid any disputes that may arise over ownership.
Conclusion
Processing your Governor’s consent is proof to the whole world that you are the owner of the property and it will be difficult for anyone to disprove your ownership. It is important to process the governor’s consent on your document. It’s a crucial step to take and we often advise our clients to take the step regardless of the cost implications.
If you have any questions or comments about the Governor’s consent or any other property related topic, do not hesitate to contact us. Also, if you would like us to assist in processing your governor’s consent, kindly reach out to us and we would be happy to help.
