Property documents are important before and after you buy property in Lagos. Before you buy a property, you need a copy of the property documents of the seller to conduct due diligence. By conducting due diligence is how you verify that the person selling to you is the genuine owner of the property.
After you buy the property, you need to have the property documents that bear your name show that you are the new owner of the property.
In this article, we would list the property documents you need to have when you buy a property in Lagos. At Vala Homes, we don’t just guide you towards buying a property; we also assist you to ensure you get all the documents you must have when you buy a property.
Property Documents For Conducting Due Diligence
One of the stages of buying a property in Lagos is that you must conduct due diligence. Due diligence is the step your lawyer or legal team takes to verify the authenticity of the property. In order to avoid property scams, it is very important that you conduct due diligence. There are several things due diligence would help you find out, and it includes whether the property has been used to obtain a loan from the bank or a financial institution, whether the property has been mortgaged, or whether the person selling has true ownership.
In order to conduct due diligence, you need the following property documents belonging to the owner:
Deed of Assignment
You need to have a copy of the deed of assignment to be sure that the owner actually bought the property from the original owner. Unless you are buying directly from the government, then the owner should be able to show you the deed of assignment, which in most cases has been signed and registered.
Certificate of Occupancy
The certificate of occupancy is a very important document in the Lagos State real estate sector because it proves that a property has an established title.
Joint Venture Agreement
If you are buying from a developer who is not the owner of the land that the property is built on, then it is very important for you to see a copy of the joint venture agreement. JVAs are important documents you need to look at before you buy a property in Lagos. You would need to understand the key elements of the agreement and how it affects you in the future.
Company Documents
If you are buying from a company, then you would need to request for the company documents such as memorandum of association and any documents bearing the names of the directors. This would help you know if the company is in good standing and also if the company has not used the property to obtain a mortgage facility from a financial institution.
It would also help you know who the directors of the company are and if they are the ones you are transacting with. It is only the directors of the company that has authority to sell the property and sign any sale documents.
Letters of Administration
If you are buying a property that was owned by someone who has passed on, then you need to request for the letters of administration. The reason is because only those that have their names on letters of administration can safely sell the property of a deceased person. Letters of Administration is used when the person died without leaving a will while grant of probate is used when the person died having a will.
Land Use Charge Payments
One of the mistakes many property owners make is that they do not pay land use charge. The land use charge is a compulsory tax on property in Lagos that is expected to be paid by the owner yearly. Before you buy a property in Lagos State, please ask for proof of payment of the land use charge and ensure that it is up to date. If it isn’t, then find out how much is outstanding and either ask the owner to pay or deduct from your purchase price.
Utility Bills Receipts
Similar to land use charge, verifying if the owner has paid all utility bills is also important. Bills such as electricity, water, waste disposal, and even estate dues is very important. You do not want to buy a property and discover that there is a lot of debt waiting for you.
Building Permit
Building permit is a big deal in Lagos State as the government has advised prospective buyers to only patronise developers who have obtained building permits.
Survey Plan
The sellers survey plan is one of the important property documents because it shows you the boundaries of the property. Some developers have the habit of building outside the boundaries of their land. With the survey plan, you can easily know when a developer has gone outside his boundary, and this knowledge can help you avoid future problems.
Property Documents Post Purchase
After you purchase your property, you would need some documents that are required to prove your ownership and also to obtain the governor’s consent. The documents, except the root of title, should reflect your name as the owner of the property.
Contract of Sale
A contract of sale is a very important document you must have when buying a property. It is even more important when you are spreading payment or when buying an off-plan property. The contract of sale serves as a receipt and also defines the obligations of the buyer and seller.
Deed of Assignment
This is the document that transfers ownership of the property from the seller to you as the buyer. Once you and the seller signs the deed of assignment, automatically the property belongs to you. However you are still required to obtain the governor’s consent in order to become the legitimate and legal owner of the property in the eyes of the government.
Survey Plan
Upon completing the purchase, you would need to have a surveyor draft a survey plan of the property in your name. A survey plan is a document with a drawing of the land. It tells you the size of the land and the exact location or coordinates of the land.
Root of Title
Root of title is the compilation of the previous title documents. You must have a copy of all the documents relating to the previous owners of the property. This root of title in most cases is the original or certified true copy of the C of O, Registered Deed, and other title documents of previous owners.
A Copy of Building Permit
If you are buying a developed property, then having a the original or a copy of the building permit documents is very essential. The document is required because the Lagos State Government representatives may demand for it at anytime.
