Beyond The Certificate Of Occupancy: The Legal Due Diligence Every Land Buyer Must Conduct In Nigeria

1. Introduction 

A Certificate of Occupancy is evidence of a right of occupancy granted by the government, but it is not unimpeachable or conclusive proof of ownership. It can be challenged where it was obtained through fraud, mistake, misrepresentation, or where another person establishes a better title to the land, and may, in appropriate circumstances, be revoked in accordance with the law. Consequently, every prudent purchaser must undertake comprehensive legal due diligence before completing any land transaction. 

Land remains one of the most valuable assets in Nigeria, serving as a source of wealth, investment, commercial development, and security. Thus, the Nigerian real estate sector has witnessed increased activity in recent years, accompanied by an increasing demand for residential, commercial, industrial, and agricultural land. However, this growth has also been accompanied by a proliferation of fraudulent land transactions, multiple sales of the same property, defective titles, government acquisitions, boundary disputes, and protracted litigation. These challenges continue to expose 
unsuspecting purchasers to substantial financial losses despite the apparent authenticity of the documents presented by vendors.

A recurring misconception among prospective land buyers is the belief that the existence of a Certificate of Occupancy (commonly referred to as a "C of O") automatically guarantees a valid and indefeasible title to land. In practice, many purchasers conclude transactions solely on the strength of a Certificate of Occupancy without undertaking any further investigation into the property's legal status or the vendor's title. This assumption has proven costly, as Nigerian courts have consistently maintained that a Certificate of Occupancy is not conclusive proof of ownership and may be successfully challenged where another person establishes a better title or where the certificate was procured through fraud, mistake,misrepresentation, or otherwise in contravention of the law. 

The legal foundation for the issuance of Certificates of Occupancy is found in sections 5, 9, and 34 of the Land Use Act,¹ which empowers the Governor of a State to grant statutory rights of occupancy over land within the state. Section 5 (1)(a)² empowers the Governor of a state in respect of land whether or not in an urban Area to grant statutory right of occupancy to any person for all purposes. Section 9(1)(a)³ empowers the Governor to issue a Certificate of Occupancy when granting a statutory right of occupancy under section 5(1). In practice, the grant of statutory right of occupancy is only done through a letter of allocation which contains the names and address of the allottee, the location of the land, the size of the land including the survey or dimensions for easy location and identification, as well as an explicit explanation of the ground rent to be paid thereof. The certificate is never issued until the ground rent and other expenses are paid by the allottee to the Government. Upon the fulfilment of all the conditions precedent, a certificate of occupancy is issued, which in itself will contain all the above, and other conditions to the grant and signed by the Governor of the State (or any other person who the Governor delegates the power to, to sign on his behalf).⁴ The Certificate of Occupancy is registered in the Land Registry and the registration number volume and year of registration is also stated on the Certificate of Occupancy.

* Abasiekeme Okon is an NYSC Associate, Real Property & Land Ownership, S.P.A. Ajibade & Co, Lagos State, Nigeria. 

Footnotes

^{1. See, the Land Use Act 1978.} 

^{2. Ibid.}

^{3. Ibid.} 

^{4. Section 45(1) of the Land Use Act 1978.} 

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