Property transfer is a crucial aspect of real estate transactions in Nigeria. Whether you are buying, selling, or transferring property through other means, it is essential to follow the proper legal procedures and documentation to ensure a smooth and legally valid transfer. In this comprehensive guide, we will take you through the process of property transfer and the required documentation in Nigeria, helping you navigate the complexities of real estate transactions with confidence.

Agreement of Sale:

The property transfer process typically begins with an agreement of sale, which outlines the terms and conditions of the transaction between the buyer and the seller. This document should include the purchase price, payment terms, property description, and any other relevant details.

Conduct Due Diligence:

Both parties should conduct due diligence to ensure the property’s legality and authenticity. This involves verifying the property’s ownership, title documents, and any encumbrances such as liens or mortgages.

Obtain a Registered Survey Plan:

The buyer should obtain a registered survey plan from a licensed surveyor. This plan will show the property’s boundaries, size, and any encroachments or overlaps with neighboring properties.

Prepare and Sign the Deed of Assignment:

The Deed of Assignment is a crucial document that transfers ownership from the seller to the buyer. It should be prepared by a qualified lawyer and signed by both parties in the presence of witnesses.

Payment of Stamp Duties:

Stamp duties must be paid on the Deed of Assignment and other relevant documents at the appropriate tax authority. The stamp duty rates may vary depending on the state where the property is located.

Capital Gains Tax (CGT):

The seller may be liable to pay Capital Gains Tax on the profit made from the sale of the property. It is essential to calculate and remit the CGT to the relevant tax authorities.

Obtain Governor’s Consent (if applicable):

In some states, obtaining the Governor’s Consent is necessary for the transfer of certain types of property. This process involves submitting relevant documents to the state’s land registry for approval.

Obtain a Tax Clearance Certificate:

Both the buyer and seller should obtain a tax clearance certificate from the appropriate tax authority. This certificate proves that they have no outstanding tax liabilities.

Register the Deed of Assignment:

To ensure the validity of the property transfer, the Deed of Assignment must be registered at the Land Registry or relevant government agency in the state where the property is located.

Obtain the Certificate of Occupancy (C of O):

The Certificate of Occupancy is a crucial title document that proves the property’s ownership and provides legal protection to the buyer. It is issued by the relevant state government.

Transfer of Possession:

Once all necessary documentation and payments are completed, the buyer takes possession of the property. It is essential to obtain a handover document from the seller to acknowledge the transfer of possession.

The process of property transfer and documentation in Nigeria involves several critical steps to ensure a legally valid and smooth transaction. From the agreement of sale to obtaining the Certificate of Occupancy, every aspect of the process requires meticulous attention and adherence to legal requirements. Engaging qualified professionals, such as real estate attorneys and licensed surveyors, can significantly facilitate the property transfer process and safeguard your interests as a buyer or seller. Understanding the intricacies of property transfer and documentation is essential for a successful real estate transaction in Nigeria, providing you with peace of mind and legal protection as you navigate the dynamic landscape of the real estate market.