A Certificate of Occupancy (C of O) is a vital land title document in Nigeria – alongside different certificates like the survey plan and the deed of the assignment.
Getting a C of O is one of the means you own the property you are buying in Nigeria. This article shows you what the C of O is how you get it.
Certificate of Occupancy: What is it?
The Certificate of Occupancy (C of O) is a land title document issued by the government of Nigeria to landowners. It serves as legal proof of land ownership in Nigeria. Without a C of O, A plot of land or property can be confiscated at any time without the payment of any compensation to its owner.
The 1978 Land Use Act became the standard for land administration in Nigeria by placing all urban land within a state under the care of the state governor.
The land use act gave power to state governors to grant “statutory rights of occupancy” as they deem necessary. This led to what is known as Land Use (residential, commercial, mixed-use.).
This act brought the abolishment of all systems of freehold and brought in the leasehold system.
What is FreeHold System?
The freehold system is a system that states that all estates are owned by the owner only and no other entity or person has a right to that land.
What is the Leasehold System?
The Leasehold system means that the government owns full ownership of the land rights and will only grant possessory rights to leases as a lessor or landowner. These leases are granted for a maximum of 99 years – after which the landowner or lessee must seek renewal.
Things Found in a C of O
here are the sections or details found in a C of O:
- Certificate of Occupancy Number
- File number
- Plot number
- Location details: zone details and cadastral zone (zones that show the boundary lines of both privately owned real estate and public land).
- Size of Plot
- Terms of Lease (Lease Term)
- Date of Issue
- Survey graphic or plan.
- Land Use Purpose
- Initial Annual ground rent fees
- Terms and conditions
What is the Right of Occupancy?
The right of occupancy is a form of agreement between a property owner and a rental. This is right that has been passed down from the owner to the new occupant of the land. It serves as a form of secured living or security for people who rent a place. It’s a right passed from the owner of a property to a renter to show that they have the legal right within that premise for some time.
According to sections 5 & 6 of the Land Use Decree of 1978, the Right of Occupancy is a customary right granted by the local government. It is a right given to a person or community to lawfully use land or occupy it according to the customary laws of that area. The lands can be used for agricultural, residential, or other purposes.
Difference Between R of O and C of O
These two documents will be differentiated on two fronts:
- Issuance (who issues each document)
- Strength of Each Document
Issuance :
The C of O is issued by the state’s governor where the land is located. Sections 5, 9, and 10 of the Land Use Act of 1978 confers the power to determine all landowners in the state to the governor of the state. The C of O is a legal document.
The local government authority issues the R of O. This is found in section 6 of the land use act. It bestows power on the local government to give out the land to those who lawfully use the land according to the customary laws of that region. The R of O is a right passed to the landowner. It may or may not be a document.
Strength of Each Document
- The R of O is weaker than the C of O. While the landowner with a C of O may be compensated if the land were to be taken away from them, the landowner with an R of O will not be compensated. The land can be revoked without compensation for a landowner with just and R of O. Therefore, the C of O is a higher title than R of O.
- Also, Lands with C of O have higher market value than lands with just R of O. Therefore, if you need to get land, be sure to ask for the C of O and not just the R of O.
- The C of O can serve as the R of O, but the R of O cannot serve as the C of O
WHY DO YOU NEED A CERTIFICATE OF OCCUPANCY
There are some reasons why you need a certificate of occupancy. Here are some of them:
- Property Development: in order to get building approval for your new constructions, one of the important documents requested is the C of O.
- Change of Property: To change the usage of a property, the C of O is required. For example, converting a warehouse into a residential building will require the C of O before approval.
- Change of Ownership: during the sale of a property, a new certificate of occupancy may sometimes be required regardless of its type.
Benefits of Having C of O
- Having a C of O stops the government from revoking your rights to the land without compensation
- It identifies you as the specific landowner, thus saving you the problem of multiple owner tussles.
- The C of O can serve as collateral when seeking bank loans.
- C of O increases the value of your land.
Where to Get C of O?
If you want to get your C of O, locate the department in charge of land matters in your state, and they will guide you on the process.
Final Ideas
Regardless of the structure of the building you have on your land, the certificate of occupancy is what proves that you own that land where the building sits. This legal document saves you a lot of problems and challenges. Other documents you should look at include the survey and the deed of assignment when buying land in Nigeria.
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