How to Legally Acquire Land for Real Estate Development in Lagos: A Complete Guide
Executive Introduction
In Lagos, profitable development is not luck; it is legal engineering. The winning formula is simple but unforgiving: originate correctly, verify ruthlessly, structure professionally, contract defensively, and perfect without delay. This complete guide distils the developer-grade workflow my team uses from Ikoyi/VI to Lekki–Ibeju, Yaba/Mainland, and Badagry/Epe. Follow it and you will buy once, build once—and sleep.
Doctrine: Never pay for land—pay for bankable rights (a file a prudent lender would accept today).
Part I — The Legal Architecture You Must Respect (Lagos)
Land Use Act (1978): Urban interests derive from the Governor. Transfers of statutory rights require Governor’s Consent, followed by stamping and registration.
Lagos State Land Registry: Ownership & encumbrance truth. Obtain official searches and CTCs (Certified True Copies).
Office of the Surveyor-General (OSG): Boundary truth. Chart coordinates against acquisition/committed layers, excision/gazette polygons, ROW/pipelines, setbacks/wetlands, and overlaps.
Physical Planning Regime: LASPPPA (planning permits) and LASBCA (building control, stage certifications; fitness/occupancy where applicable).
Environmental & Infra Interfaces: Drainage corridors, coastal/wetland controls, traffic impact, power/water rights of way; treat these as design constraints, not afterthoughts.
Property Protection: Lagos Property Protection Law (2016) deters land-grabbing—but documents still win.
Part II — The End-to-End Acquisition Workflow (Counsel’s Playbook)
Step 1 — Origination & Gatekeeping
Define product thesis (luxury terraces/BTR, mid-rise, mixed-use, industrial/flex).
Demand a teaser pack before inspection: root & chain of title, survey (hard + soft), planning/layout status, land charges/dues receipts, vendor IDs/board resolution.
Walk away if the seller cannot produce a coherent pack.
Step 2 — Technical & Legal Due Diligence
A. Title Chain Audit
Verify root (C of O, allocation, gazette/excision + derivative title, court vesting).
Review every link to seller; confirm Governor’s Consent on each derivative transfer or a deliverable path to obtain it before completion.
B. Land Registry Search + CTCs
Confirm registered proprietor, charges/mortgages, cautions, pending consents.
Order CTCs of root, deeds, consents, and discharges.
C. OSG Charting
Chart coordinates against acquisition/committed layers, excision polygons, ROW/pipelines, coastal & drainage setbacks, overlaps.
If overlap/encroachment exists, insist on rectification survey and formal cure before exchange.
D. Site Reconnaissance (Independent)
Re-peg beacons, confirm access roads, hydro/drainage lines, encroachments, neighbouring uses, and elevation.
E. Planning/Use Compliance
For raw land: confirm layout policy and use-class for the area.
For developed/brownfield: obtain planning/building permits, stage certificates, and conformity reports.
Step 3 — Structuring the Vehicle & Capital Stack
Choose the right holder:
SPV (Company) for projects—ring-fences liability; simplifies banking; allows share sale exits.
JV/Development Agreement where landowner contributes land into an SPV; document profit share, rights of reversion, conditions precedent, and milestones.
Capital stack: equity, senior debt, mezz, buyer escrow. Align with security package: legal mortgage over consented title, all-assets debenture, assignment of project proceeds, DSRA, and step-in rights.
Step 4 — Offer, Exclusivity & Escrow (Lock the Site While You Verify)
Issue Heads of Terms (HoT) with:
Price; deposit into escrow (law firm/bank).
Exclusivity window; list of deliverables; conditions precedent (CPs) (e.g., consent on missing link, discharge of mortgage, rectification survey, OSG clean report).
Long-stop date, dispute resolution, confidentiality.
No escrow, no exclusivity—no deal.
Step 5 — Contracting that Protects Developers
A. Contract of Sale (Exchange Document)
Must contain:
Precise description (survey annexed).
Warranties: good title; authority; no undisclosed encumbrances; planning compliance.
CPs: delivery of originals; issuance of missing consents; discharge of any charge; OSG clean confirmation.
Indemnities for title/encumbrance claims.
Retention/Holdback to secure CPs post-exchange.
Completion deliverables schedule; escrow mechanics; termination & refund on CP failure.
B. Deed of Assignment / Deed of Sublease (Perfection-Ready)
Root & chain recitals; operative words; covenants for title.
Proper execution (company seals/signatories).
Annexures: survey plan, layout extract (if estate).
C. Ancillary Instruments
Deed of Release/Discharge for any mortgage (with filing evidence).
Power of Attorney (where required) properly registrable.
Possession protocols: access, pre-existing tenants, utility meters, OM manuals.
Step 6 — Completion Against Originals
Pre-completion meeting to sight and inventory originals (root, chain, consents, receipts, approvals).
Escrow releases funds only on confirmed deliverables.
Handover: keys/cards, meter numbers, estate clearance, service-charge status, warranties.
Step 7 — Perfection (Diary & Budget from Day One)
Stamp Duties → Registration → Governor’s Consent (for derivative titles).
Collect registration particulars and consent endorsements; build notarised digital vault.
Notify estate/association; re-issue insurance with correct named insured (SPV) and lenders’ loss-payee endorsements.
Part III — Developer-Specific Considerations
1) Assembling Multiple Plots (Consolidation Risks)
Harmonise surveys; run a composite rectification if needed.
Cure chain defects on each link before consolidation.
Obtain letters of non-encroachment from neighbours where boundaries are tight.
2) Family/Community (Omo-Onile) Roots
Validate authority: head & principal members must sign the root instrument; obtain family indemnities.
Prefer court-sanctioned consent where factions exist.
Design a Community Compact: no-further-levy covenant; local hiring; escalation matrix.
3) Excision/Gazette Environments
Keep certified gazette pages; confirm your polygon lies inside the excised area (OSG).
Your title is still a derivative deed + consent—excision is not your title.
4) Waterfront/Setback & Drainage
Treat setbacks, canals, pipelines, power lines as absolute constraints.
Engineer drainage first; estates that flood lose buyers, rent, and bank support.
5) Planning & Building Control
Secure layout approval (where required) and planning permits before sales.
For phased schemes: agree infrastructure sequencing with LASBCA (roads/drainage/power spine), then product roll-out.
Maintain stage certifications; close with fitness/occupancy where prescribed.
6) Off-Plan Sales (If You Choose to Pre-Sell)
Escrow every payment; release by milestone certificates (independent engineer).
Performance bond or parent guarantee; liquidated damages for delay.
Transparent service-charge budgets; estate constitution pre-launch.
Deliver consent-ready deed packs at handover.
7) Lender Comfort (Bankability)
Banks want:
Clean title chain and consent path.
OSG clean charting.
Evidence of planning/permits.
QS cost-to-complete, contingency, and procurement discipline.
Security package (mortgage, debenture, assignment of proceeds, insurance endorsements).
Reporting cadence: monthly drawdowns against certified progress.
Part IV — Risk Matrix & Cures
| Risk | Cause | Consequence | Cure |
|---|---|---|---|
| Missing consent in chain | Historic oversight | Defective derivation | Make consent issuance a CP; escrow + long-stop; retention |
| Overlap/ROW encroachment | Poor survey/uncharted | Enforcement/demolition | Rectification survey + redesign; OSG clearance before exchange |
| Mortgage/charge subsists | Unreleased security | Bank outranks you | Discharge deed filed; escrow holdback until registry update |
| Opaque service charge | Weak FM governance | Sales resistance | Publish estate constitution + audited budgets pre-launch |
| Community factionalism | Multiple “attorneys” | Conflicting receipts | Single signatory mandate; family indemnities; court-sanction if needed |
| Flooding/drainage failure | Engineering deferred | Asset devaluation | Drainage-first design; hydro study; staged culverts |
Part V — Sample Protective Clauses (Illustrative; tailor to your facts)
Condition Precedent (Title & Charting)
“Completion is conditional upon Buyer’s Counsel receiving: (i) official Land Registry search & CTCs confirming Vendor’s title and disclosing no undisclosed encumbrance; (ii) OSG charting confirming the Property lies outside acquisition/committed areas, ROW/pipelines/coastal or drainage setbacks and without overlap; and (iii) where applicable, issuance of Governor’s Consent on specified historic link(s).”
Escrow & Long-Stop
“All monies shall be held in escrow and released only upon written confirmation that all CPs and Completion Deliverables are satisfied. If any CP remains unsatisfied by the Long-Stop Date, Buyer may rescind with full refund within five (5) business days.”
Indemnity & Retention
“Vendor shall indemnify Buyer against all losses from defects in title, boundary discrepancies, or undisclosed encumbrances. ₦… (or …%) shall be retained in escrow until issuance of Governor’s Consent and filing of any discharge.”
Part VI — Developer Checklists (Print & Use)
A) Pre-Exchange
Teaser pack received; names/dates/descriptions match
Land Registry search + CTCs (root, chain, consents, discharges)
OSG charting clean (no acquisition/ROW/overlap/setback)
Site reconnaissance; beacons re-pegged; access & drainage mapped
Planning/layout policy confirmed; if built, permits & stage certs in file
HoT issued: escrow, exclusivity, CPs, long-stop
B) Exchange → Completion
Contract of Sale with warranties, CPs, indemnities, escrow, retention
Deed of Assignment/Sublease (perfection-ready; survey annexed)
Discharge of any charge (deed + filing evidence)
Completion against originals; deliverables schedule signed
C) Post-Completion
Stamp → Register → Consent diarised and executed
Insurance updated; lenders’ endorsements noted
Estate/FM onboarding; service-charge constitution adopted
Digital vault (notarised scans) + fire-safe originals
Case Snapshot (Composite: Mid-Rise in Lekki Scheme)
Facts: Three contiguous plots offered under a mother C of O; two mid-chain assignments lacked consent; OSG charting showed partial drainage corridor overlap.
Actions: HoT with escrow; CPs for (i) historic consents, (ii) composite rectification survey & OSG clearance, (iii) discharge of an old charge. Retention pending filings.
Outcome: Consents issued; rectification approved; charge discharged and filed; completion occurred; planning permits secured; lender onboarded cleanly.
Conclusion
Lagos rewards institutional discipline: chart first, contract with CPs and escrow, perfect immediately, and build only on a bankable file. If a financier would not lend on your documentation today, you should not break ground tomorrow. Structure first; speed second.
Call to Action
If you are acquiring land for luxury estates, BTR, mid-rise, mixed-use, or industrial/flex in Lagos, brief us to run the end-to-end legal and commercial architecture—origination, searches, charting, negotiation, escrow, drafting, completion, and perfection.
