What are the essential Things to Know when Purchasing a House

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What are the essential Things to Know when Purchasing a House a House
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What are the essential Things to Know when Purchasing a House a House


Introduction

Purchasing a house is one of the most significant financial decisions a person can make—whether it’s for personal use, rental income, or long-term investment. In Nigeria, where real estate is considered a symbol of stability and wealth, buying a house involves more than just inspecting a beautiful structure and exchanging payment. It requires due diligence, legal verification, financial planning, and awareness of market dynamics.

This article is designed to guide both first-time and experienced buyers through the critical considerations, legal steps, risks, and professional inputs required when purchasing a house in Nigeria. It also includes a real-world case study to provide practical insights into the process.


Section 1: Understanding the Nigerian Property Market

Before diving into the purchasing process, it is important to understand the unique characteristics of Nigeria’s real estate market:

  • Unregulated segments: A large part of the market operates informally.

  • Omo Onile challenges: Indigenous landowners often resell or challenge property transactions.

  • Title irregularities: Multiple claims and forged documents are common.

  • Government acquisitions: Many properties are situated on land reserved or acquired by the government.

Therefore, buying a house in Nigeria without a clear understanding of these challenges can lead to loss of funds, litigation, or property demolition.


Section 2: Types of Properties Available

1. Bungalow

  • Single-level home

  • Ideal for families or elderly individuals

2. Duplex

  • Two or more levels

  • Suitable for growing families and middle-income buyers

3. Terrace Houses

  • Attached homes with uniform design

  • Common in estates and gated communities

4. Flats/Apartments

  • Units in multi-level buildings

  • Often used for rental income

5. Detached Houses

  • Standalone homes with full privacy

  • High-end and spacious

6. Off-plan Houses

  • Under-construction or proposed properties sold before completion

Each type comes with its own ownership structure, risk profile, and pricing model.


Section 3: Essential Things to Know Before Purchasing a House

1. Define Your Purpose and Budget

Ask yourself:

  • Is this for personal residence or investment?

  • Will you rent out the property or live in it?

  • How much can you afford—including hidden costs like taxes, agency fees, renovations?

Be realistic and include buffer funds for unexpected expenses.


2. Conduct Location Analysis

Consider:

  • Proximity to your workplace or business hub

  • Neighborhood security and road access

  • Availability of water, electricity, and internet

  • Accessibility to schools, hospitals, and markets

  • Government infrastructure plans (e.g., roads, drainage)

⚠️ Properties in flood-prone or government acquisition zones can be high-risk despite low cost.


3. Engage the Right Professionals

You’ll need:

  • Property Lawyer – To conduct legal searches, title verification, draft agreements

  • Real Estate Agent – To find suitable properties

  • Surveyor – To verify land size, boundaries, and property alignment

  • Structural Engineer or Builder – For physical inspection (especially for old homes)

Avoid relying solely on friends or unregistered agents.


4. Verify the Title Documents

This is non-negotiable.

Required documents include:

  • Certificate of Occupancy (C of O)

  • Deed of Assignment or Sublease

  • Governor’s Consent

  • Registered Survey Plan

  • Building Plan Approval

  • Tax Clearance Certificate

  • Receipt of Payment from Vendor

Conduct a search at the Land Registry and Charting at the Surveyor General’s Office to confirm ownership, government interest, or encumbrance.


5. Confirm Building Approval and Compliance

Check with the Ministry of Physical Planning or Town Planning Authority for:

  • Building permit

  • Setback compliance

  • Zoning and use approval

  • Environmental impact assessments (where required)

🚫 A house without proper approval can be demolished—even years later.


6. Conduct Structural and Environmental Assessment

This includes:

  • Roof and wall integrity

  • Plumbing and electrical work

  • Drainage system

  • Waste disposal

  • Water source and quality

  • Security fencing

If you’re buying a second-hand house, this step is crucial to avoid costly renovations.


7. Review the Estate or Community Bylaws

In gated communities or CDAs (Community Development Associations), you may be required to:

  • Join the estate association

  • Pay annual levies or dues

  • Abide by building or renovation rules

Understand the obligations before you commit.


8. Assess Developer’s Reputation (for Off-Plan Houses)

If buying from a developer:

  • Visit past completed projects

  • Read reviews or seek referrals

  • Confirm their RC number with CAC

  • Request their architectural approval and building approval

Avoid paying large sums without legal agreement and staged payment plans.


9. Draft and Execute the Sales Agreement

The Sale and Purchase Agreement should include:

  • Property description

  • Seller’s declaration

  • Payment terms

  • Possession and handover date

  • Indemnity clause

  • Dispute resolution process

Your lawyer must draft or review this before payment.


10. Payment, Receipt, and Title Perfection

  • Always pay via traceable means (bank transfer)

  • Obtain a receipt and acknowledgment

  • Proceed to perfect the title by registering your Deed of Assignment and obtaining Governor’s Consent

This final step transfers legal ownership to you and protects you from future disputes.


Section 4: Case Study – House Purchase Gone Right

Background

Mrs. Chioma, a mid-level banker in Lagos, wanted to buy a 4-bedroom duplex in Ajah. She had a budget of ₦85 million and was referred to a property through a family friend.

Challenges

  • The seller only presented a “deed of agreement” and survey plan

  • No C of O or Governor’s Consent

  • The agent insisted the title was “in process”

Steps Taken

Mrs. Chioma contacted Chaman Law Firm to verify the property:

  • A search at the Lagos State Land Registry revealed no registered title

  • Charting showed the land was under government acquisition

  • Chaman Law Firm negotiated a 3-week window with the seller to secure proper documentation

  • The seller eventually withdrew, and Chioma found another property with a registered title and building approval

  • Her new property was registered and perfected within 6 months

Lessons Learned

  • Never buy a house without verifying title at the Land Registry

  • “C of O in view” is not a title

  • Always engage a lawyer before any financial commitment


Section 5: Hidden Costs to Prepare For

  1. Agency Fee (5–10%)

  2. Legal Fee (5%)

  3. Deed of Assignment and Governor’s Consent Fee

  4. Land Use Charge/Property Tax

  5. Survey Fee (if not provided)

  6. Registration Charges


Section 6: Frequently Asked Questions (FAQs)

Q: Can I buy a house without a lawyer?
A: You can, but it’s risky. A lawyer ensures the process is legal and that you’re protected.

Q: What is the difference between C of O and Governor’s Consent?
A: C of O is issued for fresh land grants; Governor’s Consent is needed for subsequent transfers.

Q: How long does it take to perfect a title?
A: Typically 3–6 months, depending on the state.

Q: What is an off-plan house?
A: A house sold during construction or before completion—often at a discount.

Q: Should I trust agents or developers without documents?
A: No. Always demand and verify documentation.


Section 7: Final Checklist Before Purchasing a House

✅ Verified title documents
✅ Conducted physical and legal due diligence
✅ Searched the property at Land Registry and Surveyor General’s Office
✅ Confirmed building approval and environmental compliance
✅ Engaged a competent lawyer
✅ Used traceable payment methods
✅ Signed a valid deed or sale agreement
✅ Registered the transaction and obtained Governor’s Consent


Conclusion

Buying a house in Nigeria is an exciting step, but also one fraught with risks. To avoid fraud, legal troubles, or future regrets, it is essential to approach the process with clarity, legal guidance, and thorough documentation.

Understanding the key steps, title verification, building approvals, and legal compliance will not only protect your investment but also ensure peace of mind. A house is more than a building—it’s a future secured. Make sure yours is built on solid legal ground.

Buying a House in Nigeria? Secure It Legally and Safely with Our Expert Guidance

A house is more than just walls—it’s a long-term investment in your future. But buying a home without proper legal steps can lead to regret, loss, or litigation. From fake titles to unapproved buildings, the risks are real.

At Chaman Law Firm, we help you buy houses safely, legally, and confidently. From verifying title documents and conducting land registry searches to drafting airtight agreements and securing Governor’s Consent, we are your trusted legal partner in real estate. We help homebuyers:

  • Verify and authenticate property documents

  • Conduct land registry and survey searches

  • Draft and review airtight purchase agreements

  • Perfect titles and process Governor’s Consent

  • Avoid fraud, encroachment, and planning violations

📞Phone:  08065553671, 08096888818

Email: chamanlawfirm@gmail.com

📍 Address: 115, Obafemi Awolowo Way, Allen Junction, Ikeja, Lagos, Nigeria

🌍Click here to learn more about Chaman Law Firm

Don’t buy a house blindly let us protect your dream with legal precision.

Chaman Law Firm – Your Right, We Protect.

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