Introduction
Purchasing family property in Nigeria can be a highly rewarding investment, but it comes with unique complexities. Whether you are buying for personal use, as an inheritance, or for investment purposes, navigating the legal and cultural dynamics of family-owned land or property is essential. Without proper due diligence, buyers can face disputes, legal challenges, or even loss of investment.
At Chaman Law Firm, we specialize in property law and are committed to helping buyers make informed decisions. This guide covers everything you need to know when buying family property in Nigeria.
Understanding Family Property in Nigeria
Family property is land or property owned collectively by members of a family, usually passed down through generations. Such properties are typically governed by customary law, making their acquisition different from purchasing individual or company-owned property.
Key features of family property include:
It is held in trust by family heads or elders for the benefit of all members.
Decisions to sell or lease often require the unanimous consent of key family representatives.
Disputes over ownership are common if proper legal steps are not taken.
Steps to Take Before Buying a Family Property
Conduct Proper Due Diligence
Due diligence is crucial to avoid buying property with unresolved disputes or unclear ownership. Key steps include:
Verify Ownership: Confirm that the property belongs to the family and not an individual selling fraudulently.
Obtain a Family Genealogy Record: This helps identify key members and ensure the sellers are authorized.
Check for Encumbrances: Investigate if the property is subject to litigation, government acquisition, or outstanding debts.
Obtain the Family’s Consent
When buying family property, it is essential to get the consent of the head of the family and other principal members.
Ensure all members entitled to ownership are present or represented during negotiations.
Demand written consent signed by authorized family members.
Engage a Property Lawyer
Engaging an experienced property lawyer ensures you meet all legal requirements and avoid disputes. A lawyer will:
Conduct legal searches at the land registry.
Draft a legally binding sale agreement.
Ensure proper documentation, such as the Deed of Assignment and Land Certificate.
Verify Customary Law Practices
Family properties are often governed by customary laws, which vary by region. Some customs may restrict the sale of ancestral land or impose conditions on its use.
Confirm the Land Title
Ensure the property has valid title documents. Common documents include:
Certificate of Occupancy (C of O)
Deed of Assignment
Land Survey Plan
Governor’s Consent (if applicable)
Legal Issues to Watch Out For
Family Disputes
Disputes among family members over the sale can arise if consent is not properly obtained. This can lead to lengthy court battles.
Omonile Wahala
In some cases, local land-owning families (omoniles) may attempt to reclaim sold property. Proper documentation and legal representation can safeguard against such issues.
Fraudulent Transactions
Be wary of unauthorized family members attempting to sell the property without the consent of others. Always involve a lawyer and insist on meeting all decision-makers.
Lack of Title Perfection
If the property lacks proper title documents or the title is not perfected, your ownership could be challenged. Ensure all documentation is registered with the appropriate government agencies.
Benefits of Buying Family Property
Cost-Effective: Family properties are often sold below market value.
Cultural Significance: They offer the opportunity to own a piece of history and heritage.
Investment Potential: With proper documentation, family property can be a profitable real estate investment.