MASTERING LAND PURCHASE IN ABUJA: A STEP-BY-STEP GUIDE

LAND REGISTRY AND DOCUMENTATION

This article sheds light on some challenges and highlights ways in which prospective investors can safely navigate the land acquisition process to secure one's investment and guarantee stress-free development.

February 21, 2025

Potential risks in the land acquisition process

Some of the typical challenges encountered by would-be investors and developers include fraud, multiple allocation, planning incongruence, encumbrance on land title, and land in hazardous locations.

Fraud

Land fraud is quite common in Abuja and this happens often in the form of cloning and falsification of land documents such as certificates of occupancy (C of O) and statutory rights of occupancy (R of O). There have been numerous recorded cases of people exchanging cash for seemingly original land documents only to be confronted when they move to site by other people with equally authentic land documents over the same property.

Multiple allocation

The Abuja Geographical Information System (AGIS), the technology which manages land administration in Abuja, is not always foolproof, as every now and then the system fails to prevent multiple allocations of the same land to different titleholders. As with fraud cases, conflict often arises when one party moves to sites to commence development and is confronted by another party holding what appears to be an authentic set of documents giving them ownership over the land.

Planning inconsistency

An investor or developer may purchase a land believing that it is meant for a certain purpose only to meet a roadblock when they approach FCDA (Federal Capital Development Authority) Department of Development Control for approval of their building plans. For instance, a developer can design a single-family unit house for a plot only to realise that the land is zoned as medium or high density, implying only multiple family units will be allowed on the plot. This might occur despite the developer taking planning guidance from the title deed plan obtained from AGIS.

Encumbrance of title

A seller may knowingly or unknowingly present a land that has an encumbrance to a buyer. Such encumbrances may include caveat emptor, a lien by another party over the property, a mortgage registered at AGIS etc. The buyer who purchases such a property may have to contend with the encumbrance potentially imperilling their investment in the land in the future.

Land in hazardous locations

Every now and then you may come across a plot of land that was legally allocated but is located in a hazardous area such as a flood plain or an old landfill site. The building developed on a flood plain may be perennially flooded, while ground water sourced from a borehole dug in an old landfill site may be heavily polluted.

Steps to follow in Abuja land purchase

To avoid and/or to mitigate the aforementioned risks, the diligent investor would follow the following steps when buying land in Abuja:

Step 1: Physical site inspection

You have to look under the hood when buying a car. Likewise, a diligent investor will carry out a physical investigation before buying a property, preferably in the company of an architect and where possible a land surveyor. While the architect would advise on the suitability of the site for the intended use, the land surveyor would check for potential hazards such as a flood plain.

Step 2: Legal search

Get a duly licensed estate surveyor or a lawyer to carry out a legal search on the property. If the seller is the original allotee, they should be able to provide you with copies of the C of O and the R of O for presentation to AGIS. If the seller is not the original allotee, they should provide a Power of Attorney (POA) linking them to the original allotee (they may also need to provide a Deed of Assignment if there is a structure on the land). The seller should also provide the original copies of the C of O and R of O for authentication by AGIS as part of the legal search process. A good legal search report should indicate that there are no encumbrances on the title of the subject property. It should also indicate whether there are any outstanding land charges such as development levy and ground rent. Knowledge of any outstanding land charges will be vital for the buyer so that they understand the full extent of the cost of the land. In most cases the buyer would negotiate to deduct outstanding charges from the agreed sales price for the property.

Step 3: Check planning congruence with Development Control

This step can run simultaneously with the legal search process, or it can come after. Get your licensed architect to check with the District Officer of the Department of Development Control in whose jurisdiction the subject property is located. The District Officer (DO) should confirm the land use designated for the property. If the land is residential, the DO should also confirm the density i.e., whether it is low, medium, or high.

Step 4: Drafting of transfer documents

Once you satisfactorily clear the three steps outlined above, the next action would be to get your estate surveyor or lawyer to draft the necessary transfer documents for the transaction including the Sales Agreement, the Power of Attorney, and the Deed of Assignment. It would be wise to share drafts with the other party and obtain their input in the documents where necessary, to ensure concurrence by all parties with the terms and conditions contained in the documents.

Step 5: Signing and payment

Once the documents are signed, they (along with the original C of O and R of O) will be exchanged for payment. The concluding part of the transaction will be the submission of the POA and the DOA to AGIS for registration of the new owner's title over the property and obtaining of Governor's Consent. The new owner must ensure they obtain consent letter to register both documents from the previous owner, and that all outstanding land charges have been cleared before approaching AGIS for registration of title and Governor's Consent. Note that there will be fees payable to AGIS for the registration of title and some of these fees may be determined based on the value of the property.

Avoiding pitfalls in the property transaction process - PREX to the rescue

The PREX ecosystem automates the property transaction process, specifically in steps 2, 4 and 5 above. Legal searches is possible via PREX Search, which is accessed simply by clicking on the “Search Title” tab on the page of a property listed on prexmarket.com (soon to available in states connected to the PREX ecosystem via PREX Registry, the online core registry application developed by PREX). Interested buyers can instantly obtain a property owner's authorisation to search their title, pay the search fee, and view the legal search report, all within a few minutes.Via PREX Transact, another advanced product within the PREX ecosystem, parties to a transaction can initiate the purchase process directly from a listing on prexmarket.com by clicking on the “Buy Property” tab. In just 5 simple steps from then on, parties can digitally:

Verify transfer details;
Review and sign transfer documents;
Make payment of considerations;
Register title and obtain Governor's Consent; and
Update their accounts (buyer is credited with title while seller is debited of title) and their positions in the land registry records

Conclusion

Property purchase can be beset with numerous pitfalls. It is important however to bear in mind that these challenges can be successfully navigated once guided by the right professionals and with patience and discipline. Ultimately, the successful land investor is one who balances a healthy amount of caution with risk-taking to guarantee that they meet their investment goals.

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