The laws regulating Real Estate in Nigeria can be classified into Federal Laws and State Laws.

The Federal Laws are laws that govern the country as a whole. Whereas the State Laws are Laws that governs the State. The different States in Nigeria have their different State Laws that governs them.

For the purpose of this blog, we will concentrate only on the Federal Laws. These Federal Laws are basically the laws enacted by the Nigerian National Assembly to govern the nation as a whole, they include but not limited to the Constitution, Land Use Act, Conveyancing Act etc. We shall proceed to explain them.

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Constitution of the Federal Republic of Nigeria 1999

By Section 43 of the Constitution, it provides as follows “Subject to the provisions of this Constitution, every citizen of Nigeria shall have the right to acquire and own immovable property anywhere in Nigeria.” From this section, it is glaring that every Nigerian citizen have the liberty and freedom to acquire land in any part of the country.

Land use Act 

Prior to this law, land used to be owned by families or communities. After the law was enacted in 1978, lands in the urban areas were vested in State governments and the lands in the rural areas of the country became vested in the Local government.

The freehold system of the past was abolished by this Land Use Act and replaced with a leasehold. Every landowner invariably became a lessee to the State government for a specific period of time which is 99 years and the same is subject to renewal. The law also provided that the State and Local Government have the duty of issuing a Statutory right of occupancy and Customary right of occupancy to lands as the case maybe. Sections 5 & 6 of the Land Use Act made provision for these grants. The word statutory right of occupancy shows that the land is not outrightly owned by the person but that it will expire after a period of time certain.

By the combine reading of sections 21 & 22 of the Land Use Act, the law further provides that land cannot be sold or alienated in any way by the holder of a Statutory Right of Occupancy or Customary Right of Occupancy without the consent of the governor or the Local Government first sought and obtained as the case maybe. There is a penalty for anyone who breaches this provision of the law. Consequently, it is unlawful for any person whose interest in the property has been vested by virtue of a Deed of Assignment or Deed of Conveyance to decline to obtain the consent of a governor of the state where the property is located or the consent of the local government.

Conveyancing Act

This Act governs conveyancing and property transactions in both the Northern and Southern parts of Nigeria save for a few states exempted. The Conveyancing Act 1881 is one of the oldest real estate laws in operation in Nigeria.

Urban and Regional Planning Act

This Act governs the management of urban and regional planning in Nigeria. It also takes care of complaints and grievances on issues like the demolition of houses and the collapse of buildings.

Stamp Duty Act

The stamp duty Act provides for several instances where a land transaction would involve the payment of stamp duty. It makes provision for the calculation of stamp duty based on the type of property and the amount of money involved in a transaction.

Rent control and Recovery of Premises Act

This Act provides steps to be followed by landlords in evicting tenants from his building. The Law is strictly against self-help in the eviction of tenants and the landlord must follow the required procedure set down by the Law in achieving this. Many States of Nigeria have their own Rent control and Recovery of Premises Laws

Capital Gains Tax Act

This Act operates at the Federal level and states like Lagos State. This Act provides for a tax that is chargeable upon the disposal or sale of and assets. In the Act, real estate is defined to be one of the assets. The tax is charged on the profits on the proceeds of assets that are sold and also properties sold outside Nigeria but the proceeds brought into Nigeria. This is at the rate of 10 percent on each disposal. The procedure for calculating this tax is also provided for in the laws.

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In conclusion, there are other real estate laws guiding real estate transactions in Nigeria. Majority of the States in Nigeria have domesticated these laws while some still rely on the Federal Laws to guide their real estate transactions. These laws are enacted to ensure a uniform manner of engaging in real estate transactions, either by buying or renting. The Laws helps to guide the investors on the acquisition and transfer of an interest in real estate. Before you engage in any real estate transaction in Nigeria be sure you are well conversant with the laws guiding real estate in that area to avoid penalty or court actions. Ignorant of the law is not an excuse.

 

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