Like the saying goes: real estate is ‘the new gold’. Real estate is, currently, one of the most profitable businesses in Nigeria – when approached strategically with requisite business acumen. It can generate both capital appreciation and recurring income through rent, short lets or property development. Investors are increasingly turning property ownership into business opportunities like short-let services, build-to-rent projects, students’ housing and co-working spaces.

Before delving into real estate investments, it’s very important to have a clear understanding of the various types of property titles used in the sector. A property title confirms who has legal ownership of a property and the nature of ownership the person has. In Nigeria, the most common forms of property documentation include:

Certificate of Occupancy (C of O):

This is the most recognised form of title and is issued by a state government or the federal government. It confirms legal ownership of a property for a fixed term, usually 99 years. Any property without a Certificate of Occupancy should be approached with caution unless you plan to regularise it.

Governor’s Consent:

If a property has already changed hands after the original Certificate of Occupancy was issued, the new owner must obtain a Governor’s Consent to make the transfer legally valid. This is required by the Land Use Act but is often ignored by uninformed buyers.

Deed of Assignment:

This document shows that the property has been legally transferred from one party to another. It must be signed by both parties and registered with the appropriate land registry. Without this, ownership of the property is not secure.

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