Congratulations, you’ve bought a property in Nigeria! You’ve conducted your due diligence, paid the purchase price, and the seller has handed you a signed Deed of Assignment. At this point, many investors celebrate and consider the job done. However, you’ve only completed about 80% of the journey.
The final, and arguably most critical, phase is still ahead: perfecting your title.
Failing to complete this process is like winning a race but neglecting to register your victory with the officials. While you may hold the trophy, your claim is not officially recognized and can be challenged. This guide will explain what title perfection is, why it’s non-negotiable, and the steps required to achieve it.
What is Title Perfection and Why is it Essential?
Title perfection is the legal process of registering your ownership of a property with the state government’s Land Registry. It involves obtaining the Governor’s Consent for the transaction, paying the required taxes (stamp duty), and officially recording the transfer of ownership in the government’s records.
Until your title is perfected, the government’s official record still shows the previous owner (the seller) as the legal titleholder. This creates several significant risks:
- Weak Legal Standing: Your claim to the property is merely “equitable,” not legal. In a dispute, your unregistered Deed of Assignment is much weaker in court than a registered title.
- Risk of Fraud: A dishonest seller could use their still-registered title to fraudulently sell the same property to another unsuspecting buyer or use it as collateral for a loan.
- Inability to Transact: You cannot legally sell, mortgage, or use the property as collateral for a loan from a reputable financial institution without a perfected, registered title in your name.
- Issues with Compensation: If the government ever acquires the land for public use, compensation is typically paid to the person with the registered title—the name in the government’s official records.
In short, an unperfected title is an incomplete and vulnerable investment.
The 3 Core Steps of Title Perfection in Nigeria
The process is technical and must be handled by a qualified property lawyer, but every owner should understand the key stages.
Step 1: Obtaining Governor’s Consent
As stipulated by the Land Use Act of 1978, any transfer of interest in land requires the consent of the state governor where the property is located.
- Process: Your lawyer will submit an application to the governor’s office through the state’s Ministry of Lands. The application includes your Deed of Assignment, the property’s survey plan, tax clearance certificates, and other required documents.
- Purpose: This is the government’s official approval of the sale from the previous owner to you. Without this consent, the transaction is legally incomplete.
Step 2: Stamping the Documents (Stamp Duty)
Once the Governor’s Consent is obtained, the next step is to pay the required Stamp Duty. This is a tax levied by the government on property transaction documents, and it is what makes them legally enforceable in court.
- Process: Your lawyer will have your Deed of Assignment assessed by the State Internal Revenue Service, which will calculate the amount due. Once paid, the document is embossed with an official stamp as proof of payment.
- Purpose: An unstamped Deed is not admissible as evidence in a court of law, making it a very weak proof of ownership in a dispute.
Step 3: Registration at the Land Registry
This is the final and most crucial step. After the document has been consented to and stamped, it is taken to the state’s Land Registry for registration.
- Process: The Land Registry officials will record the transaction in their books, assign it a unique registration number, and file away a copy of your Deed. This process, known as “recording,” officially updates the government’s master record of land ownership.
- Purpose: This is the moment your ownership becomes legally recognized by the state. The public record is updated to reflect you as the new, legal owner of the property, securing your title against all other claims.
The Verdict: Don’t Stop at the Finish Line
Buying a property is a major achievement, but the job isn’t done until your title is perfected. While it involves additional costs and requires patience, it is the only way to truly secure your asset, unlock its full economic value, and protect it for future generations.
At MiraEmma Properties, our advisory service extends beyond the point of sale. We guide our clients on the importance of title perfection and can connect them with trusted legal professionals to ensure this final, crucial step is completed correctly.
Have you purchased a property but haven’t perfected the title? It’s not too late. Contact us for a consultation on how to secure your investment.
