Customary vs. Statutory Land Titles in Lagos: Which Should You Choose?
When purchasing land in Lagos State, the type of title […]
When purchasing land in Lagos State, the type of title attached to the property is a critical factor to consider. Two common types are customary titles and statutory titles. While both grant ownership, they differ significantly in legal recognition, documentation, and the ease of transactions. Here’s a comparison to help you make an informed decision.
Customary Land Titles
A customary title is derived from traditional land ownership systems governed by local customs or family inheritance. These lands are typically held in trust by families, communities, or traditional rulers.
This is the one popularly known in Yoruba language as “omo onile” or son of the soil land.
Advantages:
1. Lower Cost: Lands with customary titles are often cheaper compared to statutory-titled lands.
- Ease of Access: Many rural and semi-urban lands in Lagos fall under this category, making them more accessible.
Disadvantages:
1. Lack of Full Legal Protection: Customary titles are not fully recognized under Nigerian law until converted to statutory titles.
2. Higher Risk of Disputes: Family ownership and unclear boundaries can lead to conflicts and resale to another buyer, resulting in total loss of land by a first buyer who has fully paid for it.
- Difficulty in Securing Loans: Customary-titled land cannot be used as collateral for mortgages or other financial transaction.
Statutory Land Titles
A statutory title, such as a Certificate of Occupancy (C of O), is issued by the Lagos State Government under the Land Use Act of 1978. It guarantees legal ownership and provides state recognition of land tenure.
Advantages:
1. Legal Security: Statutory titles are well-documented and protected by law, minimizing the risk of disputes.
2. Easy Transferability: Statutory-titled land can be sold, leased, or used for financial transactions without much hassle.
- Access to Financing: Statutory-titled land is preferred by financial institutions for loans and mortgages.
Disadvantages:
- Higher Cost: Lands with statutory titles tend to be more expensive due to the cost of documentation and government approval.
- Time-Consuming Process: Acquiring statutory titles involves detailed processes and fees, which can be lengthy.
Key Considerations
- Purpose of Purchase: For residential or commercial purposes with long-term security, statutory titles are ideal. For speculative or short-term investment, customary titles might suffice, provided due diligence is conducted.
- Documentation and Verification: Always verify the authenticity of the title at the Lagos State Land Registry, regardless of the type.
- Conversion Option: Customary titles can often be converted to statutory titles, though this requires additional time and financial resources.
Recommendation
While customary titles may seem appealing due to their lower cost, the risks and limitations often outweigh the benefits. Statutory titles provide peace of mind, legal protection, and better opportunities for property use and investment. For anyone considering land purchase in Lagos, opting for statutory-titled land is a safer and more reliable choice in the long run.
Investing in land is a significant decision. Ensure you conduct proper research, engage professionals, and prioritize legal clarity to secure your investment.
Next Steps for Buyers
To ensure a smooth and secure land purchase in Lagos State, follow these practical steps:
- Conduct Due Diligence:
– Work with experienced Real Estate professionals or legal advisors to verify the title of the land.
– Investigate the land’s ownership history and ensure there are no encumbrances or disputes.
- Confirm Land Use and Zoning:
– Check with the Lagos State Physical Planning Authority (LASPPPA) to confirm the land’s approved usage. This step ensures that the land’s purpose aligns with your plans, whether residential, commercial, or industrial.
- Engage in Title Perfection:
– If you purchase land with a customary title, initiate the process of converting it to a statutory title. This involves obtaining a Certificate of Occupancy (C of O) or Governor’s Consent, which strengthens your legal claim to the land.
- Budget for Documentation:
– Factor in the additional costs associated with statutory title processing, including survey plans, title registration, and government fees.
- Avoid Shortcuts:
– Beware of offers that seem too good to be true. Legitimate land transactions in Lagos State require patience, transparency, and adherence to the law.
Conclusion
In Lagos State, land acquisition is a valuable investment, but only when done correctly. While customary titles may appear affordable initially, the risks and limitations make them less favorable for long-term security. Statutory titles, though more expensive, offer unmatched legal protection, financial flexibility, and peace of mind.
By choosing a statutory title or converting a customary title into one, you not only secure your investment but also set yourself up for future opportunities, such as leveraging the land for loans or resale.
At Zuzlon Properties Limited, we prioritize transparency, compliance, and client satisfaction, ensuring that your land purchase aligns with your goals and legal requirements.
Go HERE to start your journey to secure land ownership in Lagos today—reach out to our expert team for guidance and support!
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