Steps For Real Estate Due Diligence In Nigeria: Special Focus On Lagos

Real estate remains one of the most valuable investment assets in Nigeria, particularly in Lagos State, where land values continue to rise due to population growth, commercial activity, urban expansion, and increasing demand for residential and commercial property. However, real estate transactions in Nigeria also carry significant legal, regulatory, financial, and practical risks. Many buyers lose money because they rely solely on the seller’s representations, estate agents, family assurances, or physical possession without conducting proper due diligence.

Real estate due diligence is the process of investigating the ownership, title, location, physical condition, planning status, encumbrances, tax liabilities, and legal risks attached to a property before completing the purchase. In Lagos, due diligence is particularly important because of issues such as defective titles, government acquisition, land grabbing, multiple sales, family land disputes, forged documents, unregistered interests, lack of Governor’s Consent, planning violations, and pending litigation.

The following are the key steps for conducting real estate due diligence in Nigeria, with special focus on Lagos State.

1. Confirm the Identity and Capacity of the Seller

The first step is to verify who is selling the property and whether the seller has the legal capacity to transfer title. A buyer must not assume that a person in possession of land or a building is the true owner.

Where the seller is an individual, the buyer should request valid identification, passport photographs, evidence of address, tax identification details where applicable, and documents showing how the seller acquired the property. Where the seller is acting through an attorney, the buyer must inspect the power of attorney and confirm that it was properly executed and, where necessary, registered.

Where the seller is a company, the buyer should conduct a search at the Corporate Affairs Commission to confirm the company’s registration status, directors, shareholders, registered address, and whether the company has the authority to sell the property. The board resolution authorising the sale should also be reviewed. If the property is owned by a family, community, estate, cooperative society, or traditional land-owning family, the buyer must identify the proper representatives and confirm that all necessary principal family members or accredited representatives are involved.

Failure to verify the seller’s capacity can lead to a situation where a buyer pays the wrong person, buys from an unauthorised representative, or becomes trapped in a family dispute.

2. Obtain and Review the Title Documents

The buyer should request copies of all relevant title documents before making a substantial payment. Common title documents in Lagos include Certificate of Occupancy, Governor’s Consent, Deed of Assignment, Deed of Sublease, Registered Conveyance, Gazette, Excision, Court Judgment, Probate or Letters of Administration, Deed of Gift, and Survey Plan.

The nature of the title determines the strength of the seller’s interest. For example, a Certificate of Occupancy may show that the original holder obtained a statutory right of occupancy. A Governor’s Consent may show that a subsequent transfer was approved by the Governor under the Land Use Act framework. A Gazette or Excision may indicate that a parcel of land has been released from government acquisition to a community or family. A Deed of Assignment alone may not be enough unless the root of title is established and the document is duly perfected where required.

In Lagos, buyers should be cautious of expressions such as “freehold,” “committed land,” “excision in process,” “gazette coming soon,” or “C of O in progress.” These terms require careful legal interpretation. A property should not be purchased merely because the seller presents a document. The document must be verified independently at the relevant government offices.

3. Conduct a Land Registry Search

A land registry search is one of the most important steps in Lagos real estate due diligence. The search helps confirm whether the title document presented by the seller is registered, whether the seller’s name appears in the relevant records, and whether the property is subject to any registered encumbrance such as a mortgage, caution, charge, lease, restriction, or previous transfer.

Lagos has an electronic land administration platform through which users can access land-related services and property information, and official Lagos platforms also support property-related assessments and transaction history checks.

At the Lagos State Lands Registry, a lawyer can apply to search the relevant title file using details such as the title number, registration particulars, survey plan, block and plot number, and location. The search should reveal whether the document is genuine and whether there are adverse interests attached to the property.

A buyer should not rely on photocopies or scanned title documents without conducting a registry search. Fraudsters often present forged Certificates of Occupancy, fake Governor’s Consent, or documents relating to a different parcel of land.

4. Conduct Charting at the Office of the Surveyor-General

A survey plan is essential in identifying the exact location, size, coordinates, and boundaries of land. However, a survey plan must be charted to determine whether the land falls within government acquisition, committed acquisition, road alignment, drainage channel, coastal regulation area, excised land, or other restricted area.

In Lagos, charting is usually conducted at the Office of the Surveyor-General of Lagos State. The purpose is to confirm the land status. If the land is under committed government acquisition, it may not be safe to buy because the government may have reserved it for public use, such as roads, schools, hospitals, drainage, housing schemes, or other infrastructure. If the land is under general acquisition, there may be a possibility of regularisation, but this must be confirmed before purchase.

5. Inspect the Property Physically

Physical inspection is necessary to confirm the actual state of the property. For land, the buyer should inspect the boundaries, access road, beacons, topography, drainage, neighbouring developments, encroachments, and whether anyone is in possession. For buildings, inspection should include structural condition, defects, occupation status, utilities, access, flooding history, compliance with approvals, and whether the building is distressed.

In Lagos, some areas are prone to flooding, coastal erosion, drainage problems, access disputes, or demolition risk due to road expansion and planning violations. Locations such as Lekki, Ajah, Ibeju-Lekki, Epe, Ikorodu, and other fast-developing corridors require careful investigation, as rapid development often brings title irregularities and speculative sales.

The buyer should not inspect only during the dry season. Where possible, the buyer should ask questions about flooding during the rainy season, drainage channels, canal setbacks, and environmental risks.

6. Investigate Possession and Occupation

Possession is a critical part of due diligence. A property may have good documents but still be occupied by tenants, squatters, family members, adverse claimants, or persons asserting customary rights. Before completion, the buyer should determine who is in possession and under what arrangement.

If tenants are in occupation, the buyer should review tenancy agreements, rent receipts, service charge records, arrears, notices, and obligations owed to tenants. If the property is being sold with vacant possession, the sale agreement must clearly state when and how vacant possession will be delivered.

For family land or community land in Lagos, the buyer should investigate whether there are local disputes, “omo-onile” demands, boundary conflicts, or previous sales. Lagos State has a special framework for dealing with land grabbing, and the Lagos State Special Task Force on Land Grabbers was established under the Lagos State Properties Protection Law 2016 to address illegal occupation and the forcible takeover of land.

7. Confirm Planning Approval and Building Control Compliance

Where the property includes a building or proposed development, the buyer must verify planning and building control compliance. In Lagos, development without the necessary planning permit may expose the owner to penalties, sealing, demolition, or refusal of regularisation.

The Lagos State Electronic Physical Planning Permit System provides a platform for processing physical planning applications in the state. For completed or ongoing buildings, the buyer should request the planning permit, approved building plan, structural drawings, stage certification documents, completion certificate, and fitness for habitation where applicable.

A buyer should be particularly careful where a building has more floors than approved, is built on a setback, has no approval, violates zoning rules, or is located on drainage, canal, pipeline, or high-tension setbacks. Such defects may significantly reduce the value of the property or expose the buyer to enforcement action.

8. Conduct Court and Litigation Searches

A buyer should investigate whether the property is the subject of pending litigation, court judgment, injunction, family dispute, probate dispute, receivership, foreclosure, or enforcement proceedings. A search may be conducted at the High Court registry or other relevant courts, especially where the seller’s title came through litigation or where there are warning signs of dispute.

In Lagos, properties may be affected by long-running family land litigation, competing judgments, or disputes between developers, subscribers, and land-owning families. If there is pending litigation, the buyer must carefully evaluate the risk. Buying a property that is subject to litigation may expose the buyer to the doctrine of lis pendens, meaning the buyer may be bound by the outcome of the litigation.

9. Review the Contract of Sale and Deed of Assignment

Before payment is completed, the buyer’s lawyer should prepare or review the contract of sale and deed of assignment. The agreement should contain the full description of the property, purchase price, payment terms, completion date, documents to be delivered, representations and warranties, vacant possession clause, indemnity, default clause, dispute resolution clause, and obligation to assist with perfection.

The deed of assignment should properly transfer the seller’s interest to the buyer. It should be executed by the proper parties and witnessed. Where the seller is a company, the deed should be executed in accordance with corporate requirements. Where the seller is a family, the necessary family representatives should sign.

The buyer should avoid paying the full purchase price without a properly signed agreement, title document handover, and clear completion obligations.

10. Perfect the Buyer’s Title

After purchase, the buyer should perfect the title. In Lagos, perfection typically involves Governor’s Consent, stamping, and registration. Governor’s Consent is necessary because under the Land Use Act, subsequent alienation of a statutory right of occupancy requires the consent of the Governor.

Failure to perfect the title may create problems for the buyer when trying to resell, mortgage, lease, develop, or defend the property. An unperfected deed may still have contractual value between the parties, but registration gives stronger legal protection and public notice of the buyer’s interest.

11. Engage Professionals

Real estate due diligence should not be handled casually. A buyer should engage a property lawyer, a registered surveyor and an engineer, where necessary, in completing the entire process. Each professional plays a distinct role. The lawyer verifies the title and prepares documents. The surveyor helps to prepare a new survey in the name of the buyer. The engineer assesses the structural condition.

In Lagos, where property values are high and title problems can be complex, professional due diligence is usually far cheaper than litigation after a failed transaction.

Conclusion

Real estate due diligence in Nigeria is not a mere formality. It is the buyer’s main protection against fraud, defective title, government acquisition, litigation, planning violations, land grabbing, and financial loss. In Lagos, the process should include verification of the seller, review of title documents, land registry search, survey charting, physical inspection, planning approval verification, litigation search, contract documentation, and title perfection.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.