Investing in Lagos real estate promises lucrative returns and long-term growth potential. However, beneath the surface of this thriving market lie crucial considerations and insider knowledge that can make all the difference between success and setback.
Some of these setbacks are linked to land scams and illegal acquisition of government lands.
Lagos State Government recently embarked on demolition of buildings built on illegal or unauthorised lands in different parts of the state.
The government claims these demolitions are necessary to protect infrastructure and prevent the city from succumbing to rising sea levels. To avoid pitfalls in Lagos real estate, these are things you should know and laws you must adhere to:
Real Estate Regulatory Authority Bill:
This law prohibits any unregistered or non-licensed individual from engaging in real estate transactions in its state. While unlicensed real estate agents have previously led the charge about real estate transactions in Lagos, identifying licenced agents in the market has been made easier through several platforms, including Estate Intel, where you can search the directory page for different top real estate professionals as well as their contact information.
Land Use Charge Law (2018)
Passed in 2015, this law creates a balance in the registration of land titles, documents and transactions. Previously, registration of land was not uniform but the enacting of this law makes provision for registration of title to land in Lagos State and harmonisation of laws relating to land registration in Lagos State.
Additionally, before investing in land in Lagos, consider the following key points:
Certificate of Occupancy (C of O)
Essential for establishing land ownership, this document guarantees the right to utilize the land for 99 years. It’s crucial to ensure the authenticity of this document before proceeding with any transactions.
Governor’s Consent
This document, signed by the governor, validates property transfers and is particularly crucial in multi-party land transactions. Although the process should ideally conclude within 30 days, practicalities may extend this timeframe to 3 to 6 months.
Architectural and Engineering Designs
Engage certified professionals to develop designs compliant with Lagos State Urban and Regional Planning Law, zoning regulations, and building codes.
Environmental Impact Assessment (EIA)
Certain projects necessitate an EIA to evaluate their environmental implications. Submission of an EIA report to the Lagos State Ministry of Environment is mandatory for approval.
Submission of Building Plan Approval Application
After obtaining necessary designs, submit your application to the appropriate authority for review. Compliance with building codes and regulations is essential for approval.
Assessment and Approval Process
Expect a thorough scrutiny of your application, including site inspections and document evaluations. Once approved, you’ll receive a Building Plan Approval Permit.
Payment of Statutory Fees
Before commencing construction, you must fulfil all requisite fees and levies to the Lagos State government, including development and planning permit fees.