Nigeria

Registering Property in

Osun - Nigeria

Below is a detailed summary of the steps, time and cost involved in registering property. It assumes a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

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No. Procedure Time to Complete Associated Costs
1 Conduct search on property files at Lands Registry

An application letter is addressed to the Permanent Secretary, Ministry of Lands and Physical Planning. The application letter must contain the registration particulars of the land in question. A lawyer is required to perform the registration of property. Legal fees are regulated by the Scale of Fees for Conveyancing Matters [Legal Practitioners (Remuneration for Legal Documentation and Other Land Matters) Order 1991]. In practice, lawyers negotiate their legal fees outside the provisions of the law.  The NGN 10,000 in legal fees covers only the search.
7 days NGN 15,000 (NGN 5,000 search fee + NGN 10,000 legal fee)
2 Pay consent application form fee at a designated bank

The applicant makes a payment of NGN 1,500 for the application form at designated bank, and obtains a receipt.
1 day NGN 1,500
3 Obtain consent application form from Lands Registry

After payment of the application form fee, the applicant takes the receipt obtained in the previous procedure to the Lands Registry to obtain the consent application form.
1 day No cost
4 Execute deed of assignment and consent application form

The seller and buyer complete and sign the consent application form and four (4) copies of the deed of assignment. Lawyers typically charge 10% of the value of consideration as legal fees for preparing the deed and its subsequent registration.
1 day NGN 773,168 (10% of the property value)
5 Submit application for Governor's consent to the assignment at Ministry of Lands

By virtue of the Land Use Act 1978, all land in each state in the federation became vested in the Governor of the state, whose prior consent is mandatory for the legal validity of any transfers or alienation of interest in landed property. In Osun, the Governor for ease of administration delegates his power of consent to the Commissioner, Ministry of Lands and Physical Planning. In order to obtain the Governor’s consent, the applicant must submit the following documents:

a. Consent application form;
b. Photocopy of the title document;
c. Four copies of the deed of assignment;
d. Current tax clearance certificate of seller and buyer’s companies;
e. Photographs of the property.
After the submission of all the above documents a file is opened and the processing of the file starts.   
1 day No cost
6 Receive inspection and evaluation from Ministry of Lands and Physical Planning

An inspection of the property will be conducted by a scheduled officer, who prepares a report of the inspection for the Director, Ministry of Lands and Physical Planning. The Director then makes an evaluation of the property and approves a sum as the capital value. The capital value is the estimated value of the property on the basis of which the consent fee is calculated.
7 days No cost
7 Pick up a payment order from Ministry of Lands and Physical Planning

Letter conveying approval of consent fee payable is usually written to the applicant and may be collected by the seller or his lawyer.
1 day No cost
8 Pay consent fee at a designated bank

Consent fee is calculated at 10% of the capital value as assessed by the Director at the Ministry of Lands and Physical Planning. Payment is made at a designated bank, after which a receipt is obtained.
1 day NGN 773,168 (10% of the assessed capital value)
9 Submit receipt of payment of consent fee to the Lands Registry and obtain Governor's consent

The receipt for payment of consent fee is presented to the Lands Registry as evidence of payment, and a copy is kept in the applicant's file. The Lands Registry then continues with several internal procedures to finalize Governor's consent. It usually takes the Commissioner for Lands and Physical Planning about 60 days to give consent.  
61 days No cost
10 Assessment of the deed of assignment for stamp duty and capital gains tax at Board of Internal Revenue

After the Commissioner signs off on the transfer of property, the applicant then takes the deed of assignment to the Board of Internal Revenue for assessment of stamp duty and capital gains tax. The Board of Internal Revenue typically uses the capital value as indicated by the Lands Registry to assess fees. In Osun, capital gains tax is calculated at 10% of the gain defined as the difference between the current value of the property and the value when the seller originally obtained the property, minus any improvement costs.
1 day No cost
11 Pay stamp duty and capital gains tax at a designated bank

The buyer's lawyer must go to a designated bank to pay the stamp duty and capital gains tax. After payment a receipt is issued. It takes 2 days for the payment to go through. 
2 days NGN 154,634 (2% of the property value stamp duty; capital gains tax is also paid, but not included in the calculation)
12 Stamping of the deed of assignment at Stamp Duty Office

After payment of the stamp duty, the deed is presented by the buyer's lawyer for stamping at the Stamp Duty Office. Stamping takes place only after the confirmation of payment is received.
1 day No cost
13 Pay registration fee at a designated bank

Payment is made at a designated bank and receipt is issued.
1 day NGN 2,500
14 Registration of deed at Lands Registry

After payment of the registration fee, the buyer's lawyer then follows up for the deed to be registered in the Lands Registry to make it a perfected legal document. 
7 days No cost
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