Property Due Diligence in Nigeria: A Checklist for Buyers

Property remains one of the most significant investments individuals and businesses make — and one of the areas where inadequate legal diligence causes the most loss. In Nigeria, where title and documentation issues are common, thorough due diligence is not a formality; it is the difference between a secure investment and a costly dispute.

Verify the title

The starting point is confirming that the seller actually has the right to sell. This involves conducting a search at the relevant Land Registry to verify the title document — whether a Certificate of Occupancy, a registered deed or a governor's consent — and confirming that it is genuine, current and free of encumbrances.

Confirm there are no competing interests

A clean-looking title can still be subject to competing claims. Diligence should establish whether the property is:

• Subject to any mortgage, charge or lien;
• Involved in ongoing litigation or disputes;
• Affected by government acquisition or planning restrictions;
• Encumbered by family or community claims.

Inspect physically and locally

Documentation alone is not enough. A physical inspection — and discreet enquiries in the locality — often reveals issues that paperwork hides, from boundary disputes to occupants with claims of their own.

In property transactions, what you fail to check is almost always more expensive than what you pay to verify.

Get the documentation right at completion

Once diligence is satisfactory, completion must be documented properly: a well-drafted deed of assignment, payment of the relevant fees, obtaining the governor's consent where required under the Land Use Act, and registration of the transaction. Skipping these steps to save time or cost undermines the very security the buyer is paying for.

A checklist to work from

• Land Registry search completed and title verified;
• Encumbrances, litigation and acquisition status confirmed;
• Physical inspection and local enquiries conducted;
• Survey plan and beacon numbers checked;
• Deed of assignment properly drafted;
• Governor's consent and registration completed.

Approached methodically, property due diligence transforms a high-risk transaction into a confident, well-documented investment.