CERTIFICATE
OF OCCUPANCY (C OF O): WHAT EVERY LAND BUYER MUST KNOW BEFORE PAYING FOR LAND
By Sun Natha-Alade
& Partners (SNATHAP)
Introduction
Land remains one of
the most valuable and sought-after investments in Nigeria. Whether for
residential, commercial, industrial, or agricultural purposes, acquiring land
is a major financial decision that requires careful legal investigation.
Unfortunately, many
land purchasers focus solely on the physical appearance or location of a
property without adequately verifying its legal status. One of the most
important documents every prospective land buyer must understand is the
Certificate of Occupancy (C of O).
A Certificate of Occupancy
is often described as the highest evidence of a person's right to occupy and
use land granted by the Government. However, many buyers mistakenly assume that
the existence of a C of O automatically guarantees a valid title. This
assumption can be costly.
This article explains
the legal meaning, significance, limitations, and necessary due diligence
relating to a Certificate of Occupancy under Nigerian law.
What is a Certificate
of Occupancy (C of O)?
A Certificate of
Occupancy (C of O) is an official document issued by the Governor of a State
granting a person or entity a statutory right of occupancy over land.
The document serves as
evidence that the holder has been granted the right to possess and use the land
for a specified period, usually 99 years, subject to compliance with applicable
laws and conditions.
Statutory Authority
The legal basis for a
Certificate of Occupancy is found in:
Section 5(1)(a) of the
Land Use Act, 1978
The section empowers
the Governor of a State to grant statutory rights of occupancy in respect of
land situated within the State.
Section 9(1)(a) of the
Land Use Act, 1978
This section
authorizes the Governor to issue Certificates of Occupancy as evidence of a statutory
right of occupancy.
Accordingly, a
Certificate of Occupancy is not merely an administrative document; it is a
legal instrument recognized under Nigerian law.
Why is a Certificate
of Occupancy Important?
A Certificate of
Occupancy is important because it:
1. Serves as Evidence
of Title
It provides prima
facie evidence that the holder has a legal interest in the land.
2. Facilitates
Property Transactions
Banks, financial
institutions, and investors generally require a valid C of O before granting
loans or investing in real estate projects.
3. Enhances
Marketability
Properties with valid
title documentation are generally easier to sell, transfer, mortgage, or
develop.
4. Protects Against
Government Interference
The holder enjoys
legal recognition of occupancy rights, subject to the overriding powers of
government under the Land Use Act.
Does a Certificate of
Occupancy Automatically Mean Good Title?
The answer is No.
Many buyers wrongly
believe that once a seller presents a Certificate of Occupancy, no further
investigation is necessary.
The law is otherwise.
A Certificate of
Occupancy may be challenged, revoked, or declared invalid if it was obtained
fraudulently or if a superior title exists.
Judicial Authority
In Ogunleye v. Oni
(1990) 2 NWLR (Pt. 135) 745, the Supreme Court held that the issuance of a
Certificate of Occupancy does not automatically extinguish existing rights over
land.
Similarly, in Romaine
v. Romaine (1992) 4 NWLR (Pt. 238) 650, the Court emphasized that a Certificate
of Occupancy cannot validate a defective title.
The courts have
consistently maintained that where a person obtains a Certificate of Occupancy
over land already owned by another person with a better title, the Certificate
may be set aside.
Legal Due Diligence
Before Paying for Land with a C of O
Possession of a
Certificate of Occupancy should not replace proper legal investigation.
Before making payment,
a buyer should engage a legal practitioner to conduct comprehensive due
diligence, including:
1. Verify the
Authenticity of the C of O
Confirm:
- C of O Number
- Date of issuance
- Registered owner
- Survey details
- Governor's approval
Verification should be
conducted at the appropriate State Land Registry.
2. Conduct a Land
Registry Search
A search at the Land
Registry helps determine:
- Whether the title is
genuine.
- Whether the land is
subject to litigation.
- Whether there are
mortgages, charges, liens, or encumbrances.
- Whether there are
conflicting claims.
3. Verify the Survey
Plan
A licensed surveyor
should verify the survey plan to determine:
- Exact location.
- Boundaries.
- Whether the land
falls under government acquisition.
- Whether it is
affected by road setbacks, pipelines, or public utility projects.
4. Investigate Ownership
History
A buyer should trace
the chain of title from the original owner to the current seller.
Questions to ask
include:
- How did the seller
acquire the land?
- Was there a valid
transfer?
- Were all necessary
consents obtained?
5. Conduct Physical
Inspection
Physical inspection
helps identify:
- Occupants on the
land.
- Existing structures.
- Boundary disputes.
- Signs of adverse
possession.
Governor's Consent: A
Critical Requirement
Even where land has a
valid Certificate of Occupancy, the transfer of the land may require the
Governor's Consent.
Statutory Provision
Section 22 of the Land
Use Act
The holder of a
statutory right of occupancy shall not alienate, assign, transfer, mortgage, or
otherwise dispose of the right without the consent of the Governor.
Failure to obtain
Governor's Consent where required may render the transaction defective.
Judicial Authority
In Savannah Bank Ltd
v. Ajilo (1989) 1 NWLR (Pt. 97) 305, the Supreme Court emphasized the mandatory
nature of Governor's Consent under the Land Use Act.
Can a Certificate of
Occupancy Be Revoked?
Yes.
Statutory Provision
Section 28 of the Land
Use Act
The Governor may
revoke a right of occupancy for overriding public interest.
Examples include:
- Construction of
public infrastructure.
- Urban development
projects.
- Public utility
purposes.
- Breach of conditions
attached to the grant.
Where revocation
occurs lawfully, compensation may be payable depending on the circumstances.
Common Mistakes Land
Buyers Should Avoid
Paying Before
Conducting Searches
Many buyers pay
deposits or the full purchase price before carrying out legal investigations.
Relying Solely on
Agents
Property agents are
not substitutes for legal practitioners and surveyors.
Ignoring Family or
Community Claims
A valid C of O may
still be challenged by persons with superior legal interests.
Failure to Obtain
Governor's Consent
This remains one of
the most common defects in land transactions.
Purchasing Land Under
Government Acquisition
Failure to verify
acquisition status can result in loss of investment.
Practical Legal Advice
for Prospective Land Buyers
Before purchasing any
land, ensure that:
✓ The Certificate of
Occupancy is authentic.
✓ A Land Registry
search has been conducted.
✓ The Survey Plan has
been professionally verified.
✓ The ownership history
is properly investigated.
✓ There are no pending
disputes or encumbrances.
✓ Necessary statutory
consents are obtained.
✓ Transaction documents
are prepared or reviewed by a qualified legal practitioner.
Conclusion
A Certificate of Occupancy
is undoubtedly one of the most important title documents recognized under
Nigerian law. However, it is not an absolute guarantee of ownership, nor does
it eliminate the need for proper legal due diligence.
Prudent land buyers
should view a Certificate of Occupancy as the beginning—not the end—of the
investigation process. Thorough legal verification, registry searches, survey
confirmation, and professional legal guidance remain indispensable safeguards
against fraud, defective title, and costly litigation.
At Sun Natha-Alade
& Partners (SNATHAP), we assist individuals, businesses, investors, and
property developers in conducting comprehensive legal due diligence, title
verification, documentation, and property transactions to ensure that every investment
is legally secure and protected
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