How to Check Whether a Property Is Genuine in Nigeria

Buying property in Nigeria is a major financial decision. Unfortunately, a property can appear genuine on the surface and still be affected by defective title, competing ownership claims, government acquisition, forged documents, undisclosed encumbrances or an unauthorised seller.

A seller may show you a Certificate of Occupancy, Deed of Assignment, survey plan or other title document. The existence of a document, however, does not by itself establish that the seller has a valid and transferable interest in the property.

The Court has emphasised that merely producing a document of title does not automatically establish ownership of land. The circumstances surrounding the title and the root of the interest being claimed remain important.

This is why a buyer should investigate the property, the title, the seller and the transaction before paying the purchase price.

What Does It Mean for a Property to Be Genuine?

A property is not “genuine” merely because there is a building on it or because the seller possesses a document bearing an official-looking stamp.

For a property transaction to be reasonably safe, the buyer should be able to establish that:

• the property actually exists as described;
• the person offering it for sale has a legitimate interest in it;
• the seller has authority to transfer that interest;
• the title documents are authentic;
• the documents correspond with the actual property;
• the property’s ownership history is capable of being established;
• there is no undisclosed competing claim that prevents the sale;
• the property is not affected by an undisclosed encumbrance;
• the property is not being sold by someone without authority;
• the transaction is not affected by fraud or forgery; and
• the buyer can properly acquire and perfect the interest being purchased.

A proper investigation therefore goes beyond checking one document.

How to Check Whether a Property Is Genuine Before Buying

1. Confirm the Identity of the Seller

The first question should be:

Who exactly is selling this property?

Ask the seller to provide satisfactory identification and documents establishing their interest in the property.

Where the seller claims to be the owner, compare their identity with the name appearing on the title documents.

Where the seller’s name differs from the registered proprietor, do not assume that the difference is harmless.

The seller should explain and establish the legal basis for the sale.

For example, the seller could be:

• a subsequent purchaser;
• an administrator or executor of an estate;
• an attorney acting under a Power of Attorney;
• a company authorised to dispose of the property;
• a representative of a family or community; or
• another person deriving an interest from the registered owner.

Each situation requires its own investigation.

Why Seller Verification Matters

One of the common forms of property fraud is a person presenting himself as the owner when he has no authority to sell the property.

Even where the property exists and the documents look authentic, the transaction can still be unsafe if the person receiving your money is not legally entitled to sell.

2. Ask for the Complete Title Documents

Do not rely on a single document supplied by the seller.

Ask for the documents upon which the seller’s ownership or interest is based.

Depending on the property, these may include:

• Certificate of Occupancy;
• Deed of Assignment;
• Deed of Lease;
• Governor’s Consent;
• registered survey plan;
• Gazette;
• allocation letter;
• previous title documents;
• purchase receipts;
• probate or letters of administration;
• court judgments or orders; and
• other documents forming part of the chain of title.

The precise documents required will depend on the history and nature of the property.

The important point is to understand how the seller acquired the property, not merely what document the seller currently possesses.

3. Verify the Title Documents

Documents presented by a seller should be independently verified.

Do not assume that a document is genuine simply because:

• it carries a government logo;
• it has a registration number;
• it contains official-looking stamps;
• the seller’s lawyer produced it;
• the seller says it was issued by the government; or
• another buyer previously relied on it.

The relevant government records should be investigated where applicable.

For example, Lagos State provides property-related services through its e-GIS platform, including property search and applications for Certified True Copies.

Where a document is alleged to be registered, the buyer should investigate the relevant registry records and compare the information in those records with the document presented.

4. Conduct a Search at the Relevant Land Registry

A property search is one of the most important stages of property due diligence.

The purpose is to investigate the official records relating to the property and determine matters such as:

• the registered proprietor;
• the nature of the registered interest;
• previous transactions;
• registered encumbrances;
• mortgages or charges;
• assignments;
• restrictions; and
• other interests affecting the property.

In Lagos, the relevant land records are maintained through the State’s land administration system, with online property-search services available through the Lagos e-GIS platform.

However, a registry search should not be treated as the entire due-diligence exercise.

A search result must be properly interpreted and compared with the seller’s documents and the physical property.

5. Trace the Root and Chain of Title

One of the most important questions in a property transaction is:

How did the seller acquire the property?

If the seller acquired the property from another person, your lawyer should investigate that previous transaction.

If the previous owner acquired it from another person, the investigation may need to go further.

This is known as investigating the root and chain of title.

The objective is to determine whether the seller’s interest can properly be traced to a person or entity with a legitimate interest capable of being transferred.

A buyer should not assume that a recent Deed of Assignment automatically cures problems in an earlier title.

The Court of Appeal has recognised that registration does not create an interest in land where no valid interest existed in the first place.

This is an important principle when investigating property transactions.

6. Confirm That the Property Described in the Documents Is the Actual Property

The documents must correspond with the physical property being sold.

Check matters such as:

• plot number;
• block number;
• survey plan;
• dimensions;
• boundaries;
• location;
• landmarks;
• address; and
• other identifying features.

A seller should not be able to show you one property while the title documents relate to another.

This is particularly important where several plots are located within the same estate or layout.

7. Verify the Survey Plan

A survey plan is an important part of many land transactions, but it should not be treated as proof of ownership by itself.

The survey identifies and describes the parcel of land; it does not automatically establish that the person holding the survey has a valid title to the land.

The courts have recognised that a survey plan does not, by itself, establish ownership where the underlying title has not been established.

Where appropriate, the survey should therefore be investigated against the relevant government survey records.

The buyer should also establish whether the coordinates and physical location correspond with the land being offered for sale.

8. Check Whether the Land Is Under Government Acquisition

A property can look perfectly normal and still be affected by government acquisition.

This is particularly important when buying undeveloped land.

The buyer should investigate the property’s status in relation to:

• government acquisition;
• committed acquisition;
• excision;
• gazette;
• approved layouts; and
• other relevant government planning or land-status information.

Do not rely solely on the seller’s statement that the land is “free from government acquisition.”

That claim should be independently verified.

9. Physically Inspect the Property

Never buy property based solely on photographs, videos or documents.

Visit the property.

During inspection, look for:

• occupants;
• tenants;
• persons claiming ownership;
• fences;
• competing developments;
• signs of construction;
• neighbouring claims;
• boundary disputes;
• access problems;
• encroachments; and
• other signs that somebody else may have an interest in the property.

Ask questions about the property from people in the surrounding area where appropriate.

A physical inspection can reveal information that is not apparent from the seller’s documents.

10. Ask Who Is in Possession

Possession is an important warning point in property transactions.

If someone other than the seller is occupying the property, do not simply assume that the person is a tenant or caretaker.

Find out:

• who the occupant is;
• why the person is there;
• who granted possession;
• whether rent is being paid;
• whether there is a tenancy agreement;
• whether the occupant claims ownership; and
• whether there is an existing dispute.

An occupant claiming ownership can be a serious warning sign.

The buyer should resolve the issue before proceeding.

11. Investigate Existing Litigation

A property can be genuine but still be the subject of litigation.

The buyer should therefore investigate whether there are pending or concluded proceedings affecting the property, particularly where the circumstances surrounding the property suggest a dispute.

Look for evidence of:

• ownership disputes;
• boundary disputes;
• injunctions;
• claims for specific performance;
• mortgage disputes;
• family disputes;
• recovery-of-possession proceedings; and
• other proceedings affecting the property.

This is particularly important where the seller’s explanation of the title is inconsistent, another person is in possession or there are competing claims.

12. Verify the Seller’s Authority Where an Agent Is Involved

Property transactions are frequently handled through agents.

The fact that someone introduced the property or negotiated the price does not mean that the person owns the property.

Where an agent is acting for the owner, establish:

• the identity of the actual owner;
• the authority given to the agent;
• the scope of that authority;
• who should receive payment; and
• whether the owner has approved the transaction.

Where a Power of Attorney is being relied upon, it should be examined carefully.

A Power of Attorney is an instrument of authority. It should not simply be treated as conclusive proof that the attorney owns the property.

13. Be Careful When Buying From a Family or Community

Family and customary land transactions require particular care.

Where property is said to belong to a family, investigate the family’s title and the authority of the persons purporting to sell.

Do not assume that one family member automatically has authority to sell the entire family property.

The circumstances surrounding customary ownership and the persons authorised to transact on behalf of the relevant family or community must be investigated.

The courts continue to deal with disputes concerning customary ownership and the proof of title to land.

14. Verify Corporate Sellers

If a company is selling the property, investigate the company and its authority to dispose of the property.

Check:

• the company’s identity;
• its status;
• the registered directors;
• the persons representing the company;
• the company’s ownership or interest in the property; and
• the corporate authority for the transaction where necessary.

A person who claims to be a director or representative should not automatically be assumed to have authority to dispose of company property.

15. Check for Mortgages, Charges and Other Encumbrances

A property can have a genuine title and still be unsuitable for immediate purchase.

For example, the property could have been mortgaged to a bank or used as security for another obligation.

The relevant search should therefore establish whether the property is affected by:

• mortgage;
• charge;
• lien;
• caution;
• restriction;
• lease;
• prior assignment; or
• another registered interest.

Where an encumbrance exists, the transaction should be structured so that the buyer does not pay for an interest that cannot safely be transferred.

16. Do Not Treat a Certificate of Occupancy as a Complete Guarantee

A Certificate of Occupancy is an important title document, but it should not end your investigation.

A buyer still needs to investigate:

• the root of title;
• subsequent transactions;
• the identity of the seller;
• encumbrances;
• survey information;
• possession;
• competing claims;
• acquisition status; and
• other circumstances affecting the property.

The same principle applies to other title documents.

The question is not simply, “Does the seller have a document?” The question is, “Does the seller have a valid interest in this particular property, and can that interest safely be transferred to me?”

Red Flags That a Property May Not Be Genuine

Be particularly cautious where:

The Seller Refuses to Provide Title Documents

A seller who refuses to allow proper title investigation should not be treated as a normal transaction.

The Seller Is Pressuring You to Pay Immediately

Statements such as:

• “Another buyer is coming tomorrow.”
• “Pay now or lose the property.”
• “You don’t need a lawyer.”
• “The documents are with my lawyer.”
• “The government search is not necessary.”

should not cause you to abandon due diligence.

The Seller’s Name Does Not Match the Title

This is not necessarily conclusive evidence of fraud, but it requires an explanation and documentary proof.

The Price Is Suspiciously Low

A price significantly below the prevailing market level can have an innocent explanation, but it can also be a warning sign.

Find out why the property is being sold cheaply before paying.

The Seller Wants Payment Into an Unrelated Account

Be cautious where the person selling the property instructs you to pay money into an account belonging to someone else without a satisfactory legal explanation.

Someone Else Is Claiming Ownership

Do not proceed until the competing claim has been properly investigated.

The Seller Says a Search Is Unnecessary

This is a significant warning sign.

A genuine seller should have no reason to fear reasonable due diligence.

Can a Property With Genuine Documents Still Be Unsafe to Buy?

Yes.

This is one of the most important points for property buyers to understand.

A document can be genuine while the transaction is still problematic.

For example:

• the document could belong to another property;
• the seller could lack authority to sell;
• the property could have been subsequently transferred;
• the property could be subject to an existing mortgage;
• another person could have a superior interest;
• the property could be affected by government acquisition; or
• there could be ongoing litigation concerning the property.

This is why document authentication and property due diligence are different exercises.

What Should You Do Before Paying for Property?

Before making a substantial payment, the buyer should ordinarily ensure that the following have been investigated:

Property

• exact location;
• survey information;
• boundaries;
• physical inspection;
• possession and occupation.

Seller

• identity;
• ownership;
• authority to sell;
• corporate or estate authority where applicable.

Title

• root of title;
• chain of title;
• registered documents;
• authenticity;
• registration status.

Government Records

• land registry search;
• survey investigation;
• acquisition status;
• relevant planning information.

Legal Issues

• encumbrances;
• litigation;
• competing claims;
• restrictions;
• consent requirements;
• perfection requirements.

Transaction Documents

The transaction should then be documented through appropriate legal instruments, with the payment structure and completion conditions designed to protect the buyer.

What If You Discover That the Property Is Not Genuine?

If your investigation reveals that the seller does not have the interest being represented, do not proceed with the transaction.

If you have already paid money, the appropriate response depends on the circumstances.

You may need to:

• demand repayment;
• preserve evidence;
• issue a formal demand;
• report suspected criminal conduct to the appropriate authorities where warranted;
• seek an injunction where necessary;
• commence proceedings for recovery of money or other appropriate relief; or
• pursue other civil remedies arising from the transaction.

Do not destroy or alter communications with the seller.

Keep:

• receipts;
• bank-transfer records;
• WhatsApp messages;
• emails;
• contracts;
• title documents;
• advertisements;
• photographs;
• videos; and
• other evidence relating to the transaction.

Why You Should Involve a Property Lawyer Before Paying

Property due diligence is not simply a matter of obtaining a document from a government office.

The information obtained from different sources must be brought together and legally interpreted.

A property lawyer can investigate:

• the seller’s title;
• the chain of ownership;
• land registry records;
• survey information;
• government acquisition issues;
• encumbrances;
• possession;
• competing claims;
• transaction documents; and
• the legal requirements for completing and perfecting the transaction.

The lawyer can then advise you whether the transaction should proceed, what risks exist and what conditions should be satisfied before payment or completion.

Conclusion

The safest way to determine whether a property is genuine in Nigeria is to investigate the property, the seller, the title and the transaction as a whole.

Do not rely solely on a Certificate of Occupancy, survey plan, Deed of Assignment or any other document presented by the seller. A genuine-looking document does not automatically establish that the seller has good title or authority to sell.

Before committing your money, conduct the appropriate searches, verify the title, investigate the seller’s authority, inspect the property, check for competing claims and obtain professional legal advice.

If you are planning to buy land, a house, an apartment or another property in Nigeria, Lexforte Attorneys can assist you with property due diligence, title investigation, document review and legal advice before you commit your money. Contact Lexforte Attorneys before completing the transaction—not after a property dispute has already arisen.