A Certificate of Occupancy (C of O) is one of the most important documents encountered in Nigerian land transactions. It is often presented to prospective buyers as evidence that a property is genuine and safe to purchase.
However, a Certificate of Occupancy should not be accepted at face value.
A document can appear genuine and still require further investigation into the identity of the holder, the property it covers, the root of title, the status of the land and any interests or encumbrances affecting it.
Before buying land or property, a buyer should therefore independently verify the Certificate of Occupancy and the title upon which the seller relies.
What Is a Certificate of Occupancy?
A Certificate of Occupancy is a document evidencing a grant or recognition of a right of occupancy over land under the applicable land administration system.
Under the Land Use Act, land in each state is vested in the Governor to be held in trust and administered for the use and common benefit of Nigerians, subject to the provisions of the Act.
The Act provides for statutory rights of occupancy and customary rights of occupancy, depending on the circumstances and location of the land.
A C of O therefore relates to a right of occupancy. It should not automatically be understood as an absolute and indefeasible guarantee that the person presenting it has an unchallengeable title to the land.
Does a Certificate of Occupancy Prove Ownership?
Not necessarily.
A C of O is important evidence concerning a person’s interest in land, but a buyer should still investigate the history of the title and the circumstances in which the document was issued.
The Supreme Court has repeatedly emphasised the importance of examining the root and validity of title in land disputes. The legal effect of a particular C of O also depends on the circumstances surrounding its issuance and the competing interests, if any, affecting the land.
This is why a buyer should not make the mistake of saying:
“The seller has a C of O, so there is nothing else to check.”
The existence of a C of O is a reason to conduct proper verification, not a reason to stop conducting due diligence.
Why Should You Verify a Certificate of Occupancy?
Verification helps establish whether:
- The C of O was actually issued by the relevant authority;
- The document corresponds with the property being sold;
- The named holder is the person claiming ownership or the right to sell;
- The property description corresponds with official records;
- The land is affected by an earlier interest or transaction;
- There are registered encumbrances affecting the property;
- The land is affected by government acquisition or other restrictions;
- The purported title is genuine; and
- The seller has the legal authority to transfer the interest.
A buyer who skips these checks can discover serious problems only after completing the transaction.
How to Verify a Certificate of Occupancy in Nigeria
The precise procedure depends on the state in which the property is located because land administration is handled through the relevant state authorities.
However, the following steps provide a practical framework.
1. Obtain a Clear Copy of the Certificate of Occupancy
Start by obtaining a complete and legible copy of the C of O from the seller.
Do not rely solely on photographs, screenshots or verbal descriptions.
The document should be examined carefully for the information necessary to identify the property and the holder of the interest.
Pay particular attention to:
- Name of the holder;
- File or registration number;
- Date of issue;
- Plot number;
- Block number where applicable;
- Location;
- Size or area;
- Survey information;
- Term of the right of occupancy;
- Conditions attached to the grant; and
- Other identifying particulars.
These details should subsequently be compared against official records.
2. Conduct an Official Search
The most important step is to conduct an independent search with the relevant land registry or land administration authority.
A search can help determine whether the C of O appears in the official records and whether the information contained in the document corresponds with those records.
In Lagos, for example, property-related searches and land administration services are handled through the state’s land administration system.
A buyer should use the appropriate official channel rather than relying on a seller’s private verification or an agent’s assurance.
3. Compare the C of O With Official Records
The information contained in the document should be compared against the information held by the relevant authority.
Check whether:
- The document number corresponds with official records;
- The named holder matches the registered interest;
- The property description matches;
- The location corresponds;
- The survey information corresponds; and
- The dates and other relevant particulars are consistent.
Any material inconsistency should be investigated before the transaction proceeds.
4. Verify the Survey Information
The survey details on the C of O should correspond with the land being offered for sale.
This is particularly important where a seller is showing a buyer a physical parcel of land while relying on a C of O relating to another property.
A survey professional can assist in confirming the location and coordinates of the property.
Where necessary, the relevant survey records should also be checked with the appropriate government authority.
5. Confirm the Identity of the Holder
The name on the C of O should be compared with the person claiming to own the property.
If the seller’s name differs from the name on the C of O, the seller should explain the legal basis for the transaction.
For example, the seller could be relying on:
- A Deed of Assignment;
- A subsequent transfer;
- A Power of Attorney;
- Probate or Letters of Administration;
- A corporate transaction; or
- Another legally recognised interest.
The buyer should verify the entire chain rather than simply accepting the explanation.
6. Investigate the Root of Title
A C of O does not eliminate the need to investigate the root of title.
Where the property was previously owned or held by another person, the documents establishing the transfer or derivation of the present interest should be examined.
Depending on the property, the root could involve:
- A previous grant;
- Deed of Assignment;
- Deed of Conveyance;
- Family title;
- Government allocation;
- Gazette;
- Court judgment;
- Probate documents; or
- Other instruments.
The objective is to establish how the interest arose and whether the person selling to you has a valid interest to transfer.
7. Check for Encumbrances
A buyer should establish whether the property is subject to an existing mortgage, charge, lease, restriction, caveat, litigation or other third-party interest.
A C of O does not necessarily tell the entire story of what has happened to a property after it was issued.
A subsequent transaction could have created an interest affecting the property.
The relevant land registry records should therefore be searched before purchase.
8. Check for Government Acquisition or Other Restrictions
The buyer should also establish the status of the land from the relevant government records.
Particular attention is necessary where the property is said to derive from:
- Excision;
- Gazette;
- Government allocation;
- Scheme;
- Regularisation;
- Consent;
- Ratification; or
- Other government land processes.
Claims made by an agent or seller about the land being “free from acquisition” should be independently verified.
9. Conduct Physical Inspection
Documentary verification should be combined with physical inspection.
Confirm that the property described in the C of O corresponds with the land on the ground.
Look at:
- The location;
- Boundaries;
- Existing structures;
- Roads and access;
- Occupants;
- Neighbouring properties; and
- Persons claiming an interest in the land.
If another person is occupying or developing the property, investigate the basis of that person’s presence.
What Information Should You Check on a C of O?
A buyer should pay particular attention to the following:
| Particular | What to Verify |
|---|---|
| Name of holder | Does it correspond with the person claiming the interest? |
| File/registration number | Does it correspond with official records? |
| Property description | Does it identify the actual property? |
| Location | Does it correspond with the physical property? |
| Plot/block number | Does it match official records and survey information? |
| Size | Does the stated area correspond with the survey? |
| Survey details | Do the coordinates and survey particulars correspond? |
| Date of issue | Is it consistent with the title history? |
| Term | What is the duration and status of the right of occupancy? |
| Conditions | Are there conditions affecting the interest? |
| Subsequent dealings | Are there registered transfers, mortgages or other interests? |
Can a Fake Certificate of Occupancy Look Genuine?
Yes.
A forged document can be made to resemble a genuine government document.
It can contain official-looking:
- Logos;
- Stamps;
- Signatures;
- Numbers;
- Seals; and
- Formatting.
Visual appearance is therefore not a reliable method of authentication.
The proper question is not simply whether the document “looks real.” The question is whether the relevant government authority’s records support the document and whether the title relates to the property actually being sold.
What If the C of O Is Genuine but the Seller Cannot Sell the Property?
This is an important distinction.
A genuine C of O does not automatically establish that the person currently presenting it has an unrestricted right to sell the property.
For example, the property could have subsequently been:
- Assigned;
- Mortgaged;
- Leased;
- Charged;
- Subject to litigation; or
- Otherwise affected by another legally recognised interest.
The buyer must therefore investigate the current state of the title and the seller’s authority to dispose of the property.
What If the C of O Is in Someone Else’s Name?
Do not proceed on the assumption that the seller automatically has authority to sell.
Ask the seller to produce the documents establishing the transfer from the named holder to the seller.
Where a person is acting as an attorney, executor, administrator, company representative or family representative, the authority to act should also be independently verified.
The chain of title should be clear and properly documented.
What If the Seller Refuses to Allow Verification?
This is a serious warning sign.
A buyer should not allow pressure to purchase to override the need for independent due diligence.
If the seller refuses to permit an official search or insists that the buyer rely exclusively on documents supplied by the seller, the buyer should reconsider the transaction until the concern is satisfactorily resolved.
Can You Verify a C of O Yourself?
A buyer can access some government land-search and verification services directly, depending on the state.
However, professional legal assistance is particularly useful where the transaction involves a substantial amount of money or the title history is complicated.
A lawyer can go beyond checking whether a document exists and investigate whether:
- The seller has a transferable interest;
- The root of title is satisfactory;
- There are competing claims;
- There are encumbrances;
- The transaction requires statutory consent;
- The contractual documentation adequately protects the buyer; and
- The transaction should proceed at all.
Common Mistakes Buyers Make When Checking a C of O
Mistake 1: Checking Only the Document
A buyer examines the C of O but does not search the official records.
Better approach: Verify the document against the relevant government’s records.
Mistake 2: Assuming a C of O Guarantees the Property
The buyer assumes that possession of a C of O ends all questions concerning title.
Better approach: Investigate the root of title, current interest and competing claims.
Mistake 3: Failing to Verify the Survey
The buyer verifies the C of O but does not establish that it relates to the land shown by the seller.
Better approach: Match the survey information with the actual property.
Mistake 4: Paying Before Verification
The buyer pays a substantial deposit before completing due diligence.
Better approach: Complete the essential title investigation before committing substantial funds.
Mistake 5: Relying on the Seller’s Lawyer
The seller’s lawyer has a professional duty to represent the seller’s interests.
Better approach: Obtain independent legal advice.
What Should You Do Before Buying Property With a C of O?
A practical sequence is:
Step 1: Obtain the complete C of O and other title documents.
Step 2: Identify the exact property covered by the documents.
Step 3: Conduct an official search at the relevant land registry or land administration authority.
Step 4: Verify the survey and physical location.
Step 5: Investigate the root of title.
Step 6: Check for mortgages, charges, leases, litigation and other competing interests.
Step 7: Confirm the seller’s identity and authority to sell.
Step 8: Review and negotiate the sale agreement.
Step 9: Confirm the requirements for any necessary consent, registration or perfection of the transaction.
Step 10: Complete payment and documentation only after the legal due diligence is satisfactory.
Conclusion
A Certificate of Occupancy is an important title document, but a C of O should never be the only basis upon which a buyer decides to purchase land or property in Nigeria.
The document should be independently authenticated, matched with the relevant government records, connected to the physical property, and considered together with the root of title and any subsequent transactions affecting the property.
The safest rule for a property buyer is straightforward:
Do not buy because you have seen a C of O. Buy only after the title behind the C of O has been properly investigated.
If you are buying land or property in Nigeria and want to verify a Certificate of Occupancy, investigate the title or determine whether the seller has a valid interest to transfer, Lexforte Attorneys can assist with property due diligence, title investigation, documentation and legal advice before you commit your money.