The rate of fraudsters in the real estate business is alarming. There have been different deceptive measures adopted by scammers every passing day. One of them seems to be the falsification of property documents to potential land buyers. In recent times, this has been the most popular form of scam in Nigeria.
The scam has not been limited to people in Nigeria alone. Unfortunately, property documents are predominantly done to Nigerian investors who are based abroad, too. Thankfully, this article focuses on how to verify property documents remotely when investing from abroad. It also discusses some alternative measures to use to reduce the risk of property fraud.
Property Verification and its Processes
There are numerous documents to verify when purchasing a property. Even though you may not be in Nigeria, you can send a trusted representative to help you verify them. Here are some of the documents and how to verify them:
1. The Certificate of Occupancy, or C of O
The Certificate of Occupancy is one of the most crucial documents used to demonstrate land ownership (C of O). These documents should, of course, be given to you by the landowner. Make sure you insist on looking over these documents before paying.
Regretfully, there are instances in which C of O is fake. Before paying for real estate, these situations can be prevented. A detailed procedure for authenticating the certificate of occupancy can be found under the following subsection.
How To Verify C of O
This is how to check your C of O step-by-step:
Step 1: Ask your Representative to Visit the Lagos State Land Bureau.
It starts with a visit to the Lagos State Land Bureau. Your representative must make this visit to see if the property you bought is registered with the government. It is important to keep in mind that all properties are included in the database.
Step 2: Make a property verification request
A verification number is attached to each genuine C of O. They will ask you for this number. Searching for the individual papers with this number would be easy. They would input this number into their database to find your property information.
Step 3: Verify Payment
Your representative would be responsible for paying a fee. This money would ensure that the verification search performed smoothly. During the verification process, this expense is incurred. You wouldn’t be able to verify your land without this.
After some days, your report would be ready. This report would determine whether the Certificate of Occupancy was accepted or denied. Purchase the house right away, of course, assuming the Certificate of Occupancy is authentic..
2. Governor’s Consent
As the name implies, this is a document usually obtained from the State Governor. It is given to provide evidence that the transaction has been deemed legal by the law. The absence of a governor’s consent may make a land transfer invalid.
Recall that only the first owner of the land is allowed to have a C of O. However, subsequent buyers of that same land are to possess a C of O and a Governor’s Consent. So, this places importance on the Governor’s Consent when purchasing land.
How To Verify A Governor’s Consent (Lagos State)
Your lawyer is responsible for investigating the legitimacy of a Governor’s Consent. Here is a step-by-step procedure for verifying a Governor’s consent:
Step 1: Visit Alausa Secretariat
Alausa is the seat of the Lagos State Secretariat and the Office of the Governor. Your lawyer is mandated to visit this office to verify the Governor’s Consent. The office is located in the capital of Lagos State, Ikeja.
Step 2: Run Verification Of Documents
Your lawyer would be asked to present the Governor’s Consent. The process of verification of these documents would take some hours. The Secretary would respond with a file that supports or disclaims your Governor’s Consent.
Step 3: Buy/ Walk Away Decision
The report given to you would either validate or deny the Governor’s Consent report. Your lawyer would advise you on the next approach to take. This report can be sent for you to verify via social media.
3. Deeds of Assignments
Another document that needs to be followed is the Deeds of Assignments. With relation to the buyer’s interest in the land, this document is meant to show precise information between the buyer and seller.
Many states in Nigeria require this document. Getting the records is essential to avoiding more lawsuits. Unlike other documents, this one can be scanned and sent to you via email. Your consent is the main reason you are receiving this content.
The Deed of Assignments contains vital information such as the Land Buyer, Consideration (Amount), Description of Property, Signatures, and Witnesses with dates the purchase was made.
How To Verify The Deeds Of Assignment
Here is a simple procedure to verify a deeds of assignment document:
Step 1: Find the Crucial Details
A common practice among landlords is leaving out important details. As a potential buyer of the property, make sure the Deed of Assignments has all relevant information. Make sure your lawyer and witnesses enforce such details before you purchase it.
Step 2: Verify Your Registration
The Deed of Assignments has to be registered with the appropriate authorities. Ensure tue documents are signed by the Land Bureau or the Local Government Chairman. Additionally, make sure the landowner signs this before purchasing the land.
Step 3: Request that Your Attorney Examine the Deed of Assignment
Making sure your lawyer looks over this document is the final step. Your attorney will advise you on the best course of action. It would be wise to cover the entire attorney’s charge. This is to guarantee that he does his duties free from personal attachments.
4. Survey Plan
The Survey Plan is designed by the surveyor of the property owner to show the boundaries of the land. This plan is usually given to show that there is no encroachment on government property. Without these documents, it is not possible to claim your land in the event of government demolition. So, enforce these documents immediately! You can check the verification of these documents using the following step.
How To Verify Survey Plan In Nigeria (Lagos State)
Here are the steps in verifying your survey plan in Nigeria:
Step 1: Go Online
The first step is to launch your mobile phone browser. You can do this by downloading any of the following browsers. You can use any of the following browsers such as Google Chrome, Firefox or Opera Mini. The next step is to visit the Lagos State Nigeria website. Next, create an account on the website and key in survey plan number.
Step 2: Tap on “View”
You should then be able to see the results. Ensure to click on “View”. Doing this will ensure that you have a clear view of the documents. If the survey data plan is on the database, it will be displayed. However, if it is a fake survey plan, it will display “Survey Plan Not Available”. Following these steps would ensure that you do not get swindled of your funds.
How To Minimize Fraud Risk In Real Estate In Nigeria
You can make use of this provision to reduce the risk of document verification fraud:
Escrow Trustee
Escrow is one of the best ways of preventing document fraud in real estate. An escrow is like a third party charged with the responsibility of making sure all parties fulfil their parts before the reward is given. This simply implies that a property owner would ensure all documents are legal and complete before receiving payment. On the other hand, it would imply that prospective property buyers pay in full when satisfied with the necessary conditions.
One purpose of an escrow trustee is to carry out document verification. Escrow Trustee ensure that all documents adhere to the terms in the agreement before releasing payments. Additionally, the escrow ensures the distribution of the funds to property owners if the property buyer is satisfied with the document verification. Some financial institutions like First Bank and FCMB.
Power of Attorney
Power of Attorney is a document that allow you to appoint a person (having essential knowledge of real estate) to handle your financial affairs or property. This Power of Attorney may suffice in a situation where you are not in the country. You can hand the power to an ‘agent’ such as a property lawyer to handle your real estate investment for you. It does not just stop there!
The best part is that the Power of Attorney must act in compliance with the detail found in the contract. He must act in your best interest. Of course, one of your interests would be getting a property that meets all legal requirements. So, using this medium of representation may help you avoid the risks associated with document verification.
Title Insurance
Title Insurance is a kind of insurance package that protects against defects in ownership of a property. This policy can only be activated when the property has already been bought. If you have unknowingly bought a property with tia a defect, then this is you. This policy ensures that foreign-based Nigerian ownership rights are not jeopardized. So, it provides a safety net for individuals in the real estate market.
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