Owing to the difficulty in getting a Certificate of Occupancy (C of O) in many states of the federation, a good number of property owners don’t bother about the document, SILVER NWOKORO reports.

Getting a Certificate of Occupancy for my property wasn’t easy at all. I spent a lot of money to acquire it, and I spent more than the money I used to purchase the land. It wasn’t a smooth process for me. I was told then to do ratification, that with it, it will be free from government acquisition because it is close to the expressway.”

Acquiring a Certificate of Occupancy (C of O) in Nigeria is a process fraught with challenges and complexities. Many property owners in the country face difficulties in obtaining this crucial document, which serves as proof of land or property ownership. The cumbersome and often corrupt bureaucratic procedures involved in securing a C of O have led some property owners to forgo the process altogether, while others fall victim to fraudsters taking advantage of their desperation.

A C of O holds significant importance in Nigeria, as it not only validates property ownership but also plays a vital role in various legal transactions involving the property. It is a critical document for ensuring legal protection against disputes and claims on the property and facilitates access to loans from financial institutions, as it is commonly required as collateral.

The legal framework governing the issuance and administration of C of Os in Nigeria is outlined in the Land Use Act of 1978. Under this act, state governors and the Federal Capital Territory (FCT) minister have the authority to issue C of Os. The act defines land use in different categories, such as residential, commercial, or mixed-use, and outlines the rights and conditions associated with a C of O.

However, the challenges associated with obtaining a C of O persist, making the process cumbersome and prone to corruption. Property owners often encounter bureaucratic red tape, lengthy delays, and extortionate demands from government officials. Despite the importance of this document, many Nigerians continue to grapple with the complexities of acquiring a C of O, leaving a significant number of properties without valid documentation.

Efforts to streamline and simplify the C of O acquisition process, reduce corruption, and provide property owners with better access to this essential document are crucial for enhancing property rights and promoting a transparent and efficient real estate sector in Nigeria.

The Act also embedded conditions and provisions implied in C of O, stating that “Every Certificate of Occupancy shall be deemed to contain provisions to the following effect that the holder binds himself to pay to the Governor the amount found to be payable in respect of any unexhausted improvements existing on the land at the date of his entering into occupation and that the holder binds himself to pay to the Governor the rent fixed by the Governor and any rent which may be agreed or fixed on revision in accordance with the provisions of Section 16.”

Explaining the legal benefit of acquiring a C of O, a human rights activist, Chief Malcolm Omirhobo said the document is a legal document issued by the government that proves that a person owns land in Nigeria.

He noted that C of O and Right of Occupancy are not the same. Right of Occupancy, he explained, is a grant of an interest in land, while C of O is the document evidencing this interest. He said: “The C of O is merely an evidence of title, not an actual title. Where the title is defective, the C of O evidences nothing.

“It raises a prima facie presumption that the holder has an exclusive possession and has a Right of Occupancy. “However, where it is shown that another person has a better title, the court will set aside the Right of Occupancy of the first person regardless of the C of O.”

Citing Section 9 (a) of the Land Use Act, Omihorbo stated that the government is to issue a C of O when granting a statutory right of occupancy to anyone, when anyone is in occupation of the land under customary right of occupancy (non-urban areas) and when anyone is entitled to a statutory right of occupancy in urban areas.

This, he said, is the prerogative of the governor, and no governor can grant C of O as evidence of customary right of occupancy. Such, he insists, would be null, void, and ineffectual.

“However, by virtue of Section 45(1) of the Land Use Act, the governor may delegate power to grant C of O to the commissioner-in-charge of the relevant subject matter who cannot delegate such power (delegatus non potest delegare).

“Section 9 of the Land Use Act provides for some conditions imposed on holders of C of O which include payment for the Certificate of Occupancy, failure of which may lead to cancellation of the certificate or even revocation of the Right of Occupancy.

“Section 10 of the Act further provides obligations to pay for unexhausted improvements existing on land at the date of entering into occupation and rent fixed by the governor,” he said.

Omihrobo also noted that holders of land prior to the enactment of the Land Use Act in 1978 are not bound by the provisions in Section 10(a), and if they do not wish to be bound by Section 10(b) they are advised not to apply for the C of O because once obtained, would be estopped from rejecting its conditions.

He further explained that in terms of compensation, by virtue of the provisions of the Land Use Act and the Nigerian Constitution, in the event of compulsory acquisition of land by the government, whereas the owner of such land does not have a Certificate of Occupancy or any other registered title, he/she will get minimal or no compensation.

A Certificate of Occupancy (C of O) is a critical legal document in Nigeria, as it confirms the genuineness and authenticity of property ownership. Without a C of O, a landowner holds equitable interest/title in the land, not legal interest/title, which means that legal title takes priority over equitable title.

There are several implications of not having a C of O for a property owner:

1. Inability to Use Property as Collateral: A property without a C of O cannot be used as collateral for a mortgage because there would be no document to register the mortgage on.
2. Inferiority in Adverse Title Disputes: In disputes involving equitable interests on the same land, the first person to obtain a C of O over the land holds a better and superior title. When there are two equities, the first in time prevails.
3. Unsearchable Land: A land without a C of O has no records at the Land Registry and is not searchable. Since it is not registered, a property search cannot be conducted on an unregistered land.
4. Reduced Market Value: While not a legal implication, a landowner may not be able to sell the land at its market value because it needs to be registered to have a good market value.

It’s important to note that a C of O is only granted for a term of 99 years, and state governments have the power to review, extend, or revoke it. Fake C of Os can lead to land disputes, and a C of O is a secondary document that can be disputed if another party can demonstrate a better title to the property.

To mitigate these issues, property owners are advised to apply for a C of O as early as possible and conduct due diligence before purchasing property. Hiring an experienced lawyer to make necessary requisitions and findings before a property purchase is also recommended. Ultimately, having a valid C of O provides legal protection, access to financial facilities, and peace of mind for property owners in Nigeria.