Misinformation is widespread, so be cautious! Don’t trust everything you come across, as not all of it is accurate. There are several types of Certificates of Occupancy, but most people are only familiar with the one that’s valid for 99 years.
A Certificate of Occupancy is an official document that confirms your legal ownership of a piece of land. Let’s start by explaining what a C of O is.
What is a Certificate of Occupancy (C of O)?
What is a C of O? A Certificate of Occupancy (C of O) is a legal document issued by the government in Nigeria that confirms the right of a person or entity to use and occupy a specific parcel of land. It serves as proof of ownership under the Land Use Act of 1978, which vests all land in the state government. The C of O outlines the terms and conditions under which the land is held, typically for a lease period of up to 99 years. It also specifies the land’s intended use, whether residential, commercial, or agricultural, and is essential for securing legal ownership and avoiding disputes.
In Nigeria, the Certificate of Occupancy (C of O) is a crucial document that proves the government’s consent to the use of the land. It is essential to verify the validity of the property’s C of O. Without this, the government or other parties could contest your ownership.
In Nigeria, acquiring a Certificate of Occupancy (C of O) is crucial for securing land ownership rights. However, the type of C of O you obtain depends on the land’s use and legal framework. Below are the four main types of Certificates of Occupancy:
- Customary C of O (Family C of O): A Customary Certificate of Occupancy is issued to families or communities that own land under customary law. These lands are typically ancestral properties passed down through generations. The Customary C of O formalizes communal land ownership, allowing family heads to hold legal land titles on behalf of their lineage. During one of the Real Estate training organized by our firm, we were taught by our lawyer that every land has its historical background and this mustn’t be neglected. The Customary C of O is a document that shows the importance of family history when we are discussing landed properties.
- Statutory Certificate of Occupancy: The Statutory Certificate of Occupancy is the most common form of land title in Nigeria. It is issued by the government for urban or commercial land use and is usually granted to individuals, organizations, or entities that acquire land through government allocation or purchase. This type of C of O provides legal ownership and protects the holder from disputes. This type of C of O has more legal stronghold than the Customary C of O because it is government, usually state government-issued. The statutory C of O lasts for 99 years after which it should be renewed.
- Industrial C of O: The Industrial Certificate of Occupancy is issued for land specifically allocated for industrial purposes, such as factories, manufacturing plants, and other heavy industries. This ensures that the land is used for large-scale production or other industrial activities, as stipulated in the agreement.
A typical example of such a large-scale area is a place where the Dangote refinery is located in Ibeju-Lekki, Lagos. This type of C of O is designated for industries that require land for heavy manufacturing or large operations.
Typically, land designated for industrial purposes is located in less populated or remote areas of the state. This zoning helps minimize the environmental impact of industrial activities, particularly concerning pollution control.
The Industrial Certificate of Occupancy is generally granted to companies rather than individuals. The tenure for this certificate is often 35 years, providing a long-term lease for industrial activities.
- Agricultural C of O: The Agricultural Certificate of Occupancy is granted to individuals or organizations using land for farming or other agricultural activities. This type of C of O allows for legal ownership while ensuring that the land is dedicated to agricultural production, contributing to food security and economic growth.
In Ikorodu and Epe many lands are classified within the agricultural zone. While these lands may be categorized as “Free Hold,” a closer inspection often reveals that they fall under the agricultural zoning classification. To understand this better let’s define what Free Hold means. According to the Economic Times, Free Hold Freehold property can be defined as any estate which is “free from hold” of any entity besides the owner. Hence, the owner of such an estate enjoys free ownership for perpetuity and can use the land for any purposes however in accordance with the local regulations. So it is possible for you to currently own land under a Free Hold arrangement and yet its zoning status remains agricultural.
However, it’s worth noting that with proper processing and government approval, the zoning can be changed to residential in the future. This flexibility is beneficial for buyers interested in developing the land for non-agricultural purposes down the line. But as of now, the majority of lands in Ikorodu and Epe are designated as agricultural.
One key aspect of owning land under an Agricultural Certificate of Occupancy (C of O) is the tenure, which typically lasts between 25 and 28 years. This shorter term reflects the land’s intended use for farming and agricultural activities. If the land’s zoning status is modified to residential or another classification, the Certificate of Occupancy would also need to be updated to reflect its new purpose.
This is a common situation for many landowners, particularly in areas like Ikorodu and Epe. Understanding the zoning laws and land tenure is crucial before purchasing or developing land.
Conclusion
In conclusion, understanding the different types of Certificates of Occupancy in Nigeria is crucial for anyone looking to acquire land, whether for residential, commercial, industrial, or agricultural purposes. Each type of C of O comes with its own set of requirements, legal frameworks, and benefits. Whether you’re a landowner or a prospective buyer, verifying the land title and its classification is essential to ensure smooth ownership and avoid future disputes.
Are you considering acquiring land in Nigeria? Which type of C of O best suits your needs, and have you encountered any challenges with land titles? Let us know in the comments!
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