by Bluemeen Partners 
Certificate of Occupancy Explained
What is exactly is a Certificate of Occupancy (C of O) and what role does it play.
You should know in order of important titles of land to own, the certificate of occupancy trumps them all.
It is important to note that your goal of owning a land is not attained yet until you have secured your certificate of occupancy and I will tell you why;
First off, what is a Certificate of Occupancy?
History
The certificate of occupancy is a creation of the Land Use Act (LUA) of 1978. You see, prior to LUA of 1978, all lands were owned by individuals, families, traditional rulers and communities etc. This system led to disputes and difficulty generally in ensuring a unified record of land ownership. Owing to this, the LUA was designed to vest all land comprised in the territory of each state (except land vested in the federal government or its agencies) solely in the governor of the state, who would hold such land in trust for the people and would henceforth be responsible for the allocation of land in all urban areas to individual residents in the state and to organizations for residential, agricultural and commercial and other purposes while similar powers with respect to non-urban areas are conferred in local governments.
Ok chill, amidst all this grammar of C of O is a legal document issued by the government to confirm a person’s right to use and occupy a piece of land for a specified period, typically 99 years.
Why is the C of O important?
1. Proof of Ownership
Like I said earlier, it is the most important title to land and also the most acceptable and reliable and proof of land ownership.
2. Store of Value
Due to its relevance, banks and financial institutions will mostly accept C of O before granting loans and mortgages.
3. Facilitates Transactions
Properties with a valid C of O tend to be more attractive to investors and buyers. It signifies that the property is free from encumbrances and that all requirement have been met, making it easier to sell, transfer, or lease the land.
4. Having a C of O gives the holder stronger legal protection from government reclamation.
5. Better Protection Against Disputes
With C of O, the holder is less vulnerable to disputes. It serves as a key document in court to prove ownership if anyone challenges the holder rights to the land.
Step-by-step Application Process for a Certificate of Occupancy
1. Application For Survey Plan
Obtain a registered survey plan if you don’t already have one. This is usually required to make an application for the C of O.
2. Submission of Application Form
The application form is sourced from the ministry of lands and housing of the state where the land is located. It includes personal details, details of the land such as proof of ownership, location, size and the prospective use of the land.
3. Payment of Fees
Endeavor to pay all necessary fees for processing of the application.
4. Survey and Inspection
Government officials will be assigned to conduct a physical inspection and survey the land to verify the details in the survey plan earlier submitted. This survey will also determine if the land had already been earmarked for other uses.
5. Governor’s Approval and Consent
After the inspection by the government officials, and recommendation of the inspection team, the governor will either approve or deny the application.
6. Issuance of Certificate
After approval by the governor, the C of O will be issued in the applicant’s name. ensure that all details are correct before collection.
Please note: The governor of a state also has the power to revoke certificate of occupancy on the following grounds:
1. If the land is needed for public projects like infrastructure development – overriding public interest.
2. Failure to pay ground rent (rent fixed by the governor and any rent which may be agreed or fixed on revision in accordance with the provisions of section 16 of the LUA of 1978).
Are you interested in investing in real estate in Nigeria?
Bluemeen Partners is a real estate consulting firm with particular expertise in Property Portfolio Building and Management. Contact Bluemeen Partners at +2348163802140 or +2349156379840 for consultation and possible inspection of our various properties that are for sale.
