Daily Realtor Blog

SOME OF THE FEDERAL AND REGIONAL LAWS GOVERNING REAL ESTATE

  1. The 1999 Constitution of the Federal Republic of Nigeria: Section 43 of the 1999 Constitution provides s follows “Subject to the provisions of this Constitution, every citizen of Nigeria shall have the right to acquire and own immovable property anywhere in Nigeria.” Pursuant to this provision, the right of every Nigeria, either individual or cooperation is guaranteed.
  2. Land use Act of 1978. The Land Use Act changed the arrangement of land ownership before 1978 upon its coming into being. Prior to this law, land used to be owned by families or communities. After the coming into being of this law, lands in the urban areas were vested in state governments and the lands in the rural areas of the country became vested in the local government. The freehold systems of the past were abolished by this Land Use Act and replaced with a leasehold. Every landowner invariably became a lessee to the state government for a specific period of time. The law also provided that the state and local government have the duty of issuing a statutory right of occupancy to lands. The words ” statutory right of occupancy ” shows that the land is not outrightly owned by the person but that it will expire after a period of time certain. The law further provides that land cannot be sold or alienated in any way by the holder of a statutory right of occupancy without the consent of the governor first sought and obtained and there is a penalty for anyone who breaches this provision of the law. Consequently, it will be unlawful for any person whose interest in the property has been vested by virtue of a Deed of Assignment or Deed of Conveyance to decline to obtain the consent of a governor of the state where the property is located
  3. Nigerian Urban and Regional Planning Act: This act governs the management of urban and regional planning in Nigeria. It also takes care of complaints and grievances on issues like the demolition of houses and the likes.
  4. Rent control and Recovery of Premises Act: This Act provides steps to be followed by landlords in evicting tenants from his building. The law is strictly against self-help in the eviction of tenants and the landlord must follow the required procedure set down by the law in achieving this.
  5. Stamp Duty Act: The stamp duty act provides for several instances where a land transaction would involve the payment of stamp duty. It makes provision for the calculation of stamp duty based on the type of property and the amount of money involved in a transaction.
  6. Capital Gains Tax Act: This Act operates at the federal level and states like Lagos State. This Act provides for a tax that is chargeable upon the disposal or sale of and assets. In the Act, real estate is defined to be one of the assets. The tax is charged on the profits on the proceeds of assets that are sold and also properties sold outside Nigeria but the proceeds brought into Nigeria. This is at the rate of 10 percent on each disposal. The procedure for calculating this tax is also provided for in the laws.
  7. Conveyancing Act 1881: This Act governs conveyancing and property transactions in both the Northern and Southern parts of Nigeria save for a few states exempted. The Conveyancing Act is one of the oldest real estate laws in operation in Nigeria.
  8. Property and Conveyancing Laws (PCL): The PCL essentially governs the transfer and general property transactions in the western part of Nigeria. This law is currently domesticated in all western states of Nigeria and it governs the acquisition of properties in the following states- Ogun, Oyo, Ondo, Osun, Ekiti, and some parts of Lagos.

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