Difference between Deed of Assignment and C of O in Nigeria

Before you buy any land in Nigeria, you must ask what title document the land has. The deed of assignment and Certificate of Occupancy (C of O)  are two common types of titles.

These two documents have their differences and advantages, it is important to understand the differences between the two documents as a buyer or investor.

So what is the difference between C of O and Deed of assignment?  Let’s first look at them individually.

Certificate of Occupancy (C of O)

A Certificate of Occupancy is a legal document issued by the government to show that you have ownership of the land and can as well use the land.

A C of O document must contain the property details which could be the location, the size, the boundaries the owner’s name, certificate number, terms and conditions, authorized signatures of government officials and date of issue.

There are different types of certificates of occupancy depending on the land purpose.  They include:

Global C of O

Global C of O is issued on a large expanse of land in acres or hectares. It is usually issued to land owners or developers of real estate.

Real estate developers usually have a Global C of O because anyone who buys at least a plot of land in the estate will be protected by that single C of O.

It means subsequent subscribers in the estate cannot obtain another C of O in their own name for their respective plots of land.

Residential C of O

A residential C of O is for a government-approved location or residential building. This C  of O is only valid for 99 years.  It can only be given to an individual or a company.

Agricultural  C of O

This is C of O for agricultural purposes. Let’s say you are using the land for farming or livestock, you will request for agricultural C of O. This category of C of O is valid for between 25 to 28 years and it can be given to an individual or corporate organization. 

Industrial C of O

This type of C of O is approved for industrial purposes. For example, Dangote Refinery and Emzor Pharmaceuticals in Lagos State. This C of O is usually valid for 35 years and is given to a company, not an individual.

Family C of O

Some reputable families have a government-approved certificate of occupancy in their names. This is valid for life and guess what, it can only be given to a reputable family.

Also Read:

• 10 Different Land Titles You Should Know in Nigeria
• Where to Invest in Imo: 3 Best Places to Buy Land Near Owerri
• What is the Difference between C of O and Governor’s Consent in Lagos?

Deed of Assignment

A Deed of assignment is a legal document that shows that the owner has transferred ownership rights to the buyer.

So if you’re buying land from anyone you must request a deed of assignment. That deed of assignment must be legally registered to show that the right of ownership has been transferred to you.

In addition, if you’re buying land from someone who already has a C of O, also get the deed of assignment to show that the land has been legally transferred to you.

The Deed of assignment must also contain the following key details:

Names and addresses

It must have the names of both parties, it must also contain the address of the seller and the address of the buyer. In addition, the address of where the property is located needs to be clearly spelled out.

Signatures 

The Deed of Assignment must have four signatories, the part where both parties and the witnesses signed.

 Witnesses

There should also be the names of the witnesses. Mind you the witnesses of the seller should be a family or a close family friend.

Land history 

You must capture the history of the property be it a land or a house. The history here simply is just a description of how the property came to be.

Purchase price

You must capture the cost of the land clearly and the willingness of the seller who is agreeing to that particular price. 

Differences between Certificate of Occupancy and Deed of Assignment

1. Purpose

Each of these titles has its own function. While a certificate of occupancy proves ownership of land and is issued in your name, a deed of assignment proves that a property has been legally transferred from one party to another.

2. Issuance 

A lawyer prepares a deed of assignment, while a C of O is issued or granted by the governor of the state.

3. Requirements

To obtain a C of O, a lot of requirements such as a survey plan, and proof of ownership are needed before it is approved. The lawyers of both parties can prepare a deed of assignment.

4. Legal stance

A Certificate of Occupancy is not a good root of title, especially where there are existing interests on the land, while a Deed of Assignment is a good root of title

5. Transferability

You can transfer the C of O land with the governor’s consent or deed of assignment. It remains valid after transfer. A deed of assignment alone does not mean that the government has given you approval for that property. So, you still need a Governor’s consent to show that the government has officially approved that land for you.

6. Revocation

Section 28 of the Land Use Act provided for the revocation of a certificate of occupancy which means that it can be revoked by the governor of a state for overriding public interest.

While on the other hand, you can’t revoke a deed of assignment. This gives a deed of assignment an edge over C of O.

Also Read:

• Follow These Guidelines to Avoid Land Scams in Awka
• Everything About the Awka Real Estate Investment Opportunities
• Why Nigerians in Diaspora Should Avoid Buying Property Through Family Members

Finally, it is very important in your quest for land ownership in Nigeria to know the difference between the C of O and the deed of assignment.

They both work hand-in-hand. There are times you acquire a property and it only comes with the deed of assignment and other documents like the survey plan and the receipt.

So in such case, you can go ahead to apply for a certificate of occupancy with the land registry.