There’s nothing as frustrating as discussing with someone, especially about real estate, and feeling completely lost because of the jargon they use. This is why we want to discuss various real estate terminologies and meanings in Nigeria.
Real estate in Nigeria has its unique set of terms that can be confusing if you’re new to the industry or planning to invest.
But don’t worry — this guide breaks down 21 common real estate terminologies in Nigeria and their meanings in a simple, easy-to-understand way. By the time you’re done, you’ll speak the real estate language like a pro.
Below are the 21 real estate terminologies in Nigeria and their explanations:
1. Property Title
A property title is a legal document that shows ownership of a property. In Nigeria, common types include the Certificate of Occupancy (C of O), Deed of Assignment, and Governor’s Consent. It includes the property’s details, ownership history, and legal description. Title deeds are essential for resolving land disputes and securing property investments.
2. Certificate of Occupancy (C of O)
This is a government-issued document that proves you are the legitimate owner of a piece of land for a specific period (usually 99 years). It’s a must-have for serious property investors.
3. Deed of Assignment
This legal document records the transfer of property ownership from the seller to the buyer. It is essential for proving that ownership has been passed from one person to another. It documents the transaction details, making it pertinent for any real estate deal.
4. Governor’s Consent
For any land transaction in Nigeria, the state governor’s approval is mandatory. This process validates the transfer of ownership, making it legally binding.
Also Read: How to Verify Land Ownership in Ibusa Before You Buy
5. Land Use Act
The Land Use Act of 1978 governs land ownership in Nigeria. It vests all land in each state under the state governor’s control, making it mandatory to obtain a C of O for land use. It regulates land ownership and transactions, making compliance essential.
6. Survey Plan
A survey plan is a map showing the exact boundaries, size and location of a piece of land. It is prepared by a licensed surveyor and is required for land registration.
7. Real Estate Agent
A real estate agent is a licensed professional who facilitates property sales, leases, and purchases on behalf of clients. In Nigeria, agents usually work on a commission basis.
8. Landlord and Tenant
A landlord is the owner of a property rented out to another person, while the tenant is the person renting the property. The tenancy agreement is what cements the relationship between the landlord and tenant.
9. Tenancy Agreement
This legally binding contract outlines the terms and conditions of a rental agreement between a landlord and a tenant. It covers rent, maintenance, and eviction clauses.
10. Excision
This is when the government releases land it had previously acquired for public use back to individuals or communities. It’s safer to buy land that has excision.
11. Gazette
A gazette is an official government document that lists lands that have been excised. If the land you’re interested in buying is listed in a gazette, it’s generally safe for private ownership.
Also Read: The 3 Best Locations to Buy Land NEAR Asaba
12. Property Valuation
Property valuation is the process of determining the market value of a property. This evaluation is based on factors like location, size, condition, and recent sales of similar properties. This helps in pricing and securing loans.
13. Mortgage
A mortgage is a loan used to purchase property, secured by the property itself. In Nigeria, banks and financial institutions offer mortgage loans, allowing people to buy homes and repay over several years.
14. Real Estate Investment Trust (REIT)
REITs are investment platforms where individuals pool money to invest in real estate without directly owning properties. Think of it as buying shares in a real estate company. Investors can Buy shares and earn dividends from the company’s profits.
15. Encumbrance
An Encumbrance refers to any legal restriction on a property, such as liens, mortgages, or easements. Encumbrances can affect property transfer, so clearing them is essential before completing a purchase.
Also Read: The 5 Best Places to Buy Land in Anambra as a Nigerian in the Diaspora
16. Property Appreciation
Property appreciation refers to the increase in a property’s value over time due to factors like location development, infrastructure upgrades, and market demand.
17. Title Search
A title search involves reviewing public records to confirm the legal ownership of a property and ensure there are no liens or disputes attached to it.
18. Power of Attorney
This legal document grants someone the authority to act on another person’s behalf in real estate transactions. It is common when the property owner is not physically present. In Nigeria, for this document to be valid, it must be signed and notarized.
19. Site Inspection
In real estate, site inspection is the process of visiting a property to assess its physical condition and verify the information provided by the seller or agent. Site inspection is an important step to take before making any purchase.
Also Read: Follow This To Verify Your Land Ownership in Ofada Owode
20. Stamp Duty
Stamp Duty is a tax paid on legal documents, including real estate agreements, deeds of assignment, and tenancy agreements. In Nigeria, the value of the property determines the amount. Payment of stamp duty ensures the document is legally binding.
21. Real Estate Developer
A real estate developer is a company or individual that finances builds, and sells real estate projects. They are behind major housing estates and commercial developments in Nigeria.
Does Knowing These Terms Matter?
Absolutely. And you don’t have to be a real estate agent to know them. If you plan to rent, buy, sell or invest in real estate, you’re already a part of the process.
The good thing about understanding these terms is that it can help you avoid costly mistakes and fraudulent deals. Plus, real estate deals with a lot of legal technicalities, so if you’re up-to-date, you’re more likely to avoid some legal issues.
Add that to the fact that Nigeria’s real estate sector is expected to grow rapidly in some years to come. Statista projects that the market will grow by over 7.10%, generating a market volume of US$3.41tn in 2029.
You can see that this is huge and promises a good return for committed real estate investors. Ultimately, staying up-to-date will give you an edge in property investments.
Also Read: 10 Simple Questions to Ask Before Buying Land in Badagry
Summary of the Real Estate Terminologies in Nigeria
The Nigerian real estate market has a lot of opportunities. But it’s also fraught with challenges for the uninformed. However, you can cut your learning curve by half by mastering these important terms.
If you do, you can expect to be natural at real estate conversations. Moreover, you will flow better when a real estate lawyer or agent explains things to you next.
You’ll be better equipped to profit from this dynamic industry and avoid costly mistakes. If you’re considering real estate investments, now is the time to apply this knowledge and explore lucrative opportunities in Nigeria’s growing property market.
To explore any of our real estate investment packages like land banking, retirement plan, kids education investment plan, trade apprenticeship plan or if you want to purchase some plots where you will have residential or commercial buildings, send an email to us at info@affablehomes.com.ng or call +2349134056630.
