When purchasing land in Lagos with a C of O or Governor’s Consent title, it’s important to keep in mind that there are some fees to pay. Before you can register ownership of that land in your name, you must pay these fees. Without this, the seller’s name will remain on the title to the property. Please keep in mind that this material is only meant to be used as a guide and should not be considered a replacement for expert advice.
Of all the charges, the most important are:
While obtaining a parcel of property with a C of O title is appealing, the buyer should keep in mind that every owner of a C of O title is required to pay an annual fee to the government for the privilege of inhabiting that land. A GROUND RENT is the name for this charge.
A penalty is imposed for each year that the individual fails to pay the GROUND RENT.
However, owing to Nigeria’s weak tax structure, C of O holders seldom pay that amount, and in most cases, they are completely unaware of the taxes they must pay.
The issue now comes when a new buyer wants to purchase the Land with a C of O.
You will never know if you are about to INHERIT SOMEONE ELSE’S DEBTS until you perform a thorough check on that C of O.
Before you may execute your Governors Consent, the Land Registry Tax Department will compute the ground rent from the time the C of O was acquired, calculate the penalties, value it at today’s inflationary rates, and provide it to you.
That is why, in certain cases, the cost of Governor’s consent is so expensive, because they are unaware that they are bearing the weight and problems of other people’s taxes as their own.
The easiest approach to avoid this situation is to ensure that the lawyer conducting the search for you does a thorough check at the tax registry to determine exactly how much the C of O holder owes the government.
Once you have a good sense of what you owe in costs, you may use it as a bargaining chip to lower the asking price of the home.
Make sure you know the Ground Rent of any property with a C of O before you buy it, or you’ll end up paying the price.
If you’re purchasing property with a Governor’s Consent or have just purchased land and want to perfect the Governor’s consent, make sure you ask the person selling the land to you, whether it’s a private seller or Omonile, to produce their tax clearance and deliver it to you. If you don’t do this, you’ll have to pay up to N200,000 in tax clearance for that individual, which is increasing every year.
The regulations in Lagos and Ogun states need you to present the seller’s and buyer’s tax clearances before you can complete your Governor’s approval. Failure to do so will result in a one-time fee that will serve as the person’s tax clearance.
The Omonile Signing Fee is another deceptive land tax that doesn’t get into the government’s hands.
This money stinks of deception, deceit, and evil, yet it must be paid, no matter how vile and repulsive the situation appears.
A lot of individuals rush into purchasing land from Omoniles without fully understanding the associated fees.
The signing costs might range from N50,000 to N1,000,000. Depending on how established and affluent the neighborhood is.
You would pay Foundation fees, Community development costs, and Youth fees, among other things, in addition to the Omonile signing fees.
These are non-refundable costs that you must pay before they will sign your paperwork.
The easiest method to deal with this Evil is to begin negotiating the cost of these fees before purchasing the property.
It offers you more clout with these Omoniles since they are desperate for your money right now and will do anything to lower the costs.
The problem is not understanding the cost or negotiating it in advance, since after they’ve gotten payment for the land, they’ll know they’ve got you by the balls and will raise the signing fee because they can smell your desperation to sign the paperwork.
Purchasing land from a real estate developer such as Danbel Properties and Investments Limited, on the other hand, would take your mind off your worries since we have negotiated and agreed on everything with the Omo Onile.
There are some other charges that you will encounter but these 3 carry the most weight.
Want to buy land and dont know how to go about it? Contact us TODAY!!