As far as land titles are concerned in Nigeria, Certificate of Occupancy or simply called C of O is arguably the most well known of them all.
So well known in fact that it has taken on an almost mystical character in the mind of most real estate buyers and investors as the almighty property document that once issued on a property protects their investment till thy kingdom come.
Maybe like some of my clients, you only acquire lands that have C of O. That’s all good and well but how much do you really know about C of O? Why do I say that it might be one of the most overrated property document?
Come with me let me reveal 6 factors you previously didn’t know about C of O.
🔹1. There are two types of C of O:
We have what we call individual C of O and global C of O.
They perform the same function, and they are valid for the same time period.
The only difference is that a global C of O covers a very large area of land and is either in the name of the real estate company or family that owns the land.
While an individual C of O covers a smaller area of land and the name on the document itself is yours.
For example, Amen Phase 3 has a C of O, but the C of O is a global C of O which means that it covers the whole estate and the name on the document itself is Amen City Ltd, because they are the developers of Amen Phase 3.
Now if you buy let’s say 5 plots of Amen Phase 3, you won’t get a separate C of O document in your name, because the property already has a global C of O.
On the other hand if you go currently to Epe and buy a freehold land from a family down there, you can go to the land bureau and perfect the freehold land to C of O. Being that the land is Freehold and you yourself perfected the title to C of O, the name that will be on that document is your name. That’s an individual C of O.
Note: a Freehold land is a land that does not have any title whatsoever on it.
🔹2. C of O protects your land for only a period of 100 years:
According to the Nigeria Land Use Act of 1999; all lands in the state belong to the state governor. Nonetheless the governor can issue a C of O on a land, which gives the individual or entity whose name are on the C of O document use of the land for a period of 100 years.
What happens to the land after this period of 100 years?
Well, after the 100 year period the C of O expires. The person who determines the new status of the land is whoever is the current governor at the time of the expiry.
What is in the law is that C of O protects your land for only a period of 100 years after which it expires. This is the only major limitation that C of O has.
🔹3. You can get C of O only once on a piece of land:
Once a C of O has been issued on a land, another C of O cannot be issued on the same piece of land.
That is why I told you earlier that we have two types of C of O. Global and individual C of O.
When you are buying land from an estate that has C of O, you can’t get another C of O in your name for the lands you bought in that estate simply because it is only issued once on a piece of land. If you wish to perfect the title so your name is in the document, you will have to process Governors Consent.
🔹4. C of O doesn’t really protect your land from the government:
Remember I told you that according to the land use Act of 1999, all lands in a state belong to the state government under the control of the governor.
What this means is that the state government can take possession of your land whether it has C of O or not if they need it for a project that is for “public good”, I used the quotation mark because that is the exact term used in the law.
For example if they need your land because they want to build new road, market or whatever public project they deem fit, they are backed by law to take the land.
The only thing there is that they will compensate you the full value of that land because it has C of O. But the C of O itself doesn’t stop them from taking it. No land title does.
🔹5. C of O is not the most secure land title in Nigeria:
This might come as a shock to you, but yeah, C of O is not the most secure land title.
Like I already said earlier in this article, it is valid for only 100 years. This is a major limiting factor and a big chink in an otherwise inpregnable armour.
Other land title documents like Governors Consent and Gazette have no expiry period hence based on this factor can be said to be more secure than a C of O.
Whenever you buy a land with C of O, your investment is safe and secure nonetheless try and perfect the document on your plots to a Governors Consent.
This adds an extra layer of protection to your land and removes the 100 years validity period that a C of O has.
🔹6. C of O is not always C of O. It has a twin:
Forgive the pun but in Abuja, which is the federal capital territory, C of O is called R of O which stands for Right of Occupancy.
They are the same document and they perform the same function, the only difference is in the name.
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