Table of Contents
Introduction
In the exciting world of real estate business, it’s easy to fall for comforting myths that align with our desire for quick deals and easy profits.
Many real estate investors in Nigeria unknowingly believe dangerous lies about property documentation, seeing them as harmless shortcuts or minor details. The tragic reality?
These widely accepted falsehoods are costing them everything – their investments, their peace of mind, and their future.
If you’re reading this, prepare for a wake-up call. You’re about to be liberated from misconceptions that could lead you down a devastating path.
You could be buying a property today, only to find it legally belongs to someone else tomorrow, or losing a massive profit opportunity because your “investment” isn’t properly documented. This isn’t just theory; these are the harsh consequences of believing common lies.
Let’s expose the truth and show you why meticulous property documentation is not a burden, but your most potent real estate investing strategy against the rampant real estate scams in Nigeria.
Lie #1: “I Can Do the Documentation Later”
The Assumption:
Many aspiring real estate investors assume documentation is an optional afterthought, something to handle when they’re “ready” or have more time.
The Reality:
This seemingly harmless delay is a direct invitation to disaster. Proper documentation, like a Deed of Assignment or Certificate of Occupancy (C of O in Nigeria), legally recognizes you as the rightful owner.
When you procrastinate, crucial clauses can be omitted, and you’ll find yourself desperately chasing after a seller for signatures months or years later.
But the biggest danger? Without immediate registration at the Lands Registry, your title remains unprotected.
Another party could register the same transaction, and in a dispute, the law always prioritizes the one with a registered title. Your delay means your money is hanging by a thread.
Beyond legal disputes, delaying documentation means lost opportunities – unable to use the property as collateral for a loan or secure a lucrative joint venture.
What’s worse, the period of waiting is prime time for real estate scams in Nigeria, land fraud, illegal reselling, and encroachment. Your property isn’t a handbag you can carry to prove ownership; without the paper, it’s a target.
Real-World Illustration:
In Oyebanji & Ors V. Lawanson & Ors (2003), two parties claimed the same land. Lawanson had a dated Deed of Assignment, while Oyebanji relied on an old receipt and possession due to a lost document.
The court ruled that where two parties claim title from the same root, the one who can better trace title with credible and superior evidence (like a duly executed Deed of Assignment) wins.
Oyebanji’s failure to prove notice of their earlier claim to Lawanson, coupled with a lack of proper documentation, led to their loss. Their “later” became “never.”
Lie #2: “My Receipt and Survey Are Enough”
The Assumption:
Many investors falsely believe that a mere payment receipt and a survey plan provide full legal coverage.
The Reality:
A receipt simply proves you paid money; it doesn’t transfer ownership. In this digital age, multiple receipts can be generated for the same property – but only one valid registration is permitted.
A survey plan merely describes the property’s size and coordinates; it doesn’t convey title. These are supporting documents, not proof of ownership.
Your actual legal title is a Deed of Assignment (registered at the Land Registry with the Governor’s Consent) or a Certificate of Occupancy if you are the first legal owner. Without these, your investment is a mirage.
Case Scenario:
In Adekunle v. Ibru (2021), the court ruled that a purchase receipt is insufficient to establish legal title; it only proves payment. ‘
Similarly, in Elias v. Omo-Bare (1982), the Supreme Court emphasized that while a survey plan is vital for identifying land, it must be part of a registered land instrument to carry high evidential value for ownership claims.
If you’re relying solely on receipts and surveys, you’re heading straight for disappointment and potential financial ruin.
Lie #3: “Everyone Buys Land Like This in Lagos”
The Assumption:
The dangerous comfort in numbers – if others are skipping proper documentation in real estate in Lagos, it must be safe, right?
The Reality:
This is one of the most perilous lies. Lagos is filled with devastating court cases, sudden demolitions, and government takeovers, all stemming from poor property documentation.
Just because a practice is popular doesn’t make it safe. You don’t want the courtroom to become your second home, fighting land battles that could have been avoided.
Moreover, countless victims of real estate scams in Nigeria remain silent, too embarrassed or financially ruined to speak up. The “everyone does it” mentality blinds you to the silent suffering of those who lost everything.
Real-Life Case Scenario:
The case of Amakor v. Obiefuna (1974) starkly illustrates this. Amakor relied on physical possession, claiming ownership. Obiefuna, however, possessed valid title documents.
The court unequivocally ruled that possession alone is not conclusive evidence of ownership when confronted with superior documentary proof.
If you believe your physical presence on the land protects you, you’re clinging to a false sense of security that will shatter in court.
Lie #4: “It’s Too Expensive to Process Documentation”
The Assumption:
Investors perceive proper documentation as an unnecessary financial burden or an exorbitant stress.
The Reality:
This is a classic false economy. Proper documentation isn’t an expense; it’s an investment in robust risk management and the ultimate insurance policy for your property.
The actual cost of not documenting – devastating losses, endless legal fees, and collapsed deals – is always exponentially higher.
Add to that the unimaginable emotional and psychological stress of losing your life savings and cherished investments. Prevention, in this case, is not just better than cure; it’s the only cure for future heartbreaks.
Real-World Perspective:
Spending ₦2 million to ₦3 million now on proper documentation, guided by a reputable property lawyer in Lekki or a skilled real estate lawyer in Nigeria, could realistically save you ₦20 million in future losses from capital forfeiture or protracted court battles. It’s an investment with an immediate, tangible ROI.
Lie #5: “I Trust the Agent/Developer, They Promised to Help Me Do It”
The Assumption:
Buyers naively place full trust in real estate agents or developers to handle their crucial documents “later.”
The Reality:
While some intentions may be good, many developers notoriously delay or outright fail to follow through for years. Real estate agents, on the other hand, are primarily sales facilitators; they are not the professionals responsible for preparing your legal property documents or ensuring title transfer.
According to the Legal Practitioners Act (LPA), Section 22(1), only a legal practitioner is authorized to prepare instruments relating to immovable property. Relying on anyone else is like letting a carpenter perform heart surgery.
Furthermore, some agents and developers lack the necessary reputation or even the direct connection to the true property owners.
They might hand you something that looks like a Deed of Assignment but is utterly worthless, exposing you to elaborate real estate scams in Nigeria.
The Warning:
Trust is good, but in real estate business, always verify and meticulously document your property purchase with a professional.
A promise won’t protect you when legal issues arise years down the line; only legally sound, registered documents will.
What Believing These Lies Is Costing You: The Steep Price of Ignorance
The cost of perpetuating these dangerous lies is immense, robbing you of core benefits:
1.Zero Legal Protection:
Without proper documentation, you are legally naked. If someone trespasses or claims your property, you have no proof.
In court, the one with a registered title wins, and your investment dissolves. This directly relates to what the courts say about proper documentation in Real Estate – a truth you ignore at your peril.
2. Lost Money and Opportunities:
Forget about your investment working for you. Without the documentation that fellow real estate investors, prospective buyers, or banks demand, you’re locked out of lucrative opportunities.
No serious financial institution or partner will touch undocumented property for a loan or a joint venture. Your property sits idle, a frozen asset, instead of generating wealth.
This directly contradicts Why Proper Documentation is Good Business for You as a Real Estate Investor.
3. Annihilated Peace of Mind:
Knowing you’re legally exposed to fraud, potential loss, and endless litigation is a heavy burden.
You won’t sleep well, constantly hoping no one else claims your land. This mental and emotional stress is a price no investment should demand.
4. Zero Future Marketability:
Fast forward a few years. Your property has appreciated, but you want to sell. Prospective buyers, now savvier about real estate scams in Nigeria and meticulous about documentation, will demand your papers.
No serious buyer will touch an undocumented property, or they’ll offer a fraction of its market value.
Your property becomes a dead asset you can’t liquidate. This ties into The ROI on Proper Documentation in Real Estate – the ROI becomes zero.
Conclusion: Embrace the Truth, Secure Your Real Estate Fortune
We’ve all believed lies at some point, but true liberation comes with the realization of truth. Now that you understand the profound impact of proper documentation in real estate, it’s time to dismantle any lingering myths you’ve harbored.
Your path to becoming a successful real estate investment tycoon hinges on correcting these past mistakes and embracing meticulous documentation from this moment forward. Don’t delay.
The time to secure your property is now. All you need is an experienced real estate lawyer in Nigeria.
That’s why at Charis Legal Practice, we live by a core value: providing absolute peace of mind to our clients by proactively avoiding and mitigating risks.
We specialize in real estate law, helping individuals, real estate investors, and businesses handle property transactions worth N20 million and above smoothly and legally.
As a leading property lawyer in Lekki, we ensure compliance with all legal requirements.
Our services include:
✔ Comprehensive Due diligence on property transactions
✔ Drafting and reviewing real estate agreements (including Deed of Assignment)
✔ Title verification and registration (including C of O in Nigeria)
✔ Compliance with Lagos real estate regulations
Don’t risk costly mistakes, financial ruin, or endless legal battles. Let our expert legal team guide you.
To get started and build an impenetrable shield around your real estate in Lagos, Ogun, Oyo or real estate in Abuja assets, click here to book a consultation session. for proper documentation service, click here to get started.
And if you have any questions, you can write them in he comments section below. Happy reading!