What Do You Know About Title Documents And Property Valuation?

When it comes to buying or selling property in Lagos, one of the most important factors that influence a property’s value is its title document.

If you’ve ever wondered why two similar plots of land in the same area have drastically different prices, the answer often lies in their title documents. Let’s break down how title documents impact property valuation in a way that’s simple and easy to understand.

Let’s begin with what a title document is

What Are Title Documents?

A title document is simply a legal paper that confirms who owns a piece of land or property. It also outlines the rights the owner has over the property. Think of it as a birth certificate for land — it gives it legal identity and ownership.

Title documents are legal papers that prove ownership and determine whether a property is free from disputes or government issues.

Some common title documents in Lagos include:

Certificate of Occupancy (C of O) — This is the most recognized title document, issued by the government for land ownership for a period of 99 years.
Governor’s Consent — When land that already has a C of O is sold, the new buyer must get a Governor’s Consent to legalize the transfer.
Deed of Assignment — A legal agreement between a seller and buyer, showing the transfer of ownership.
Excision and Gazette — Lands excised from government acquisition and recorded in an official gazette.

How Title Documents Influence Property Valuation

1. Proof of Ownership Equals Higher Value

Properties with proper title documents are considered legitimate and safe to buy. Buyers are willing to pay more for properties with clear titles because they reduce the risk of legal issues. For example, a plot of land with a Certificate of Occupancy in Lekki will naturally have a higher value than one without.

2. Ease of Transfer

Title documents like the Governor’s Consent or a Deed of Assignment make it easier to transfer ownership. Properties with clean titles are more attractive to buyers, driving up their market value. In Lagos, investors often prefer properties with proper titles since resale and refinancing are simpler.

3. Access to Bank Loans and Mortgages

Banks and financial institutions only offer loans or mortgages on properties with verified title documents. If you own a house with a Certificate of Occupancy, you can easily use it as collateral. This added financial security makes such properties more valuable.

4. Legal Protection

Without proper documentation, your claim to ownership can be challenged. In Lagos, disputed lands are common, especially in areas with “Omo Onile” (land grabber) issues. Properties with government-recognized titles offer legal protection, increasing their market value.

5. Government Acquisition Risk

Properties without titles or those with questionable documents are at risk of being seized by the government. For example, properties in areas marked as government-acquired land are usually cheaper because of the uncertainty surrounding them. On the other hand, lands with excision or gazette documents are valued higher due to reduced acquisition risk.

Why Do Properties Without Title Documents Sell for Less?

Properties without title documents are risky investments. Buyers worry about potential legal battles, government claims, or fraudulent sales. Due to these risks, properties without valid titles often sell for much lower prices. In Lagos, land without title documentation can be 30% to 50% cheaper than one with a proper title.

How to Verify a Title Document Before Purchase

To avoid problems, always verify a property’s title documents before making a purchase. Here’s how:

Conduct a Land Search: Visit the Lagos State Lands Bureau to check if the property has a valid title.
Hire a Property Consultant: An experienced consultant will ensure all documents are genuine.
Check for Encumbrances: Confirm that the land is free from legal disputes or government acquisition.

Final Thoughts

Title documents are not just pieces of paper — they are the foundation of a property’s value. Whether you’re buying land in Epe, a home in Ikeja, or a commercial building in Victoria Island, ensuring the property has proper documentation will protect your investment and increase its long-term value.

In Lagos, properties with titles like a Certificate of Occupancy or Governor’s Consent will always fetch higher prices. So, next time you’re in the real estate market, remember — a good title means good value!

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