The Complete Guide to Buying Property in Nigeria
Everything first-time homebuyers need to know about purchasing property in Nigeria. Learn the process, avoid pitfalls, and make informed decisions.
What You'll Learn
- Pre-purchase preparation
- Financial planning & budgeting
- Property search strategies
- Legal documentation
- Negotiation tactics
- Closing the deal
Before You Start: Pre-Purchase Preparation
The journey to homeownership begins long before you find the perfect property. Proper preparation sets the foundation for a successful purchase and prevents costly mistakes.
Assess Your Financial Position
Before starting your property search, conduct a thorough financial audit. Review your credit score, savings, income stability, and existing debts. In Nigeria, most lenders require a minimum 20% down payment and proof of consistent income over at least 2 years.
Many buyers overlook closing costs which typically range from 5-10% of the purchase price. Factor this into your budget.
Financing Your Purchase
Understanding your financing options is crucial. Nigeria offers various mortgage solutions through banks, mortgage banks, and finance companies.
Mortgage Options Available
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Traditional Bank Mortgages
Offered by major commercial banks with competitive rates. Typically require 20% down payment and stable employment.
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Mortgage Finance Company Loans
Specialized lenders offering flexible terms and sometimes lower down payment requirements.
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Employer-Sponsored Schemes
Many employers offer housing loans or cooperative schemes with favorable rates.
The Property Search Process
Finding the right property requires strategy, patience, and market knowledge. Whether you're looking in Lagos, Abuja, or other major cities, understand the neighborhoods and trends.
Where to Search
Use multiple resources including real estate websites, property agents, neighborhood visits, and word of mouth. Engage with reputable agents who have deep market knowledge.
Red Flags to Watch For
- • Prices significantly below market value (may indicate title issues)
- • Sellers unwilling to show official documents or proof of ownership
- • Properties in dispute with families or other parties
- • Unclear or incomplete property boundaries
- • Pressure to make quick decisions without proper due diligence
Legal Documentation & Due Diligence
This is the most critical step. Proper legal documentation protects your investment and prevents future disputes.
Essential Documents to Verify
- Certificate of Occupancy (C of O) - The gold standard proving government-approved land with clear title
- Deed of Assignment - Shows the chain of ownership and current owner details
- Receipt of Payment - Proof of all payments made to the original seller
- Survey Plan - Defines property boundaries and dimensions
- Search Results - Land Registry search showing no competing claims
Pro Tip: Hire an independent lawyer to review all documents before signing. This typically costs ₦50,000-150,000 but can save you millions.
Negotiation & Making an Offer
Successful negotiation requires research, patience, and realistic expectations. Most properties have room for negotiation.
Negotiation Strategies
- • Research comparable properties to establish fair market value
- • Make an initial offer 10-20% below asking price as a starting point
- • Negotiate non-price terms (closing timeline, repairs, furnishings)
- • Be prepared to walk away if the deal doesn't meet your criteria
- • Get everything in writing, including agreed-upon terms
Closing the Deal
The closing stage involves final document preparation, fund transfer, and property registration. Work closely with your lawyer to ensure proper execution.
Final Steps
After all parties agree, execute the Deed of Assignment at the Land Registry with witnesses. Follow this with registration in your name at the relevant Land Registry office. The entire process typically takes 4-8 weeks from agreement to final registration.