Pre-Construction Approvals and Building Permits in Lagos State

by with No Comment LAND NEWSNEWS

By Round Peg Homes, Investment & Services Limited

Introduction
Lagos State has experienced a number of building collapses in recent years, leading the Lagos State Government to enact the Lagos State Urban and Regional Planning and Development Law of 2010 (the “Planning Law”). This law established three key agencies under the Ministry of Physical Planning and Urban Development (the “Ministry”) to regulate building permits, compliance, and urban renewal. These agencies play crucial roles in ensuring that all construction activities adhere to the required standards. The agencies are:

  1. Lagos State Physical Planning Permit Authority (LASPPPA):
    Responsible for processing and issuing planning permits for building projects.
  2. Lagos Building Control Agency (LASBCA):
    Tasked with monitoring and enforcing building regulations to ensure construction compliance.
  3. Lagos State Urban Renewal Agency (LASURA):
    Focuses on implementing urban renewal and slum upgrade policies.

For any building project in Lagos, obtaining pre-construction approvals is mandatory. The LASPPPA oversees this process and ensures that developers meet the requirements before proceeding with construction.

Types of Permits

  1. Provisional Planning Permit:
    Issued when the title documents for a property are still under registration. A clearance letter from the Lands Record Bureau certifies that the registration is ongoing.
  2. Final Planning Permit:
    Granted once the title documents have been fully registered and verified.

Building Plan Approval Process

According to Regulation 2 of the Lagos State Building Control Agency Regulations, 2019, developers are required to give a seven-day notice to LASPPPA before commencing construction. In urgent cases, this notice can be given within seven days after work has started.

To streamline the process, Lagos State has introduced an online platform for processing building permits. This innovation has reduced the approval timeline to about one month, replacing the manual system that was previously in use.

Key Steps to Obtaining Approval

  • Submit necessary documents such as architectural and structural drawings, title documents, and a sun-print survey plan.
  • Ensure that all drawings are sealed by professionals registered with bodies like the Architects Registration Council of Nigeria (ARCON) and the Council for the Regulation of Engineering in Nigeria (COREN).
  • Pay the required assessment fees.
  • A LASPPPA officer will inspect the site, verify property coordinates, and assess other relevant factors.

Fast-Track Process
For developers in urgent need of approval, the permit process can be fast-tracked within 10 working days by paying 500% of the assessment fee. This ensures quicker processing for time-sensitive projects.

Documents Required for Pre-Construction Approvals

  1. Original and stamped architectural drawings.
  2. Structural drawings signed by a COREN-certified engineer.
  3. Material calculation sheets signed by the supervising engineer.
  4. Payment receipts for assessment fees.
  5. Certified title documents or a clearance letter from the Lands Bureau.
  6. Structural stability report signed by a COREN-certified engineer.
  7. Original sun-print survey plan.
  8. Evidence of payment of tenement rates or land-use charge.
  9. Two passport photos of the applicant.
  10. Tax clearance certificates or evidence of tax payments.
  11. PAYE returns (for companies).
  12. Certificate of Incorporation (for companies).
  13. Development levy receipt.
  14. Site photographs.

Importance of Compliance and Consequences of Non-Compliance

Failure to obtain proper approvals can result in severe penalties, including:

  • Sealing the property with a stop-work notice.
  • Fines imposed on the developer or property owner.
  • In extreme cases, demolition of the building.

Even after securing building permits, the LASBCA continues to monitor the project to ensure compliance with approved plans. Any deviations can lead to fines or stoppage of work.

Securing the correct building permits not only ensures the safety and legality of the project but also increases the property’s value. The recent introduction of the e-planning platform simplifies the process, making it easier for developers to obtain their approvals and contribute to Lagos’s urban development.

Conclusion
Obtaining building permits is an essential step for any construction project in Lagos State. It helps prevent issues such as building collapses, penalties, or even demolition. At Round Peg Homes, we encourage developers and property owners to follow all necessary procedures to protect their investments and ensure smooth project delivery. The new e-planning platform makes the process more efficient, positioning Lagos for sustainable urban growth and safer building practices.

Legal Aspects of Real Estate in Nigeria: What You Need to Know Before Buying or Owning Property

by with No Comment LAND NEWSNEWS

Investing in real estate in Nigeria is an exciting and rewarding venture, but it comes with a significant level of responsibility. Ensuring that you understand the legal framework surrounding property ownership is crucial for protecting your investment and avoiding future disputes. Whether you are buying land for residential purposes or looking to invest in a commercial project, familiarizing yourself with the laws governing real estate in Nigeria will help safeguard your interests.

In this detailed guide, we’ll walk you through the essential legal aspects to consider before buying or owning property in Nigeria.

1. Title Deeds: Your Proof of Ownership

A valid Certificate of Occupancy (C of O) is essential for confirming property ownership in Nigeria.

One of the most important legal documents in property transactions is the title deed, as it serves as your legal proof of ownership. In Nigeria, the absence of a valid title deed can expose your investment to disputes or even loss. Different types of title deeds exist depending on how the land or property was acquired, and it’s critical to understand the various categories to avoid pitfalls. Common types include:

  • Certificate of Occupancy (C of O): This is one of the most recognized legal documents, issued by the government, and grants the holder a lease of the land for a period of 99 years. It proves that you have the right to occupy the land under Nigerian law.
  • Governor’s Consent: Under Nigerian law, all subsequent transactions on land that already has a Certificate of Occupancy (such as selling or transferring ownership) must have the approval of the state governor. Without obtaining the Governor’s Consent, any sale or transaction on the land is considered invalid in the eyes of the law.
  • Deed of Assignment: This document serves as evidence that ownership of the land has been transferred from one party to another. After purchasing a property, a Deed of Assignment must be executed, and it is often accompanied by other documents, including the Governor’s Consent, to validate the sale.

Before buying any property, always ensure that you verify the title deed’s authenticity by conducting a proper search at the relevant Land Registry. Failure to do so could leave you vulnerable to future ownership challenges.

2. Conducting Due Diligence: Protecting Your Investment

Before signing any contracts or transferring funds, conducting comprehensive due diligence is a non-negotiable step in any real estate transaction. This involves checking the legal status of the property and ensuring that there are no unresolved issues, such as disputes, encumbrances, or government claims over the land. To do this, it’s advisable to:

  • Verify ownership at the Land Registry: Conduct a search at the Land Registry to confirm the legitimacy of the property’s title and ownership. This will also reveal whether the land is under government acquisition, involved in litigation, or has any liens or encumbrances attached.
  • Investigate the property’s zoning and land use restrictions: Ensure that the property is designated for the intended use, whether it be for residential, commercial, or industrial purposes. Certain areas may be restricted or earmarked for public use.
  • Employ a qualified legal professional: Navigating the legalities of property transactions can be complex, which is why engaging the services of a real estate lawyer is highly recommended. A lawyer will ensure all necessary searches are carried out and that the transaction is legally binding.

Skipping the due diligence process can lead to costly mistakes, including the risk of losing your investment. A thorough investigation is your best defense against fraud or legal issues.

3. Property Taxes and Levies: Know Your Obligations

Owning property in Nigeria comes with a set of tax obligations that must be met to ensure your ownership remains uncontested. These taxes vary depending on the type of property, its location, and its usage. Failure to comply with these tax regulations can lead to penalties or, in extreme cases, property forfeiture. Some of the most common property-related taxes include:

  • Land Use Charge: This is a tax imposed on property owners in urban areas and is often a combination of three levies: ground rent, tenement rate, and neighborhood improvement charges. The amount of the Land Use Charge varies from state to state and is generally based on the size, location, and value of the property.
  • Capital Gains Tax: If you sell a property and make a profit from the sale, you are required to pay Capital Gains Tax, which is calculated at 10% of the net gains. This applies to both individuals and corporate entities.
  • Withholding Tax on Rental Income: If you are renting out your property and generating rental income, the rental payments are subject to Withholding Tax. This tax is deducted by the tenant before making the rental payment and is typically between 5% and 10%.

Understanding your tax obligations and making timely payments is essential to avoiding penalties and ensuring your ownership rights remain protected.

4. Government Approvals and Permits: Ensuring Compliance

Before commencing any construction on your property, it is crucial to obtain the necessary approvals and permits from the relevant authorities. Building without proper authorization can result in significant legal and financial consequences, including demolition of the structure or hefty fines. Key approvals include:

  • Building Plan Approval: This approval confirms that your building plans comply with the town planning laws and zoning regulations of the area. In Lagos, for instance, the Lagos State Physical Planning Permit Authority (LASPPPA) is responsible for issuing building permits. Other states have similar agencies that oversee building regulations.
  • Environmental Impact Assessment (EIA): For larger developments, especially commercial projects, you may be required to conduct an Environmental Impact Assessment to ensure the construction does not negatively affect the environment.

Ensure that you adhere to all zoning regulations specific to your location to avoid legal complications in the future.

5. Rights and Restrictions Under Nigerian Land Law

Land ownership in Nigeria is governed by the Land Use Act of 1978, which centralizes control of land under the state government. Under this law, all land in Nigeria is held in trust by the government, and individuals or companies can only acquire rights to land through a leasehold system. The Certificate of Occupancy, issued by the government, is a lease that grants the holder the right to occupy and use the land for 99 years.

Some key rights and restrictions under Nigerian land law include:

  • Government Revocation of Rights: The government reserves the right to revoke land ownership if the land is not used according to the terms specified in the lease. For example, land meant for agricultural purposes cannot be converted to commercial use without prior approval.
  • Zoning Restrictions: Certain areas may be zoned for specific uses, such as residential, commercial, or industrial purposes. Building on land not designated for a particular use could result in fines, demolition, or a revocation of your rights.

Understanding the Land Use Act and its implications is vital for any property transaction, as failure to comply with the law can lead to severe consequences.

Conclusion

Navigating the legal landscape of real estate in Nigeria may seem daunting, but it is essential to protecting your investment. Ensuring that your property has valid title deeds, conducting thorough due diligence, complying with tax obligations, and obtaining the necessary government approvals are all crucial steps in safeguarding your ownership rights.

At Round Peg Homes, we take pride in offering legally sound properties that comply with all regulatory requirements. Our team of experts is committed to guiding you through the complexities of property acquisition in Nigeria, ensuring a seamless and secure real estate transaction.

For more information on acquiring property or ensuring the legal integrity of your investments, feel free to contact us at Round Peg Homes. We’re here to make your real estate journey smooth and stress-free.

Contact Us:

Email: info@roundpeghomes.com
Website: https://roundpeghomes.com
Instagram: @roundpeghomesng
Twitter: @roundpeghomesng
Facebook: RoundPeg Homes

Let us help you make smart, legally sound real estate decisions!