Land Ownership in Nigeria: Towards a Legal Framework for Condominium

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Presentation transcript:

Land Ownership in Nigeria: Towards a Legal Framework for Condominium Awwal I. Magashi

Contents Page 1 Background 03 2 Condominium/Strata Tiling 04 3 Extent of Land Ownership 05 4 What is the Legal Framework 06 5 Legal Impediment on Condo Owners 07 6 Recommendations 08

1. Background Kano State is the most populous state in Nigeria 3 Kano State is the most populous state in Nigeria It is estimated to be around 13 million Its land mass is around 7,773 square miles (shrinking) No proper regulation (slumps and ghettos all over) Land Ownership in Nigeria: Towards a Legal Framework for Condominium

2. Condominium/Strata Titling Generally accepted that Certificates of Occupancy (CofO) provide evidence of title to land. The term “land” in its legal context includes among other things any ground with any buildings upon it, the airspace above it and all minerals beneath it. It can also include parts of buildings whether the division is horizontal, vertical, or made in any other way. The term condominium can refer to a form of ownership that combines private and shared ownership. Purchasers of condominiums own a private dwelling (called a unit or parcel) registered in their names and share ownership of common property elements. Land Ownership in Nigeria: Towards a Legal Framework for Condominium

3. Extent of Land Ownership Presently, it is not possible to issue individual CofOs to owners of individual apartments or particular floor levels within Multi-Storey buildings. No existing methodology within MoLPP to identify individual units within multi- storey buildings to issue separate CofOs Vertical ownership is alien Only horizontal ownership is recognised Land Ownership in Nigeria: Towards a Legal Framework for Condominium

4. The Legal Framework Condominium not specifically regulated within the state Right to own immovable property anywhere is guaranteed. Section 43 of the 1999 Constitution of the Federal Republic of Nigeria as amended. Land Use Act is silent on it, but it: Provides the framework of land ownership, use & management Does not distinguish between right or interest in or over the land as separate from the interest in the improvement of the land (quid quid plantator solo solo cedit) System of land holding is vested on the Governor (trustee) Individuals are tenants (leasehold interest for 99 years) CofO as the best evidence of title document Land Ownership in Nigeria: Towards a Legal Framework for Condominium

5. Legal Impediment on Condo Owners It is impossible for the condo owners to get a CofO It is difficult to assign a legal title leading to the issuance of CofO to the respective unit owner (diminishes constitutional right) Financial institutions prefer CofOs as the most reliable form of collateral Condo owners in a catch 22 situation because: He only holds a sublease interest and At the mercy of the original allotee who retains the reversionary interest in the land Land Ownership in Nigeria: Towards a Legal Framework for Condominium

6. Recommendations Administrative approval Enactment of Condominium Law: Owner would enjoy a distinct legal title No reversionary interest at the expiration of the leasehold Would stimulate investors appetite in real estate and construction sector Land Ownership in Nigeria: Towards a Legal Framework for Condominium

“If you fail to plan you are planning to fail.” Benjamin Franklin Land Ownership in Nigeria: Towards a Legal Framework for Condominium

Thank You awwal.magashi@gems3nigeria.com