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BASIC REAL ESTATE TERMS YOU SHOULD KNOW

SURVEY PLAN
A Survey plan is a document that measures the boundary of a parcel of land to give an accurate measurement and description of that land. The people that handle survey issues are Surveyors and they are regulated by the office of the Surveyor-general in Lagos as it relates to survey issues in Lagos. A survey plan must contain the following information:
1. The name of the owner of the land surveyed
2. The Address or description of the land surveyed
3. The size of the land surveyed
4. The drawn out portion of the land survey and mapped out on the survey plan document
5. The beacon numbers
6. The surveyor who drew up the survey plan and the date it was drawn up
7. A stamp showing the land is either free from Government acquisition or not
 EXCISION
Land Use Decree on the 28th of March, 1978 that vested all lands in every state of the Federation under the control of the State Governors. The Land Use Act coupled with other laws made it possible for the Governor who was now the owner of all lands in the state to actually have the power to Acquire more lands compulsorily for its own public purpose to provide amenities for the greater good of the citizens.
Fortunately, the government recognizes that indigenes of different sections of the country have a right to existence . . . a right to the land of their birth. Hence, it is customary for state government to cede a portion of land to the original owners (natives) of each area.
An Excision means basically taking a part from a whole and that part that has been excised, will be recorded and documented in the official government gazette of that state. In other words, not having an excision means the land could be seized by the Government anytime without compensating you even if you bought it “Legitimately” from the Baal or the Original dwellers on the land.
 DEED OF ASSIGNMENT
A Deed of Assignment is an Agreement between the Seller of a Land or Property and a Buyer of that Land or property showing evidence that the Seller has transferred all his rights, his title, his interest and ownership of that land to the Seller that has just bought land.
The Deed of Assignment has been exchanged between both parties, it has to be recorded in the land registry to show legal proof that the land has exchanged hands and the public should be aware of the transaction. Such recorded Deed of Assignment come in the form of either a Governor’s Consent or Registered Conveyance.
 GAZETTE
A Gazette is an Official record book where all special government details are spelt out, detailed and recorded
A gazette will show the communities or villages that have been granted excision and the number of acres or hectares of land that the government has given to them. It is within those excised acres or hectares that the traditional family is entitled to sell its lands to the public and not anything outside those hectares of land given or excised to them.
A Gazette is a very powerful instrument the community owns and can replace a Certificate of Occupancy to grant title to the Villagers. A community owning a gazette can only sell lands to an individual within those lands that have been excised to them and the community or family head of that land has the right to sign your documents for you if you purchase lands within those excised acres or hectares of land.
If the government based on some reasons best known to them decides to revoke or acquire your land, you will be entitled to compensation as long as it’s within the Excised lands given to that community.
The best way to know whether a land is under acquisition or has an excision that has been covered by a Gazette is to get a surveyor to chart the site and take it to the surveyor general’s office to do a land information analysis to confirm whether it falls within the gazette and spell out which particular location it can be found.
 CERTIFICATE OF OCCUPANCY
A Certificate of Occupancy (C. of O.) issued by the Lagos State Government officially leases Lagos land to you, the applicant, for 99 yrs. As already indicated above, all lands belong to the Government.
A C of O, however, is the officially recognized Document for demonstrating Right to a Land.
What happens after 99 years? That question is still subject to debate among experts. Most have adopted a wait-and-see attitude. Others postulate that as the new owner of the land, you the buyer can renew the certificate of occupancy when it expires. That makes sense, but for now is largely a case of “We shall see when we get there”
 UNDERSTANDING LAND SIZES AND MEASUREMENTS
Most people who purchase land in Lagos and elsewhere don’t really understand the meaning of these Real Estate terms. As a potential buyer wishing to buy a land or build a new house you must be conversant with a few of these figures. The first hurdle is to understand the system of Land measurement in Nigeria.
In Nigeria today, Land is measured in Hectares, Acres, Meters and Feet. These measurements are affected by factors, which include development pattern, human and environmental factors.
Let’s start by asking what is the size of a standard plot in Nigeria?
According to the dictionary meaning of a plot: _A plot is a marked out piece of Land_ for the purpose of building or farming. The word ‘plot’ is an arbitrary term used to describe a land division carved out for property development.
The size of a plot can vary for different reasons but according to Nigeria’s land division, the appropriate plot for a house construction is 50 x 100ft which can accommodate a standard house with a small compound. To better understand land divisions used in Nigeria, different units of area are used as follows:
 HECTARE
A hectare is one of the least known metric units and one which potential buyers and Estate developers seem to struggle with –
It is a land measuring:
-100m x 100m OR
-328ft x 328ft OR
-10,000 sqm OR
-Two and half acres OR
-15 plots.
 ACRE
An Acre is a standard unit of measurement used by Land sellers and it is almost equivalent to the size of a standard football field. An Acre is a product of any rectangular plot of land giving a total of:
– 4,046sqm OR
– 43,560 sq ft OR
– 6 plots (each measuring 60ft x 120ft)
 PLOT
In Lagos State, the standard size of a plot is 60ft x 120ft (18m x 36m i.e. 648 sqm), while in some other cities of the country, plots are measured in 50ft x 100ft.
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Government To Open Ibeju Lekki For Development

Lagos State Government has unveiled plans to open new towns in Ito-Omu and its adjoining communities in Ibeju-Lekki Local Council Development Area (LCDA), to fast track development.

The Acting General Manager of New Towns Development Authority (NTDA), Olakunle Aboyeji, speaking at a stakeholders’ meeting with residents of the communities, including representatives of the monarchs, said Governor Babajide Sanwo-Olu had approved the development of new towns within Ito-Omu and its adjoining communities, to raise the status of the area.

He added that the meeting was necessary to inform stakeholders of government’s presence in their communities and seek their cooperation for the success of the project.

Aboyeji told the residents that the government meant well for them.

The Permanent Secretary, Lands Bureau, Mr. Bode Agoro, allayed the residents’ fear of being exploited by the government.

He assured them of government’s cooperation and partnership in the development of the area.

The Surveyor-General, Olutomi Sangowawa, said: “This is going to be the beginning of new things to happen in the communities.”

He said the mistakes of the past while creating new towns would be avoided if the residents worked with the government officials to bring in the needed expertise for the development.

The representative of the Oba of Ito-Omu, Akogun Fatai Kosoko, said the exercise was long overdue “as only Ito-Omu and its adjoining communities that are yet to be developed and connected to the main  network of roads coming into Ibeju Lekki and Epe axis.”

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Understanding Vat & Witholding Tax

Let’s face it: No one likes paying tax and this is exactly why taxes are one of the last things on the to do list of most businesses until they are visited by tax officials. Before the Finance Bill 2019, every business was mandated to have a Tax Identification Number (TIN) before opening a Bank account, but the bill now includes a requirement for Banks to request for Individual Tax Identification Number which would further expand the tax net considerably, therefore understanding the different types of taxes, rates and available deductions should now be an essential for both individuals and businesses.

Two very important types of tax in Nigeria are Value Added Tax (VAT) and Withholding Tax (WHT) and my emphasis today is the meaning and applicability of these taxes to your business.

Withholding Tax

Withholding tax is basically an advance and indirect source of taxation deducted at source from the invoices of the tax payer. WHT is not really a distinct tax type and therefore has no legislation of its own. It is only a mechanism for the collection of other taxes. Consequently, its application is provided for in the enabling law of other tax types i.e. Section 81 of the Company Income Tax Act or Section 13 of the Value Added Tax Act. The main purpose of WHT is to capture as much tax payers that may have evaded tax into the tax net and the rate is usually 5%-10% depending on the type of transaction.

WHT is used mainly for transactions involving contract of purchase e.g. When a company or individual supplies goods or services to another company an invoice will usually be issued as evidence of a transaction.

The WHT system in Nigeria is regulated by both Federal and State Inland Revenue Services.

Value Added Tax

VAT is a consumption tax payable on the goods and service consumed by any person whether government agencies, business organizations or individuals. The target of VAT is consumption of goods and services and unless an item is specifically exempted by law, the consumer is liable to the tax.

The standard rate of tax has now been raised to 7.5% of invoice value of goods and services although companies with an annual turnover of N25 million (approx. US$69,000) or less would be exempt from VAT registration and filing obligations.

The VAT system in Nigeria is administered by the Federal Inland Revenue Service (FIRS). All existing manufacturers, distributors, importers and suppliers of goods and services are required to register for VAT. The prospective VAT payer will obtain and complete VAT registration (and return it to the nearest FIRS Tax Office. A permanent VAT registration number is then issued to the tax payer.

Goods Exempted from VAT include Medical and Pharmaceutical Products; Basic food items; Books and educational materials; Newspapers and magazines; Baby products; Commercial vehicles and their spare parts, and Agricultural equipment and products and veterinary medicine;

Services Exempted from VAT include Medical Services; Services rendered by Community Banks, Peoples Banks and Mortgage Institutions; and Plays and performances conducted by educational institutions as part of learning.

The tax is collected on behalf of the Government by businesses and organizations which have registered with the Federal Inland Revenue Services (FIRS) for VAT purposes, and who are now required to make monthly returns to the Government.

ILLUSTRATION

To illustrate these type of taxes better we will use an example Nairametrics.

Jideowo Ltd is a supplier of printing and stationery and got a contract to supply stationery to MoMoney Ltd for an invoice value of N100,000. Being a Vatable item, JideOwo Ltd adds a 5% VAT to the contract sum bringing the total amount to N105,000.

Upon receiving this invoice, the accounts department of MoMoney deduct 5% WHT from the invoice and schedule a payment of N100,000 in favor of Jideowo Ltd. They then remit the deducted N5,000 to the Federal Inland Revenue Service and obtain a withholding tax credit note which they should give to authorized representatives of Jideowo Ltd.

Jideowo Ltd upon receiving the payment of N100,000 and Tax credit note of N5,000 will remit a sum of N5,000 to the Federal Inland Revenue as value added tax on the transaction. They will then show the FIRS the WHT credit note of N5,000 which can be used to set-off against future company income taxes.

Break-down of payment (who gets what in cash).

Invoice amount – N105, 000
FIRS    (VAT)      – N5,000
FIRS (WHT)        – N5,000
Jideowo  Ltd    – N95,000

CONCLUSION
Tax evasion is a crime that involves an individual or business intentionally avoiding payment of tax. Those caught evading taxes are generally subject to criminal charges and substantial penalties. On the other hand Tax avoidance is the legal usage of the tax regime to one’s own advantage to reduce the amount of tax that is payable by means that are within the law. Tax avoidance is perfectly legal.

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BeachFront Ph2 : New Release for all our investors

Beachfront phase 2 has just been released. With the massive success of Phase 1, the developers decided to expand this opportunity to more savvy investors looking to secure a real estate by the beach.

NEIGHBOURHOOD

Queen’s Garden Estate

Eleko Beach

Pan Atlantic University

Lekki Free Trade Zone

Dangote Refinery

The Proposed International Airport

Beachfront Estate ph2 is certain to go fast.!!!

Secure yours today by contacting us at info@globalafricaninvestorsalliance.com

 

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Introduction to the NSE (Nigerian Stock Exchange) with Icon Stockbrokers

Introduction to the NSE (Nigerian Stock Exchange) with Icon Stockbrokers GAIA has partnered with Iconstockbrokers for those who are looking to investment in the Nigerian stock market. Iconstockbrokers Icon Stockbrokers Limited was incorporated on 30th June 1962 under the name “ICON NOMINEES LIMITED”. The company’s name was changed in 1973 to Icon Stockbrokers limited.

The wealth of experience and expertise are reflected in Icon Stockbrokers Limited’s wide range of financial services, which are tailor-made to meet customers’ financial and investment needs. Services include: Stockbroking Portfolio Management Services Investment advisory Services Consultancy Services Overseas Correspondent

 

Contact us today: Gaia@iconstockbrokersltd.com

 

Link: https://globalafricaninvestorsalliance.com/nigerian-stock-market/

 

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Investing in Ghana With Dropzonn

Investing In Ghana can be tricky but dealing with the right agent can save you money and time. GAIA has now partnered with Dropzonn to bring to our investors genuine real estates in Ghana for high ROI and rental income. You can visit our website ekaabo.africa for full list of properties for sale in Ghana and Nigeria. Email us: info@stakpropertyinvestors.co.uk

 

TY  Video Link: https://www.youtube.com/watch?v=DqVFWAVQxDM

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The Cons Of Buying Omo-Onile Land!!!

1. Buying an Omonile land simply means YOU ARE TREADING A THIN LINE IF YOU DO NOT INVESTIGATE TRUE OWNERSHIP.
2. Omonile Lands are owned by either Families or people who bought lands from the families. Either way, till you complete your house, you must have a relationship with these families good or bad till the very end.
3. Most omonile lands have one issue or the other associated with them such as land dispute cases, family dispute cases, resale of another person’s land, buying lands that belong to the government etc hence the need to conduct due diligence on them before you buy.
4. You pay for everything such as your own survey fees, legal fees, agency fees, omonile signing fees, foundation fees, roofing fees, drainage, Nepa etc.
5. Even when you do everything right such as conducting due diligence, buying from the right person and paying all the necessary fees, you still have to build a fence to ward off criminals and trespassers from stealing your land.
6. Until you complete your house you must always be vigilant to check on your land. Any form of complacency or negligence would only lead to criminals reselling your land
7. You would have to put up with annoying agents throughout the Inspection and negotiating experience
8. Buying an Omonile Land means you have to be tough and take no nonsense unless these miscreants would rob you off your land.
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10 Reasons to Invest In Abeokuta

10 Reasons why you should invest in landed properties especially in Abeokuta in 2020
1. The fast rate of infrastructural development in the city means the value of landed properties are projected to go up astronomically.
2. The increase influx of people into the city due to the overcrowding of Lagos and proximity
3. Buying a landed property is a way of acquiring liquid asset which could be easily traded for money in case of emergencies.
4. Abeokuta land are 100% dry lands
5. Land is an asset whose value never decreases. So owning land means you having good asset base.
6. Buying a land is your first step to building your house. So it’s good to start now.
7. Investing in landed property is investing in real and tangible asset that will always be there forever.
8. All billionaires and rich people today have real estate as one of the corner stone of their wealth building strategy.
9. Inflation devalues your money saved in the bank, but when you buy a landed property, the value of your
money is protected from inflation.
10. If you don’t make the sacrifice now and take action, it might become a regrettable action in the future because the best time to buy a landed property was yesterday.
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Understanding Land Documents In Nigeria

Land Classification

Land can be classified as either free or acquired. A parcel of land is considered free if the government has not indicated any interest whatsoever in that land. Such land is safe to buy because the title on the land can be perfected without issues.

In most cases, such lands will either have a gazette, a C of O or a governor’s consent.

EXCISION

An Excision means basically taking a part from a whole and that part that has been excised will be recorded and documented in the official government gazette of that state. In other words, not having an excision means the land could be seized by the Government anytime without compensating you even if you bought it “Legitimately” from the Baale or the Original dwellers on the land.

Global or General Acquisition

Lands that are under “general acquisition” or “global acquisition” can later be confirmed ‘free’ or ‘committed’ as the case may be.

A land under general acquisition can become free by a process called excision.

There are two types of acquisition:

  1. Committed Acquisition
  2. Global / General Acquisition.

Committed Acquisition

A parcel of land is said to be under committed acquisition when the government has indicated an intention to use that land for a specific purpose such as provision of amenities.

Such lands belong to the government and can never be available for use by individuals. If you purchase land that is under committed acquisition, it will be impossible for you to perfect your land title and you’ll only be occupying the land until the government comes to kick you out.

The following documents are usually involved when a purchase is made.

 

1 The purchase receipt

2 The contract of sale and

3 The deed of assignment

4 The survey plan

5 The Building plan for housing investment

6 Any other title document that may apply

 

WHAT IS LAND TITLE?

Land title may be defined as *the rights or ownership claim a person has over a property. It simply means, for you to claim land title, you must show other people the right you have over that land. E.g the land was willed to you by your late grandfather or you bought the property from another person and he handed over the title documents of the land or there was a dispute on the land and a court judgement awarded you the land as the owner etc.

To determine what title a person has over a property, a prospective buyer must inspect the available documents the seller is relying on to initiate the transaction.

DEED OF CONVEYANCE

Deed of Conveyance or Registered Conveyance was the authentic evidence of ownership until 1978 Land use Act that introduced Certificate of Occupancy.

Deed of Conveyance is old legal document used in transferring the interest of the owner of a landed property interest to the person to another whom it is assigned, the assignee. When ownership is transferred, the new legal document in use now is called deed of assignment.

A freehold is not a title. The remedy is to institute a legal document on the land like getting a Governors Consent, or C of O. (These are binding documents that can stand the test of time and stand in any court of law)

Question

In a situation you have the C of O and survey without Deed of Assignment for a land allocated by state government. Is the documents enough without Deed of Assignment?

Answer: Government schemes mostly doesn’t come with Deed of Assignment. What government gives in this case is Letter of Allocation and through the letter of assessment you obtained from the NTDA you can process your C of O.

Question: Does this mean that “Lands have to at least be excised before it can be sold or transferred to someone else”?

Answer: You become rightful owner of the land once the government release it to you via excision.

Though Governments recognize ancestral land ownership as excision is the right of the indigenous land owners.

CERTIFICATE OF OCCUPANCY

A Certificate of Occupancy (C of O) issued by the Lagos State Government officially leased Lagos land to you, the applicant, for 99 yrs. All lands belong to the Government.

GOVERNMENT BARRED LAND

Buying a Government barred land is risky. Government bars you from owning land it has acquired to build infrastructures such as airports, roads etc. Learn how to avoid buying a Government barred Land.

KNOW  THE DIFFERENCE Between Rectification and Ratification

 Don’t be confused. Rectification and Ratification means two separate things but they sound alike. Rectification means to correct a grave error on a document while Ratification means giving formal consent to a contract or agreement thereby making it validly official.

To understand how Rectification of Title to Land differs from Ratification of Title to land, we have to understand what a Land title means so we can comprehend it quite easily.

Question:

Is excision as good as obtaining c of o?

Is a person having excision still mandated to obtain c of o?

Answer: After a land has been excised and Gazetted then you can either process your C of O or Governor consent.

Excision does not expire while C of O expire after 99 years. The only advantage C of O has over Excision is that it can be used as collateral for getting loan in the bank

GOVERNOR’S CONSENT

A governor’s consent can only be processed on a land with either Gazette or an Existing Certificate of Occupancy (C of O).

If a person with land with C of O decides to sell his land, the only documents that can give the new buyer or every other subsequent buyer’s the right of occupancy or ownership is a governor’s consent.

The powers of the Governor to consent to such transactions can be found in Section 22 of the Land Use Act of 1978 which states thus ‘It shall not be lawful for the holder of a statutory right of occupancy granted by the governor to alienate his right of occupancy or any part thereof by assignment, mortgage, transfer of possession, sublease or otherwise howsoever without the consent of the Governor first had and obtained” This simply means therefore that even when a buyer has secured a land with a Certificate of Occupancy, he shouldn’t stop there.

He needs to begin the process of obtaining a Governor’s consent to make that purchase legal in the eyes of the government and be rest assured his land is safe.

SURVEY PLAN

A Survey plan is a document that measures the boundary of a parcel of land to give an accurate measurement and description of that land. The people that handle survey issues are Surveyors and they are regulated by the office of the Surveyor general in Lagos as it relates to survey issues in Lagos. A survey plan must contain the following information:

 

  1. The name of the owner of the land surveyed
  2. The Address or description of the land surveyed
  3. The size of the land surveyed
  4. The drawn out portion of the land survey and mapped out on the survey plan document
  5. The beacon numbers
  6. The surveyor who drew up the survey plan and the date it was drawn up
  7. A stamp showing the land is either free from Government acquisition or not

GAZETTE

A Gazette is an Official record book where all special government details are spelt out, detailed and recorded

A gazette will show the communities or villages that have been granted excision and the number of acres or hectares of land that the government has given to them. It is within those excised acres or hectares that the traditional family is entitled to sell its lands to the public and not anything outside those hectares of land given or excised to them.

DEED OF ASSIGNMENTS

Most people have the title documents to their cars intact and in safe places but fail to ask for the Deed of assignment to their properties which is several times more valuable than cars

A Deed of assignment is one of the transnational documents drawn up by a real estate attorney between the current title holder for a particular property and the new buyer.

In real property transactions, a deed of assignment is a legal document that transfers the interest of the owner of that interest to the person to whom it is assigned, the assignee. When ownership is transferred, the deed of assignment shows the new legal owner of the property.

The deed contains very pertinent information for a real estate transaction. It spells out the date when the ownership of the property transfers from one owner to the other. The deed also gives a specific description of the property that is included in the transfer of ownership.

It is very compulsory and mandatory for a Deed of Assignment document to be recorded at the appropriate land registry to show legal evidence as to the exchange of ownership in any land/landed property transaction in order to make the general public and government aware of such exchange or transaction.

 

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