Documents You Can’t Afford to Lose After Buying a New House in Nigeria

As a Nigerian homeowner, it is crucial to have all the necessary documents on hand to protect your investment and prove ownership of your property. Whether you are purchasing a new home or already own one, having these documents readily available can make it easier to complete transactions, such as refinancing or making home repairs.

In this article, we will discuss the essential documents that you should have on hand after purchasing a home, including what they are, why they’re important, and how to obtain copies.

The Importance of Having Essential Documents on Hand After Buying a Home in Nigeria

Having essential documents on hand after buying a home is extremely important for several reasons.

Firstly, it serves as proof of ownership of the property. This is necessary for a variety of purposes, such as obtaining home insurance, making home improvements, or selling the property in the future.

Secondly, it is important for legal and financial purposes. For example, if there are any disputes over the property, the deeds, and other documents can be used as evidence in court. Additionally, having these documents on hand can make it easier to obtain a mortgage or home equity loan, as they serve as proof of the home’s value.

Having these documents can help protect against fraud or other legal issues, as they can be used to verify the authenticity of the transaction. Overall, having essential documents on hand after buying a home is crucial for protecting your investment and ensuring that you can make the most of your property.

Check out our list below of all essential documents you should have on hand for your property:

Deed of Sale

A Deed of Sale is a legal document that transfers ownership of a piece of property from the seller to the buyer. It typically includes details such as the names of the parties involved, the purchase price, a description of the property, and any conditions or contingencies of the sale.

It also serves as evidence of the transaction and the transfer of ownership. The document is usually signed by both the buyer and the seller and may be notarized to make it legally binding. It is also known as a sales deed or a deed of conveyance.

Purpose of the Deed of Sale

The main purpose of a Deed of Sale is to transfer ownership of a piece of property from the seller to the buyer. It serves as legal evidence of the sale and the transfer of ownership can be used to establish the buyer’s rights to the property, a Deed of Sale can also be used to:

1. Record the purchase price and any other terms and conditions of the sale
2. Transfer any liens or encumbrances on the property from the seller to the buyer
3. Provide the buyer with clear title to the property, free and clear of any claims or disputes
4. Make the sale publicly known, with the recorded document accessible for public review
5. Help the buyer secure financing for the purchase
6. Establish the buyer’s right to take possession of the property
7. Serve as a reference document for property tax and assessment purposes.

How to Obtain a Copy of a Deed of Sales in Nigeria

To obtain a copy of the Deed of Sale in Nigeria, follow these steps:

1. Find the local land registry office or the online platform where the property records are kept. You will need to determine where the Deed of Sale is filed to request a copy.
2. Gather the necessary information, such as the property address or the names of the parties involved in the transaction.
3. Request a copy of the Deed of Sale from the land registry office or the seller/buyer directly.
4. Pay the fee required to request a copy of the Deed of Sale.
5. Wait for the document to be provided. Depending on the location, the process may take anywhere from a few days to a few weeks.

Deed Of Mortgage Documents

A mortgage is a legal agreement in which a lender agrees to loan money to a borrower to purchase a property, and the borrower agrees to repay the loan with interest over some time.

The property is used as collateral for the loan, and the lender has the right to foreclose on the property if the borrower defaults on the loan. The document that outlines the terms of the mortgage is called a “mortgage deed” or simply a “deed of mortgage.” This document is typically recorded with the local government as a public record.

Purpose of Deed of Mortgage Documents

The primary purpose of a mortgage document is to provide evidence of the mortgage loan and the terms under which it was made. This includes information such as the names of the borrower and lender, the amount of the loan, the interest rate, the length of the loan, and any other terms and conditions.

The deed of mortgage is also used to establish the lender’s security interest in the property, which means that if the borrower defaults on the loan, the lender has the right to foreclose on the property and take possession of it.

The mortgage deed is a legally binding document, and it is important for both the borrower and lender to understand and comply with its terms.

Types of Deed of Mortgage Documents

If you are considering taking out a mortgage in Nigeria, it’s important to understand the different types of deeds of mortgage documents that are commonly used.

These documents are essential for protecting the rights of both the borrower and the lender, and they define the terms and conditions of the mortgage agreement.

In this section, we will discuss the various types of deeds of mortgage documents in Nigeria and what they entail.

Deed of Legal Mortgage

A deed of legal mortgage is a document that provides security for the repayment of a loan by placing a legal charge on the property being mortgaged. This document is executed by the borrower and the lender, and it sets out the terms and conditions of the mortgage, such as the amount of the loan, the interest rate, and the repayment schedule.

The deed of legal mortgage also gives the lender the right to take possession of the property if the borrower defaults on the loan. This document is registered with the land registry and is enforceable in court.

Deed of Equitable Mortgage

A deed of equitable mortgage is similar to a legal mortgage, but it is not registered with the land registry. Instead, it is a contract between the borrower and the lender that creates an equitable charge on the property being mortgaged.

This document is used when the borrower does not have legal title to the property, but has an equitable interest in it. For example, if the borrower is purchasing a property on a land installment plan, the seller may hold legal title to the property until the loan is fully paid off. In this case, a deed of equitable mortgage can be used to secure the loan against the borrower’s equitable interest in the property.

Deed of Sub Mortgage

A deed of sub mortgage is used when a borrower has already mortgaged a property but wants to take out a second mortgage on the same property. This document allows the borrower to create a charge on the property in favor of the second lender, while still maintaining the existing mortgage with the first lender.

The deed of the sub mortgage sets out the terms and conditions of the second mortgage, such as the amount of the loan, the interest rate, and the repayment schedule. It also gives the second lender the right to take possession of the property if the borrower defaults on the loan.

Deed of Priority

A deed of priority is used when there are multiple mortgages on a property and the lenders want to establish the order of priority in which they will be paid in the event of default. This document sets out the ranking of the mortgages, with the first mortgage having the highest priority and the subsequent mortgages having lower priority.

The deed of priority is typically executed by all of the lenders and registered with the land registry. It is important to establish the order of priority in advance, as it can affect the amount of money that each lender will be able to recover in the event of default.

These are the four most common types of deed of mortgage documents in Nigeria. Each document serves a specific purpose and is essential for protecting the interests of both the borrower and the lender.

If you are considering taking out a mortgage, it is important to understand the terms and conditions of the mortgage agreement and to consult with a legal professional to ensure that your rights are protected.

Purpose of Deeds of Mortgage Documents

The purpose of a deed of mortgage document is to:

Provide evidence of the mortgage loan

The document outlines the terms of the loan, including the names of the borrower and lender, the amount of the loan, the interest rate, the length of the loan, and any other terms and conditions.

Establish the lender’s security interest in the property

The property is used as collateral for the loan and the lender has the right to foreclose on the property if the borrower defaults on the loan.

Record the mortgage with the local government

The document is recorded with the local government as a public record, which establishes the lender’s legal claim on the property.

Create a legally binding document

The deed of mortgage is a legally binding document, and it is important for both the borrower and lender to understand and comply with its terms.

Provide a way to transfer ownership of the mortgage

A mortgage note (promissory note) can be sold or transferred by the lender to another party, such as a secondary market investor, allowing the lender to free up capital to make more loans and also providing investors with a way to earn returns on their capital.

Provide a way for the lender to recover the loan in case of default by the borrower

The deed of mortgage also outlines the legal remedies available to the lender if the borrower defaults on the loan, such as the right to foreclose on the property.

If you need a copy of your deed of mortgage document in Nigeria, you can obtain it through the following steps:

1. Contact Your Mortgage Lender: The first step in obtaining a copy of your deed of mortgage document is to contact your mortgage lender. They will have a copy of the deed since they are the ones who issued the mortgage loan. You can request a copy from them by phone, email, or in person.
2. Request From the Land Registry: Another way to obtain a copy of your deed of mortgage document is to visit the land registry in your state of residence. The land registry keeps records of all land transactions, including mortgages, and they should have a copy of your deed on file. You will need to provide your name, the address of the property, and the date of the mortgage to access the document.
3. Hire a Property Lawyer: If you’re having trouble obtaining a copy of your deed of mortgage document from your lender or the land registry, you may want to consider hiring a legal practitioner to assist you. A lawyer can help you navigate the legal process and obtain the necessary documentation to prove your ownership of the property.
4. Pay the Required Fees: Depending on where you obtain your copy of the deed of mortgage document, there may be a fee associated with the request. The land registry and your mortgage lender may charge a fee for providing a copy of the document. Be sure to inquire about any associated fees beforehand.
5. Verify the Authenticity of the Document: Once you receive a copy of your deed of mortgage document, it’s important to verify its authenticity. You can do this by cross-checking the document’s details with the land registry or your mortgage lender. This will ensure that the document is genuine and can be used for any legal purposes.

How do Obtain Copies of Deeds of Mortgage Documents

Homeowner’s Insurance Policy

A homeowner’s insurance policy is a type of insurance coverage that provides financial protection for a homeowner and their property. It typically covers losses from events such as fire, theft, storm damage, and other hazards.

The policy may also provide liability coverage for injuries that occur on the property and for damage that the homeowner causes to other people’s property. A homeowner’s insurance policy can also help with temporary living expenses if the home becomes uninhabitable due to a covered event.

The amount of coverage and the specific events that are covered can vary depending on the policy, so it’s important to review the policy details carefully.

Types of coverage included in a Homeowner’s Insurance Policy

The specific types of coverage and the amount of coverage provided can vary depending on the policy. It’s important to review the policy details carefully to understand the coverage provided.

A typical homeowner’s insurance policy provides coverage for the following types of losses:

Dwelling

This covers damage to the physical structure of the home, such as from fire, storm damage, or theft.

Personal Property

protects personal belongings inside the home, including furniture, electronics, and clothing.

Liability

This covers legal costs and expenses if someone is injured on the property or if the homeowner is responsible for damage to someone else’s property.

Additional Living Expenses

Reimburses the cost of temporary housing and related expenses if the home is uninhabitable due to a covered loss.

Medical Payments

Pays for medical expenses if someone is injured on the property, regardless of fault.

Loss of Use

Pays for additional expenses, such as hotel and food costs, if the homeowner is temporarily displaced from their home.

How to Obtain An Homeowner’s Insurance Policy

It’s important to choose a reputable insurance company and to fully understand the coverage provided by the policy before purchasing it. To obtain a homeowner’s insurance policy, you can follow these steps:

Shop around

Compare rates and coverage from different insurance companies. You can use online comparison tools or work with an insurance agent to find the best policy for your needs.

Determine your coverage needs

Consider the value of your home and belongings, as well as any additional coverage you may need, such as liability coverage or flood insurance.

Get quotes

Request quotes from several insurance companies. Be sure to provide accurate information about your property and your coverage needs.

Read and understand the policy

Carefully review the policy details to ensure you understand the coverage provided and any exclusions or limitations.

Purchase the policy

Choose the policy that best meets your needs and budget and purchase it. Be sure to keep a copy of the policy and all related documents in a safe place.

Review the policy regularly

Regularly review your policy to ensure it still meets your needs and to make any necessary updates.

Home Inspection Report

A home inspection report is a document prepared by a professional inspector that provides a detailed evaluation of a property’s condition. The inspector will examine the structure, systems, and components of the home, including the roof, electrical and plumbing systems, HVAC, and appliances.

The inspection report will highlight any potential problems, safety issues, and needed repairs or maintenance, and provide recommendations for addressing the issues that may affect the property’s value.

Purpose of Home Inspection Report

The purpose of a home inspection is to give potential buyers or homeowners a comprehensive understanding of the condition of the property and to help identify any potential issues before finalizing a real estate transaction.

The physical inspection report serves as a valuable tool for both buyers and sellers, providing information that can be used to negotiate the terms of the sale or to make repairs before closing.

It’s important to choose a licensed and experienced inspector to perform the home inspection and to thoroughly review the inspection report to ensure all issues are addressed.

How to Obtain Home Inspection Report

To obtain a home inspection report, you can follow these steps:

• Choose a licensed inspector: Look for a licensed, experienced, and professional inspector in your area. You can ask for recommendations from a real estate consultant, seasoned investors, friends, or family members, or search online for local inspectors.

• Schedule the inspection: Contact the inspector to schedule the home inspection. Be sure to schedule the inspection at a time that is convenient for you and the inspector.

• Prepare the home: Clean the home and remove any clutter so the inspector has clear access to all areas of the property.

• Attend the inspection: Attend the inspection so you can ask questions and see any issues firsthand.

• Receive the report: The inspector will provide you with a detailed home inspection report, typically within a few days of the inspection.

• Review the report: Thoroughly review the report to understand the condition of the property and any recommended repairs or maintenance.

Property Tax Assessment

A property tax assessment is the estimated value of a property used to calculate property taxes owed to the government. The assessor determines the value based on factors such as location, size, and condition of the property, as well as local real estate market trends.

Purpose of Property Tax Assessment

• Property tax assessment is the process of determining the value of a property for the purpose of levying property taxes.
• The main purpose of property tax assessment is to fairly and equitably distribute the tax burden among property owners.
• The assessment takes into account various factors such as the location, size, age, and condition of the property, as well as market trends and recent sales in the area.
• This information is used to estimate the market value of the property, which is then used as the basis for calculating property taxes.
• The property tax assessment is important for local governments as it provides a significant source of revenue for funding services such as schools, police, fire, and infrastructure improvements.
• The assessment helps ensure that property owners are paying their fair share of taxes and that the tax burden is distributed fairly and equitably among all property owners in the jurisdiction.

How to Obtain Property Tax Assessment

To obtain a copy of your property tax assessment, you can follow these steps:

1. Contact the local property tax assessor’s office: You can find the contact information for your local property tax assessor’s office on your property tax bill or on your city website.
2. Request a copy in person or via phone: You can request a copy of your property tax assessment by visiting the local property tax assessor’s office or by calling them. You may need to provide your property’s address and/or tax ID number.
3. Check online: Some local property tax assessor’s offices have the information available online. You can search for your local property tax assessor’s website and see if they have an online database of property tax assessments.
4. Submit a written request: You can also submit a written request for a copy of your property tax assessment. This can be done via mail, fax, or email, depending on the policy of the local property tax assessor’s office.
5. Pay any fees: There may be a fee for obtaining a copy of your property tax assessment, so be prepared to pay any applicable fees when you request it.

It’s important to keep in mind that each local property tax assessor’s office may have different procedures and policies for obtaining a copy of a property tax assessment, so it’s best to check with them directly to find out what their specific requirements are.

CERTIFICATE OF OCCUPANCY

The Certificate of Occupancy, or C of O, is the most important document to property buyers and landowners. The land document is issued by State Governments and it verifies that you are the real owner of the land.

Property purchased without a Certificate of Occupancy is the equivalent of purchasing a vehicle without a logbook. As a Nigerian landowner or property owner, this is not the kind of situation you want to find yourself in.

A certificate of occupancy (CO) is a document issued by a local government agency that verifies that a building or structure meets the minimum standards for occupancy and usage.

It certifies that a building is safe for its intended use and is in compliance with all local building codes, zoning laws, and fire codes. Obtaining a certificate of occupancy is typically a requirement before a building or structure can be used for its intended purpose.

Survey Plan

A survey plan is a technical drawing that accurately depicts the boundaries and physical features of a piece of land or property. It is created by a licensed surveyor and typically shows the location of buildings, sidewalks, property lines, and other structures relative to the property boundary lines.

The survey plan also includes measurement data and information about the orientation and elevation of the property. Survey plans are used for a variety of purposes, including property boundary disputes, real estate transactions, construction planning, and land-use planning.

They provide a precise and legally recognized representation of a property, and are often required by government agencies, mortgage lenders, and title companies.

A survey plan may also include additional information, such as the presence of easements, land size, zoning restrictions, and topographical features. The survey plan serves as a key reference for both the property owner and any professionals involved in the development or improvement of the property.

Evidence of Payment

A land purchase receipt is a typical payment receipt or document that confirms the receipt of money for a specific property or piece of land.

The seller typically gives the buyer a land receipt after the sale of a property. The reception provision, however, may be waived in cases when it is part of the land transfer agreement.

Frequently Asked Questions

Final Thought

In conclusion, owning a home is a big milestone, and having essential documents on hand can make your life easier and smoother. From proof of ownership to insurance documents, these key papers are critical for protecting your financial investment and ensuring peace of mind.

Make sure you keep these documents safe and accessible, so you’re always prepared for unexpected events or legal matters. By having these essential documents on hand, you can be rest assured that you’re fully prepared for any challenges that may come your way as a homeowner.