Buying land is one of the biggest financial decisions a person or a business will make in Nigeria. Yet many buyers focus almost entirely on price and location, and treat the legal side of the purchase as a formality to sort out later. That approach is risky. A transaction that looks straightforward on the surface can conceal competing claims, a defective title, a government acquisition, or restrictions that limit what the buyer can actually do with the land. Due diligence is not an optional extra. It is the work that tells you whether the person selling the land actually has the right to sell it.
What due diligence actually means
At its core, due diligence means investigating the legal status, ownership history, and physical condition of a property before money changes hands. The goal is simple: find the risks before you own them, not after.
This means a buyer should never rely only on the seller’s word, a set of receipts, or a friendly assurance that “everything is fine.” Ownership has to be verified through the proper documentary and official channels.
Confirming the seller actually has title to sell
The first real question in any land transaction is whether the person selling the property has the legal capacity to transfer it. Depending on the transaction, the relevant documents might include a Certificate of Occupancy, a Deed of Assignment, a conveyance, a grant, or a survey plan.
But a document alone is not proof of a clean title. In Ogunleye v. Oni (1990) 2 NWLR (Pt. 135) 745, the Supreme Court made clear that a Certificate of Occupancy is only prima facie evidence of title, not conclusive proof of it. A person who can show a better title can defeat the holder of a Certificate of Occupancy. That single point is enough reason to trace the root of title rather than stop at the first document produced.
Where the land is family or communal land, there is an added layer of questions around who actually has the authority to sell it, since not every family member can validly transfer family land on their own.
The Supreme Court in Idundun v. Okumagba (1976) 9-10 S.C. 227 set out the recognised ways a person can prove title to land, including traditional evidence, documents of title, acts of ownership, and long possession. It remains the reference point for understanding what “proof of ownership” actually requires under Nigerian law.
Doing the official searches
A buyer should carry out a search at the relevant Land Registry or other competent authority. This is where you find out things the seller may never volunteer, such as whether the land carries a mortgage or caveat, whether there are earlier or competing transactions on record, or whether the land falls within an area affected by government acquisition or planning restriction.
A physical inspection and survey check matter just as much as the paper search. The description in the documents has to match what actually exists on the ground, including boundaries and dimensions.
Why the Land Use Act sits at the centre of this
The Land Use Act, Cap. L5, Laws of the Federation of Nigeria, 2004, is the backbone of Nigerian land law. Section 1 vests all land in a state in the Governor, held in trust for the use and benefit of the people. Section 22 generally requires the Governor’s consent before a statutory right of occupancy can be validly transferred, and Section 26 addresses what happens when a transaction contravenes the Act.
The exact requirements vary depending on the interest involved and the state. A buyer should get legal advice on consent, registration, and perfection rather than assume that signing an agreement is the end of the process.
Why the written agreement matters
A proper agreement should name the parties clearly, describe the property precisely, state the price and payment terms, and spell out each side’s obligations, including delivery of documents, vacant possession, consent, registration, and what happens if either party defaults.
A Deed of Assignment is often the right instrument for transferring an assignable interest in land, but the correct instrument depends on the nature of the interest being sold.
Buyers should also be cautious about paying large sums before the investigations are complete. Structuring payment to protect yourself until the agreed conditions are met is not being difficult. It is being careful with your own money.
What happens when due diligence is skipped
Skipping these steps can lead to years of litigation, real financial loss, or the discovery, too late, that the seller never had a valid interest to transfer in the first place. Good faith does not always protect a buyer. The law does not automatically excuse a purchaser simply because they did not know the title was defective. That is exactly why the legal review needs to happen before the money and the signature, not after. Ass
Conclusion
Land should never be bought on trust or urgency alone. A buyer who investigates the title, runs the necessary searches, checks the property, and gets the paperwork right is in a far stronger position to avoid a dispute later. Due diligence is not a delay in the process. It is the process.
Relevant authorities: Land Use Act, Cap. L5, Laws of the Federation of Nigeria, 2004 (Sections 1, 22, 26); Idundun v. Okumagba (1976) 9-10 S.C. 227; Ogunleye v. Oni (1990) 2 NWLR (Pt. 135) 745.
By Ewhobor Oghale Lilian
Associate
A.O Ayeni & Associates