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    Certificate of Occupancy

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    akinolakolawolejoseph
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    Certificate of Occupancy

    Uploaded by

    akinolakolawolejoseph
    6 views5 pages
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    6 views5 pages

    Certificate of Occupancy

    Uploaded by

    akinolakolawolejoseph
    class note

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    Meaning and nature of certificate of occupancy

    The Land Use Act introduced the right of occupancy system in Nigeria. Right of
    occupancy is a right to use and occupy land in accordance with the provisions of the
    Land
    Use Act. Right of occupancy is completely different from ownership of land known
    under
    both customary and common laws. All forms of ownership of land existing before the
    Land Use Act was introduced were converted to right of occupancy.

    There are two types of right of occupancy under the Land Use Act.

    1. Statutory right of occupancy which is either granted under section 5 of the Act or
    deemed granted under section 34(1)(2)

    2. Customary right of occupancy usually granted by the Local Government, which is


    either granted under section 6(1) of the Land Use Act or deemed granted under
    section 36(1)(2) of the Land Use Act. A certificate of occupancy is therefore the
    evidence of the right of occupancy. A certificate of occupancy is a document that
    shows that the person disclosed therein is entitled to the right of occupancy. It must
    be noted that certificate of occupancy is the only method devised by the Land Use
    Act which links a person to a right of occupancy. Despite a great deal of debate, a
    certificate of occupancy can validly confers new interests in land and extinguish old
    ones existing in favour of another particularly when preceded by a valid grant. Prof
    Umezulike observes that a certificate of occupancy can perform three main functions:

    a. As an instrument which confers the right granted or deemed granted by the state
    b. As a conveyance of the right of occupancy being transferred to the grantee of right
    of
    occupancy and
    c. As the ultimate document in the conveyance of right of occupancy ...
    3.2 Who issues Certificate of Occupancy

    While there are two types of certificate of occupancy, statutory and customary and
    the fact that both the Governor and the Local Government can grant right of
    occupancy, it
    is only the Governor that can issue either statutory certificate of occupancy under the
    Land Use Act. In this connection section 9 of the Land use Act provides as follows:
    9(1) it shall be lawful for the Governor

    a. When granting a statutory right of occupancy to any person or


    b. When any person is in occupation of land under a customary right of occupancy and
    applies in the prescribed manner; or
    c. When any person is entitled to a statutory right of occupancy, to issue a certificate
    under his hand in evidence of such a right of occupancy.
    The provision shows clearly that it is only the Governor, to the exclusion of any other
    person, that can issue a certificate of occupancy.

    3.3 Contents of Certificate of Occupancy

    Certificate of occupancy content both implied and express conditions, terms or


    covenants that bind the holder and the Governor. Certificate of occupancy as evidence
    of
    right of occupancy shows the conditions under which the holder holds his right of
    occupancy.
    The implied conditions are specified in section 10 of the Land Use Act as follows:
    every certificate of occupancy shall be deemed to contain provisions to the following
    effect:

    a. That the holder binds himself to pay the ... Governor the amount found to be
    payable in respect of any unexhausted improvements existing on the land at the date
    of his entering into occupation;

    b. That the holder binds himself to pay to the ... Governor the rent fixed by the ...
    Governor and any rent which may be agreed or fixed or revision in accordance with
    the provisions of section 16.

    The express conditions, terms or covenants may vary from state to state. However, the
    salient express conditions include the following;

    1. Purpose clause. i.e. the purpose for which the right of occupancy was granted. It
    may
    be for residential, commercial, industrial or agricultural.
    2. Development clause. It usually requires the grantee to develop the land the subject
    matter of right of occupancy within a specified period and sometimes the
    development should be to a specified value.
    3. Quantum of interest clause. This clause usually shows that the grant is for specified
    years. Usually it is for 99 years, 55 years etc see section 8 of the Land Use Act.
    4. Payment for unexhausted improvement clause
    5. Payment of rent clause
    6. Alienation clause. That the holder will not alienate without the consent of the
    Governor. see Section 21 and 22 of the Land Use Act.
    7. Right of entry clause. That the Governor or his agent shall have a right to enter and
    inspect the land.

    3.4 Rights and Duties of a Holder of a Certificate of Occupancy


    The following are the rights of the holder:

    1. Under section 14 of the Act, the holder shall have exclusive right to the land the
    subject of the right of occupancy against all persons other than the Governor.
    2. Under section 15, of the Act, the holder during the term of a right of occupancy
    has ownership of all improvements on the land
    3. The holder has a right to alienate the land or the improvements on the land or
    both provided he obtains the consent of the Governor.
    4. The holder has a right to be informed of the rent payable from time to time.
    5. The holder is entitled to compensation if his right of occupancy is revoked for
    public purpose.

    The holder of a certificate of occupancy has the following duties;

    2. Maintain all beacons or other landmarks which delineate the boundary of the area
    covered by the right of occupancy
    3. Comply with all the terms, conditions or covenants in the certificate of occupancy

    3.5 How to Obtain a Certificate of Occupancy

    The procedures for application of certificate of occupancy and the documents required
    greatly depend on the practice in jurisdiction where the land is located.
    There are two ways of applying for a certificate of occupancy
    1. By grant of state land i.e. actual grant by the Governor.
    2. By ratification of existing rights over land i.e. rights existing before the enactment
    of the Land Use Act 1998. i.e deemed grant

    Generally, to apply for certificate of occupancy following a grant by state i.e. actual
    grant,
    you need the following:
    1. Application form duly completed
    2. Two passport photograph
    3. 3 years tax clearance receipt
    4. The development levy receipt
    5. The receipt of payment of application fees
    6. Birth certificate or declaration of age
    4.0 Conclusion

    Certificate of occupancy is an important document under the Land Use Act. It is the
    only document introduced by the Act that links a person to a right of occupancy. It is
    because of its significance that lending institutions insist that before a property is
    accepted as
    a collateral it must be covered by a certificate of occupancy. Therefore, conveyancer
    must
    always ensure that land is covered by valid and genuine certificate of occupancy.

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