Imart Realtors | Interesting Facts You Must Know About Real Estate Investing In Abuja
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Interesting Facts You Must Know About Real Estate Investing In Abuja

Interesting Facts You Must Know About Real Estate Investing In Abuja

When talking about real estate investing, you would hear terms like “excision in process”, “Excision” and “Gazette” but not in Abuja real estate industry. The common titles of land in Federal Capital Territory (FCT) Abuja are Certificate of Occupancy, Right of Occupancy, ( R of O), Statutory R of O. While in Lagos state, there is no R of O and Statutory R of O.

What does these terms really mean?

 RIGHT OF OCCUPANCY ( R OF O):

This is the right granted to an individual or corporate organization over a plot or parcel of land in an approved government layout. This right is granted only for a given period. Normally, a maximum of 99 years lease is granted for residential purpose, while other uses range from 35 to 70 years depending on the value of improvements.

The right granted is the right to use the land for a period of time stipulated in the offer. Upon expiration of the lease period, the land and the improvement on it revert to Government.

It is expected that a holder of a right of occupancy might have enjoyed whatever investment he might have made on the plot of land at the expiration of the lease period (i.e. 35, 40, 50, 60, 70 or 99 years as the case may be.) There is however a provision for a re-grant. A holder may upon expiration of the initial grant/ lease term apply for a re-grant, of the Right of Occupancy and the Government has discretion in considering such applications. C of O is higher than R of O. Anybody with R of O is expected to apply for C of O.

CERTIFICATE OF OCCUPANCY ( C OF O):

A Certificate of Occupancy is an instrument prepared at the Land Registry, signed by the Minister (the Governor, in the case of any state of the Federation), registered in the Land Registry and given to the holder of a Right of Occupancy in evidence of a grant. The Land Use Act made provision for the issuance of a C of O over every grant

RE-CERTIFICATION :

It is the process of certification and capturing genuine land data, which necessitated changing the hard copy of the C of O. It is an exercise embarked upon by the FCT Administration in order to issue new and more secured Certificates of Occupancy evidencing each and every grant within the FCT. A title document or statutory Right of Occupancy can be revoked for overriding Public interest. It can be revoked on the account of contravention of any or all of the terms of the right of occupancy. A right of occupancy could also be liable for revocation for failure or neglect on the part of the Allottee to pay and obtain the new certificate of occupancy.

GROUND RENT:

Ground rent is a charge paid to Government for the use of the land. It is payable annually based on an approved rate. It is subject to periodic revision within the term of the lease. This is also being collected in Lagos State. Although most people don’t pay this.

TENEMENT RATE:

It is a tax charge on a rented property and payable to a local council for services rendered by that council. It has to be a developed property and in full occupation by either a tenant or the owner of the property. In other words the charges are not normally imposed on unoccupied property. This is also been collected in Lagos State and some other states. But most people don’t pay even in Abuja except those in Central Business Area.

PREMIUM:

It is an amount of rent paid at the commencement of tenancy on Land before the issuance of a C of O. NOTE: it is only paid before the issuance of C of O

DEVELOPMENT LEVY (DEV LEVY):

It is a charge paid to government over a plot of land for a particular purpose. In the FCT it is paid before the issuance of a C of O along with other bills known as initial bill. The FCT imposed the Development Levy in the year 2000 and the money is intended to be used for the provision of infrastructures, particularly in areas of the City that are yet to have such facilities.

This is one of the reasons you see more tarred roads and better roads in Abuja. Those that have been to Abuja or those living there can attest to this. You can see reasons anybody buying a land in Abuja with existing C of O as title should be excited.

Also in FCT Abuja, almost every land has been earmarked for a particular housing type.  I mean as you are buying a land there is specific type of house you must build on it depending on the area.

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