A payment receipt proves that money changed hands on a specific date. It does not prove that the person who received the money had the legal right to sell the property. It does not prove that the property is free from encumbrances. It does not prove that the title is valid, registered, or transferable. In the Nigerian property market, many buyers treat a receipt as evidence of ownership, which it is not. A receipt is evidence of payment to a specific party — and nothing more.
These are the documents that actually establish ownership, and what each one tells you about the quality of the title you are acquiring.
The title hierarchy in Nigerian property law
Under the Land Use Act 1978, the strongest form of land title in Nigeria is a Certificate of Occupancy (C of O), issued by the Governor of a State (or the Minister of the FCT for Abuja). A C of O grants the holder a statutory right of occupancy for a term of 99 years from the date of grant. It is a state-issued document with a registration number, the name of the holder, a survey plan reference, and conditions of occupancy. Transactions involving C of O titles require Governor's Consent to be valid.
Below the C of O in the hierarchy are instruments that derive authority from a C of O or from pre-Land Use Act customary or common law titles:
- Deed of Assignment: A legal instrument transferring the holder's interest in a leasehold property to a buyer. Must be properly executed, stamped, registered, and for C of O properties, accompanied by Governor's Consent to be fully effective.
- Deed of Conveyance: Used for freehold or pre-Land Use Act fee simple properties. Transfers ownership from seller to buyer. Also requires stamping and registration.
- Registered Deed of Sublease: For properties held under a headlease, the sublease document creates the tenant's interest. Should be registered to be enforceable against third parties.
What receipts actually prove
A payment receipt issued by a seller or agent proves: the amount paid, the date of payment, and the name of the party who received the payment. In a property transaction context, a receipt provides evidence of financial commitment but creates no legal right in land. If the seller had no title to the property, or had already sold it to another party, or if the property is under government acquisition, a receipt does not give you any protection.
Worse, receipts are frequently manufactured or backdated in property fraud. A fraudulent seller who has already sold a property to one buyer may issue receipts to a second buyer to create the appearance of a transaction in progress while buying time. Receipts that are not accompanied by the execution of a legal instrument — a signed, witnessed, and stamped Deed — do not transfer any legal interest regardless of the amount paid.
The complete document chain to request
Before any payment beyond a fully refundable reservation deposit, buyers should request and verify the following:
- Root title document: The C of O, Deed of Conveyance, or earliest legitimate instrument in the chain that establishes how the current seller came to hold the property. This document should be original, not a photocopy.
- Chain of Assignments (if applicable): Every Deed of Assignment in the title chain from the root document to the current seller. Each assignment should be stamped and registered. Governor's Consent should be endorsed on each assignment of a C of O title. Gaps in this chain — transactions that occurred without proper documentation — must be explained and where necessary remediated before completion.
- Survey plan: Matching the property you physically inspected, verified on the ground by a registered surveyor.
- Evidence of Governor's Consent: For C of O properties, confirmation that all prior assignments in the chain have the requisite consent. The absence of consent on any prior assignment does not automatically invalidate the chain, but it requires legal advice on the risk implications.
- Lands Registry search result: A formal search at the State Lands Registry confirming the current registered title, any registered encumbrances (mortgages, charges, or liens), and the absence of government acquisition affecting the property.
- Property tax compliance records: Evidence that land use charge, ground rent, and any other statutory charges are current. Outstanding charges are the buyer's problem after completion.
The single most dangerous assumption in Nigerian property transactions
The most dangerous assumption a buyer can make is that because money has been paid, the transaction is protected. Until a properly executed and stamped legal instrument has been signed by both parties, no binding contract for the sale of land exists. Until a Deed of Assignment endorsed with Governor's Consent has been registered, no transfer of the C of O title has occurred in law. Receipts, verbal agreements, and unsigned heads of terms are all pre-contractual and protect no one.
Request the documents. Engage your own solicitor. Do not allow urgency from the seller or agent to compress the verification timeline. The cost of proper legal due diligence is fixed and modest relative to the transaction value. The cost of discovering a defective title after full payment has been made is almost always much higher.