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The Role of Certificate of Occupancy in Property Valuation Method in Nigeria by Dennis Isong

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The Role of Certificate of Occupancy in Property Valuation Method in Nigeria by Dennis Isong

In Nigeria’s real estate landscape, property valuation serves as a crucial process that determines the worth of a property for various purposes, including buying, selling, and securing loans. One significant document that plays a pivotal role in this process is the Certificate of Occupancy (C of O). This legal document, issued by the state government, confirms an individual’s right to use and occupy land for a specified period.
Understanding the interplay between the C of O and property valuation is essential for investors, developers, and homeowners alike, as it can significantly influence market perceptions and property prices.
Understanding the Certificate of Occupancy
The Certificate of Occupancy is a legal document that signifies ownership and the right to occupy land. In Nigeria, land ownership is primarily governed by statutory laws, customary laws, and the Land Use Act of 1978, which mandates that all land in urban areas is owned by the government. Thus, the issuance of a C of O is necessary to establish a legal claim over any parcel of land.
Obtaining a C of O is a comprehensive process that involves several steps, including land survey, payment of necessary fees, and completion of relevant documentation. Once issued, the C of O provides security to the landowner by guaranteeing their rights against unlawful eviction or encroachment. This security is a significant factor in property valuation. Properties with a valid C of O are generally seen as more valuable and less risky compared to those without, as the certificate signifies legal recognition and ownership rights.
C of O and Market Perception
The presence of a C of O can significantly influence market perception and the demand for a property. Properties with a valid Certificate of Occupancy are typically viewed as more desirable by potential buyers and investors. This perception stems from the legal security that a C of O provides. Buyers are more likely to invest in properties with a C of O because they have assurance that their rights are protected, and the likelihood of disputes regarding ownership is minimized.
Moreover, lenders and financial institutions often require a C of O before approving loans for property purchases or developments. A valid C of O enhances the credibility of the property, making it easier for buyers to secure financing. This accessibility to finance, in turn, can lead to increased property demand, thereby driving up its valuation. Conversely, properties lacking a C of O may be perceived as risky investments, resulting in lower valuations and reduced buyer interest. Thus, the C of O serves as a critical indicator of a property’s reliability and marketability.
C of O in the Property Valuation Process
In the property valuation process, a valuer considers various factors to determine the value of a property. These factors typically include location, size, condition, and comparable sales in the area. However, the existence of a C of O is often a prominent consideration. During the valuation process, valuers will assess the C of O to ascertain the legal standing of the property. A valid C of O not only confirms ownership but also indicates compliance with local land use regulations, zoning laws, and building codes.
Valuers may also take into account the duration of the C of O. In Nigeria, a C of O is usually granted for 99 years, and this long tenure can positively influence a property’s valuation. The security provided by a long-term C of O assures potential buyers of their rights over the property for an extended period, making it a more attractive investment. Conversely, properties without a C of O, or those with expired or disputed certificates, may be valued lower due to the inherent risks associated with such properties.
Furthermore, a C of O can impact future development potential, which is a crucial aspect of property valuation. Properties with a valid C of O are more likely to receive the necessary approvals for development or alteration, while those without may face legal hurdles. This potential for development can enhance the property’s value, as it indicates future income generation possibilities. Consequently, valuers consider the C of O as a critical factor that influences the overall worth of the property in the market.
Challenges and Implications of C of O in Property Valuation
Despite its importance, the C of O is not without challenges. The process of obtaining a C of O can be lengthy and complex, leading to delays in property transactions. In some cases, disputes over land ownership can arise, particularly in areas where customary land tenure systems are prevalent. These disputes can complicate the valuation process, as properties with contentious C of Os may be difficult to sell and consequently valued lower.
Additionally, the presence of a C of O does not automatically guarantee a problem-free investment. Factors such as environmental issues, development restrictions, or changes in land use policies can affect property value. Valuers must therefore conduct thorough due diligence, considering not only the existence of a C of O but also any associated risks or liabilities.
In conclusion, the Certificate of Occupancy plays a crucial role in property valuation methods in Nigeria. As a legal document that signifies ownership and security, it significantly influences market perception and property demand. Valuers must consider the C of O when assessing a property’s value, as it reflects the legal standing and development potential of the land. However, challenges associated with the C of O, such as ownership disputes and regulatory complexities, must also be navigated to ensure accurate valuations. For stakeholders in the Nigerian real estate market, understanding the importance of the C of O is vital for making informed investment decisions and maximizing property value.
Dennis Isong is a TOP REALTOR IN LAGOS.He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE. For Questions WhatsApp/Call 2348164741041

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Sahara weekly online is published by First Sahara weekly international. contact [email protected]

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Ogun 1 Customs Command, NASRE Forge Stronger Ties for National Development and Border Security

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December 19, 2024

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Ogun 1 Customs Command, NASRE Forge Stronger Ties for National Development and Border Security

The Ogun 1 Area Command of the Nigeria Customs Service (NCS) recently hosted the Nigerian Association of Social and Resourceful Editors (NASRE) at its headquarters, marking a significant step towards strengthening partnerships aimed at enhancing border security, trade facilitation, and public awareness.

During the meeting, NASRE extended its congratulations to Comptroller Mohammed Shuaibu on his recent appointment as the Customs Area Controller of Ogun 1 Command. The association commended his leadership capabilities and expressed confidence in his ability to elevate the command’s operational standards.

In his welcome address, the Public Relations Officer of the command, Mr. Hammed Bujoye Oloyede, reaffirmed Comptroller Shuaibu’s dedication to the command’s core objectives, which include revenue generation, securing Nigeria’s borders, and streamlining trade operations.

“Comptroller Shuaibu’s leadership is driven by innovation, collaboration, and active stakeholder engagement, especially with border communities. These principles are critical to achieving long-term growth and security in our operations,” Mr. Oloyede remarked.

He further stressed the importance of forming alliances with professional organizations like NASRE to ensure accurate information dissemination and to foster public trust in the Customs Service’s activities.

NASRE’s Public Relations Officer, Adeyemi Obadimu, responded by expressing the association’s enthusiasm for collaborating with the Ogun 1 Command on media advocacy and public enlightenment initiatives. He emphasized NASRE’s commitment to promoting ethical journalism and transparency, values that align with the Customs Service’s mission.

“This partnership will enhance public understanding of trade policies, border security, and economic growth while strengthening the relationship between the Customs Service and the public,” Mr. Obadimu stated.

The NASRE team underscored the vital role of the media in educating the public about the challenges and successes of the Nigeria Customs Service, particularly in its fight against smuggling and efforts to maintain national security.

This collaboration is expected to foster a more informed public and a stronger synergy between stakeholders in promoting national development.

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Man Who Lost Memory 17 Years Ago Reunites with Family Through Divine Encounter in Lagos”

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December 19, 2024

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Man Who Lost Memory 17 Years Ago Reunites with Family Through Divine Encounter in Lagos"

Man Who Lost Memory 17 Years Ago Reunites with Family Through Divine Encounter in Lagos”

A miraculous event unfolded on Wednesday, December 11, 2024, near the Task Force Office on Alasia Bolade Street, Oshodi, Lagos, opposite the Arena Military Market. Sunday Ugochukwu, a man from Ebonyi State who suffered memory loss 17 years ago, was miraculously healed and identified, leading to his reunion with his long-lost family.

Man Who Lost Memory 17 Years Ago Reunites with Family Through Divine Encounter in Lagos"

Apostle Ayoola Oladele, a Lagos-based prophet and founder of Let Us Worship Ministries Healing and Salvation, was reportedly led by the Holy Spirit to pray for a man thought to be mentally ill. Acting on divine instruction, Apostle Oladele approached the man and laid hands on him. This act of faith led to the restoration of Sunday Ugochukwu’s memory.

Upon regaining his memory, Ugochukwu revealed his identity, which was later confirmed by his family in Ebonyi State. The family, who had presumed him dead after his sudden disappearance 17 years ago, expressed immense gratitude to God and Apostle Oladele for the divine intervention.

A former military officer turned prophet, Apostle Ayoola Oladele is known for his powerful healing ministry. He shared that his spiritual strength comes from prayer, fasting, and solitary retreats on mountain tops, emulating the practices of Jesus Christ.

The Ugochukwu family hailed the incident as a testament to God’s miraculous power. They celebrated the prophet for being an instrument of God’s work, describing the event as nothing short of extraordinary.

This remarkable story stands as a testament to faith, divine power, and the boundless grace of God.

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Ibadan Christmas Stampede: CDHR Condemns Tragic Death of Over 30 Children, Calls for Justice”

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December 19, 2024

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INTERNATIONAL HUMAN RIGHTS DAY 2024: CDHR DEMANDS IMMEDIATE ACTION AGAINST INJUSTICES

Ibadan Christmas Stampede: CDHR Condemns Tragic Death of Over 30 Children, Calls for Justice”

Over 30 children tragically lost their lives during a Christmas funfair held on Wednesday, December 18, at Islamic High School, Basorun, Ibadan, Oyo State. The incident occurred due to a stampede caused by overcrowding and poor event management, leaving families devastated during what was meant to be a joyful occasion.

The event, organized by Queen Naomi Silekunola Ogunwusi, the former wife of the Ooni of Ife, in collaboration with Agidigbo FM, owned by philanthropist and radio presenter Oriyomi Hamzat, aimed to distribute gifts and scholarships to children. However, the chaotic arrangements turned the celebration into a nightmare.

Governor Seyi Makinde confirmed the tragedy, expressing deep sorrow over the loss of young lives. “This is a very sad day for us in Oyo State,” the governor said, as he sympathized with grieving families. He ordered the suspension of the event and deployed security personnel and medical teams to restore order and assist the injured.

In response, the Committee for the Defence of Human Rights (CDHR) condemned the mass deaths, attributing the disaster to the organizers’ failure to implement proper planning and safety measures for an event meant to host over 5,000 children. CDHR also expressed heartfelt condolences to the affected families and the Ibadan community.

The organization urged the Oyo State Government and security agencies to conduct a thorough investigation, publish their findings, and hold those responsible accountable for any negligence that led to the tragedy.

E-signed:
Comrade Debo Adeniran, National President, CDHR Nigeria
Comrade Idris Afees Olayinka, National Publicity Secretary, CDHR Nigeria

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