In recent weeks, the demolition of several structures in Oworosonki, located along the Iyana Oworo and Lekki coastline axis in Lagos has stirred up significant discussion in the real estate sector. This demolition, which was carried out by the Lagos State Building Control Agency (LASBCA), serves as a harsh reminder to property buyers everywhere: No matter how convincing the paperwork seems, if the necessary approvals are not in place, your investment may be at risk.
The demolitions in Oworosonki are a painful example of how skipping or neglecting due diligence during property purchases can result in devastating losses. Many residents, who believed they had purchased legitimate properties with the right documents, were left shocked when bulldozers arrived, and the Lagos State Government made it clear: No compensation will be offered to property owners whose buildings were demolished.
The government’s decision to withhold compensation was based on one key factor: The properties in question were built without the required physical planning and building approvals. Even though many of these property owners had purchase receipts and deeds of conveyance and other forms of right of occupancy. These documents alone were not enough to protect their investments from government intervention.
THE OWOROSONKI DEMOLITION INCIDENT: WHAT YOU NEED TO KNOW
The Lagos State Government’s action in Oworosonki is not an isolated incident; it is a growing trend in Nigerian real estate, especially in cities like Lagos, Abuja, and Port Harcourt, where the demand for land and property is rapidly increasing.
The demolition, which affected several properties in the Ogulari Oworosonki area, displaced many residents who had lived there for years, with some having invested their life savings in the properties. The government’s firm response to the situation has been unequivocal:
- No building approval
– No compensation
This has raised critical questions for many property buyers and investors:
1. How can I avoid this from happening to me?
2. What can I do to ensure that my property investment is legally secure?
This incident exposes a common but dangerous flaw in the approach of many real estate investors which is failure to conduct a comprehensive due diligence that goes beyond title searches before purchasing any developed or developing property.
Too often, buyers focus solely on confirming the ownership of the land (title due diligence) without considering other crucial aspects such as building and physical planning approvals. Skipping these can lead to significant financial losses and legal trouble down the line.
THE DANGERS OF SKIPPING COMPREHENSIVE DUE DILIGENCE
Many buyers believe that if they see a piece of property for sale, and the seller presents them with legitimate proofs of ownership—such as receipts, title deeds, or conveyance papers, they are safe. However, this is far from the truth. A title deed alone does not guarantee that the property is free from legal issues or that the necessary government approvals have been obtained.
When you’re purchasing property, especially developed properties, you must go beyond ownership confirmations. Here’s a more detailed look at the critical aspects of due diligence:
1. Title Deed: This proves that the seller is the rightful owner of the land or property. But it doesn’t guarantee that the property has been approved for construction or that it’s not at risk of being demolished by the government.
2. Building Plan Approval: This is perhaps the most critical document when purchasing a developed property. Without a valid building plan approval, the property is illegal in the eyes of the law. The government has every right to demolish structures that do not have proper approvals, as is evident in the Oworosonki case.
3. Site Plan Approval (Permit): If the property is situated on or within one hectare of land, you need to ensure that the site plan has been approved by the relevant authorities. This approval is often called a permit, and it confirms that the land has been allocated for building purposes and that the structure is compliant with zoning regulations.
4. Other Legal Documents – Ensure that the Environmental Impact Assessment (EIA) clearances have been obtained, depending on the nature of the property.
Failing to secure these documents could lead to significant financial loss or if the government decides to reclaim the land, you will be entitled to no compensation.
WHAT MAKES YOU ELIGIBLE FOR COMPENSATION IN CASE OF DEMOLITION?
In Nigeria, the general rule is that you are NOT entitled to compensation if your property is demolished by the government for lacking necessary approvals. However, if the government does demolish a property that has all the approvals, compensation is possible. To qualify for compensation therefore, you must meet the following criteria:
1. The land must legally belong to you – You must have proof of ownership via the title deed: R of O; C of O, or any other evidence of ownership, that is right of occupancy properly called.
2. You must have Building Plan Approval – This is the key document that demonstrates your structure was legally authorized by the relevant authorities.
3. The structure should not encroach on setback areas, drainage systems, or government-reserved zones. Structures built on pipelines, railway corridors, buffer zones or in dangerous locations are at risk of being demolished without compensation.
4. Your property must not be deemed hazardous – If the building is unsafe for occupation, the government is under no obligation to compensate you for the demolition.
HOW TO PROTECT YOURSELF: DUE DILIGENCE IS KEY
To avoid falling victim to situations like the Oworosonki demolition, due diligence is non-negotiable. Here’s how you can protect yourself:
- Always request building and planning approvals from the seller when purchasing a property. If the seller cannot provide these documents, do not proceed with the purchase.
- Verify the legitimacy of the seller’s documents by engaging a qualified real estate lawyer or consultant.
- Confirm those approvals and documents from the relevant government or town planning authority to ensure the land is zoned for your purpose.
- Review land records to ensure that there are no encumbrances or legal disputes surrounding the property.
- Visit the property in person and conduct a physical inspection to check for any possible violations of building regulations.
By ensuring that the property you’re purchasing has all the necessary approvals, you not only protect your investment but also secure peace of mind knowing that your property is free from future government interferences.
HOW ENCUMBEREDPROPERTIES.COM CAN HELP
At EncumberedProperties.com, we specialize in helping buyers avoid the common pitfalls that lead to real estate fraud and government demolitions. Our due diligence services ensure that every aspect of the property you’re purchasing is fully verified.
We understand that the real estate process can be overwhelming, especially for first-time buyers. That’s why we offer resources like our “7 Steps to Acquiring a Clean Property Title” guide, which provides a comprehensive checklist for ensuring your property is free from legal issues.
Beyond the above, we also offer Real Estate Due Diligence and Mortgage Advisory Services to help buyers verify approvals, land use, and developer claims before any money changes hands.
NEGOTIATION TEAM SUPPORT: For clients who want us to represent their interest virtually or on ground.
MORTGAGE OPTIONS, SERVICES & FACILITATION: We help you to safe, trusted mortgage solutions to make home ownership easier and safer.
MESSAGE US FOR PERSONALIZED GUIDANCE
DON’T LET YOUR PROPERTY INVESTMENT BECOME A HEADLINE
The Oworosonki tragedy is a harsh but valuable lesson for property buyers across Nigeria. Protect your investment and avoid the heartache of losing your hard-earned money.
Visit EncumberedProperties.com today and take the first step toward a secure and stress-free real estate journey.
THIS ARTICLE WAS WRITTEN BY:
Madueke Enwere
Real Estate Lawyer | Chief Superintendent of Police| Founder, EncumberedProperties.com (the only real estate frauds prevention platform).