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These real estate terms are essential for anyone involved in the Nigerian real estate sector, as they cover various aspects of property ownership, transactions, regulation, and professional practice. Understanding these terms is crucial for effective communication, legal compliance, and informed decision-making in the dynamic and growing Nigerian real estate market.
ADR: Alternative Dispute Resolution
Alternative Dispute Resolution (ADR) refers to the various methods of resolving legal disputes outside of traditional court litigation. In the context of real estate, ADR mechanisms such as mediation, arbitration, and negotiation are often used to resolve conflicts and disagreements related to property transactions, landlord-tenant issues, or other real estate matters. ADR can offer a more efficient and cost-effective way to settle disputes compared to formal legal proceedings[1].
BEM: Building and Estate Management
Building and Estate Management (BEM) involves the administration, operation, and maintenance of buildings and real estate properties. It encompasses a range of activities such as facility maintenance, tenant relations, security, and compliance with regulations. In Nigeria, BEM is an important aspect of real estate management, ensuring the efficient and sustainable use of properties[3].
C of O: Certificate of Occupancy
A Certificate of Occupancy (C of O) is a legal document issued by the government in Nigeria, certifying an individual or firm as the legal owner of a property or piece of land. It is the most important land document in Nigeria and is issued once on a piece of land by the state government. The C of O outlines the terms and conditions of land ownership, including the specific use of the land. It is a crucial document for property ownership and development in Nigeria[3].
CAV: Certificate of Acceptance of Value
The Certificate of Acceptance of Value (CAV) is a document issued by the government to certify the acceptance of the value of a property for a specific purpose, such as taxation or compensation. It may be relevant in the context of property valuation, taxation, or land acquisition in Nigeria[1].
CML: Certificate of Mortgage of Lease
A Certificate of Mortgage of Lease (CML) is a legal document that serves as evidence of the mortgage of a leasehold property. It is issued to the mortgagee (lender) to confirm the existence of a mortgage on the lease and the mortgagee’s interest in the property. CML is an important document in mortgage transactions involving leasehold properties, as it provides security for the lender and outlines the terms of the mortgage arrangement[3].
EOI: Expression of Interest
Expression of Interest (EOI) is a formal process used by individuals or organizations to show their interest in participating in a particular project, initiative, or transaction. In the real estate sector, EOI is often used by potential buyers or developers to express their interest in acquiring a property or participating in a development project. It is a preliminary step that allows interested parties to provide information about their capabilities and intentions before a formal bidding or negotiation process[1].
FCDA: Federal Capital Development Authority
The Federal Capital Development Authority (FCDA) is the government agency responsible for the planning, development, and management of the Federal Capital Territory (FCT) in Nigeria. It oversees the infrastructure development, land administration, and urban renewal programs in the FCT, including the city of Abuja. The FCDA plays a key role in regulating and coordinating the physical development of the FCT[3].
FHA: Federal Housing Authority
The Federal Housing Authority (FHA) is a government agency in Nigeria responsible for providing and managing housing for the citizens. It was established to bridge the housing deficit in the country by providing affordable housing and mortgage finance. The FHA is involved in the development, sale, and management of residential estates, as well as the provision of mortgage finance and insurance services[3].
FMBN: Federal Mortgage Bank of Nigeria
The Federal Mortgage Bank of Nigeria (FMBN) is a government-owned financial institution that provides mortgage finance and support for the development of affordable housing in Nigeria. It was established to promote homeownership and increase access to long-term housing finance for Nigerians. FMBN offers various mortgage products, housing development loans, and other initiatives to facilitate the provision of affordable housing across the country[3].
FOI: Freedom of Information
Freedom of Information (FOI) refers to the right of individuals to access information held by public authorities. In Nigeria, the Freedom of Information Act, which was passed in 2011, provides the legal framework for the exercise of this right. In the context of real estate, the FOI Act may be relevant to accessing certain public records or information held by government agencies related to land, property, or real estate development[1].
HCDA: Housing Corporation and Development Authority
A Housing Corporation and Development Authority (HCDA) is a government agency or entity responsible for the planning, development, and management of housing projects and initiatives. It is involved in the provision of affordable housing, urban renewal, and housing finance programs. HCDA plays a crucial role in addressing housing challenges and promoting sustainable housing development in Nigeria[3].
HTC: Housing Trust Fund Contribution
Housing Trust Fund Contribution (HTC) is a mandatory financial contribution imposed on certain categories of real estate transactions to support the funding of housing programs and initiatives. It is often levied as a percentage of the property value or transaction amount and is used to finance affordable housing, slum upgrading, and housing infrastructure projects. HTC is a mechanism for mobilizing resources for housing development and addressing housing challenges in Nigeria[3].
LGA: Local Government Area
A Local Government Area (LGA) is the third tier of government in Nigeria, after the federal and state governments. It is an administrative area that is officially delineated to enable the efficient and effective functioning of local government. LGAs are responsible for delivering a range of public services within their jurisdiction, including the provision and maintenance of public infrastructure, primary education, and health services. There are 774 LGAs in Nigeria[3].
LPA: Land Purchase Agreement
A Land Purchase Agreement (LPA) is a legal contract between a buyer and a seller for the purchase of land. It outlines the terms and conditions of the land sale, including the purchase price, payment terms, property description, and the rights and obligations of both parties. The LPA is an important document in land transactions, formalizing the agreement between the buyer and seller[3].
LUC: Land Use Charge
Land Use Charge (LUC) is a form of property tax levied by state governments in Nigeria on the beneficial use of land within their jurisdictions. It is an annual fee imposed on property owners for the use and development of land. LUC is a significant source of revenue for state governments and is used to fund public infrastructure and services. Property owners are required to pay LUC to the relevant state government authority[3].
MLC: Memorandum of Lease Contract
A Memorandum of Lease Contract (MLC) is a legal document that outlines the terms and conditions of a lease agreement between a landlord and a tenant. It includes details such as the lease duration, rent amount, maintenance responsibilities, and the rights and obligations of both parties. The MLC is a formal record of the lease agreement and is often registered with the appropriate land registry[3].
NBR: Notice of Boundary Redefinition
A Notice of Boundary Redefinition (NBR) is a formal notification issued to inform affected parties about the redefinition or adjustment of property boundaries. It may be issued by a government survey department, land registry, or other relevant authority. NBR is relevant in situations where there are changes to land boundaries, such as subdivision, amalgamation, or demarcation, and it serves to update the official records and notify interested parties about the boundary modifications[3].
NIA: Nigerian Institute of Architects
The Nigerian Institute of Architects (NIA) is a professional organization that represents and regulates the architectural practice in Nigeria. It sets standards for architectural education, professional conduct, and ethical practice. NIA plays a key role in promoting excellence in architectural design and construction, as well as advocating for the interests of architects and the built environment[3].
NIESV: Nigerian Institution of Estate Surveyors and Valuers
The Nigerian Institution of Estate Surveyors and Valuers (NIESV) is the umbrella body for professionals involved in real estate valuation, management, and consultancy in Nigeria. It sets and maintains professional standards for estate surveyors and valuers, provides training and certification, and promotes the highest level of ethics and competence in the real estate profession. NIESV members are involved in various aspects of real estate, including property valuation, management, and development[3].
NITP: Nigerian Institute of Town Planners
The Nigerian Institute of Town Planners (NITP) is a professional body that represents and regulates the practice of urban and regional planning in Nigeria. It sets standards for planning education, professional practice, and ethical conduct. NITP members are involved in the physical, environmental, and socio-economic development of human settlements, ensuring sustainable and orderly growth of cities and communities[3].
OCT: Occupancy Certificate of Title
An Occupancy Certificate of Title (OCT) is a legal document issued by the appropriate authority to certify that a building is suitable for occupation. It is granted after the completion of construction and inspection to ensure that the building complies with the relevant building codes and regulations. The OCT is a prerequisite for obtaining utility connections and is often required for property transactions and insurance purposes[3].
PID: Parcel Identification Number
A Parcel Identification Number (PID) is a unique numerical identifier assigned to a specific parcel of land for property identification and tracking. It is commonly used in land administration, taxation, and land information systems. The PID helps to distinguish individual land parcels and is often linked to various land records, ownership details, and spatial data[3].
PLOT: Plan and Layout of Title
Plan and Layout of Title (PLOT) refers to the official survey plan and layout of a property, typically issued by a government authority or licensed surveyor. It provides a graphical representation of the property boundaries, dimensions, and other relevant features. PLOT is an essential document for land registration, property development, and legal purposes, as it accurately depicts the spatial characteristics of the land[3].
PPA: Power of Attorney
A Power of Attorney (PPA) is a legal document that allows an individual (the principal) to appoint another person or organization to act on their behalf in legal or financial matters. In the context of real estate, a PPA may be used to authorize someone to buy, sell, or manage a property on behalf of the principal. It is an important legal instrument in real estate transactions and property management in Nigeria[1].
PREN: Preliminary Real Estate Notice
A Preliminary Real Estate Notice (PREN) is a formal notification or announcement issued to inform interested parties about a forthcoming real estate transaction, development project, or other significant real estate activities. It may be required by law or regulation to provide advance notice and relevant information to affected stakeholders. PREN serves as an early communication tool to create awareness, gather feedback, and ensure transparency in real estate dealings[3].
PSE: Property Search and Examination
Property Search and Examination (PSE) is a process of conducting thorough research and investigation to gather information about a property, including its ownership, title status, encumbrances, and other relevant details. It may involve reviewing public records, title documents, survey plans, and other sources of information. PSE is an essential step in property due diligence, as it helps to verify the legal and financial status of the property and assess its suitability for a particular purpose[3].
PSP: Property Sale Proceeds
Property Sale Proceeds (PSP) refer to the funds generated from the sale of a property. It represents the total amount received by the seller from the buyer in exchange for the transfer of property ownership. PSP is a key financial outcome of a property sale transaction, and it may be subject to various taxes, fees, or other financial obligations[3].
PTD: Property Title Deed
A Property Title Deed (PTD) is a legal document that serves as evidence of property ownership. It includes details such as the property description, owner’s name, and any encumbrances or restrictions on the property. The PTD is a crucial document in real estate transactions as it proves the legal ownership of the property and facilitates its transfer from one party to another[3].
REC: Real Estate Commission
A Real Estate Commission (REC) is a fee or payment made to a real estate agent or broker for their services in facilitating a real estate transaction. In Nigeria, real estate agents typically earn a commission based on the sale or rental value of a property. The REC is a form of compensation for the agent’s efforts in marketing, negotiating, and closing the deal on behalf of their clients[1].
RECRA: Real Estate Consumer Rights Act
The Real Estate Consumer Rights Act (RECRA) is a legal framework that governs the rights and protections of real estate consumers in Nigeria. It may encompass various provisions related to property transactions, consumer rights, disclosure requirements, and dispute resolution mechanisms. RECRA aims to ensure fair and transparent dealings in the real estate market and to safeguard the interests of property buyers, sellers, and other stakeholders[3].
RoD: Right of Devolution
The Right of Devolution (RoD) is a legal term that refers to the transfer of property, especially real estate, from one party to another, typically through inheritance. It is the right of an heir or beneficiary to succeed to the property of a deceased person. In the context of real estate in Nigeria, the RoD is an important legal concept that governs the transfer of property ownership in the event of the owner’s death[3].
RPL: Registered Property Lawyer
A Registered Property Lawyer (RPL) is a legal professional who is registered and licensed to practice law in the area of property, real estate, and land transactions. In Nigeria, property lawyers play a crucial role in real estate transactions, including due diligence, title searches, contract drafting, and dispute resolution. Engaging an RPL is important to ensure legal compliance and protection of interests in real estate dealings[1].
SPA: Sales Purchase Agreement
A Sales Purchase Agreement (SPA) is a legal contract between a buyer and a seller that outlines the terms and conditions of a property sale. It includes details such as the purchase price, payment terms, property description, and the rights and obligations of both parties. The SPA is a crucial document in real estate transactions as it formalizes the agreement between the buyer and seller[3].
SPV: Special Purpose Vehicle
A Special Purpose Vehicle (SPV) is a legal entity created for a specific, often temporary, purpose. In real estate, an SPV is commonly used for property development, investment, or financing. It allows multiple investors to pool their resources for a specific project while limiting their liability. SPVs are often used in complex real estate transactions, such as large-scale developments or investment partnerships[1].
TIN: Tax Identification Number
A Tax Identification Number (TIN) is a unique number issued to individuals or businesses for tax purposes. In Nigeria, the TIN is used to identify taxpayers and track their tax payments and compliance. It is a mandatory requirement for opening a bank account, conducting business transactions, and fulfilling tax obligations. The TIN is issued by the Federal Inland Revenue Service (FIRS) in Nigeria[3].
TMU: Town Planning and Mapping Unit
A Town Planning and Mapping Unit (TMU) is a department or division within a local government or planning authority responsible for spatial planning, land use management, and geographic information systems. It is involved in the preparation and implementation of land use plans, zoning regulations, and the maintenance of spatial data. TMU plays a key role in ensuring orderly and sustainable development, as well as providing spatial information and support for various planning activities[3].
VNC: Verification of Non-Claim
Verification of Non-Claim (VNC) is a process of confirming that there are no outstanding claims, liens, or encumbrances on a property. It is often conducted as part of the due diligence process in property transactions to ensure that the property is free from any legal or financial issues. VNC may involve a review of public records, title documents, and other relevant information to verify the clean status of the property[3].
Citations:
[1] https://stow.ng/50-real-estate-terms-used-in-nigeria-you-should-know/
[2] https://www.dessydeeconsortium.com.ng/nigeria-real-estate-terms/
[3] https://lekkiajahepe.com/terminologies-nigeria-real-estate-market-meanings/
[4] https://www.lagos-nigeria-real-estate-investing-guide.com/real-estate-terminology.html
[5] https://meritabode.com/common-real-estate-terms-you-should-know/
