Avoid Land Scammer

That's a crucial warning! Buying land in urban areas like Lagos, Asaba, Ibadan, or other densely populated cities can be risky if you don't involve a surveyor. Here's why:

1. Complex land ownership: Urban areas often have complex land ownership structures, making it difficult to verify true ownership.
2. Fraudulent sellers: Scammers may pose as landowners or agents, selling fake or non-existent properties.
3. Boundary disputes: Without proper surveying, boundary disputes with neighbors can arise, leading to legal issues.
4. Government acquisitions: Urban areas are prone to government acquisitions for development projects, which can lead to compensation disputes.
5. Environmental concerns: Urban lands may have hidden environmental hazards, such as pollution or flood risks.
6. Zoning and land-use issues: Urban areas have specific zoning regulations, and buying land without surveyor involvement can lead to discovering that the land is not suitable for your intended use.
7. Inaccurate property valuation: Without a surveyor's assessment, the property's value may be incorrect, leading to overpayment.

Involving a registered surveyor can help you navigate these risks and ensure a secure and successful land purchase.
Written by Surv. Adediji Babatunde( mnis), a professional surveyor and the principal partner of Akogun Surveying and Environmental Consultancy.

Buying a property without consulting a registered surveyor can pose several risks, including:

1. Boundary disputes: Unclear or disputed boundaries can lead to conflicts with neighbors or legal issues.

2. Land fraud: Fake or forged documents can lead to purchasing a property that isn't genuinely available for sale.

3. Encumbrances: Undisclosed liabilities, such as outstanding debts or court orders, can be attached to the property.

4. Zoning and land-use issues: Properties may have restrictions or be designated for specific uses, affecting their value or usability.

5. Environmental concerns: Properties may have hidden environmental hazards, such as pollution or natural disaster risks.

6. Inaccurate property valuation: Without a surveyor's assessment, the property's value may be incorrect, leading to overpayment.

7. Legal issues: Failure to conduct due diligence can result in legal problems, including invalid contracts or unregistered titles.

8. Unidentified easements: Undisclosed easements, such as shared access roads or utility lines, can impact property use.

9. Incomplete or missing documents: Failure to verify documentation can lead to incomplete or missing records, causing future complications.

10. Potential loss of investment: Neglecting to consult a surveyor can result in a faulty or invalid purchase, leading to financial loss.

It is crucial to consult a registered surveyor to ensure a secure and informed property purchase.

Written by Surv. Adediji Babatunde( mnis), a professional surveyor and the principal partner of Akogun Surveying and Environmental Consultancy.

As it currently stands, the only Law in Lagos State which clearly defines upon whom the sole responsibility of paying Tenement rate[i] lies is the Land Use Charge Law No. 11 of 2001 of Lagos State[ii] . Lamentably the Lagos State Tenancy Law (2011)[iii] which is governs the relationship between landlords and tenant is silent on this focal point of property law. Land Use Charge as described on the Lagos State Land Use Charge website[iv] is a consolidation of all land based rates and charges payable under the land based rates law, the neighbourhood improvement charge law and tenement rate law. An explanation is also given for the reason behind the charge and the use in which proceeds are put into, viz.: Land Use Charge being a property tax in Lagos state, serves as a source of revenue generation which enhances provision of infrastructure and social amenities[v]. Tenement rate is the most commonly presented form of land use charge in Lagos even though the latter currently embodies the former.

Land Use Charge Law regulates the payment of all rates, Tenement rate inclusive, now incorporated under Land Use Charge and is payable by the owner of the property[vi]. Section 10 and 11 of the law[vii] states that the collecting authority may pronounce any person in occupation of chargeable property, to be the agent of the property owner and such occupier shall be liable to pay the charge on behalf of the owner. However the Law allows for a functional arrangement where the tenant pays for the tax, if the owner of the property is not in possession. The tenant is sanctioned by the Law to counterbalance such payments made under this Law from any money that is due to the owner of the property[viii]. There is a trend where property owners transfer the responsibility of paying Tenement rate to tenants via Lease/Tenancy Agreements. This practice is acceptable and since it is a personal contract between two consenting parties the State would not interfere because it lacks privity. It is instructive to note that where the tenant is misrepresented to assume the responsibility or where mistake or fraud is proven, that specific covenant is vitiated. There has to be consensus ad idem between both parties on this covenant term in the Lease/Tenancy Agreements. The repeat of this trend over the years have led to reinforcing the misconception by devious property owners that, even without Lease/Tenancy Agreements, the sole responsibility of paying Tenancy rate is the tenant’s.

The importance of the foregoing is simply to establish that where the owner of the property is not the occupier, the provisions of the Land Use Charge Law No. 11 of 2001 of Lagos State does not absolve him of his duty to pay Tenement rate. Cursory attention to this issue could easily be misled by the term tenement in itself. The free online dictionary[ix] in defining a tenement underlines an important element of the word: that it is owned by a landlord/property owner. It defines a tenement asabuildingforhumanhabitation,especiallyonethatisrentedtotenants. A rate is a form of tax and both terms usually mean the same thing. A Tenement rate in the simplest form is a tax charge, in form of rate, which is payable to the government for an occupied property. A literal translation of the term Tenement rate infers that the owner of the property, irrespective of who is in possession, bears the responsibility of paying the rate. Either the owner or tenant can foreseeably be an occupier at any given point in time but the owner cannot be a tenant. The occupier of any property could be the owner of the property or a tenant, renting or leasing the property. In the former it not inconceivable as to who else would pay the Tenement rate. The latter situation however, if created in an uncontemplated situation, would not seem just if a tenant was forced to pay the rate. This is especially after paying rent for the property, would a tenant further be saddled with the responsibility of paying tax for a rented property? To address this issue a proper definition of the term Tenement rate is apt in order to reaffirm the position of the law on whose responsibility it is to pay.

The Abuja Geographical Information Service defines 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.[x]”

This form of tax falls under the umbrella of taxes due on occupied property (buildings). Tenement rate however differs from ground rent as payment of the latter is nonnegotiable and constant while the former suggests otherwise; because where the property is vacant and unoccupied, the rate is not due.

“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.[xi]”

The Abuja Geographical Information Service further differentiates between Tenement rate and ground rent viz.:

“ Ground rent is paid for the use of the land regardless of whether the land is in occupation or not by the holder of the title, while tenement rent is payable on a rented property that is in full occupation by either a tenant or the landlord.[xii]”

Tenement rate being a tax charge, ipso facto should be paid by the property owner himself and the Land Use Charge Law No. 11 of 2001 of Lagos State[xiii] specifically lays the responsibility on the owner of the property. Innumerable reasons abound for this position, the most central being that any form of tax is payable directly by the person it is due. This rule is constant and universal in its application. As mentioned above, the grey area under which Tenement rate is payable by the tenant falls under contracts specifically covenants in Lease or Tenancy Agreement. Like every other rate that is payable and agreed as a covenant, payment of Tenement rate should be specifically stated in the Lease or Tenancy Agreement if the property owner seeks to transfer responsibility to the tenant. In order to forestall foreseeable contentious debates about whose responsibility it is to pay Tenement rate, tenants are enjoined to pore over the Lease or Tenancy Agreement and be certain it reflects his position. It is not enough for property owners to include a blanket covenant that it is the responsibility of tenants to pay all rates. The covenant should spell out each rate as agreed by both parties in the Lease or Tenancy Agreement. This would save a lot trouble in future.

CONCLUSION/RECOMMENDATION

The idea that a tenant should pay Tenement rate for a property that is not his seems unjustifiable, especially after paying rent and other attending charges i.e. agency etc. Since the commencement of the Land Use Charge Law No. 11 of 2001 of Lagos State on June 22, 2001 the debate as to whose duty it is to pay Tenement rate and invariably Land Use Charge has been permanently put to rest. Also the provision of the Law would forestall unscrupulous property owners from shifting the responsibility to tenants, even when they reside in the same property. The significance of this cannot be over stated as there has been a general misconception that payment of Tenement rate is the sole responsibility of the tenant. Section 11 Land Use Charge Law No. 11 of 2001 of Lagos State provides that the charge on property is payable by the owner of the property. A problem in the application of the provisions of the Land Use Charge Law No. 11 of 2001 of Lagos State is the inability of Land Use Charge officials/ agents to identify the current location of non-resident property owners. The property subject to such charge is usually served the demand notice charge bill even though there is a foreseeable scenario where the owner is not resident there. This lack of interest by Land Use Charge officials leaves the tenant in a thankless position as not paying the charge exposes the property to every enforceable relief from the government and doing so is with no assurance of reimbursement from the property owner. Tenants are placed in an extremely awkward situation ranging from harassment to such properties, including residential being sealed by agents of local government. Sealing an occupied residential tenement is a gross disregard and endangerment of live which goes against every safety and fire regulation. The government is enjoined to address the issue of property owners shirking from their duties to pay Tenement rate by evasion and deliberately being inaccessible. Land Use Charge demand notices should be served on property owners and where they are unavailable, if the government exercise its relief of giving the property to receivership, the right of tenant to peaceably hold and enjoy the demised premises without any interruption or disturbances by the Landlord or anybody claiming under and or in trust for him must not be derogated.

[i] Tenement rate or Occupier rate can be used interchangeably as the essence of the term is the same. It is a form of tax with the contemplation that the payer might not always be constantly the same person thus its amphibious term. It’s a broad term for tax on occupied property which could be paid by the owner or a tenant.

[ii] Land Use Charge Law No. 11 of 2001 of Lagos State. The Land Use Charge Law which is applicable to all properties in Lagos State as a unified property charge, came into operation on the June 22, 2001 (“LUCL”). The aim of this Law, is to make additional revenue for the state which is much needed to provide infrastructure for the increasing population.

[iii]Lagos State Tenancy Law (2011)

[iv] http://landusecharge.com/

[v] Ibid.

[vi] Section 11 Land Use Charge Law No. 11 of 2001 of Lagos State.

[vii] See Section 10 and 11 Land Use Charge Law No. 11 of 2001 of Lagos State.

[viii] Ibid.

[ix] http://www.thefreedictionary.com/tenement

[x] http://www.abujagis.com/faq.html

[xi] Ibid.

[xii] Ibid.

[xiii] Section 11 Land Use Charge Law No. 11 of 2001 of Lagos State.

landusecharge.com