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Case Study

C of O In Progress" in Lagos: What It Actually Means

A diaspora buyer was offered a Lekki duplex below market on the basis that its Certificate of Occupancy was in progress. The title chain showed the seller had no interest to convey and the property was already in litigation.

Case study details

The Situation

A diaspora returnee approached us before completing on a four-bedroom duplex in a gated Lekki estate, priced at ₦385,000,000. The price sat below comparable units and the explanation offered was that the Certificate of Occupancy was in progress, so the seller wanted a quick close.

Our legal review traced the title chain rather than the document the seller was holding. Two findings followed. The property had been the subject of pending litigation since 2019, and the party presenting as owner held only a power of attorney granted by someone who had no legal interest in the land to grant.

Our client did not proceed. Had she completed, she would have acquired a defective interest and inherited a live dispute, with her recovery depending on litigation against a grantor whose own position was worthless.

"C of O in progress" describes an application, not a right. Until the instrument is issued and registered, the seller cannot evidence what he is asking you to pay for, and a price discount offered in exchange for accepting that gap is not a discount. It is the cost of the risk being transferred to you.

What HIDD prevented

Risk before commitment

A ₦385,000,000 acquisition of a property under pending litigation, from a seller holding a power of attorney granted by a party with no legal interest in the land.

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