We all grew up watching Nollywood movies where family members fought over land. From inheritance disputes to disagreements over plot sizes, these stories often ended with broken relationships and expensive legal battles.
Unfortunately, these depictions are not far from reality. In Nigeria, land disputes are common, and many stem from situations where multiple parties own or invest in a property without proper planning.
Buying land with friends or family might seem like a good idea—you can pool resources, reduce individual costs, and even achieve bigger projects together. But without a clear framework, it can quickly become a source of tension, frustration, and financial loss.
In this article, we break down everything you need to know before buying land with others, from legal considerations to financial planning and conflict prevention.
Why People Buy Land Together
Pooling resources to buy land can be an attractive option for many reasons:
Shared Financial Burden
Land in urban and suburban areas of Nigeria is expensive. Cities like Lagos, Abuja, and Port Harcourt have property prices that are often out of reach for individuals.
By buying land together, you can afford a larger or better-located plot that would otherwise be impossible individually.
Investment Potential
Land tends to appreciate over time, especially in developing areas with growing infrastructure. Buying together allows friends or family to invest in high-value areas and share the profits when selling or developing.
Strategic Development
Some groups buy land collectively to develop into estates, commercial properties, or rental units. This is especially popular among families or friends who have complementary skills, such as construction knowledge, legal expertise, or property management experience.
Emotional Security
For families, land ownership often carries sentimental value. Buying together can preserve family heritage, create shared spaces for future generations, and strengthen bonds when managed properly.
Legal Considerations Before Buying
The most common reason group land purchases go wrong in Nigeria is lack of legal clarity. To protect everyone involved, consider the following:
Title Verification
Before buying, verify the land’s ownership. Obtain documents such as the Certificate of Occupancy (C of O), Governor’s Consent, or Deed of Assignment. Ensure there are no disputes, encumbrances, or claims from third parties.
Written Agreement
Never rely solely on verbal promises. Draft a comprehensive written agreement detailing:
- Names of all owners and their shares
- Purpose of the land (residential, commercial, or investment)
- Rules for selling or transferring ownership
- Dispute resolution mechanisms
- Exit strategies for members who want out
Legal Structure
Many groups opt to formalize ownership through legal entities such as:
- Limited Liability Companies (LLCs): Shares are divided, reducing personal liability and providing a clear exit strategy.
- Family Trusts: Protects land from being sold off impulsively while maintaining shared benefits.
- Joint Tenancy or Tenancy in Common: Defines ownership percentages and rights clearly, but can be tricky if relationships sour.
Registration and Documentation
Ensure the land is registered with the Land Registry in the state of purchase. Every co-owner should have access to official records. This prevents future claims from outsiders and strengthens legal standing if disputes arise.
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Financial Planning for Group Land Purchases
Money is often the most sensitive aspect of co-owning land. Here are some key considerations:
Agree on Contribution Shares
Decide upfront how much each person will contribute and how ownership percentages reflect these contributions. Avoid assuming that everyone will be able to pay equally over time.
Payment Schedules
Set clear timelines for payments. For example, each party should know when their deposit, instalments, or development funds are due. Late payments can cause friction, so consider penalties or exit clauses for missed contributions.
Development vs. Passive Investment
Clarify whether the land is for immediate development or a long-term investment. Development costs surveying, clearing, fencing, or building—can escalate quickly, and disagreements often arise over who bears these expenses.
Profit Sharing
If the plan is to sell the land or develop it for rental income, define profit-sharing ratios upfront. Decide whether profits are distributed proportionally to initial investment, effort contributed, or a combination of both.
Communication Is Key
Many disputes arise not from money or legality, but from poor communication.
- Regular Meetings: Schedule monthly or quarterly meetings to review finances, development progress, and decisions.
- Decision-Making Protocols: Establish whether decisions require majority vote, unanimous consent, or a lead owner.ransparency: Keep all records accessible to all parties. Shared spreadsheets or cloud-based financial tracking tools can prevent misunderstandings.
- Conflict Resolution: Agree in advance on methods for resolving disputes—mediation, arbitration, or legal action.
Even families can fall apart if one member feels left out or unheard, so open communication from day one is essential.
ALSO READ: Land Tenure System in Nigeria
Risks of Buying Land With Friends or Family
Despite the potential benefits, co-owning land carries risks:
Relationship Strain
Money has a way of testing relationships. Friends or family members may disagree on spending, timelines, or selling strategies. Without clear agreements, these disagreements can escalate.
Unequal Contributions
Sometimes, one member may contribute more than others, but if this is not properly documented, they may not be recognized in ownership percentages or profit sharing.
Legal Complications
If one member defaults, dies, or decides to sell, resolving ownership can be challenging without a legal framework. Unregistered or improperly documented agreements may be contested in court.
Market Fluctuations
Land value is not guaranteed to increase. While many areas in Nigeria are booming, some regions may experience stagnation or depreciation, affecting returns for all parties.
Long-Term Commitment
Land investment is often a long-term play. If some members need to exit early, the remaining owners must buy them out or sell the property—both of which can be complicated without pre-agreed strategies.
Best Practices for Safe Co-Ownership
To avoid falling into the pitfalls portrayed in Nollywood dramas, follow these practical steps:
1. Do Your Research: Investigate the land, surrounding development, and future infrastructure plans.
2. Hire Professionals: Engage a qualified lawyer and surveyor to validate the land and draft agreements.
3. Formalize Ownership: Use registered legal structures to protect all parties.
4. Document Everything: Keep written records of contributions, decisions, and agreements.
5. Define Roles: Assign responsibilities—who handles payments, who manages development, who liaises with authorities.
6. Plan for Exit: Include buyout options or dispute resolution clauses to prevent deadlocks.
7. Think Long-Term: Consider resale potential, rental yield, and future appreciation before buying.
How Families Successfully Buy Land Together
Take, for instance, a family in Ogun State. Four siblings pooled resources to buy a 500-square-meter plot. They agreed on:
- Equal ownership shares
- Monthly contributions for development
- Hiring a family lawyer to draft a binding agreement
- Using a limited liability company as the ownership vehicle
Over three years, the land appreciated by over 40%, and the family successfully built a small rental property. The key to their success? Transparency, legal documentation, and clear communication.
This example shows that co-ownership can work—but only when approached professionally.
Alternatives to Co-Ownership
If you’re hesitant about buying land with friends or family, consider these alternatives:
- Solo Purchase: While costlier, sole ownership avoids disputes and allows for full control.
- Real Estate Investment Trusts (REITs): Invest collectively in property portfolios without directly owning land.
- Developer Partnerships: Buy land with reputable developers who manage ownership, construction, and sales.
These options reduce interpersonal risk while still allowing you to participate in property investment.
Conclusion: Proceed With Care
Buying land with friends or family can be rewarding, but it’s not without risk. Many Nollywood storylines reflect real-life pitfalls—unplanned purchases, unclear agreements, and poor communication often lead to disputes and broken relationships.
To succeed:
- Verify the land and its documentation
- Draft legally binding agreements
- Communicate openly and regularly
- Plan for contributions, profits, and exit strategies
With careful planning, co-ownership can be a viable way to access bigger or better properties, strengthen family ties, and build wealth. Without it, even the strongest relationships can strain under the weight of misunderstandings and financial disagreements. In Nigeria’s real estate landscape, clarity, legality, and communication are as important as location, price, and development potential.
