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Mortgage law in Aba, Nigeria, identifies how land and property dealings involving mortgage financing are carried out. Being an integral part of the Nigerian Property Law, the mortgage concerns the transfer of interest in real property using a written document as security for the repayment of money borrowed. The operation of mortgages in Aba, and Nigeria at large, is regulated by the Land Use Act of 1978, Mortgage Institutions Act 1989, and the Conveyancing Act 1881.
Engaging the services of a lawyer is crucial in instances such as reviewing and negotiating mortgage agreements, addressing default mortgage issues, or initiating foreclosure proceedings. A legal expert can ensure that your rights are fully protected if you are buying a property through a mortgage or if you are a mortgagee. Understanding the nuances of Nigerian law can also be challenging, and having an attorney will ease the process.
The Land Use Act in Nigeria stipulates that all lands in an area should be held in trust by the state governor for the use of all Nigerians. Therefore, land cannot be owned permanently by an individual or a mortgage institution. Instead, individuals and businesses can only be granted leases for up to 99 years at most. For a property to be subject to a mortgage, the prior consent of the governor is usually required. It's also important to note that if there's a default, foreclosure proceedings can be a complex process given the legal and institutional issues involved.
Yes, foreigners are eligible to obtain a mortgage in Nigeria. However, they may be exposed to certain risks due to their unfamiliarity with the local laws and must also obtain a compliance certificate from the National Office for Technology Acquisition and Promotion (NOTAP).
Mortgages in Nigeria typically last up to 20-25 years, but this time frame could vary depending on the agreement between the lender and the borrower.
If you fail to pay your mortgage loan, you risk having your property foreclosed upon. The property is then sold, and the proceeds are used to cover your outstanding debt. If the total sale proceeds still can't cover the debt, you will be held liable for the remainder.
Yes, it is mandatory to get insurance coverage for the property prior to finalising the mortgage agreement. This is to protect the interest of the lender, should there be any misfortunes such as disasters that could damage the property.
Yes. In Nigeria, your Certificate of Occupancy can be used as collateral to get a loan.
The Nigerian Mortgage Refinance Company (NMRC) and Federal Mortgage Bank of Nigeria (FMBN) are some key organizations that provide useful resources regarding mortgage services in Nigeria. Legal advice can be sought from law firms such as Olaniwun Ajayi LP, Templars, and Ajumogobia & Okeke.
If you require legal assistance or advice on any aspect of mortgaging in Aba, Nigeria, it's advisable to contact a legal practitioner or law firm experienced in Nigerian Property and Mortgage Law. They will guide you through the process and help you understand your rights and obligations as per the Nigerian Law. You can also consult with mortgage institutions for queries about mortgage opportunities and procedures.
