Everything You Should Know About Ground Rent in Nigeria
???? Ever wondered why property owners are asked to pay ground rent? Let’s break it down to help you stay ahead in the real estate game ????. Make sure you read to the end—this affects your investment!
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What is GROUND RENT?
???? GROUND RENT is an annual fee paid to the state government by land or property owners. It serves as a form of ownership registration and ensures that landholders stay in compliance with property laws.
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???? WHY DOES THE GOVERNMENT COLLECT GROUND RENT?
Ground rent supports public services and infrastructure by funding ????:
1. Property registration and legal recognition
2. Maintenance of public amenities (roads, utilities, and infrastructure)
3. Development of community services (schools, parks, hospitals)
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???? WHO PAYS GROUND RENT ‼️?
This fee is mandatory for:
???? LANDOWNERS,
???? PROPERTY OWNERS (whether residential or commercial),
???? TENANTS (in rare cases where the agreement shifts the responsibility)
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???? HOW IS GROUND RENT CALCULATED?
The amount depends on location and state regulations, typically falling between 0.5% and 2% of the property’s market value per year.
???? EXAMPLE CALCULATION:
???? Property Value: ₦5 million
???? Annual Ground Rent: ₦25,000 – ₦100,000
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???? WHAT HAPPENS IF YOU DON’T PAY GROUND RENT?
Non-payment can lead to serious consequences, including ????:
1. Late payment penalties or fines
2. Risk of property ownership disputes or revocation
3. Legal battles with government authorities
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???? How to Pay Ground Rent
???? FOLLOW THESE STEPS TO STAY COMPLIANT ????:
1. Obtain your payment receipt from the state government.
2. Pay at approved banks or online platforms.
3. Renew annually to maintain your ownership rights.
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???? NOTE ????: If you buy land through a real estate company, the company typically handles ground rent payments on your behalf. Always confirm this detail before completing your purchase.
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CONTINUE ????????????
