Many Lagos families own valuable land but lack the money to develop it. Many developers have money and expertise but no land. A joint venture brings them together: the family provides the land, the developer builds, and both share the finished units or the proceeds.

Done well, it turns idle family land into income for generations. Done badly, it ends in abandoned buildings, family quarrels and years in court.

This guide sets out the legal considerations for a joint venture development agreement between a family and a developer in Lagos.
How a family–developer joint venture works
The family contributes the land. The developer funds the design, approvals and construction. When the building is completed, the parties share it under an agreed formula, for example:

a share of units, such as 60% of the flats to the developer and 40% to the family;
a share of sale proceeds, where the developer sells the units and pays the family an agreed percentage; or
a lump sum or rent, where the developer pays the family for the land and keeps the development.

The right formula depends on the land’s value, the size of the project and the risk each side carries.
Step one: confirm who can sign for the family
This is where most family joint ventures go wrong. Under customary law, family land is managed by the family head together with the principal members of the family. An agreement signed by one member, or by a faction, can be challenged by the rest.

Before signing, the developer should confirm:

who the recognised family head and principal members are;
whether there are rival branches or ongoing disputes about headship;
whether the family has a registered title, such as a Certificate of Occupancy or excision and gazette; and
whether the land, or part of it, has already been sold, leased or pledged.

The family, for its part, should confirm the developer’s company registration, LASRERA registration, finances and track record.
The clauses that protect both sides
Clause
What to agree
Land and title
The exact land, its survey and title, and who perfects any missing documents
Sharing formula
Units or proceeds, which specific units go to whom, and how they are chosen
Project and approvals
Building type, number of units, and who obtains planning permits
Timelines
Start date, completion date and milestones
Funding
Confirmation that the developer funds construction, and how
Delay and abandonment
Penalties for delay, and the family’s right to take the land back if work stops
Quality
Building standards, materials and inspection rights
Sales and marketing
Who can sell units, and how the family is paid its share
Title to the units
How each party’s units will be transferred and registered
Mortgages
Whether the developer can use the land as security for loans
Exit and disputes
What happens on breach, insolvency or death, and how disputes are resolved

Two clauses deserve special attention.

Abandonment. Lagos has many half-finished buildings left by developers who ran out of money. The agreement should give the family a clear right to end it and recover the land, and say what happens to any work already done.

Mortgages. If the developer borrows against the land and defaults, the family could lose its land to the bank. Any right to mortgage should be limited and need the family’s written consent.
Title, consent and registration
Where the land is held under a statutory right of occupancy, a lease or transfer to the developer will generally need the Governor’s consent under section 22 of the Land Use Act. Many joint ventures are structured as a development lease, with the units later assigned to buyers or to the family. Each step should be properly documented, stamped and registered.
Red flags
The developer wants to start work before the agreement is signed.
Only part of the family is involved in negotiations.
No completion date, or no consequence for delay.
The developer wants to sell off-plan before approvals are obtained.
The developer refuses to disclose how the project will be funded.
Frequently asked questions
What is a fair sharing ratio for a joint venture in Lagos? There is no fixed rule. It depends on the land’s value, location, project size and costs. Get an independent valuation before agreeing.

Can one family member sign a joint venture agreement? Not safely. Family land should be dealt with by the family head and principal members. An agreement signed by one member can be challenged.

What if the developer abandons the project? The agreement should give the family the right to end it, recover the land and claim compensation. Without such a clause, recovery is slower and more costly.

Can the developer mortgage our family land? Only if the agreement allows it. Families should limit this right and require written consent.

Do we need a lawyer for each side? Yes. The family and the developer have different interests, and each should have independent legal advice.

About Cardinal Counsel

Cardinal Counsel (Barristers & Solicitors) is a Lagos-based law firm advising individuals, families and businesses, at home and abroad, on property transactions, commercial agreements, regulatory compliance and dispute resolution. The firm conducts property searches and due diligence, drafts and reviews development and joint venture agreements, and supports clients from verification to perfection of title.

This article is for general information only and does not constitute legal advice. Before you sign a joint venture agreement, whether you are a family or a developer, contact Cardinal Counsel at Suite D14, Adeniran Ogunsanya Mall, Surulere, Lagos, or email info@cardinalcounsel.co.