deed of assignment lagos state

Everything You Need to Know About the Deed of Assignment in Nigeria

Following the resolutions enshrined in the Land Use Act of 1978, the Governor of a State in Nigeria is the custodian of the landed properties – and is at liberty to distribute the same. That makes it essential for every property owner to have the relevant documents to have a legal claim. The Deed of Assignment is one such document.

In this article, we talk about the relevance of the Deed of Assignment and some of the benefits it offers.

What is the Deed of Assignment?

It is a legal document that records the sale of land, as well as conveys to the owner or holder, the exclusive rights to use and resell the land. Hence, the presence of this document in any real estate transaction helps to confirm the authenticity of the property , ascertaining that the holder is the original or current owner and that such a person, is by law, permitted to transfer the legal rights of ownership to the buyer or new owner – the assignee .

When is the Deed of Assignment Issued?

The document is typically issued at the end of a landed property transaction. The seller (the assignor) offers this document to the buyer (the assignee), signifying the former’s transfer of the legal rights and interests in the land to the latter.

If you are purchasing from a real estate company, like Grounds and Cribs , you will get the document on the completion of the transaction. A deep delve into this article will reveal how long it takes to get a deed of assignment in Lagos .

Who Prepares the Deed of Assignment?

Only a practicing lawyer can be allowed to prepare the Deed of Assignment in Nigeria. To ensure fairness, the lawyer will take into account the interests of the parties involved (the client/assignee, and the seller/assignor).

On preparation, the document will be released to the seller or assignor for vetting and or corrections. Once this stage is over, the lawyer will prepare the final draft for both parties to authorize the transaction.

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2 Features of the Deed of Assignment

For this document to become valid, certain pieces of information. The required data cuts across the parties’ information, the details of the land, and any other financial-related information.

1. Transacting Parties’ Information

Data of the transacting parties (the seller and buyer) will be provided. This includes:

• The names, addresses, and statuses of the transacting parties.
• Signatures of the buyer and seller
• Signatures of the witnesses to the transaction.
• The nature of the transaction.
• The vendor/seller/assignor’s capacity.

2. Property’s Details

Information about the land or property will also be required. The data includes the nature of the vendor or seller’s title, the land survey plan, and the due date for assigning the land from the seller to the buyer.

Other pieces of information required are:

• The land’s history, from the time it was it was initially obtained or paid for, down to the current transaction.
• The amount of money involved or the buy price . The seller will also specify the readiness to accept the assignee or buyer’s offer.
• The specifications, descriptions, or fixtures in the property.

Other information included in the Deed of Assignment are:

• The details of the lawyer who prepared the document, including the name, office address, and contact detail(s).
• Details of the verifiable document that the property bears.
• A dedicated section for the Governor’s Consent to be signed and validated.

3 Stages to Getting the Deed of Assignment

Before the Deed of Assignment is assigned, several steps, procedures, or stages must have been completed. These include:

a. Obtaining the Governor’s Consent

This is as per the stipulations in The Land Use Act, LFN 2004. The acquisition of the Governor’s Consent is based on the provision that the property in question must be registered at the registry, in the vendor or seller’s name.

Once this is ascertained, the following procedures will follow:

• The application for the Governor’s Consent will be made at the registry.
• The Land Form 1C will be used for this purpose.
• The parties will provide the necessary information in the form.
• Both the seller and the buyer will append their signatures to the form.
• The parties to the transaction (the buyer and the seller) will swear to the form, either before a notary public or a magistrate.
• On completion, the form will be sent to the Commission assigned by the Governor of the State to attend to such.

b. Stamping of the Deed of Assignment

Following the Governor’s approval or consent via the Commissioner specifically designed to grant such requests; the Deed of Assignment will then be ready for the next stage. This is the signing stage and it is up to the solicitor to verify that the stamp duty due to the transaction has been paid.

c. Registration of the Deed

This is the final stage of getting the Deed of Assignment prepared. In this stage, it has to do with registering the deed. It is important because the deed is deemed to be a “registrable instrument.” By the registration, it becomes admissible in the court as evidence and helps to avoid fraud and related problems, arising from the omission of instruments, after the title is deduced.

As per the stipulations of Section 25 of the Lagos State Instrument Registration Law, the deed must be registered within sixty (60) days after execution. The completion of this process paves the way for the Deed of Assignment to become a legal document, to formalize the land transaction and to serve as a solid root title of the land.

Benefits of the Deed of Assignment

Having this document goes beyond formalizing the transaction. You can use the Deed of Assignment because of these reasons:

• It serves as the valid root title of the land. Hence, it solidifies the vendor or seller’s legal rights to transfer the land.
• The Deed of Assignment also highlights the interests of the parties involved – the buyer and the seller.

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Final Words

The Deed of Assignment is the main document in a real estate transaction, as it shows the subsisting information, such as the necessary due diligence is done, the investigations, and the negotiations by the transacting parties.

Always contact a lawyer to help you draft the document, in a way that your interests and that of the other transacting party are covered.

Looking to invest in Epe, Lekki, Ibeju-Lekki, Ajah or any other parts of Lagos or Nigeria? Reach out to our team on WhatsApp, wa.me/+2347031211154 or call +2347031211154 for a list of available properties and to book an inspection

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DEED OF ASSIGNMENT: EVERYTHING YOU NEED TO KNOW.

A Deed of Assignment refers to a legal document in which an assignor states his willingness to assign the ownership of his property to the assignee. The Deed of Assignment is required to effect a transfer of property and to show the legal right to possess it. It is always a subject of debate whether Deed of Assignment is a contract; a Deed of Assignment is actually a contract where the owner (the “assignor”) transfers ownership over certain property to another person (the “assignee”) by way of assignment. As a result of the assignment, the assignee steps into the shoes of the assignor and assumes all the rights and obligations pertaining to the property.

In Nigeria, a Deed of Assignment is one of the legal documents that transfer authentic legal ownership in a property. There are several other documents like a deed of gifts, Assent, etc. However, this article focuses on the deed of assignment.

It is the written proof of ownership that stipulates the kind of rights or interests being transferred to the buyer which is a legal interest.

Read Also: DIFFERENCE BETWEEN TRANSFER OF PROPERTY THROUGH WILLS AND DEED OF GIFT

CONTENTS OF A DEED OF ASSIGNMENT

Content of a Deed of Assignment matters a lot to the transaction and special skill is needed for a hitch-free transaction. The contents of a deed of assignment can be divided into 3 namely; the introductory part, the second (usually the operative part), and the concluding part.

• THE INTRODUCTORY PART: This part enumerates the preliminary matters such as the commencement date, parties in the transaction, and recitals. The parties mentioned in the deed must be legal persons which can consist of natural persons and entities with corporate personality, the name, address, and status of the parties must be included. The proper descriptions of the parties are the assignor (seller) and assignee (buyer). The Recitals give the material facts constituting the background to the current transaction in chronological order.
• THE SECOND PART (USUALLY THE OPERATIVE PART): This is the part where the interest or title in the property is actually transferred from the assignor to the assignee. It is more like the engine room of the deed of assignment. The operative part usually starts with testatum and it provides for other important clauses such as the consideration (price) of the property, the accepted receipt by the assignor, the description of the property, and the terms and conditions of the transaction.
• The testimonium : this shows that all the parties are involved in the execution of the deed.
• Execution : this means signing. The capacity of the parties (either individual, corporate bodies, illiterates) is of great essence in the mode of execution.  It is important to note that the type of parties involved determines how they will sign. Example 2 directors or a director/secretary will sign if a company is involved. In the same way, if an association, couple, individual, illiterate, family land (omonile), firm, unregistered association, etc. is involved the format of signature would be different.
• Attestation : this refers to the witnessing of the execution of the deed by witnesses.

For a Deed of Assignment to be effective, it must include a column for the Governor of the state or a representative of the Government where the property is, to sign/consent to the transaction. By virtue of Sec. 22 of the Land Use Act, and Sec. 10 Land Instrument Registration Law, the Governor must consent to the transaction.

Do you have any further questions? feel free to call Ibejulekkilawyer on 08034869295 or send a mail to [email protected] and we shall respond accordingly.

Disclaimer: The above is for information purposes only and should not be construed as legal advice. Ibejulekkilawyer.com (blog) shall not be liable to any person(s) for any damage or liability arising whatsoever following the reliance of the information contained herein. Consult us or your legal practitioner for legal advice.

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PROCEDURE FOR THE REGISTRATION OF DEED OF ASSIGNMENT IN NIGERIA

A Deed of Assignment is a legal document that transfers a party’s rights and benefits to another party.

CHAMAN LAW FIRM

1/3/2024 4 min read

Quality, not quantity

We have made quality our habit. It’s not something that we just strive for – we live by this principle every day.

Cambridge English Dictionary describes it as, ‘a legal agreement to give an asset or to sell a debt to someone else and enables ownership of a life-insurance policy to be transferred from the existing owner to another person or organization. A deed of assignment is essentially for the Land purchases and the transfer of property and asset.

The importance of Deed of Assignment cannot be underestimated; it is valid evidence to title to land especially in dispute. The party who transfers rights and benefits is known as the’ assignor’, and the person who receives the rights and benefits is known as the ‘assignee’.

A valid deed of assignment must contain the following details:

1. Names, address, status of Participants in the transaction

2. The date on which the property was transferred from the vendor to the buyer.

3. The nature of assignor's (vendors') title’s.

4. The entire description/specifications of the property, including all prior documentation, from the time it was first acquired until the current moment of sale.

5. Details regarding the property's verified document.

6. The amount of money paid in a real estate transaction (purchase price), as well as the vendor's willingness to accept the price paid.

7. The nature of the transaction and the capacity of the assignor (vendor).

8. Signatures of the parties and witnesses 9. Survey plan 10. The details of the lawyer who drafted the deed. 11. The Governor's assent.

REQUIREMENT FOR REGISTRATION

1. Title applicant obtains an Application Form and returns the completed Application Form to the Lands Department together with the following supporting documents;

2. Tax clearance receipts from the applicant or, in the case of a corporation, two of the directors, for the previous three years.

3. An affidavit signed by the applicant, or in the case of a corporation, a Director or Secretary, attesting to the accuracy of the information on the Application form.

4. Affidavit of attestation by witnesses.

After the aforementioned requirements are fulfilled, the applicant can go ahead to execute the deed in compliance with the following procedure:

1. The Application form, along with any other supporting documentation, is to be sent by the Commissioner to the Permanent Secretary, who then sends it to the Director of Lands to be processed.

2. The Director of Lands directs the Schedule Land Officer in charge of the area in question to open a file, assign it a file number, and forward it to the Principal Valuation Officer for valuation.

3. The Land Officer II attaches a sketch plan of the property and submits it to the Principal Valuation Officer.

4. The inspection and valuation report are reviewed by the Principal Valuation Officer. The Principal Valuation Officer signs the report and returns it to the Schedule Land Officer if there are no problems in the computation or report.

5. The Schedule Land Officer advises the applicant of the fees that must be paid as well as the banks to whom the payments must be made. The Head of Accounts and/or the Sub-Treasurer receive a copy of the fee schedule.

6. The applicant pays the chosen banks and obtains copies of the bank tellers to the Sub-treasury and Accounts Departments.

7. Payments are confirmed by the Sub-treasury office by comparing bank tellers to bank manifests. If the payment information is included in the manifest, the applicant receives a receipt. However, if there is no record of payment in the manifest, the applicant should correct payments before requesting a receipt. This should be reported to the Director of Lands.

If the transaction follows the established processes, the Permanent Secretary analyzes the entire process and delivers the file to the Commissioner for approval. The Commissioner signs the approval and sends it to the Permanent Secretary, who then submits it to the Director of Lands.

Subsequently, the Director of Lands directs the Schedule Land Officer to make arrangements for stamping and registration, as well as to notify the applicant of the date when the registered Title document will be available for collection. The Schedule Land Officer submits the paperwork for stamping and registration to the Registrar of Deeds. Following which the document is registered by the Registrar of Deeds, and the applicant signs and obtains the registered title document.

Before the actual alienation or sale of any interest in land in Nigeria, the Governor's authorization is required. The Land Use Act stipulates that the Governor's consent must be acquired. Section 22 of the Act states that it is unlawful for the holder of a statutory right of occupation given by the Governor to assign, mortgage, transfer possession, sublease, or otherwise alienate his right of occupancy or any part thereof without first obtaining the Governor's consent. The Land Use Act further states that "when providing his assent to an assignment mortgage or sublease, the Governor may compel the holder of a statutory right of occupation to submit an instrument in evidence of assignment, mortgage, or sublease, and the holder shall send the said instrument to the Governor when so needed in order for the Governor's consent to be expressed by endorsement thereon."

NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact [email protected]

WRITTEN BY CHAMAN LAW FIRM TEAM

EMAIL: [email protected]

TEL: 08065553671, 08024230080

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Meaning, Importance, and Purpose Of Deed of Assignment in Nigeria

• 2 years ago
• Business , Uncategorized

A deed of assignment is an important document to have when transferring of ownership of land or property from one party to the other. There has to be document agreement between a buyer known as assignor (the seller) and assignee (the buyer or the purchaser)before transaction can be completed.

What is A Deed of Assignment?

A Deed of Assignment is an essential legal land document that records a sale of land. Besides that, it transfers interest and title in real property from one party to another, starting from the commencement date stated in the document.

A deed of assignment’s major function is to transfer an interest in or assign the title of property from a seller (an assignor) to a new buyer (the Assignee). A good deed of assignment must include some details and they are listed below:

• Names, address, status of the transaction’s participants.
• Day on which they transferred the property from the seller (vendor) to the buyer.
• The nature of the assignor’s (vendors’) title.
• Entire description/ specifications, including any fittings and fixtures of the property.
• The history of the property being transferred from the time it was initially obtained to the current moment of sale, including all preceding documentation.
• Details about a verifiable document the property bears.
• The amount of money paid in a property transaction (buy price) and the vendor’s readiness to accept the price paid for the property.
• The nature of the transaction and the assignor’s capacity (vendor).
• Both parties to the transaction agree to keep the agreements.
• The parties’ signatures, as well as the signatures of the witnesses to the transaction, are necessary.
• Plan for the survey.
• Information about the lawyer who prepared the deed.
• The Governor’s assent must be signed and validated in this section.

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What is The Importance of A Deed of Assignment?

It a legal contract between two parties to a real estate transaction therefore you can not overemphasize its important. Some of its important are:

1. It is Essential For Transferring Land To The Other Party Before It Expires

It covers not only the basic requirements but also the precise terms agreed upon by the transaction’s participants. A real estate lawyer should draft a deed of assignment to ensure that it accurately represents the interests of all parties involved in the transaction. The assignee’s legal counsel creates the deed of assignment, which is subsequently vetted and executed by the assignor (vendor). The assignor’s lawyer may prepare the deed for scrutiny by the assignee’s lawyer if the property is part of an estate.

2. It Acts As A Legal Root of Title To The Property

A deed of assignment is also important since it serves as a valid root of title to the land.

It serves as valid evidence of transfer, particularly when the legitimacy of the land is disputed or a third party attempts to claim ownership of the same land.

Note: It’s also crucial that they register the deed of assignment with the relevant land registry. Especially where the land is located for perfection once they have exchanged it between the parties to the transaction. Perfection comes at the post-completion stage, which includes receiving the governor’s approval, stamping the deed of assignment, and ultimately, registration of the document to establish legal proof that the property has changed hands and to inform the public that the property has a new owner.

What Is The Purpose of The deed?

It’s essential to always discuss issues like this with your lawyer for clarifications, especially if you want to buy land. A deed’s purpose is to transfer legal ownership of a property or asset from one person or corporation to another.

Who Needs To Sign A Deed of Assignment?

The assignor and the assignee(s) must both sign the deed, and they must tick the corresponding box (or boxes) for each signature. However, if there is a joint tenancy and two people own the policy. Therefore, both policyholders must act as assignors.

How Much Does The Deed of Assignment Cost in Nigeria?

A Deed of Assignment can only be prepared by a lawyer in Nigeria.

There is a scale of charges to checkmate the charges of lawyers for handling land matters. But because this scale of charges is primitive. Lawyers would rather negotiate their percentage in real estate transactions based on the value of the assets to be purchased. This is because they also permit them to engage in a simple contract for any services, including deed preparation.

Several criteria determine the percentage a lawyer may charge to produce a deed of assignment. Expertise or experience, as well as the value of the property to be purchased, are among these criteria.

Most lawyers in Nigeria typically charge between 5% to 10% of the cost of the property to prepare a deed of assignment. Therefore, for a property being purchased at N40,000,000, a lawyer may charge N2,000,000 (5%) of the cost to prepare deeds and other necessary documents.

In some situations, the higher the property’s worth, the lower the percentage. There could be situations where a lawyer may charge above 10% of the total cost of the property. That’s if the purchase price is very low, or even less than 5%. Or if the property’s value is very high, or other circumstances such as an existing relationship between the lawyer and the purchaser.

Finally, in Nigeria, there is no set fee or cost for creating a deed of assignment. The price of the property typically decides the cost of a deed of assignment. Besides that, other factors, such as a prior relationship, could influence its cost.

Who Prepares The Deed of Assignment?

To avoid misunderstanding along the way, you should know who has to prepare the deed of assignment. The assignee’s legal practitioner drafts the deed of assignment, which they hand to the assignor (vendor) for vetting and execution. If the property is part of an estate, the assignor’s lawyer may prepare the deed for examination by the assignee’s lawyer.

Deed of Assignment in Nigeria – How To Register

Following the execution of the Deed of Assignment, the Governor must properly register and approve it in compliance with the Land Use Act, LFN 2004.

In essence, after parties to a property transaction execute a deed of assignment, the procedure, and steps for registering the executed deed of assignment in Lagos State or any other Nigerian jurisdiction entail three primary steps: Obtaining Governor’s Consent, Stamping of Deed, and Registration.

1. Obtain A Governor’s Consent

When they already registered the purchased land in the seller’s name at the registry. They should apply with the landform 1c accessible at the lands registry. The purchaser and the vendor should sign the form.

List of Things To Submit Your Governor’s Consent Application With

• A covering letter to the Director of the Lagos State Department of Lands and Housing.
• After inspecting the property and its values, they’ll pay the consent fee.
• Both parties’ current tax clearance certificates. They only require the mortgagor’s information in the case of a mortgage.
• When one party is a corporation, the corporation must provide the government with revenue certificate papers for its employees and current tax clearance certificates for the directors.
• There will be a demand for the building plan in the case of developed property.
• The Deed of Assignment for which they requested its consent in six (6) copies.
• Proof of up-to-date ground rent and legal charges payment.
• Proof of payment of development levy.
• Payment of charting and endorsement fees receipt.
• A Certified True Copy (CTC) of the assignor’s land document is accessible from the land’s registry.

2. Pay Stamp Duties

Following the Governor’s approval, the solicitor must guarantee that they pay for the transaction’s stamp duty. They recommend that consent be obtained prior to the payment of stamp duties, as you cannot recover the duties you paid if the Governor rejects consent. They levy stamp duties on a variety of transactions, one of which being the transfer of a property interest.

The Consequences of Failure To Pay Stamp Duties

• They will not accept the instrument for registration.
• The instrument will be inadmissible in evidence in court as they stipulated it under section 22 of the Stamp Duties Act.
• In cases of late registration, it will attract a penalty.

3. Register The Deed

A deed of assignment or conveyance that alienates a land interest is important to register. This is because it is a document that affects land in which one party confers or extinguishes a right or title interest in land in favor of another party.

Although registration does not cure defects in title, a deed of assignment is a registrable instrument that they must register within 60 days after execution. This is according to section 25 of the Lagos State Land Instrument Registration Law.

Advantages of Registering A Deed of Assignment

There are several advantages to registering a deed of assignment, they include:

• It shows that the title is free of entanglements.
• It is difficult to plead an instrument that has not been registered since it is inadmissible in evidence.
• Where there are competing instruments registered, it gives priority to the first in time.

Who Pays For The Deed of Assignment?

As with any other commercial transaction, sellers provide receipts to buyers as confirmation of payment. In this context, the deed of assignment is also relevant. The buyer does not pay for receipts, rather the seller owes the buyer the responsibility of receiving a receipt. The Nigerian law compels the seller to execute a deed of assignment to the buyer.

In this scenario, the family’s leader and the most important members owe you a duty to sign the paper.

In Conclusion

In any land transaction in Nigeria, a deed of assignment is crucial because it serves as the main document between the vendor and the purchaser.

It highlights that they have completed all negotiations, investigations, and other necessary due diligence. Besides that, it shows that they’ve paid the purchase price and the parties to the transaction have met all other necessary conditions. Also that the vendor has transferred all of his rights to the property.

The parties involved must record the deed of assignment with the state government. They should do it where the land is located once all parties to a land transaction have signed it. The land-use legislation states that the registration of a land’s title must start with the governor’s approval.

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Meet Oyedepo Emmanuel, a professional realtor with over 8 years of experience in the industry. Emmanuel's mission is to provide his clients with exceptional service and guidance throughout their real estate journey. His vision is to help individuals and families find their dream home or investment property, while also educating them about the real estate market and ensuring a smooth and stress-free transaction. Emmanuel is committed to building lasting relationships with his clients and helping them achieve their real estate goals. Contact Emmanuel today for all your real estate needs.

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What You Need to Know about Deed of Assignment When Buying Real Estate in Lagos

• October 30, 2023
• Emenike Emmnauel
• Category: Buy a Property , Sell a Property

Let’s talk about deed of assignment if you are ready to become a proud property owner in Lagos, Nigeria. 

We know it’s an exciting journey to finally acquire that dream property in Lagos. Still, you need to get all the knowledge you can get, so that you can be fully prepared for the journey ahead. 

In this blog post, we’ll explain a term you might have heard – the “Deed of Assignment.” We’ll also show you why D of As are absolutely important, for you as a property owner in Lagos. Don’t worry; we’ll explain it in everyday language, so you can understand it well.

What is a Deed of Assignment?

In Lagos real estate, you’ll often encounter the term “Deed of Assignment.” But what does it really mean?

In simple terms, it’s a legal document that transfers property ownership from the current owner to you. It’s your way of officially claiming that dream property in Lagos. Think of it as your key to your new home. This document acts like a contract, recording the agreement between the current owner (assignor) and you, the new owner (assignee). It confirms that the property is now in your name, with all its associated rights and responsibilities.

Why Do You Need a Deed of Assignment?

Now, let’s explore precisely why a Deed of Assignment is essential in your path to property ownership in Lagos .

1. Legal Proof

The Deed of Assignment is your formal proof of property ownership. It is a legal document that states you are the rightful owner. Just like your passport proves your identity, this document confirms your property rights, protecting your interests.

2. Transaction Validation

In the world of real estate, rules and regulations matter. The Deed of Assignment ensures that your property transaction is lawful. It verifies that all legal and regulatory requirements have been met, preventing potential legal issues down the road.

3. Security

Think of the Deed of Assignment as a security lock on your property. With this document, your property rights are securely established. It shields you from disputes and grants you peace of mind, allowing you to enjoy your new home without worry.

4. Resale and Inheritance

If you wish to sell your property or pass it on to your heirs, the Deed of Assignment is crucial. It simplifies the process, ensuring a smooth transition of property rights, whether for future sale or inheritance. 

Thus, the Deed of Assignment serves as your formal declaration of property ownership. It ensures that you’re on solid legal ground in your property ownership.

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What to Look Out For in a Deed of Assignment

Understanding the contents of a Deed of Assignment is crucial for a smooth property transfer. Here are the primary components you’ll find in this document:

1. Property Details

This section specifies the property being transferred, including its address, size, boundaries, and any relevant land registration information.

2. Parties Involved

The Deed of Assignment identifies the key players in the transaction. It names the assignor (the current property owner) and the assignee (the new owner) with their full legal names, contact information, and any additional parties involved.

3. Purchase Price

The purchase price is the agreed price the buyer is to pay for the property. Indicating it in the Deed of Assignment shows transparency and legal compliance. It is a vital detail in any property transaction.

4. Transfer Conditions

This section outlines the specific terms and conditions of the property transfer. It might detail obligations, restrictions, or any other factors both parties must follow throughout and after the transfer.

5. Signatures and Witnesses

To make the Deed of Assignment legally binding, both parties, along with witnesses, sign the document. The witnesses provide verification that the signing parties are who they claim to be, adding an extra layer of authenticity.

6. Date of Transfer

This specifies the official date on which the property changes ownership. It’s a crucial detail, marking the beginning of your property ownership.

Additional components may include information on any outstanding property taxes, utility bills, or encumbrances on the property. These elements are essential to ensure a comprehensive and legally sound Deed of Assignment.

In the next sections, we’ll explore the process of obtaining a Deed of Assignment and common issues to be aware of during the property transfer.

The Process of Executing a Deed of Assignment in Lagos

• Investigating the Property: Before any transaction, you must conduct a thorough investigation of the property. This includes verifying its title, confirming the seller’s legal ownership, and ensuring that the property is free from encumbrances or disputes.
• Drafting the Deed: Once you’re certain about the property’s legitimacy, it’s time to draft the Deed of Assignment. This document should be prepared by a legal professional and include all the necessary details we discussed earlier.
• Signatures: Both the assignor (current property owner) and assignee (new property owner) must sign the Deed of Assignment in the presence of witnesses. It’s a formal agreement that needs to be properly executed.
• Payment of the Stamp Duty: In Lagos, you’ll need to pay a stamp duty on the Deed of Assignment. This fee varies depending on the property’s value and is essential for legal compliance. Ensure you pay the required amount for you. 
• Registration: After payment, the Deed of Assignment should be registered with the appropriate land registry or government authority. This step ensures that the transfer is legally recognized.
• Delivery: The Deed of Assignment should be delivered to the assignee, completing the property transfer.

Common Issues Property Buyers Face and How to Avoid Them

During the property transfer process, there are common issues that property buyers should be aware of. By understanding these challenges, you can navigate your way more smoothly. Here are some potential hurdles and how to avoid them:

• Incomplete Documentation: Sometimes, the necessary documents may be incomplete or missing. To avoid this issue, work with a reliable legal professional who can ensure all documents are in order.
• Disputes Over Property Ownership: In some cases, disputes may arise over property ownership. Make sure you verify the property’s title, and ensure the seller has clear legal ownership.
• Unclear Transfer Conditions: Ambiguity in the Deed of Assignment can lead to misunderstandings. To avoid this, carefully review and clarify the transfer conditions to protect your interests.
• Failure to Register: Failing to register the Deed of Assignment with the appropriate authority can render the transfer invalid. Ensure the registration is completed promptly to avoid complications.
• Lack of Legal Guidance: Property transactions involve complex legalities. It’s crucial to seek legal guidance from a qualified professional to navigate the process successfully.
• Stamp Duty Non-Payment: Neglecting to pay the required stamp duty can result in legal issues. Make sure you fulfill this obligation promptly.

By being aware of these potential pitfalls and taking proactive steps, you can ensure a smoother property transfer process.

• Difference Between C of O and R of O: What You Should Know
• What is the Difference Between C of O and Governor’s Consent in Lagos?
• Basic Requirements for Getting a Physical Allocation of Your Property in Lagos

In conclusion, the Deed of Assignment is your gateway to secure property ownership in Lagos. It offers the legal protection and assurance you need in real estate transactions. To navigate this journey successfully, remember to prioritize compliance with legal obligations, including stamp duty payments and registration.

Seeking professional legal guidance is not just a recommendation but a crucial step to safeguard your interests and make your real estate aspirations a reality. Whether you’re a first-time buyer or an experienced investor, remember that legal support is your best ally in this significant endeavor.

Would you like to come for land inspection so as to buy land or house in Epe, Ajah, Lekki, Ibeju-Lekki, Lagos or anywhere in Nigeria? Reach out to us on +234 806 400 3456 or send an email to [email protected]. We are ever ready to assist you on your property ownership journey in Nigeria.

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• Deed of Assignment

Lets Talk About This Open Daylight Robbery called Omo-onile Signing Fees

OmonileLawyer

Let me just drop this List here for you to ponder for 1 minute.   Nigerians are their own worst enemy. How can someone struggle to find a good property to buy without wahala, spend so much money to acquire the land from Agency fees to Survey plan fees and when its time to take possession of the land, the community now presents this Stupid ” OMO-ONILE FEES” to you? If you choose not to pay it, they would prevent you from working even if you bought the land for N100 Million.   To put Foundation on the land N200,000…

• Beware of these Lands for Sale in Lagos

Know the Difference between RECTIFICATION and RATIFICATION of Title to Land

Don’t be confused. Rectification and Ratification means 2 separate things but they sound alike. Rectification means to correct a grave error on a document while Ratification means giving formal consent to a contract or agreement thereby making it validly official.   To understand how Rectification of Title to Land differs from Ratification of Title to land, we have to understand what a Land title means so we can comprehend it quite easily.     WHAT IS LAND TITLE?   Land title may be defined as the rights or ownership claim a person has over a property. It simply means, for…

• Certificate of Occupancy
• Deed of Rectification

Watch: Okun Ajah Plot 2

Omonile Lawyer

The Loyal Nigerian Lawyer

The Effect of a Registrable Land Instrument that is Not Registered

INTRODUCTION

It is apt to first have the basic grab of what Instrument in the legal parlance means which broaden one’s understanding of which of such instrument is registrable or otherwise. The Black’s Law Dictionary defines instrument as a written legal document that defines rights, duties, entitlements, or liabilities, such as a statute, contract, will, promissory note, or share certificate. Here, we are more concerned with any of the above mentioned instruments relating to land and subject to registration at the land registry otherwise termed registrable instrument.

WHAT IS REGISTRABLE INSTRUMENT?

Notably, the Land Registration Act is the law regulating registration of instrument in Nigeria which is enacted for the whole country as it was adopted and re-enacted in some states under different nomenclature. This law prescribes registration of any instrument subject to registration and executed accordingly.

The Land Registration Act defined registrable instrument as a document affecting land whereby one party called the grantor confers, transfers, limits, charges or extinguishes in favour of another party called the grantee any right or title to the interest in land and includes a certificate of purchase, a power of Attorney under which any instrument may be excluded but does not include a Will.

Section 2 of the Lagos State Lands Registration Law (LLRL) 2015 provides that every document of interest or title to land in Lagos state shall be registered in accordance with the provisions of this law.

In AKINDURO V. ALAYA NSCQR VOL. 30 (2007) 601 @ 691 , Aderemi JSC held:

“Under Section 2 of the Law, the word “Instrument” is defined to mean where one party usually called the grantor confers, transfers, limits, charges or extinguishes in favor of another party called the grantee any right or title to or interest in the state. Going by Section 15 aforesaid, an unregistered document affecting land must not be pleaded and neither is it admissible in evidence.”

From the above definitions, it is generally clear that a registrable instrument is a document, which transfers or creates a right, title or interest in land to or in favour of the grantee. But a will is expressly excluded from the ambit of registrable instruments. Therefore, it is glaring that not all instruments are registrable as some may be subject to registration while others may not and still acceptable.

REGISTRABLE INSTRUMENT

The instruments that are registrable or subject to registration are:

• A document which transfers interest in land or extinguish any right in law to another is a registrable instrument. For instance, Deed of Assignment, Deed of Mortgage, Deed of Lease except where explicitly expressed otherwise, among others. ELEGBEDE V. SAVAGE (1951) 20 NLR 9, 10  
• A Power of Attorney authorizing a third party to deal in land is a registrable instrument. Section 56 (1) and (2) LLRL
• A sub-lease for a term of five (5) years or a sub-lease with an option to renew for a total aggregate of five years or more shall be registrable. Section 42 LLRL

NON – REGISTRABLE INSTRUMENT

The non-registrable instruments are not subject to registration. Some of them include the following:

• A sales receipt or purchase receipt is not a registrable instrument if it is a mere acknowledgment of sales or payment and does not confer or transfer interest in land. ELEGBEDE V. SAVAGE (SUPRA)
• A sale agreement is generally not a registrable instrument. But an agreement to mortgage land is a registrable instrument. Section 49 and 50 LLRL
• A will is expressly excluded from the ambit of registrable instruments.
• A Power of Attorney is generally not registrable; it is only registrable where it specifically relates to an interest in land. Section 56 (1) and (2) LLRL
• A sublease under three (3) years does not require registration. Section 26(2) LLRL
• A deed of release is not a registrable instrument. This type of instrument is usually executed by an implied (constructive or resulting) trustee in favour of the beneficiary or by mortgagor and mortgagee.

On the above premise, it is clear that only instruments that are subject to registration or considered as registrable instruments that must be registered, while non-registrable instruments need no registration and in all four are valid and acceptable. However, what is the position of the law on the issue as to whether an unregistered document or instrument which is registrable is valid in law and (or) admissible even when it is pleaded. Thence, the statutory laws and judicial authorities addressing the legal position of the unregistered registrable land instrument shall be considered.

LEGAL POSITION OF REGISTRABLE LAND INSTRUMENT THAT IS NOT REGISTERED

The position of the law, before the Supreme Court decision in the case of BENJAMIN & ORS V. KALIO & ANOR (2018) 15 NWLR (PT. 1641) 38, is that an unregistered document affecting land must not be pleaded and is not admissible in evidence. If such a document is pleaded in a trial Court, upon an application made to it, the Court must strike out paragraphs of pleadings where such an unregistered document is mistakenly admitted in evidence, part of the evidence relating to the unregistered document should be expunged for reason of lacking evidential value.

Section 30 LLRL for instance states as follows:

“No registrable instrument shall be pleaded or given in evidence in any Court as affecting land in the State unless it has been duly registered”.

In ODUMADE V. OGUNAIKE (2011) ALL FWLR (PT. 566) 529 AT 547 , the Court held:

“An unregistered instrument is not admissible to prove title to land, it is however admissible as a receipt or an acknowledgment of a payment of money in respect of a land. Where coupled with delivery of possession, it gives rise to an equitable interest which is capable of being converted into a legal estate by specific performance.”

However, contrary to the above submission that an unregistered instrument subject to registration is not admissible to prove title to land except where same is tendered as a receipt or an acknowledgment of a payment of money in respect of a land, the Apex Court, constituted of Seven-Man Panel in 2017 held otherwise in the case of BENJAMIN & ORS V. KALIO & ANOR (SUPRA) . The Court held that if the unregistered registrable instrument is tendered to prove title to land, it would still be admissible as issue on Evidence is within the purview of the Exclusive Legislative List which provided or considered the admissibility of document based on relevancy albeit not being registered.

Contrary to the above decision, in a much later case of ABDULLAHI & ORS V. ADETUTU (2019) LPELR 47384 , the Supreme Court in 2019 held that if the unregistered registrable instrument is tendered to prove title to land, it would NOT be admissible because the law places registration as a mandatory condition precedent to admissibility of instruments affecting or transferring interests in land.

Considering the two positions of the Apex Court, what then will be our reaction as to whether an unregistered registrable instrument is admissible or otherwise? Hence, we shall look at the conflicting decisions so as to ascertain the acceptable position to hold unto.

CONFLICTING DECISIONS OF THE SUPREME COURT IN BENJAMIN & ORS V. KALIO & ANOR AND ABDULLAHI & ORS V. ADETUTU

Briefly, in the case of BENJAMIN & ORS V. KALIO & ANOR (SUPRA) , the main issue that arose was whether a Land Instrument, whose registration is made mandatory by a State Law, is inadmissible to prove title to land at a time when it is not registered. The Supreme Court answered the question in the negative. The Court held that admissibility is governed by the Evidence Act which is a Federal Legislation and therefore any document or evidence admissible under the Evidence Act cannot be made inadmissible under any state law.

The full complement of the Supreme Court of Seven (7) Justices held that a land document which is an instrument will not be inadmissible on grounds that it is not registered and thus concluded that a Land Instrument whose registration is made mandatory by a State Law (as condition precedent to admissibility to prove title to land), remains admissible to prove title to land even if not registered because such provision of a State Law is void for being inconsistent with Item 23 of the Exclusive Legislative List in the 1999 Constitution .

In the case of ABDULLAHI & ORS V. ADETUTU (SUPRA) on the other hand, the major issue for determination at the Apex Court was whether the Lower Court (Court of Appeal) erred when it agreed with the trial Court that the Appellants’ document of title, exhibit D8, was inadmissible to prove title, on grounds of its non-compliance with section 15 of the Land Instruments Registration Law, Lagos. The Supreme Court, departing from the principle in the former case, held as follows: 

“The arguments under this issue are almost ubiquitous arguments in land matters. I must note right away, that the admissibility or otherwise of an unregistered registrable instrument depends on the purpose of which it is being sought to be admitted.

An unregistered registrable instrument, sought to be tendered for the purpose of passing or establishing title to land or interest in land, would be inadmissible under Section 15 of the Land Instruments Registration Law…Such a document, decided as an “amorphous document”, Umoffia vs. Ndem (1973) 12 SC (Reprint) 58, is not receivable in evidence for the purpose of establishing any right, title or interest in land being unregistered.

If it is however tendered to show that there was a transaction between the lessor and the lessee, it will be admissible as a purchase receipt. It will also be admissible if it is meant to establish a fact which one or both parties have pleaded. Under these two conditions, such a document does not qualify as an instrument as defined in Land Instruments Registration Law, Okafor v. Soyemi (2001) 2 NWLR (Pt. 698) 45, Agboola v. UBA (2011) 11 NWLR (Pt. 1258) 375, ABU v. Kuyabana (202) 4 NWLR (PT. 758) 599 .”

Summarily, in the former decision, the Supreme Court maintained only one leg of all its previous decisions and deviates from the other thus:

• Where the unregistered registrable instrument was tendered to prove title to land, it would be admissible because such instrument is admissible under the Evidence Act while the State Law mandating its registration (as condition precedent to admissibility to prove title to land) is void for being inconsistent with the Constitution.
• Also, where it was only tendered to prove existence of a transaction or payment of money, it would be admissible even though registered or otherwise.

While in respect of the latter decision of the Supreme Court, the Court made it succinct that:

• If the unregistered registrable instrument was tendered to prove title to land, it would NOT be admissible because the law places registration as a mandatory condition precedent to admissibility of instruments affecting or transferring interests in land.
• If on the other hand, it was tendered to prove existence of a transaction or payment of money, it would be admissible even though not registered.

The question that arose from these two conflicting decisions is that which of the decisions one is bound to follow? 

The position of the law is that where two Judgments of the Supreme Court are clearly contradictory, the later in time must be taken to have impliedly overruled the earlier case once the facts of the two cases are not totally different from one another, yet the decisions are inconsistent . The later in time must therefore be chosen over the earlier. OPENE V. NATIONAL JUDICIAL COUNCIL (2011) LPELR-CA/A/324/07.

Submitting on the two cases therefore, the binding and subsisting judgment for now is the recent decision in time which is the case of ABDULLAHI & ORS V. ADETUTU (SUPRA) . The fact being that this case is in tandem with all decisions of the Supreme Court prior to its decision in BENJAMIN & ORS V. KALIO & ANOR (SUPRA) and the latter case in time came to overruled the former case as the current position is that an unregistered registrable Land Instrument is admissible in evidence to prove existence of a transaction and (or) payment of money, but it is not admissible to prove title to land.

We can safely submit on the above therefore that a registrable instrument which is not registered cannot be pleaded and is inadmissible. However, same could be admitted but only for purposes of proving existence of a transaction or payment of money.

Since the above position is clear, there is also the need to consider what is the effect(s) of registration or non-registration of registrable instrument(s).

THE EFFECT OF REGISTRATION/NON-REGISTRATION OF REGISTRABLE LAND INSTRUMENTS

We already know that the mode of transfer of interests in land, sub-lease or mortgage is strictly by deed and all those deeds are under the purview of registrable instruments. Such transfers shall be deemed to be complete only after the deeds have been registered. Hence, failure to register such instrument has negative consequence(s) among which is that same cannot be pleaded and (or) admitted in evidence as earlier stated. Sections 62( 1) and 74(1) LLRL; the decision of ABDULLAHI & ORS V. ADETUTU (SUPRA)

In order to facilitate such registration, the law establishes in every state a land registry under a land registrar charged with the responsibilities of registering instruments affecting land in the state and to keep registered books and file in relation thereto. Modern methods include computerization of the whole process in addition to the use of Geographic Information System (GIS) and Land Information Management System (LIMS). These methods have helped to enhance the process or system of registration and also give well defined details, measurements and design efficiency. Section 17 LLRL

Also, those registrable instruments are mandated to be registered at the registry within a specified period. In Lagos State for instance, Section 26(1) LLRL provides that such registration must be done within sixty (60) days after obtaining the Governor’s Consent. Where such is not done, there is consequence attached to this too. Therefore, the following are the effect of registrable land instrument that is not registered or registered lately.

• Any document or instrument that is registrable under the Law, but is not registered shall not be admissible in Court as affecting the land to which it relates. Note however that such document is admissible to prove agreement and payment of money. Section 30 LLRL
• Late registration attracts fine. Sections 26(1) and 28 LLRL
• Instruments may lose priority against subsequent instruments that are registered since registration governs priority. Section 29 LLRL
• Transaction subject to registration which was done without such registration remains inchoate. This means that no interest is transferred or created unless and until the relevant document is registered. Section 40 LLRL
• Non-registration indicates that the property is unencumbered.
• In the case of conveyance of unregistered land, title has to be proved afresh each time a disposition of land is made.

From the above discuss, it is clear that the issue of registrable instruments are governed by Land Registration Laws of various States of the Federation. Such instrument is subject to registration where it confers, transfers, limits, charges, or extinguishes any right or title to the interest in land. However, there are instances where an instrument may not be subject to registration as same is not a registrable instrument and remained binding and acceptable in law and in fact. On that, we established that some instruments are registrable while some are non-registrable.

In respect of those registrable instruments, it was stated that any unregistered instrument shall not be pleaded and even when pleaded, shall not be admissible, and where same is admitted, it shall be expunged from the record. On this, we looked at the conflicting decisions of the Supreme Court on the admissibility or otherwise of an unregistered registrable instrument. It was rightly submitted at the end that any registrable instrument that is not registered is inadmissible to prove title to land, though, same may be admissible to establish payment of money or evidence of transaction between parties. Conclusively, we considered the effect attached to non-registration of registrable instrument and (or) late registration of same. With the above, it is hopeful now that everybody delving into land transaction shall be careful and be of due diligence.

Ahmod Babatunde Ariyibi, Esq. is an Associate at Graystone Solicitors and a graduate Intern at Legally Engaged. He has passion for advocacy, imparting knowledge, academic scholarship and volunteering services.

You can reach him via email: [email protected] or contact/whatsapp: 08099186668.

Statutory Authorities

• Constitution of the Federal Republic of Nigeria 1999 (as amended)
• Land Registration Act, No. 36 of 1924 
• Land Instruments Registration Law Cap. L58 Laws of Lagos State 2003
• Lagos State Lands Registration Law 2015.

Judicial Authorities

• Akinduro v. Alaya NSCQR VOL. 30 (2007) 601 @ 691
• Elegbede v. Savage (1951) 20 NLR 9, 10
• Benjamin & Ors v. Kalio & Anor (2018) 15 NWLR (PT. 1641) 38
• Odumade v. Ogunaike (2011) ALL FWLR (PT. 566) 529 at 547
• Okoye v. Dumez (Nig.) Ltd & Anor (1985) 1 NWLR (PT. 4) 783.
• Abdullahi & Ors v. Adetutu (2019) LPELR 47384
• Opene v. National Judicial Council. (2011) LPELR-CA/A/324/07
• Oredola Okeya Trading Co. v. A.G., Kwara State (1992) 7 NWLR (Pt. 254) 412
• Ogunbambi v. Abowab (1981) WACA 272

Literatures

• Garner B. A., Black’s Law Dictionary, Tenth Edition at page 918. 
• Muhammad Bashar Nuhu, Enhancing Land Titling and Registration in Nigeria at page 3-4.
• Case Review: On Admissibility of Unregistered Registrable Land Instruments in Nigeria, https://dnllegalandstyle.com/2019/case-review-on-admissibility-of-unregistered-registrable-land-instruments-in-nigeria/ accessed 19 th April, 2021

Halima Abiola

One thought on “ the effect of a registrable land instrument that is not registered ”.

Nice write up. But what statute in Abuja says that a registrable instrument such as a lease agreement is to be by deed?

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PERFECTION OF TITLE OF LAND IN LAGOS NIGERIA

Introduction.

The perfection of Title in Lagos State simply means registering an interest in a property with the government.

When purchasing a property in Lagos or elsewhere in Nigeria, it is statutory for the buyer of the property to obtain proper title register the said property with the government.

The major governing the registration of properties in Nigeria is the Land Use Act of 1978. Section 22 of The Land Use Act states that;

“ it shall not be lawful for the holder of a statutory Right of Occupancy granted by the Governor, to alienate his Right of Occupancy or any part thereof by assignment, sublease etc. without the prior consent of the Governor ”

What this implies in simple language is that even if a property has a Certificate of Occupancy, which makes the beneficiary the legal interest holder on the land, if he decides to resell the property, since the land is held in trust by the State Government, the Governor needs to approve that transaction. Otherwise, the title that will be transmitted is not perfect and it means that the final authority on landed matters is not aware of the transaction as mandated by the Land Use Act of 1978.

For many, buying a piece of land or real property is all about finding a vendor willing to sell and meeting the price for the property. Many people fall into the mistake of dealing with vendors of properties in trust, assuming that the fact that they have known one another for donkey years or the fact that an agent has assured them of good title is sufficient to avoid future troubles with respect to the land or real property.

It is of paramount importance to take certain steps prior to the purchase of land, or land with structure during the course of purchase and even after the purchase has been made for the sake of securing one’s interest in the said property.

A willing purchaser as a matter of importance must investigate the title of the vendor to the said land and in some cases the track record of such vendor in order to forestall any future legal issues.

Prior, to the perfection of title, there are various steps to follow when purchasing a real in Lagos, which shall be briefly discussed below. 

PRELIMINARIES

At this stage parties (vendor and purchaser) meet and discuss on the property: price, mode of payment, nature of vendor’s title etc. After parties have agreed on the purchase price a Contract of Sale Agreement is drawn up pending when the Purchaser would carry out investigation to deduce the nature of the Vendor’s title to ascertain that the property truly belongs to the Vendor and is free of any encumbrance.

At the point where the contract is exchanged the vendor is deemed to hold the land in trust for the purchaser till he pays, and all conditions therein fulfilled. The essence is to deduce a good root of title from the vendor. Until the execution of the contract of sale, there is no obligation on the vendor to establish that he is the owner of the title which he intends to convey, but once the contract has been exchanged, he is under duty to do so. The Contract of Sale Agreement may include terms as agreed by parties. It is not unusual for parties to agree to a deposit on the total value of the property at this point pending the result of the investigation of title by the purchaser.

INVESTIGATION OF TITLE STAGE After the execution of the contract, the purchaser would collect title documents from the vendor. These documents should be sufficient in themselves without any extrinsic evidence to establish the title to the land. Such documents may include Certificate of Occupancy, Deed of Assignment/Conveyance, Survey Plan, Registered Title, Court Vesting Order etc.

Once the relevant documents (usually copies) have been obtained from the vendor, the Purchaser’s solicitors proceed to carry out an investigation to confirm the vendor’s title and to ascertain that there are no defects in the said title to the property. The investigation involves several searches at various registries where records of properties and encumbrances are kept. Searches can be conducted in the following ways –

•  Search at the Lands Registry  – The Land Instrument Registration Law of each State establishes a land registry for the State, where documents relating to land within the territory are kept, and it varies from one State to another.

•  Search at the Corporate Affairs Commission (CAC)  – This is necessary where the vendor or past owner is a company incorporated under Companies and Allied Matters Act. Apart from the searches at the land registry, there should be a further search at the CAC to reveal whether or not there is an encumbrance or any charge whatsoever on the property. 

Companies are required to file annual returns yearly with the CAC which is always accompanied with a company’s financial statement; the financial statement will reveal the company’s assets (where there are any) as well as any charges or encumbrance on same.

•  Search at Probate registry  – This is a search conducted to reveal whether or not probate has been granted on any estate and to ascertain the personal representatives or executors of a testator in cases of properties belonging to the estate of a deceased. Without a grant of Probate and/or letters of administration, the vendors do not possess the requisite authority to sell the property of a deceased person.

•  Traditional evidence  – This is done by investigating or verifying from the principal members of a family or from the community and heads of the community where the property is subject to family or community ownership. It is crucial to verify that all relevant consents have been obtained and that the title is neither void nor voidable.

•  Court judgments  – This is a search conducted to see if the land is subject to any court litigation, and if any, the outcome of the dispute; or whether the vendor is a personal representative or beneficiary in a probate dispute which entitles him to convey the property.

•  Physical inspection  –  This is a personal visit to the property in question in order     to find out if there is any issue with the property, or to ascertain the actual size of the land and whether it conforms to the dimensions on the survey plan at the Lands registry.

In addition to the above, investigation of real property could take a different turn depending on the type of property and the caliber of persons involved in the transaction. For instance, due to the recent development of collapsed and collapsing buildings in Lagos State, it is advisable for clients who are looking to purchase high rise buildings to request for profiles of the developers of the property, certificate of structural integrity/stability, kind of foundation on which the building is erected etc.

For properties located in choice areas which cost large sums of money, it may not be out of place to investigate the profile and record of the vendors to ascertain such persons are not on the watch list of agencies such as the Economic and Financial Crimes Commission, the ICPC or whether the property in question is not a subject of any investigation. This would prevent the risk of confiscation of the property by the Federal Government or any anti-corruption agency. 

DEED OF ASSIGNMENT STAGE

After the purchaser, through his solicitor has ascertained that the vendor has a good title to the land, the next stage is the preparation of a Deed of Assignment/Conveyance and execution of same by the parties with respect to the property to be sold.

The Deed of assignment can be prepared by the purchaser’s solicitor and vetted by the vendor or his solicitor after which several copies would be produced (usually called engrossed copies) then the documents would be executed by parties and their witnesses. At this stage any outstanding sum or balance would be paid by the Purchaser.

After this, the Vendor shall submit all original title documents to the purchaser and in the case of an already developed property shall hand over the keys to the purchaser. In the event that there are tenants in the property this would be the appropriate time to introduce the new owner of the property to the tenants usually via a notice.

It is important to note that the Deed of Assignment is to be accompanied with the survey plan of the property in question as these are part of the documents required for perfection of title which is the next stage.

It is compulsory that every deed of assignment contain a consent section for the governor of the relevant state where the land/property sold is situated.

PERFECTION STAGE

Many people who are oblivious to legal requirements usually think that after executing deeds of assignment or conveyance as the case may be that they have done all that is required of them and continue to enjoy their newly acquired property. However, there is still a lot more to be done to “perfect” the title to the newly acquired land. These include application for Governor’s consent, payment of stamp duties and registration of conveyance or assignment at the Lands Registry. This is done in order to ensure compliance with relevant statutes and protect the legal validity of the purchaser’s title to the property.

APPLICATION FOR GOVERNOR’S CONSENT;

There are two types of Governor’s approval when it comes to landed property transactions. One is the approval to transfer part or all of a seller’s interest in the landed property to a third party and the other is the consent to mortgage. The latter is usually required when pledging a property as security for a credit facility.

The Land Use Act prohibits alienation of statutory right of occupancy without the consent of the Governor. It makes it mandatory for the holder of a statutory right of occupancy to seek and obtain the consent of the Governor of the State where the land is situated before alienation or sale of interest in land, otherwise the transaction shall be void. Where the property however is subject to a customary right of occupancy, the consent required is that of the local government where the land is situated.

The purchaser should always endeavor to make sure the vendor signs the application letter for consent, this is because it is the duty of a holder of the right of occupancy to seek consent of the Governor to alienate.

Below are the essential documents needed to obtain a Governor’s Consent in Lagos State and by implications to perfect a title to land:

• A duly completed application made on Land Form 1C which must be dated and signed by the parties to the transaction and sworn to before a Magistrate or Notary Public.
• A cover letter from the Solicitor/Applicant filing the application for Governor’s consent.
• A certified original copy of the Title document of the property.
• The charting fee, endorsement fee and Form 1C made payable to the Lagos State Government.
• Four copies of the Deed of Assignment with survey plans attached in each copy.
• Photograph of the property.
• A current tax clearance certificate of the parties involved in the property transaction.

All these documents are to be forwarded to the office of the Surveyor General for charting. If there are no defects in the survey plan, a clean report is sent to the Lands Bureau and a demand notice is issued to the applicant for the following fees, which are percentages of the assessed value of the property. The following fees are paid via bank draft in the name of Lagos State Government and for which receipts will be issued to the applicant in furtherance of the process below:

• Consent fees of 1.5%
• Capital Gains Tax of 0.5%
• Stamp Duty of 0.5%
• Registration fees of 0.5%

Currently, the entire process of getting approval and perfecting a title in Lagos State takes at least three months to conclude if all assessment and required fees are paid as quickly as possible and there are no queries or defects in the file/documents of the applicant. However, the State Government has a set target period of 30days.

Listed below are the steps an applicant will need to take in perfecting a land title in Lagos State:

1.   Application & accompanying documents are to be received at the Land Bureau from the Applicant.

2.  Application is uniquely referenced for identification purpose at the Lands Bureau.

3.  Investigation of the status of the land through charting will be done at the office of the Surveyor General.

4.  Assessment of Property to determine applicable fees by officials of the Lands Bureau.

5.   Issuance of Demand Notices at the Accounts Office at the Lands Bureau.

6.  Applicant pays and forwards treasury receipts of payment of fees to the Accounts Department.

7.  Approval & endorsement of documents by the Governor or Commissioner.

8.   Stamping of documents at the Lands Bureau.

9.    Registration of documents at the Lands Registry.

10.    Collection of all registered documents by the applicant at the Lands Bureau.

CONCLUSION Registration or perfection of title is done in order to avoid fraud and problems arising from the suppression or omission of instruments when title is deduced, in case of subsequent transactions it would show a registered interest in the said property. 

While registration does not cure any defects to title to property, it is important to register such documents as they are documents affecting land in which one party confers, transfers, limits, charges or extinguishes in favour of another party a right or title to or interest in land.

Documents transferring title to land are registerable instruments and failure to so register them would render them inadmissible in court.

By Real Estate Law Team at Resolution Law Firm

Email: [email protected]

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