Say you just bought a plot of land in Ibeju-Lekki for ₦20 million. You’ve paid the vendor, got your receipt and even had a little celebration with your family. The agent has assured you that everything is in order. You’re already thinking about fencing the land and getting into your building project.
But there is one important question. What document other than your payment receipt do you have to show that the seller has transferred his interest in the land to you? This is why a Deed of Assignment is very important.
Many Nigerians buy land worth millions of naira without knowing the documents they should get. Some feel that once they have paid and have received a receipt then it is theirs and no further documentation is required.
Some have a letter of allocation or a handwritten deal with the agent. Unfortunately, if trouble arises, these documents may not suffice to prove everything agreed upon or the interest transferred.
A Deed of Assignment is a legal document that transfers an existing interest in land or property from one person to another.
The statement simply means that the seller transferred his interest in the property to the buyer.
It normally gives the name of the seller and buyer, describes the property, states the type of interest being transferred and contains the terms that the parties have agreed upon.
Look at it like this. There is a receipt for the money. A properly drafted Deed of Assignment will help establish what interest in the property was transferred for that money. It makes a difference. Suppose Mr. Ade buys land from Mr. Balogun in Ogun state.
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Mr Ade paid ₦15 million and was issued with a receipt. Two years later Mr Balogun died and the children started to say their father had never sold the land.
Mr Ade presents them with his receipt but the family want to know what the payment was for and if the transaction was successful.
If the Deed of Assignment is properly executed and supported by other relevant evidence, it would be in a better position to establish the transaction with Mr Ade.
A Deed of Assignment cannot, however, give you a better title than the seller actually has.
However, a well-crafted deed will not solve the problem if the seller of the land is not the rightful owner or does not have the authority to sell the land. Thus, payment must be preceded by a proper investigation.
Your lawyer should check title to the property, review the documents and make the necessary searches. The authority of those selling must also be investigated if family land is sold.
Another mistake is to let the seller’s agent do all the paperwork and not seek independent legal advice. There are many good property agents in Nigeria.
The primary function of an agent is to bring the buyer and seller together. You should have your own lawyer look out for your interests and make sure the deed accurately reflects the transaction.
The description of the property is very important. The deed should clearly describe the land being transferred with appropriate reference to its location, size and survey details.
You buy land in Epe, only to find that the description in your papers does not correctly identify the plot you were shown.
Such errors can cause serious problems if you want to build, sell, mortgage or transfer the property to your children.
There is another issue many buyers miss. Signing a Deed of Assignment does not always bring the legal process to an end.
Depending on the property and the circumstances, the transaction may require Governor’s Consent or other appropriate consent, payment of stamp duties and registration at the relevant Land Registry. The steps are commonly known as perfection of title.
They are important because land transactions in Nigeria are subject to legal requirements including the Land Use Act. A deed shall not be taken as a substitute for obtaining any consent or registration required by law.
Unfortunately, some buyers spend millions on acquiring land and then leave their documents unattended for years. They only remember the documents when they want to sell the property, apply for a bank loan or find out that somebody else is claiming ownership. And then the solution might be more difficult and more expensive.
Nigerians in Diaspora should be extra careful. Don’t just hand over money to a relative or agent and expect the documents to be done right. Have your lawyer review the transaction and advise you as to the steps necessary to perfect your title. Ensure that the appropriate deed has been executed.
The lesson is a simple one. The purchase of property does not stop with the payment of the purchase price. Ensure the seller has the right to sell, check that the right papers are prepared and signed and then take the legal steps needed.
A payment receipt is important but should not be confused with proper documentation of transfer of ownership of property. The money you have worked so hard to earn deserves to be legally protected.
The information in this article is general in nature and not intended to be legal advice. If you, a family member or any of your friends are planning to buy a property, bought a land without proper documentation, need help with preparing a Deed of Assignment or perfecting a property title, or facing any property related problem or dispute, we can help.
Feel free to contact me for a free first legal advice and guidance we can also help you with property searches, documentation, purchase, title perfection and resolving property disputes to help protect your investment.
Michael ‘Lekan Odunlami, Esq. is a Lagos-based legal practitioner with a particular interest in property law and real estate transactions.
He can be contacted via [email protected] or 0902 897 8494.
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