In this post we will be looking at meaning of land titles, Types of land documents in Nigeria and important documents you need to have when buying property in Nigeria.
INTRODUCTION.
What are the required documents for land purchase in Nigeria? This is a potential question for every client hoping to acquire a property someday (especially landed properties). Just in case you don’t know, there are certain required documents for land purchase in Nigeria, to ensure a smooth change of ownership, which should be void of deceit. It is pertinent you familiarize yourself with the under-listed documents, as they are very important.
Buying land in Nigeria is a risky business, hence you have to be ahead of the game to not fall victim to fraud. A prospective purchaser of any property (or normally his solicitor) would have to main concerns. First, he must be sure that the vendor of the property is really entitled to sell it. Thus, the buyer must first insist that the vendor proves that his title to the land is good and that he can pass to the purchaser the land/ property which he is offering to sell.
Secondly, the purchaser will want to know whether any third parties have rights to the land which might interfere with his intended use of it. These third-party rights might include covenants restricting usage, a right of way, tree preservation order, or even mortgages. Concerns about these matters will lead the purchaser or his representatives, to make extensive enquiries before the purchase of the property is finally concluded.
WHAT IS A LAND TITLE?
A land title or certificate of title is a formal document outlining the rights a person or people hold in a piece of property. While commonly used to confirm ownership of the property, a title can also help prospective purchasers and land owners understand more about existing liens, usage rights, easements, natural resource rights, and other rights.
If a property title does not list your name, another party may legally own the property. The clerk’s office at the county courthouse maintains all property records in a given county. The clerk’s office records all legally recognized land rights and ownership transferences. Recorded documents take precedence over informal ones in land disputes. A legally valid land title plays a crucial role in land ownership and usage agreements.
IMPORTANT ASPECTS ABOUT LAND TITLES.
- A title is not the same as a deed
- A title proves ownership.
- Property owners should keep land titles in a secure location.
- Prospective land owners often conduct title searches to uncover potential issues.
- Title insurance offsets the risk associated with title transference.
- Land title governance varies, sometimes widely.
TYPES OF LAND DOCUMENTS IN NIGERIA
During the process of purchasing a land, there a number of crucial documents required from the seller in order to effectively validate the transaction. These documents are necessary as they are evident of title which the buyer possesses in relation to the land. It is important to note that there are different types of land documents in Nigeria. These documents include:
- Approved survey plan: This is an important title document that helps to reveal the true ownership status in any land and landed properties’ transactions. It also helps to reveal if such land is not under any government acquired or committed lands/area.
- Approved Layout: This might not be one of the major required documents for land purchase in Nigeria, but you sure need it to move ahead with your transaction. How do I mean this? An approved layout of an area determines the type of structure(s) the custodian requires within the area. There are industrial areas, residential areas, agricultural areas, testing areas, and a whole lot more.
It doesn’t make sense for you to purchase acres of land in a residential area, just to build a factory. The same applies to a medical research facility in an environmental area. I am sure you are beginning to see the importance of this document!
- Deed of assignment: This is a very important document that must be demanded and given to a purchaser after the conclusion of any land/property transaction between such purchaser/buyer and the owner/seller of the land/landed property in question. Section 2(v) of the Conveyancing Act 1881 provides the definition of conveyance as follows: “A conveyance includes any assignment, appointment, lease, settlement and other assurances and covenants to surrender made by deed of sale, mortgage, demise or settlement of any property or on any other dealing with or for any property; and convey, unless a contrary intention appears, has a meaning corresponding with that of conveyance”.
- Purchase receipt: this is the evidence of due payment of the purchase of the land and it is usually required when registering the land.
- Certificate of Occupancy: this is one of the most important land title documents that is used to certify the legal ownership status of any land in Nigeria irrespective of its usage. It is usually delivered to the owner of a parcel of land by the government attesting to the owner’s interest to the land where such interest is in accordance with the applicable laws. It is a legal document indicating that a person who has acquired an interest in land has been granted a statutory right of occupancy by the governor.
- Power of attorney: this is usually required where a person is acting for another person, individuals or companies as his agent. It is a document that authorizes such person to act on their behalf.
These documents are essential as they are necessary to process a search in the land registry, the registration of title, registration of Deeds, as well as registration of Certificate of Occupancy. It is equally important to note the LEGAL CONSEQUENCES OF REGISTRATION OF LAND IN NIGERIA which is essentially three:
Non-registration may (i) render certain documents void, (ii) render them inadmissible as evidence in judicial proceedings, and (iii) make them lose priority against registered ones affecting the same land.
It must, of course, be noted that registration does not by itself cure the instrument (legal document) registered of any defect, nor does it confers upon it any effect or validity which the instrument, apart from the registration, would not otherwise have had.
Important documents you need to have when buying property in Nigeria.
Let me highlight the documents you are supposed to have in possession when you buy any property, in Nigeria.
- Deed of Assignment/ Deed of Transfer: This document shows the transfer of legal ownership of the property to the buyer subject, but, to perfection. This document is very important, the buyer needs to request it when buying a property from someone who previously bought it from another person. Although, the abstract of title, the epitome of title, and payment receipt ought to have been different documents, they are all contained in the Deed of Assignment.
- Certificate of Occupancy: The Certificate of Occupancy is one of the most important land documents in Nigeria. It can be used to certify the legal ownership status of any land in Nigeria. It is the document that indicates that an individual has been granted a statutory right of occupancy by the Governor of the state or a customary right of occupancy by the Local Government Chairman, where the land is situated in a rural area. This document is also very important where the property in question is on a land that was acquired through a state grant.
- Approved Survey Plan: Another important document to ask when buying a land in Nigeria is the approved survey plan, because it clearly marks and defines legal boundaries, helps reveal the true ownership status of a property, and also reveals if the land is under any government acquisition or committed area.
- Duly Perfected Assent: The personal representatives divest themselves of the real estate of the deceased through an assent. This is required where the house belongs to the estate of a deceased, in this situation, it becomes mandatory for the buyer to request for a duly perfected assent from the personal representatives. He can even go further to verify if letters of administration/probate have been granted.
- The Sale and Purchase Agreement: The Sale and Purchase Agreement contains a list of terms and conditions that are agreed to by both the buyer and the seller. An excellent example of this would be the negotiation for the price of the flat. The agreement would contain the agreed amount of the flat by both-the buyer and the seller.
- The Building Approval Plan: Before the commencement of construction, the builder is required to get the necessary sanctions under the provisions of the Building Bylaws, Master Plan and Local Body Acts. This sanction involves two factors: The Building Plan and The Layout Approval.
One mistake that first time land or house buyers often make is not ensuring that the builder meets the terms and conditions of the Building Plan and Layout Approval before buying the house. Not meeting the terms and conditions could end up in negative results if the local authorities come in for spot checks, which are quite common in newer buildings.
The Mother Deed: The Mother Deed is an important document which traces the ownership of the property. This document is generally required by banks when a buyer avails a loan against the property. An individual may approach the local authorities for help while creating this document.
CONCLUTION.
In conclusion, it is very essential and advisable to involve a lawyer when one intends to buy a land or acquire a property as role and responsibility of a lawyer in relation to this transaction including but not limited to the following:
- Investigation of the title sought to be transferred from the appropriate registries.
- Advising on the viability or otherwise of the title of the property sought to be transferred.
iii. Preparation of formal contract that encapsulates the agreement of the parties in respect of the property that is being transferred. Excellent drafting skills are required for this to ensure that the document reflects the full intention of the parties
- Approval of the contract by the solicitor of the purchaser
- Exchange of contract by the parties to the contract
- Obtaining the consent of relevant authorities for permission to transfer the legal interest in the property
vii. Preparing and ensuring the execution of the deed or the instrument that transfers the legal interest in the property.
viii. Payment of stamp duties, fees and other taxes in respect of the property being transferred
- Registration of the instrument that conveys the legal interest in the land.