Documentation Processes In Real Estate Transactions And Their Legal Implications.
FUNDAMENTAL PRINCIPLES/RULES OF REAL ESTATE
•You can not own land, what you can own is a right to or an interest in land(Section1 of the Land Use Act)
•Caveat Emptor (Buyers Beware):The burden to take precaution before purchase of property rest on the buyer (and his agent).
•Quic quid plantatur, solo solo cedit (Whatever is affixed to the soil, belongs to the soil). Thus, he that owns land owns everything on it.
VARIOUS STATUS A LAND CAN HAVE
When a SEARCH is conducted, it usually comes back with one of these THREE(3) verdicts
•FREE from all known forms of government acquisition
•Acquired (but not committed)
•Committed (Acquired and committed)
DOCUMENTS IN REAL ESTATE TRANSACTIONS
•Letter of Engagement
•Power of Attorney
•Memorandum of Understanding
•Affidavit
•Tenancy Agreement/ Deed of Assignment
•Offer letter & Acceptance letter
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (1)
There are various TITLES a landed property could have.
They are: • • • • •
Survey Plan*
Excision
Gazette
Certificate of Occupancy
Deed of Assignment:
Registered Conveyance /
Governor’s Consent
*Argued by some practitioners not to be a title to land based on its nature and qualities
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (2)
Survey plan
A Survey plan is a document that shows the measurement of the boundary of a parcel of land to give an accurate description of that land. A survey plan must contain the following information:
•1.The name of the owner of the land surveyed
•2.The Address or description of the land surveyed
•3.The size of the land surveyed
•4.The drawn out portion of the land survey and mapped out on the survey plan document
•5.The beacon numbers
•6.The surveyor who drew up the survey plan and the date it was drawn up.
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (3)
Excision
•The Governor has the right to acquire land within the state for “public purposes” that will benefit a large number of the people like schools, hospitals, Government Housing Schemes, Free Trade Zone, Airport, Sea Port, Golf Course, etc(Section 28 of the Land Use Act) •However, the government recognizes that indigenes of different sections of the country have a right to existence. That is, a right to the land of their birth. Hence, it is customary for the state government to cede a portion of land to the original owners (natives) of each area.
•Excision is therefore the process by which the government. releases a part of already acquired land to the natives or indigenes of the area. That is why it is also called “Village Excision” and given to a community and not a person.
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (4)
•.Gazette
•A Gazette is an Official record book where all special government information are spelt out, detailed and recorded.
•A Gazette will show the communities or villages that have been granted excision and the number of acres or hectares of land that the government has given to them.
•It is within those excised acres or hectares that the traditional family is entitled to sell its lands to the. public and not anything outside those hectares of land given or excised.
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (5)
Certificate of Occupancy
•As stated earlier, all lands in the state belongs to the Governor of that state(Section1 of the Land Use Act).
•A Certificate of Occupancy(C of O) is issued by the State Government to officially lease the land to the applicant for 99year. (for residential lands or lands within residential schemes).
•The C of O recognises your right to the land.
•What happens after 99years? Still a debate.
•My view, Govt. MUST renew.
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (6).
Deed of Assignment
•A Deed of Assignment is an Agreement between the Seller of a Land or Property and a Buyer of that Land or property showing evidence that the Seller has transferred all his rights, his title, his interest and ownership of that land to the Buyer that has just bought the land.
•After the Deed of Assignment has been exchanged between both parties, it has to be recorded in the land registry to show legal proof that the land has exchanged hands and for the public to be aware of the transaction. Such recorded Deed of Assignment come in the form of either a GOVERNOR’S CONSENT or REGISTERED CONVEYANCE.
•You can not own land, what you can own is a right to or an interest in land(Section1 of the Land Use Act)
•Caveat Emptor (Buyers Beware):The burden to take precaution before purchase of property rest on the buyer (and his agent).
•Quic quid plantatur, solo solo cedit (Whatever is affixed to the soil, belongs to the soil). Thus, he that owns land owns everything on it.
VARIOUS STATUS A LAND CAN HAVE
When a SEARCH is conducted, it usually comes back with one of these THREE(3) verdicts
•FREE from all known forms of government acquisition
•Acquired (but not committed)
•Committed (Acquired and committed)
DOCUMENTS IN REAL ESTATE TRANSACTIONS
•Letter of Engagement
•Power of Attorney
•Memorandum of Understanding
•Affidavit
•Tenancy Agreement/ Deed of Assignment
•Offer letter & Acceptance letter
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (1)
There are various TITLES a landed property could have.
They are: • • • • •
Survey Plan*
Excision
Gazette
Certificate of Occupancy
Deed of Assignment:
Registered Conveyance /
Governor’s Consent
*Argued by some practitioners not to be a title to land based on its nature and qualities
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (2)
Survey plan
A Survey plan is a document that shows the measurement of the boundary of a parcel of land to give an accurate description of that land. A survey plan must contain the following information:
•1.The name of the owner of the land surveyed
•2.The Address or description of the land surveyed
•3.The size of the land surveyed
•4.The drawn out portion of the land survey and mapped out on the survey plan document
•5.The beacon numbers
•6.The surveyor who drew up the survey plan and the date it was drawn up.
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (3)
Excision
•The Governor has the right to acquire land within the state for “public purposes” that will benefit a large number of the people like schools, hospitals, Government Housing Schemes, Free Trade Zone, Airport, Sea Port, Golf Course, etc(Section 28 of the Land Use Act) •However, the government recognizes that indigenes of different sections of the country have a right to existence. That is, a right to the land of their birth. Hence, it is customary for the state government to cede a portion of land to the original owners (natives) of each area.
•Excision is therefore the process by which the government. releases a part of already acquired land to the natives or indigenes of the area. That is why it is also called “Village Excision” and given to a community and not a person.
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (4)
•.Gazette
•A Gazette is an Official record book where all special government information are spelt out, detailed and recorded.
•A Gazette will show the communities or villages that have been granted excision and the number of acres or hectares of land that the government has given to them.
•It is within those excised acres or hectares that the traditional family is entitled to sell its lands to the. public and not anything outside those hectares of land given or excised.
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (5)
Certificate of Occupancy
•As stated earlier, all lands in the state belongs to the Governor of that state(Section1 of the Land Use Act).
•A Certificate of Occupancy(C of O) is issued by the State Government to officially lease the land to the applicant for 99year. (for residential lands or lands within residential schemes).
•The C of O recognises your right to the land.
•What happens after 99years? Still a debate.
•My view, Govt. MUST renew.
TITLES TO LAND AND THEIR LEGAL SIGNIFICANCE (6).
Deed of Assignment
•A Deed of Assignment is an Agreement between the Seller of a Land or Property and a Buyer of that Land or property showing evidence that the Seller has transferred all his rights, his title, his interest and ownership of that land to the Buyer that has just bought the land.
•After the Deed of Assignment has been exchanged between both parties, it has to be recorded in the land registry to show legal proof that the land has exchanged hands and for the public to be aware of the transaction. Such recorded Deed of Assignment come in the form of either a GOVERNOR’S CONSENT or REGISTERED CONVEYANCE.