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79 thoughts on “BUY YOUR OWN HOUSE.”

Bummyla on February 15, 2019 at 12:38 pm said:

WHAT IS A DEED?

Before I start explaining what a deed is, I will like to stress the fact that there are some big big grammar when it comes to the legal profession. But I will try my best to explain in lay terms. Some words which must be used will be explained a little bit in parenthesis. So let’s dive in …

A Deed is a document in writing which provides information about some terms, conditions or facts agreed to between persons on good quality paper, vellum or like materials and which is signed, sealed and delivered.

The term deed is generally used to describe an instrument (legal document) which title, right or interest in land is transferred from one person(s) to another or to create an obligation binding on one or more persons. Alternatively, it can be used to confirm some acts by which an interest, right or title in land has already passed. In other words, it is not only when a sale transaction occurs that a deed is required. If you were given a plot of land for free and you have taken and currently enjoying possession (using the land) you are required to draft a deed (deed of gift).

From the above definition / explanation of a deed, when a transaction relates to a landed property, a deed must be drafted to properly transfer right or interest in that property. With that in mind, a receipt evidencing a sale transaction is not enough to claim a right to a landed property. In the same vein, a contract of sale of land is not enough to transfer title or interest in land. It is just a document evidencing your transaction which does not totally transfer title because of its contents or form.

An important point to note is that if a document in writing is to constitute a deed; it must be signed or marked (if an illiterate), sealed and delivered. The writing expresses the content of the bargain between the parties to it. Signing indicates the person(s) that are to bound by it, sealing testifies to the consent of the parties to be bound by the bargain in the deed. Delivery gives it its binding effects.

WHEN IS A DEED REQUIRED / CERTAIN DOCUMENTS THAT MUST BE BY DEED

1. The transfer of legal interest in land. All conveyances of land or any interest in land are void for the purpose of creating a legal estate unless made by deed. – Deed of Assignment
2. A power conferring authority on a person/agent to execute a deed. The power itself must be by deed. – Power of Attorney
3. A conveyance or transfer of interest in land without consideration (cash). – Deed of gift
4. A lease for a term above 3 years. – Deed of Lease/Sub-lease. Generally, a rent above 3 years.
5. A legal mortgage. – Deed of Legal Mortgage

CONTENTS / WHAT YOU SHOULD LOOK OUT FOR TO ENSURE YOUR DEED IS PROPERLY DRAFTED

1. THE INTRODUCTION
This should contain
column for date. It is should not be dated because if you don’t stamp it within 60 days, you will attract penalty for every day in default after the 60days.
The parties and their addresses
Recital – a brief summary of how the owner of the land became the owner and his intention to transfer his rights, etc (sell) and how the buyer has agreed to purchase the land

2. THE SECOND PART – USUALLY THE OPERATIVE PART
This should contain
– The consideration (cost of the land)
– Words indicating that the buyer (assignee) has paid the amount and the seller (assignor) has received same from you
– The description of the property
– If its registered (c of o) and the details of the c of o. with this content you can verify if the c of o is genuine. So if you bought a land and the seller claimed they have c of o / global c of o, your deed should contain something like … Certificate of Occupancy No. 12345 dated 07/05/2017 and registered as 12/34/5678 in the Lands Registry, Alausa, Lagos state

3. ANY MISCELLANEOUS / TERMS AGREED BY THE PARTIES

4. CONCLUSION
– Parties consenting to the transaction
– Execution (signatures) of the parties. 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.

At this point it is worthy of note that even if it is a family land (omonile) but you bought it from an individual who bought it from a family, you are not to draft your deed as though you bought it directly from the family. I had a client who bought the property on behalf of her brother (in the name of a company) and I was forced to draft it as though they bought it directly from the family. Now the family is asking for N400k to sign. And tomorrow they could say they didn’t have any transaction with the buyer and they would be right.
If your transaction involved an illiterate (usually a foreigner [non-english] or a family land because the head of the family might not be able to read and write in English) a Magistrate or Notary public is meant to sign.

5. ENDORSEMENT FOR GOVERNOR’S CONSENT
I have seen some deed of assignment that doesn’t include a column for the Governor or a Representative 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.
Sec. 22 Land Use Act provides:
[center]“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, mortgage, transfer of possession, sublease or otherwise howsoever without the consent of the Governor first had and obtained.
Sec. 22(2): The Governor when giving his consent to an assignment, mortgage or sublease may require the holder of a statutory right of occupancy to submit an instrument (deed of assignment, deed of legal mortgage, deed of lease, etc) executed in evidence of the assignment, mortgage or sublease and the holder shall when so required deliver the said instrument to the Governor in order that the consent given by the Governor under subsection(1) of this section may be signified by endorsement thereon.
[/center][/i][b][/b]

Words in parenthesis are mine.

With the above provisions, for your deed to be valid, there must be words at the end of your deed to the effect that the consent of the state Governor has been obtained. The practice is to draft it in the following words:

[center]I CONSENT TO THE TRANSACTION CONTAINED IN THIS DEED

DATED THIS ______ DAY OF _________________ 20—

______________________________________________
HON. ATTORNEY GENERAL & COMMISSIONER FOR JUSTICE
FOR: THE EXECUTIVE GOVERNOR OF ABC STATE
[/center]
(or something similar to the above)

I drafted a deed of assignment for a client who (claimed she was a lawyer but I guessed not into property or probably didn’t practice at all) and wanted to register to it. She claimed that the amount we agreed include me registering it. I told her registering the deed would attract a separate fee and that you cant register it without apply for consent and ultimately c of o since there was no previous title (no C of O). She argued all sort and she didn’t know I was dishonest to that extent and all those talks…you know na. She claimed I was trying to collect more money from her and that it is possible to register the deed without applying for consent or C of O. I later referred her to the provision of the law that stipulates that consent must be obtained before registration. It is usually in this order – CSR – CONSENT, STAMPING & REGISTRATION.
Sec 26 (1-3) Land Registration Law 2015, Lagos State provides:
[i](1) Any holder in possession of any registrable document shall register it within sixty (60) days after obtaining the Governor’s consent where applicable. ….
(2) A sublease under three (3) years does not require registration
(3) Any succession to land under a Will or on intestacy or insolvency does not require the Governor’s consent but must be registered on production of a certified true copy of the Grant or Letter of Administration.[b][/b][center][/center]

From the above, I believe we can deduce that you cant register your deed without Governor’s consent. It is only if you got the land by Will that you can.

6. Finally, Franking
It is the requirement of the law that the name and address of the lawyer that prepared the deed must be endorsed on the document.
And least this one better na, make we take get some referrals.
I hope with the above I have been able to explain to some extent why a deed is necessary for your land transactions and how to ensure that your lawyer properly drafts your deed and doesn’t just dump wordings on a paper for you. Sometimes, except you actually transact with the lawyer in person, your deed might not have been prepared by a lawyer and there could be repercussion
There is this friend of mine who bought a land at Lusada, Ogun state. He told me that the agent who closed the deal told him he could get his deed done for him for 5%. He claimed his sister is a lawyer. I told him that might not be true and that most likely it would be copy and paste job.
You might get away with copy and paste job but it is better you meet with a lawyer, explain the transactions involved or better still include him in the transaction and he would know how to draft your deed properly for you. The reason is many buyers of land especially family land think that as long as it is a family land, then the deed must be between them and the family even though the transaction was between and individual who bought from the family and subsequently sold to him. By law, you had no transaction with the family. For that kind of transaction, the practice is that the Recital (explained under Introduction above) would contain words evidencing same. And in your schedule (usually under the miscellaneous part), reference would also be made to the family receipt the seller got from the family representatives.

For more info, please visit http://mcadams-consulting.com/blog/

Consult a lawyer before purchasing that property

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Greeting to the house,
I’m planning on starting a new project soon. I looking at possibilities of instead of having 4 flats, to convert first up and down stairs to duplex and retain the second up and down as 2 flats. I’m thinking so to live in the duplex whenever I come to the country and rent the 2 flats so people can always be around in the house. If this is possible, I will like the pros in the house to to give me rough estimates in stages, from foundation to roofing
Thank you.

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Bummyla on February 15, 2019 at 12:39 pm said:

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