Land disputes arise every day in Nigeria and can be really challenging to resolve. Most times, the rationale behind these disputes is as a result of inadequate documentation, which opens door for multiple parties to claim ownership to the same land.
As a land owner or prospective land buyer, it is vital to understand the complexities of land ownership documentation so that you will not risk losing your investment when another party with proper title lays claim to the same land you are holding.
Therefore, in this article, we shall guide you on how to secure your land and protect your interests by understanding the proper documentation of title
This article promises to shed light on the significance of Certificate of Occupancy (C of O) and Deed of Assignment to assist you in navigating the intricate process of land ownership.
The Legal Structure for Ownership of Land in Nigeria
The Land Use Act of 1978 is the primary legislation that governs land ownership in Nigeria. According to Section 1 of the Act, all land in each state (except land vested in the Federal Government or its agencies) is vested in the Governor of the state, who holds it in trust for the people and is responsible for the allocation of land in urban areas. In essence, the Governor of each state is the one with the authority to assign land, and it is essential for individuals or companies to obtain their right of occupancy and consent from the state government in order to become a lawful holder of a land.
Basically, this act was passed to regulate land ownership, prevent fraudulent transactions, streamline land management, provide security of tenure, and facilitate public interest projects.
Steps to Take in Securing Proper Title to Land
The necessary steps that must be taken in securing proper title to land in Nigeria are as follows:
- Conduct a Land Search. This is the first step to take as a prospective land buyer. Approach the Land Registry in the particular state where the land is located and conduct a search to confirm that the land is not under government acquisition or involved in any disputes.
- Engage a Legal Professional. A lawyer with real estate experience will advise accordingly on the requirements of land ownership and also guide you through the legal processes to make sure that all documents are in order.
- Engage a Licensed Surveyor. As it is important to engage the service of a lawyer, it is also important to hire a licensed surveyor who can verify the land’s boundaries, confirm that the location is well documented, and also prepare a survey plan.
- Verify and Obtain Title Documents. It is highly indispensable to confirm that the land has a valid Certificate of Occupancy (C of O) which certifies the right to occupy and use the land. Upon the verification of the C of O, proceed to obtain a Deed of Assignment if the land is being transferred from another person. The Deed requires proper execution and registration to maintain validity. Also, you must obtain the Governor’s consent for the land transfer, as required under the Land Use Act.
- Stamp Duty and Registration. The necessary stamp duties on the Deed of Assignment and other relevant documents must be paid for the purposes legal validation. Also, the Deed and other title documents must be registered at the Land Registry so as to perfect your title and secure legal recognition.
- Obtain Certified True Copy (CTC) of Title Documents. After proper registration of the title documents at the Land Registry, it is important to obtain the CTC of those documents for the purposes of safekeeping and future reference.
- Comply with Local Laws. Where the particular land is under a customary right of occupancy, it is essential to acquire the necessary approval from the local government authority.
Certificate of Occupancy (C of O)
The Certificate of Occupancy is a legal document issued by the state government that validates the holder’s right to occupy and use a piece of land for a defined length of time, usually 99 years. The C of O is required for demonstrating ownership and protecting property rights.
To obtain a C of O, you must submit an application to the Land Bureau or Ministry of Lands, along with the required documentation, such as a land purchase agreement, survey plan, and proof of land ownership. The government will then check the documentation and inspect the location before issuing the certificate.
Significance and Benefits of C of O
(i) It serves as definitive evidence of land ownership that provides legal recognition and protection against disputes.
(ii) It offers long-term security which makes it possible for the holder to develop the land without fear of eviction or loss of rights.
(iii) Banks and financial institutions usually ask for a C of O as collateral for loans and mortgages which makes it easier to get credit for construction or business purposes.
(iv) It facilitates the procedure of transferring or selling of the land, as the C of O is a recognized and accepted document by potential buyers and investors.
Deed of Assignment
A Deed of Assignment is a legal document that formally transfers the ownership of a property from one party (the assignor) to another (the assignee). This agreement is crucial for securing the legal transfer of title and protecting the rights of the parties involved. The deed must be properly executed and registered with the appropriate land registry in order to be legally binding.
The Process of Obtaining and Registering a Deed of Assignment
(i) A deed is expected to be drafted by a legal practitioner so as to ensure that the agreement meets all legal requirements and accurately reflects the intention of every party involved.
(ii) Both parties (the assignor and the assignee) must sign the deed in the presence of witnesses.
(iii) The deed must be stamped at the Stamp Duties Office to confirm the payment of the relevant stamp duties.
(iv) The deed must be registered at the relevant state’s Land Registry to be legally recognized and enforceable. This process involves submitting the deed together with supporting documents such as the Survey Plan and Proof of Ownership (e.g., the previous Deed of Assignment or C of O).
Significance and Benefits of Deed of Assignment
(i) It provides legal proof of the transfer of ownership so that the rights of the new owner will be protected.
(ii) It brings about transparency in the transaction by documenting the terms and conditions of the transfer.
(iii) It makes future transactions involving the property easier because the Deed of Assignment is an important document for verifying ownership history.
(iv) It facilitates dispute resolution by giving unambiguous evidence of the transfer and the terms agreed upon by both parties.
Importance of Proper Documentation
Proper documentation is essential for avoiding land disputes and assuring the safety of your investment. Without a C of O or a properly executed Deed of Assignment, you risk losing your land to a party with better title. Moreover, the possession of these documents facilitates transactions, such as selling or developing the property, and obtaining loans or mortgages.
Adequate documentation in land ownership is indispensable for various reasons, primarily because it provides legal recognition, ensures transparency, protects against disputes, and facilitates smooth transactions.
- Legal Recognition and Proof of Ownership
With the C of O and Deed of Assignment, the holder’s right to occupy and use a piece of land is guaranteed because these documents are legally recognized and binding and serve as definitive proof of ownership.
- Protection against Disputes
When there is proper documentation, there is a clear and indisputable record of ownership which will reduce the risk of multiple claims on the same property. Courts place heavy reliance on documented evidence when resolving disputes. In the case of Abraham v Olorunfemi (1991), the Court stressed the necessity of proper documentation in affirming land ownership.
- Facilitates Transactions
A land that is properly documented can be easily sold or transferred because the potential buyers and investors will not face any challenge in verifying ownership and history of the land. Moreover, a land owner who possesses adequate documentation like a C of O or Deed of Assignment can have access to credit from financial institutions as they often request for these documents to serve as collateral for loans and mortgages.
- Compliance with Laws and Regulations
The Land Use Act mandates proper documentation for all land transactions. Therefore, compliance with this Act protects land owners from legal consequences and guarantees that their rights are respected. Proper documentation entails paying applicable fees and registering documents with the right authorities to ensure compliance with tax laws and government rules.
Some Landmark Cases on Land Ownership in Nigeria
In Union Bank of Nigeria Plc v. Ayodare & Sons (Nig) Ltd (2007), the Supreme Court underscored the importance of proper documentation and registration in ensuring the legality and enforceability of land transactions.
In Madam Afolabi vs. Alhaji Hassan (2015), the Supreme Court of Nigeria reinforced the importance of proper documentation and the Governor’s consent in resolving ownership disputes.
Conclusion
Land ownership in Nigeria requires a thorough understanding of the legal documents involved, particularly the Certificate of Occupancy and Deed of Assignment in order to navigate the complexities. These documents are indispensable in establishing and securing land ownership, assuring legal recognition, and safeguarding the interests of all parties involved.
The Certificate of Occupancy (C of O) is a cornerstone document in Nigerian land law which provides legal protection, facilitates investment and development, and contributes to economic growth and stability. Similarly, the Deed of Assignment is fundamental in formalizing the legal transfer of ownership and protects the rights of both the assignor and assignee.
Upon the proper documentation of these documents, land owners have secured their interests and investments which will allow them to contribute to a more stable and transparent property market.
To navigate the intricate procedure of land ownership in Nigeria, it is advisable to stay informed and seek legal counsel when necessary. Proper documentation is essential for protecting your investment and avoiding future disputes.
