Legal Procedures for Transferring Land Ownership in Nigeria.

Land ownership? 

Land ownership refers to the legal right to possess, use, and manage land. It is the state of having legal title to land, allowing the owner to control its use and derive benefits from it. This includes the right to sell, lease, or develop the land as per applicable laws.

How is land ownership transferred in Nigeria?

Ownership of land in Nigeria can be transferred through several methods, each with its own legal implications and procedures. The primary methods include:

1. Sale of Land

This is the most common method of transferring land ownership. It involves a contractual agreement between the seller (vendor) and the buyer (purchaser), where ownership rights are exchanged for monetary compensation. The process typically includes:

• Drafting a Contract of Sale that outlines the terms of the transaction.
• Executing a Deed of Assignment to formally transfer ownership.
• Obtaining the necessary Governor’s Consent as required by the Land Use Act of 1978.

2. Gift of Land

Land can also be transferred as a gift, which involves no monetary exchange. Key points include:

• The transfer must be voluntary, with the donor’s intention to gift the land clearly established.
• A Deed of Gift should be executed to document the transaction, and it should be registered to ensure legal validity.

3. Exchange of Land

This less common method involves two parties swapping ownership of their respective properties. The process requires:

• A mutual agreement between both parties.
• Execution of separate Deeds of Assignment for each property involved in the exchange.

4. Mortgage

In a mortgage arrangement, land is used as collateral for a loan. There are two types:

• Legal Mortgage: The lender obtains a legal interest in the property until the loan is repaid.
• Equitable Mortgage: The borrower retains some rights but gives the lender an equitable interest in the property.

5. Inheritance

When a property owner dies, land ownership can be transferred through probate, where assets are distributed according to a will or letters of administration in intestacy laws.  The heirs or beneficiaries must get the deed of assent, which is the legal instrument that transfers the inherited property.

The legal steps for transferring land ownership in Nigeria.

Before land title can be transferred from a person to another, there are essential legal steps required. They are as provided below:

Step 1: Conduct due diligence to verify the Land title.

Before transferring land ownership, the prospective buyer must ensure that the seller has a proper title to the land and should be able to do as follow:

• Search the Land Registry: Visit the state Land Registry and ask for a title search. This search will determine if the property is registered and whether the title is clear of encumbrances (such as mortgages or court proceedings).
• Examine the Root of Title: Know how the seller got the property. Make that there is a Certificate of Occupancy (C of O) or a legally binding document.
• Engage a Legal Practitioner: A legal expert in property law can help navigate the complexities of the process and ensure compliance with applicable laws.

Step 2: Obtain the Governor’s Consent

According to the Land Use Act of 1978, all land in Nigeria is vested in the governor of each state, who holds it in trust for the benefit of the people. To transfer land ownership, the governor’s assent is required. The transfer of land ownership is not legally binding unless the governor gives his assent. Section 22 of the Land Use Act states unequivocally that any transfer of land without the governor’s consent is null and invalid.

To obtain the governor’s assent, the buyer and seller must first apply. This application requires the submission of papers such as the Deed of Assignment, Certificate of Occupancy, and proof of payment of applicable fees. Obtaining the governor’s consent usually takes 30-90 days but can vary by state.

Step 3: Execute Deed of Assignment

The Deed of Assignment is the legal document that conveys ownership from the seller to the buyer. It must be drafted by a lawyer and explicitly identify the persons involved, the property being transferred, and the terms of the sale.

Step 4: Pay the Stamp Duties and Registration Fees

The buyer must pay stamp duties once the Deed of Assignment has been executed. Stamp duties are a type of tax levied against documents. This responsibility is essential in Nigeria in order for the Assignment Deed to be legally binding.

Step 5: Registering the Property Transfer

To finalise the transfer, register the new title at the relevant land registry office. This step legally records the change in ownership and protects the rights of the new owner.

Step 6: Conduct the last search.

Before completing the transfer, make a final search at the Land Registry to ensure that the Deed of Assignment is legally registered. This stage verifies the buyer’s legal ownership of the land.

Step 7: Issuance of New Title Deed: Get a new certificate of occupancy (C of O)

Once registered, a new title deed reflecting the buyer’s ownership will be issued. This document serves as proof of ownership for future transactions or legal purposes. In certain cases, the buyer may need to get a new Certificate of Occupancy. This stage is usually required when there has been a big change in ownership, such as the transfer or sale of a large estate.

The required documentation for transferring land ownership in Nigeria?

• Land Purchase Receipt: Request a receipt after purchasing land. It serves as evidence payment. A receipt, on the other hand, may be unnecessary if it is already included in the document conveying the land.

• Contract of Sale of Land: This document allows parties to agree on terms before finalising the transaction and preparing the deed of assignment for land sales.

• Deed of Conveyance or Assignment: A deed of conveyance or assignment is used in sales transactions to permanently transfer land from one buyer to another. This is a registrable instrument.

• Certificate of Occupancy: This is a government-issued document that confirms ownership of land. Anyone who has owned land prior to 1979 is eligible for a Certificate of Occupancy. It is also issued by the state government to allottees of government-owned land. Those who acquire land through sales or mortgages do not require a new certificate of occupancy, but instead require the Governor’s assent. 

• Judgement of Court: A court judgement can transfer ownership of property to another party. It is valuable when the title to a certain property is obtained through litigation.

• Deed of Mortgage: This deed transfers land from the mortgagor (borrower) to the mortgagee (lender). It serves as a temporary transfer in the context that the mortgagor shall be entitled to recover this land if the loan amount is paid with interest.

• Survey Plan: A survey plan depicts the extent and size of one’s territory. It also allows one to determine whether the land is under government acquisition.

• Power Of Attorney: This document is required for property transactions involving individuals who are unable to be present in Nigeria due to distance or other circumstances. This is a document that authorises another person to act on behalf of one of the transaction’s parties. A person who lives outside of Nigeria but wishes to purchase land might grant a power of attorney to an agent to assist him in performing certain property-related activities.

• Deed of Gift: This is a legal document that confirms the transfer of land or property from a Donor to a recipient, Donee. Deed of gift can be used to transfer ownership of land.

• Probate: A grant of probate is a document obtained from a deceased person’s will and inheritance. The instrument vests all the assets included within it into the executors of the estate.

• Letter of Administration: The letter of administration assigns assets to estate administrators. It is granted to the personal representatives of a deceased individual if the deceased died intestate.

• Assent: Assent is issued to vest an interest in a particular estate into the beneficiaries of an estate or third-party buyer by the executors or administrators of an estate. Assent is given by executors or administrators to transfer an estate’s interest to beneficiaries or third-party buyers.

Is it possible to transfer land in Nigeria without the governor’s consent?

No. According to the Land Use Act of 1978, any land transfer made without the governor’s consent is ruled unlawful.

How to prevent real estate fraud during land deals in Nigeria

A buyer must do a thorough title check at the Land Registry, confirm the validity of the seller’s documents, and appoint a knowledgeable legal practitioner to execute the transaction.

Note: The content of this article is anticipated to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstance.

Written by Samuel Anwe and Adeola Austin Oyinlade for Adeola Oyinlade & Co.

Adeola Oyinlade & Co.; a leading full-service law firm in Nigeria provides help and offers advisory to both local and foreign clients on land and real estate in Nigeria. 

To see our service offerings, please contact us at [email protected] or visit www.adeolaoyinlade.com

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