Understanding Land Documents In Nigeria Real Estate Industry

The acquisition of land is as important as the documents associated with it. A lot of people do not understand this importance until they are faced with problems, especially when it means they are going to lose it to either the government or another individual.

The family receipt is one document most people take as a land document. The family receipt is just a piece of paper showing a receipt of a certain amount of money for the purchase of land but actually does not hold any water when it comes to possession.

A lot of people are easily deceived when they are advised to go and build a structure on the land as a means of securing ownership. No matter the structure on the land, it is the person who provides the right documents that owns the land. And the law states that everything that is on the land belongs to the land so your structure automatically belongs to the owner of that land.

That being said, let’s take a deeper look into the different types of land documents in Nigeria, and what makes each of them unique.

The Land Use Act

Land administration in Nigeria was in the hands of the traditional rulers before 1978. Different administrative systems operated in different parts of the country. Land control in the North and South were the two distinctive systems.

It was during the Obasanjo regime as a military leader that the different tenure systems were overhauled which gave birth to the land which vested all lands in the hands of the government. The act abolished all land tenure arrangements in all parts of the country.

The Land Use Decree succeeded in removing these barriers when land is being acquired.

• Brings a government control that can facilitate programs for land use.
• Removing bitter controversies that land has caused in the past.
• Eliminates Land Speculation.
• Promotes balanced regional development and growth.
• Protects and preserves the rights of all Nigerians as beneficiaries to hold, and to enjoy land in Nigeria.
• Streamlines and simplifies the management and ownership of land in the country.
• Enhances The Development/modernization of the agricultural sector of the economy.

Land Classification

Before we dive into the different types of land documents in Nigeria, let’s talk about the classes of Land as relate to the Nigerian real estate sector.

Land can be classified as either free or acquired. A parcel of land is considered free if the government has not indicated any interest whatsoever in that land. Such land is safe to buy because the title on the land can be perfected without issues.

In most cases, such lands will either have a gazette, a C of O or a governor’s consent.

Now that you understand what it means for land to be free, you should also know that all lands that fall within areas that are designated as ‘urban areas are under government acquisition until deemed committed or free.

There are two types of acquisition:

1) Committed Acquisition

A parcel of land is said to be under committed acquisition when the government has indicated an intention to use that land for a specific purpose such as provision of amenities.

Such lands belong to the government and can never be available for use by individuals. If you purchase land that is under committed acquisition, it will be impossible for you to perfect your land title and you’ll only be occupying the land until the government comes to kick you out.

2) Global or General Acquisition

Lands that are under “general acquisition” or “global acquisition” can later be confirmed ‘FREE’ or ‘committed’ as the case may be.

“A land under general acquisition can become free by a process called excision.”

“Excision is a process whereby the government releases a portion of an expanse of land that is not committed” If a parcel of land that was formerly under acquisition becomes excised; it is then considered free and becomes gazetted.

The gazette then becomes the title on the land and such land is safe to buy because a proper title can be processed on the land.

A second case where lands under general acquisition can be released is if an individual purchased a land that was under acquisition without going through an excision process.

Such lands can go through another process called “ratification” or “regularization” in which the land owner pays for the land to be ratified or regularized. To simplify it, it means the process of allocating Government Land to someone who had previously occupied landed property without lawful authority from the State Government. And it is subject to 7 Conditions:

• The property must not be situated in a Government Scheme, Estate, or Committed area.
• The Property must be situated within an Area that conforms to Urban and Regional Planning Regulations and Standard of the State.
• The Appropriate Set back of the Land must be observed.
• The Appropriate distances from drainages, Canals, NNPC pipelines, Gas Pipelines, NEPA transformers, High Tension Wires, Water Pipelines, and other restrictions laid down by the Physical Planning and Town Planning.
• The land must not fall on road Alignment.
• The land must not fall within a Committed Government Area.
• The Land must fall within the Permitted Regularization Areas.

Note: Conditions for ratification may differ from state to state.

Estate In Real Property

The amount and kind of interest a person has in real property is called an “Estate in land”. There are two major classifications of “Estate in Land” and they are :

• Freehold Estates
• Non-Freehold Estates.

1) Freehold Estates

Lands or estates under this classification have an indefinite duration and can last forever. These are estates with full-time ownership with government intervention. Lands under freehold are not under acquisition and such lands can easily be inherited by the heirs of the original owners. There are two major types of freehold estates.

• Fee Simple:
  The holder is entitled to all rights in the property. It is the highest type of interest in real estate recognized by law. The estate is of unlimited duration and when the owner dies, the estate passes on to the heirs of the owner. Freeholds are the type of titles you get in Epe, Lagos State Nigeria. With Freehold, processing your Certificate of Occupancy is faster.

• Life Estate:
  A life estate is limited in duration to the life of the owner, or to the life or lives of some of the designated person(s). Unlike fee simple, the life estate is not considered an estate of inheritance.

2) Non-Freehold Estates

These estates are also known as Leasehold estates because they are not inheritable and exist “without ownership”. They are created through written and oral leases or some form of rental agreement. Examples are:

• Tenancy for years:
  A tenancy for years is created by a lease with a definite beginning and an end. The lease terminates automatically at the end of the specified end. This is also called estate for years.

• Tenancy from period to period:
  This is a tenancy for a definite initial time but is automatically renewable for an indefinite period unless the owner or tenant terminates it with prior notice. It is also called estates from year to year. An example is the monthly or yearly rent paid for use of the property.

• Tenancy at Will:
  This tenancy can be terminated at any time by either the owner or tenant. It is also called estate at will.

• Tenancy at Sufferance:
  This is the lowest form known by law. It exists indirectly as a result of circumstance and is never created deliberately. It happens when a person who has a legal right to use a property remains on the property without the legal right to do so and without the owner’s consent.
  
  The only difference between a tenant at sufferance and a trespasser is that the former had the right to be on the property at some point but stayed beyond the terms of the lease of the agreement while the latter has none. It is also called estate at sufferance.

What is a Survey Plan?

A Survey plan is a document that measures the boundary of a parcel of land to give an accurate measurement and description of that land. The people that handle survey issues are Surveyors and they are regulated by the office of the Surveyor general in Lagos (or your state) as it relates to survey issues in the state. 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
7. A stamp showing the land is either free from Government acquisition or not.

Finally, another advantage of the Survey Search is that it will allow you to know what the zone was designated for.

Land Documents In Nigeria

Now that you understand the classifications of land, the Estate in Real Property, and what is Survey plan, let’s now look at the meaning of each land documents that we have here in Nigeria.

1) Deed Of Assignments

A deed of Assignment is one of the most important documents you must-have when you conclude a Land Transaction.

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 that Seller that has just bought the land.

The Deed of Assignment acts as a main document between the buyer and seller to show proof of ownership in favour of the seller. The person or Seller who transfers his rights or interests in that property is usually called the Assignor and the person who receives such right or interest from the Seller is called the Assignee.

A Deed of Assignment therefore is an Agreement where an assignor states his promise that from the date of the assignment or any date stipulated therein, the assignor assigns his ownership in that Land to the assignee. The deed contains very pertinent information for a real estate transaction. For one, it spells out the date when the ownership of the property transfers from one owner to the other. The deed also gives a specific description of the property that is included in the transfer of ownership.

The Deed of Assignment spells out the key issues in the transaction between the Seller and the Buyer so that there won’t be any confusion or assumption after the property has been transferred to the new owner. Such Key issues include:

• The Parties’ to the Agreement e.g. between Mr. A and Mrs. K
• The addresses of both parties and how it is binding on their successors, friends, colleagues, and those representing them in any capacity.
• The history of the land in question is how it was first obtained down to the moment it’s about to be sold including any documents it previously had till this date.
• The agreed cost of the land and the willingness of the Seller to finally accept that price paid for the land.
• The description and size of the land to be transferred.
• The covenants or promises both parties choose to undertake to perfect the transfer of the document.
• The signature of the parties to the Assignment and Witnesses to the Transaction.
• Finally the section for the Commissioner of Oaths or Governors Consent to sign and validate the agreement.

Always consult a property lawyer before you buy a land to help prepare a deed of assignment. It will be your greatest mistake if you don’t have one.

And, it is very compulsory and mandatory for a Deed of Assignment document to be recorded at the appropriate land registry to show legal evidence as to the exchange of ownership in any land/landed property transaction in order to make the general public and government aware of such exchange or transaction.