power point presentation for week 7-- sale of land 2

8/2/2019 Power Point Presentation for Week 7-- Sale of Land 2

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SALE OF LAND 2:

CONTENTS Post-Contract ---- Deducing title; Root of

Title; Procedure for Investigation; Writing aSearch Report.

Completion --- procedure for completion;particulars of instructions required to draftDeed of Assignment; Drafting of Deed of

Assignment. Effect of completion

Post-Completion ---Perfection of Title;Effect of failure to perfect title; documents

required to perfect title


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POST-CONTRACT STAGE(DEDUCING TITLE & INVESTIGATION OF TITLE)

Events that take place during the post-

contract stage

a) The Vendor deducing his title

b) Purchase or his solicitor investigating title

c) Writing of search report


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How does vendor deduce title?

Vendor has to prove his root of title (ie,

that he has a good root of title):

Vendor may use the following documents

to deduce title

Abstract of title

Epitome of title


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NOTE

How many years would the vendor need todeduce his title ---- under PCL, and under CA?

Note the effect of s. 130 of the Evidence Act

(now section 162 of the Evidence Act 2011).

See Johnson v. Lawanson (1971) 1 ANR 56;

Owoada v. Omitola (1988) 5 SCNJ 1


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DEDUCING TITLE UNDER RTL, LAGOS

Not necessary. Why? See Onagoruwa v.Akinremi (2001) 13 NWLR (PT 729) 38

Note the documents purchaser needs to

collects from Vendor to investigate titleunder RTL a) letter of consent

b) copy of Land certificate c) Sworn declaration

When may letter of consent be dispensedwith?


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ROOT OF TITLE Document or transaction conferring title on a

person (ie, person purporting to be owner of title) Document or transaction purporting to be a good

root of title must satisfy certain conditions

(elements of a good root of title); (a) must transfer both legal and equitable interest in

the ppty

(b) must sufficiently describe the ppty so as to make it

easily ascertainable

(c) must not be subject to a higher interest

(d) must contain nothing on the face of it that casts

doubt on its authenticity


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Examples of a Good Root of Title

Duly perfected Deed of Assignment

Duly perfected Legal Mortgage

Assent (by personal Representatives) Deed of Gift

Registered title (Land Certificate or

certificate of Title) under RTL

Vesting Order/Declaration of Court


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Examples of a Bad Root of Title Lease

Equitable mortgage Power of Attorney --- Even PA coupled wt consideration

does not confer title on Donee. See s.143 PCL; s. 8 CA

Unregistered Deed of Assignment Certificate of Occupancy

Note that C of O may constitute a good root of title in

the following situations:

Where apart from the C of O, the holder has other

means of proving title to the ppty

Where it given in respect of a state grant -- See

Ogunleye v. Oni; Osho v. Foreign Finance Corpn


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PROCEDURE FOR INVESTIGATION OF TITLE

Steps that may be taken during investigation

a) the purchaser or his solicitor collects epitome

and abstract of title from the vendor or hissolicitor

b) Physical inspection of the ppty

Note the need for physical inspection: caveatemptor; patent defects; physical condition;

easements; boundaries; whether other person is

in possession; etc


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c) Examination of abstracted documents

d) Investigation of family/traditional

history/background (if need be)

e) Conduct search in the following places,

depending on the circumstance ---- LandRegistry; CAC registry; probate registry;

court registry, etc

f) Raise requisitions where necessaryg) Write a Search Report ----

NOTE: Students must be able to draft a

standard search report


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COMPLETION

Legal interest passes to the

purchaser/assignee at the conclusion of the

completion stage, subject to perfection

Completion may be conducted by the partiespersonally or by their agents or even by post

Completion is done in vendor`s solicitors

office. Pls note Rule 22 RPC, 2007: it shouldn`tbe in purchaser`s or vendor`s house


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PROCEDURE FOR COMPLETION1) Purchaser`s Solicitor prepares the

conveyance (Deed of Assignment) & sendsthe same to vendor`s Solicitor for vetting

2) Vendor`s Solicitor prepares the Completion

Statement & sends the same to Purchaser`sSolicitor

3) On receipt of Completion Statement,

Purchaser`s Solicitor forwards a copy topurchaser and asks for draft for the balance

of purchase price (& maybe balance of

professional fees)


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COMPLETION PROCEDURE (CONTD)

4) On the date of completion, at Vendor`ssolicitor`s office, the following takes place:

a)payment of balance of purchase price

b) Deed of Assignment is executed byparties & their witnesses (& copies

distributed)

c) Vendor`s solicitor will then hand over thefollowing documents to purchaser`s

solicitor (see next page)


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Documents Purchaser`s Solicitor will need to

collect from Vendor`s Solicitor during

Completioni) 5 (five) copies of the executed Deed of

assignment

ii) Original copies of all title documents

iii) Receipt of payment of (balance of ) purchase

price

iv) Letter of introduction (if tenants in occupation)

v) Key to the house (if ppty is developed)vi) Receipts of payment of all outgoings

vii) Notice of assignment of insurance policy (if any)

viii) Approved building plan (if ppty is developed)


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Note the need for purchaser` s solicitor to

quickly examine the original documents

during completion, to ensure correctness,

and that signatures & information in

copies correspond with those in the

original copies

Even though during completion, legal title

is conferred on the purchaser at commonlaw, yet this legal title remains inchoate

until title is duly perfected --- ss. 22 & 26

of LUA


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POST OCMPLETION

(PREFECTION OF TITLE)

ORDER OF PERFECTION

1) Governor`s consent (See ss. 22 & 26 of

Land use Act)2) Stamping -- See ss 23 & 28 of Stamp

Duties Act

3) Registration See s. 2 of LIRL


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Documents Required to Process Gov`s Consent

1. Covering Letter (in lawyer`s letter headed paper)

2. Duly completed application for Governor`s consentForm 1c

3. 3 yrs tax clearance of the parties

4. 5 copies of Deed of Assignment (title deeds)5. Evidence of payment of ground rent (if not

developed)

6. Evidence of payment of tenement rate (if dev)

7. Evidence of payment of Development levy

8. Receipt of payment of Consent, charting &

endorsement fees

9. Approved building plan (if ppty is developed)


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Additional Requirements Where one of

the parties is a Corporate body

9. CTC of Certificate of Incorporation

10. CTC of Memo & Articles of association

11.CTC of Form of Particulars of Directors(Form CAC .)

12. Tax Clearance of Directors (at least 2 of

the directors)


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Stamping

Must be Done within 30 days of executionof Deed of assignment

Stamp Duty is paid ad valorem ss. 23 &

28 os Stamp Duties Act

Effects of failure to Stamp

a) Document not admissible in evidence

b) Late stamping attracts penalty

c) Document would not be accepted for

registration


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Registration

Registration is compulsory for Deed ofassignment s.2 LIRL

Must apply for registration within 60 days ofexecution of Deed of Assignment

Submission of Survey Plan is compulsory forregistration. See s.9 LIRL --- note when surveyplan may be dispensed with

S. 10 LIRL requires that instrument submittedfor registration must have Governor`s consentendorsed on it (where consent is required)

Document must have been stamped


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EFFECTS OF NON-REGISTRATION An Unregistered document is not admissible in evidence

to prove title s. 15 LIRL. But docu is admissible to

prove agreement and payment of moneySee

Ogunbambi .v Abowaba (1951) 13 WACA 222.;

Agwunede v. Onwumere [1994] 1 SCNJ 106

Late registration attracts penalty

Document may lose priority against subsequent

instruments that are registered, since registration

governs priority Non-registration within two months under RTL renders

entire transaction voidOnashile v. Idowu (1961) All

NLR (pt 2) 313;Onashile v. Barclays Bank DCO

(1963) 1

all NLR 370


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WHEN SUBMISSION OF SURVEY PLAN

IS UNNECESSARY FOR REGISTRATION

Where in the Deed sought to be registered,

reference is made to an earlier registered Deed

containing a surveyAmadi v. Orisakwe (2005) 7

NWLR (pt 924) 385

Where parcel clause refers to schedule which

contains adequate description of the ppty

Where it is in Form 7 under RTL, which containsparticular of the ppty see s. 31 RTL; Onagoruwa

v. Akinremi(2001) 13 NWLR (pt 729) 38


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PARTICULARS OF INFORMATION/INSTRUCTIONS

REQUIRED TO DRAFT A DEED OF ASSIGNMENT

Names & address of parties

Particulars of witnesses

Particulars of the property

Consideration

Capacity of vendor

Quantum of interest conveyed

Other terms/conditions agreed upon (if any) Whether any party is illiterate, blind, corporate

body

Etc


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DRAFTING DEED OF ASSIGNMENT

See the draft Deed of assignment attached

Every student must know be able to draft

Deed of Assignment to professional standard


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DRAFTING A SEARCH REPORT

SEE THE ATTACHED COPY OF SEARCH REPORT

Every student must know be able to draft

Search Report to professional standard