Introduction
At CHAMAN Law Firm, we recognize that real estate transactions require meticulous legal due diligence to protect buyers, investors, and property owners from unforeseen disputes. One key legal principle that affects property transactions is the doctrine of lis pendens.
Lis pendens, a Latin term meaning “pending lawsuit,” prevents parties from transferring or encumbering a property that is the subject of ongoing litigation. This doctrine is essential in ensuring that the outcome of a legal dispute is not rendered ineffective due to fraudulent or hasty property transfers.
In this article, we will analyze the legal basis of lis pendens in Nigerian real estate law, its judicial interpretations, its impact on property transactions, and how CHAMAN Law Firm helps clients navigate its complexities.
Legal Basis of Lis Pendens in Nigeria
The doctrine of lis pendens operates under the legal maxim:
“Pendente lite nihil innovetur”—meaning “During litigation, nothing should be changed.”
This principle is deeply rooted in common law and has been applied by Nigerian courts to prevent unfair dealings in real estate transactions.
Section 2 of the Lagos State Registration of Titles Law provides for the registration of pending litigation concerning land, making it possible for interested parties to verify if a property is subject to dispute before acquiring an interest in it.
Judicial Precedents Supporting Lis Pendens
The courts have consistently upheld the doctrine of lis pendens in Nigerian real estate disputes.
In Ogundiani v. Araba (1978) LPELR-SC.27/1975, the Supreme Court emphasized that any sale of property under litigation is ineffective against the party with a pre-existing interest. This case serves as a warning to buyers who fail to conduct due diligence before purchasing real estate.
Similarly, in Ojugbele v. Olasoji (1982) 2 NWLR (Pt. 89) 58, the court ruled that a purchaser who acquires property under litigation does so at their own risk, reinforcing the principle that the pendency of a suit serves as constructive notice to all.
At CHAMAN Law Firm, we have successfully handled real estate disputes where clients unknowingly purchased property that was subject to pending litigation. By leveraging our expertise, we have helped clients navigate these complexities and either secure their investments or recover damages.
Why the Doctrine of Lis Pendens Matters in Real Estate Transactions
The doctrine serves several important functions in property law:
1. Preserving the Subject Matter of Litigation
Without lis pendens, a defendant could transfer the disputed property to a third party, making it difficult for the court to enforce its judgment.
In Akinyele v. Abioye (1995) 2 SCNJ 26, the court reaffirmed that a party who buys land under litigation does so at their peril. The court emphasized that allowing transfers during litigation could lead to a breakdown of legal enforcement mechanisms.
2. Preventing Fraudulent Transfers
Many property disputes involve fraudulent sales where a seller, aware of an ongoing lawsuit, tries to dispose of the land before judgment is delivered.
At CHAMAN Law Firm, we have advised clients in cases where property owners attempted to sell land despite pending court cases. Through proactive legal measures, including obtaining court injunctions, we have successfully prevented such transactions.
3. Protecting Judicial Authority
The doctrine ensures that court decisions are not undermined. If transfers were permitted during litigation, the final judgment could become meaningless.
In Ogunbambi v. Abowaba (1951) 13 WACA 222, the court ruled that a party attempting to dispose of property under litigation was acting in bad faith, reaffirming the importance of judicial authority in real estate disputes.
Application of Lis Pendens in Real Estate Transactions
1. Property Sales and Transfers
A buyer who purchases land under lis pendens does not acquire a clean title. The property remains subject to the court’s final ruling.
For instance, in Ehimare v. Emhonyon (1985) NWLR (Pt. 2) 177, the Supreme Court held that a property buyer must verify the litigation status of a land title before concluding a transaction.
At CHAMAN Law Firm, we guide clients through thorough due diligence checks to prevent them from acquiring disputed properties.
2. Mortgages and Leases
Financial institutions must be cautious when granting loans secured by properties under litigation. Similarly, tenants leasing a disputed property may find their lease agreements void if the judgment favors the opposing party.
3. Registration of Lis Pendens
Although lis pendens applies automatically, some states require formal registration. At CHAMAN Law Firm, we assist clients in registering pending litigation at the Land Registry to prevent third-party transactions on disputed property.
Exceptions and Limitations to the Doctrine of Lis Pendens
Although lis pendens is a strong legal principle, there are notable exceptions:
1. Bona Fide Purchasers Without Notice
A third party who purchases a litigated property in good faith, without actual or constructive notice of the pending suit, may not be bound by the doctrine.
In Ogunbambi v. Abowaba (1951) 13 WACA 222, the court recognized that an innocent purchaser might be protected in certain circumstances. However, this protection is limited where the litigation has been registered.
At CHAMAN Law Firm, we conduct title verification and court searches to ensure our clients are not caught in lis pendens disputes.
2. Court-Approved Transfers
In some cases, the court may allow a property transfer during litigation if it serves the best interests of all parties, such as in bankruptcy or liquidation cases.
3. Unreasonable Delay in Litigation
If a lawsuit drags on indefinitely, the court may consider whether enforcing lis pendens would be unfair to third parties.
These exceptions highlight the need for expert legal guidance, which CHAMAN Law Firm provides to protect clients from unintended liabilities.
How CHAMAN Law Firm Can Help
At CHAMAN Law Firm, we offer tailored legal solutions to real estate investors, property buyers, and businesses navigating the doctrine of lis pendens. Our services include:
- Due Diligence and Property Verification – We conduct thorough legal searches to determine if a property is under litigation.
- Lis Pendens Registration – We assist clients in registering pending litigation at relevant land registries.
- Court Representation – We litigate on behalf of clients affected by fraudulent or disputed transactions.
- Legal Advisory Services – We provide strategic advice to investors, ensuring their property acquisitions are legally sound.
Whether you are buying property, investing in real estate, or facing a property dispute, CHAMAN Law Firm has the expertise to protect your interests.
Conclusion
The doctrine of lis pendens is essential in Nigerian real estate law, preventing parties from undermining judicial processes through unauthorized property transfers. As seen in various judicial precedents, a buyer who acquires property under litigation does so at their own risk.
To avoid legal pitfalls, real estate investors must conduct proper due diligence, register pending litigation where necessary, and seek legal counsel. CHAMAN Law Firm is committed to guiding clients through the complexities of property law, ensuring secure and transparent transactions.
If you require legal assistance on lis pendens or any real estate-related matters, contact CHAMAN Law Firm today for expert legal advice and representation.