THE PROCEDURE AND DOCUMENTS FOR COMPLETION OF SALE OF LAND

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THE PROCEDURE AND DOCUMENTS FOR COMPLETION OF SALE OF LAND

There is no reversionary interest when land is sold because the purchaser receives the legal title. Instead, an unexpired interest in the land is transferred. There are typically five stages involved in the selling of land: pre-contract, contract, post-contract, completion, and post-completion (perfection of a title).

PRE-CONTRACT STAGE

This phase entails the buyer conducting research on the property he plans to buy, inspecting the property, and engaging in negotiations. As the vendor is only required to disclose latent defects at this point, the buyer should be on the lookout for patent defects in the property. They should also determine the physical condition of the property if tenants are present with a subsistence lease or if there is physical damage to the property. He must also assess the property's fitness for its intended use and location, as well as any obvious encumbrances and planning requirements.

CONTRACT STAGE

While the legal interest in the property is not yet obtained, the purchase acquires at this point in the deal is an equitable interest.

POST CONTRACT STAGE

This phase entails title deduction, title investigation of title, and report drafting. This phase serves as the basis for a legal land transaction and the completion phase. Here, the vendor must demonstrate to the buyer that he has title to transfer the relevant property. To do this, the vendor must prepare and deliver to the buyer an abstract of title and an epitome of title outlining the vendor's good root of title, and the buyer must then investigate the vendor's title.

THE COMPLETION STAGE

This stage involves the transfer of legal interest to the purchaser subject to perfection, delivery of possession to purchaser and payment of the balance of purchase price, in this stage, the vendor or his solicitor is to prepare a completion statement stating the exact amount outstanding, the date of taking possession and the schedule of documents to be delivered to the purchaser, also the deed of Assignment is made at this stage and also the original documents are given to the purchaser.

DOCUMENTS REQUIRED FOR COMPLETION OF SALE OF LAND

During the process of purchasing a land, there a number of crucial documents required from the seller in order to effectively validate the transaction. These documents are necessary as they are evident of title which the buyer possesses in relation to the land. It is important to note that there are different types of land documents in Nigeria. These documents include:

APPROVED SURVEY PLAN

This is an important title document that helps to reveal the true ownership status in any land and landed properties’ transactions. It also helps to reveal if such land is not under any government acquired or committed lands/area.

APPROVED LAYOUT

This is also an essential document that needs to be presented as it reveals the standard layout of the land.

DEED OF ASSIGNMENT

This is a crucial document that must be requested and provided to a buyer following the completion of any land or property transaction between that buyer and the owner or seller of the relevant land or landed property.

PURCHASE RECEIPT

this is the evidence of due payment of the purchase of the land as this will be required when registering the land.

CERTIFICATE OF OCCUPANCY

Regardless of the land's intended use, this is one of the most significant land title documents needed to establish the legal ownership status of any land in Nigeria. In cases where the owner's interest in the land is in compliance with the relevant legislation, the government typically delivers a document attesting to such interest to the landowner. It is a legal document that certifies the governor has granted a statutory right of occupancy to a person who has acquired an interest in land.

POWER OF ATTORNEY

This is usually necessary where a person is acting for another person, individuals or companies as his agent. It is a document that authorizes such person to act on their behalf.

These documents are essential as they are necessary to process a search in the land registry, the registration of title, registration of Deeds, as well as registration of Certificate of Occupancy.

NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com

WRITTEN BY CHAMAN LAW FIRM TEAM

EMAIL: chamanlawfirm@gmail.com

TEL: 08065553671, 08024230080