REGISTRATION FOR DEED OF ASSIGNMENT IN LAGOS STATE
DEED OF CONVEYANCE IN NIGERIA
A deed of assignment is an agreement where an assignor assigns his or her ownership in land or property to an assignee. The deed of assignment in Nigeria contains very pertinent information for a real estate transaction. The deed of conveyance in Nigeria also comprises the same information as a deed of assignment; there is no significant difference between the two. The state within Nigeria where the property is being transacted usually determines whether the deed of the assignment will be the appropriate property transfer agreement to be drafted or deed of conveyance. The deed gives a specific description of the property that is included in the transfer of ownership, consideration and other covenants between parties.
In most situations, when the deed of assignment has been exchanged between both parties, it has to be recorded in the land registry to show legal proof that the land has exchanged hands and the public should be aware of the transaction. Such recorded deed of assignment comes in the form of either a Governor’s consent and registration. The Deed of Assignment spells out the key issues in the transaction between the seller and the buyer so that there will not be any confusion or assumption after the property has been transferred to the new owner.
Features of Deed of Assignment
Every deed of assignment must contain certain information, which includes the followings:
The steps for registration are as follows;
Upon the execution of the Deed of Assignment, it must be duly registered and be consented by Governor in accordance with the provisions of the Land Use Act, LFN 2004.
The consent of the Governor is important before the actual alienation or the sale of any interest in land in Nigeria. The Land Use Act makes it mandatory for the consent of the Governor to be obtained. Section 22 of the Act provides that it shall not be lawful for the holder of a statutory right of occupancy granted by the Governor to alienate his right of occupancy or any part thereof by assignment, mortgage, transfer of possession, sublease or otherwise howsoever without the consent of the Governor first had and obtained. Section 22(2) of the Land Use Act further provides that “ the Governor when giving his consent to an assignment mortgage or sub-lease may require the holder of a statutory right of occupancy to submit an instrument executed in evidence of assignment, mortgage or sub-lease and the holder shall when so required to deliver the said instrument to the Governor in order that the consent given by the Governor under subsection(1) may be signified by endorsement thereon.” The power to grant consent can be delegated and this is provided for in section 45 of the Land Use Act.
By and large, upon the execution of a deed of assignment by parties to a property transaction, the procedure and steps for the registration of the executed deed of assignment in Lagos State or any other jurisdiction in Nigeria involves 3 major steps namely; Obtainment of Governor’s Consent; Stamping of Deed; and Registration
The procedure for Governor’s consent in Lagos state; the application should be made on land form 1c obtainable at the lands registry, and the form should be signed by the purchaser and the vendor. The application form shall be submitted with the followings:
After the Governor grants consent, the solicitor must ensure that the stamp duty charged on the transaction is paid. It is advised that consent be obtained before payment of stamp duties since if the Governor refuses the consent, the duties paid cannot be recovered. Stamp duties are taxes imposed on certain transactions, one of which is the alienation of an interest in a property. The effect of failure to pay stamp duties are;
The importance of registering the deed of assignment or conveyance, which alienates interest in land is that it is a document affecting land in which one party confers, transfers, limits, charges or extinguishes in favour of another party a right or title to or interest in land. Although, section 25 of the Land Instrument Registration Law of Lagos State provides that registration does not cure defects in title, however, a deed of assignment is a registrable instrument and must be registered within 60 days of execution. Registration has lots of advantages; which includes
The Deed of Assignment, otherwise known as Deed of Conveyancing in other states in Nigeria is the document transferring the sale of land or property from one buyer to another. The names of the parties to a Deed of Assignment are Assignor (the Seller) and Assignee (the purchaser).
When a deed of assignment has been duly executed among parties to a land transaction, it must be duly registered with the state government where the land is located. The registration of land’s title shall commence with the obtainment of Governor’s Consent with the provisions of the Land Use Act.
By Real Estate Law Team at Resolution Law Firm