A summary of the concept of acquisition of title to land in Nigeria

1. TITLING IN A FRONTIER PROPERTY
MARKET
‘TOSIN AJOSE

2. ARE WE A FRONTIER MARKET?
• Developing country
• Small economy,
• Risky business environment,
• Illiquid financial/capital market
For all these reasons cannot be considered an emerging
market

3. WHAT HAS THE LAND USE SYSTEM GOT TO DO WITH IT?
“The countries that have invested in the technical and institutional
infrastructure required for efficient and equitable land tenure
administration, and that have been in the forefront of ensuring
property rights for both men and women, have developed much
faster with a much higher level of food security, health and
welfare”.
FAO,2012 Report (why land tenure is important)

4. UNDERSTANDING TITLING
A bundle of rights in a piece of property over which a party may own
either a legal interest or equitable interest. It typically refers to a formal
document, such as a deed, that serves as evidence of ownership of a
property. Different from possession which connotes physical occupation
of a property.
LEGAL INTEREST EQUITABLE INTEREST
An interest granted and recognized by
law or statute and which is enforceable
against the whole world
An interest recognized by law and
enforceable only to the extent that
there is no superior interest. Not
binding on a bonafide purchaser for
value without notice.

5. RIGHTS EMBEDDED IN A LEGAL INTEREST
• Exclusive possession
• Exclusive right of use
• Conveyancing right including by bequest
• Easement rights
• Hypothecation (pledge as collateral)
• Partition/Subdivision

6. WHY THE GOVERNOR IS SO IMPORTANT?
❑All land comprised in the territory of each state in Nigeria is vested in
the governor of that state and such land shall be held in trust and
administered for the use and common benefit of all Nigerians.
❑All alienation or transfer of interest in land require the consent of the
Governor.
❑The Governor may revoke a valid, subsisting legal interest in land for
overriding public interest.

7. TYPES OF INTEREST IN LAND
NOTE!!!
Nigeria does not operate a freehold system where land is held in perpetuity by its legal owner.
❑ Customary Right of Occupancy
LUA recognizes the right of persons and communities occupying land in accordance with customary
law. (in Lagos popular families such as the Ojomus and the Elegushis). Transfer of interest under
customary law requires the consent of the Governor).
❑ Statutory Right of Occupancy
A legal interest in land granted for a definite subject to the terms of a contract between the Governor
and the holder of such interest which is consistent with the provisions of the LUA

8. TYPES OF INTEREST IN LAND
❑ Original Interest
Interest held by families or communities holding land under customary law or By
persons with original grants of statutory right of occupancy derived from the Governor
❑Derivative Interest
An interest which is subject of the transfer or alienation by an original interest holder.
Such transfer requires the consent of the Governor as the rights and obligations of the
transferor is deemed novated (including term and tax payments)

9. CONCEPT OF GOOD TITLE
“Any document irrespective of the name it bears which satisfies the legal requirement of an instrument of
alienation is good title” Tosin Ajose
❑ Must be in writing (Section 4 Statute of Fraud)
❑ Clearly demonstrate intention to create a valid legal interest/nature of interest
❑ Issued by one who has legal capacity to create/assign legal interest in land
❑ Describe the Parties
❑ Describe the Subject Property in detail
❑ Issued for consideration
❑ Indicate a valid tenure
❑ Must be duly executed
❑ Require the procurement of the consent of the Governor

10. TITLE OR NOT?
❑ Certificate Of Occupancy
❑ Deed of Assignment/Conveyancing
❑ Receipt
❑ Deed of Gift
❑ Will/Letters of Administration
❑ Power of Attorney
❑ Excision Order
❑ Land Certificate
❑ Judgment/Court Declaration
❑ Lease Agreement
❑ Tenancy Agreement
❑ License
❑ Deed of Mortgage
❑ Deed of Declaration of Trust
❑ Vesting Deed
❑ Deed of Sub-Lease
❑ Contract for Sale
❑ Survey Plan

11. DEDUCING TITLE/DUE DILIGENCE
CAVEAT EMPTOR!
1. Verification of Ownership
2. Verification of Use
3. Verification of Encumbering 3rd Party Interests
4. Verification of Size
5. Verification of Physical location/state of physical location
6. Verification of Compliance
7. Verification of Financial Liability

12. DEDUCING TITLE/DUE DILIGENCE
KNOWN COSTS
❑Sale Price
❑Investigation cost
❑Documentation cost
❑Survey Cost
❑Perfection Cost
HIDDEN COSTS
❑Omo-onile cost
❑Cost of taking possession/clearing out
squatters
❑Cost of settling outstanding assignor
liabilities
❑Cost of litigating existing 3rd party
interests

13. TITLE PERFECTION
SHALL I OR SHALL I NOT?
Over 85% of property buyers do not perfect their interest after acquisition
❑Lack of understanding of the import of perfection.
❑Prohibitive cost
❑Painfully slow bureaucratic process
❑Underdeveloped market
❑Property value not impaired by title defect.

14. TITLE PERFECTION
Understanding the process:

15. TRANSFER OF TITLE BY SUCCESSION
❑ Customary Law vs. Statute
❑ Testate Succession vs. Intestate Succession
➢ Where a property owner dies intestate the personal law of the deceased will apply in the
administration of his estate unless where the deceased is married under the Marriage Act in which
case the law of administration of estates in his place of residence will apply.
➢ Where there is a will, an instrument of transfer is required to transfer a property to a beneficiary
under a will by way of an assent or a vesting deed.
➢ Where the deceased died intestate, his property may only be transferred by a duly appointed
administrator appointed under a letter of administration from the probate registry

16. THANK YOU FOR
LISTENING!
These are presentation slides only. The
information contained here do not
constitute definitive legal advice. You may therefore not
rely on same without checking
the primary sources.
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