From time immemorial, land has been a valuable asset of conveyance between people of several descents & origins. The obnoxious practice (that was abolished with the introduction of common law & equity practice, which Nigeria assimilated into her laws) is where a larger town dominates another smaller town through a fierce battle called ‘conquest’. The term ‘settler’ is not an alien term in the exposition of property transactions either in Africa, Europe, or North America. During the Stone Age era, the popular means of acquiring a property — which could be both land or real property – were namely,
- Through conquest or conflict (battle for boundaries or boundary mates tussle. Bakassi Peninsula conflict
- Through migration vide settlement by early settlers. History has it that most Yoruba descents migrated to Cuba, Brazil, and Benin (formerly known as Dahomey) during the 16th & 17th centuries.
As the people move from stone age to what is now called the iron age — 21st century. Human evolution & development have greatly impacted the earlier means of acquiring real properties. Hence, the need to elucidate on the necessary makeovers & factors that surround land transactions using Nigeria as a case study.
Before we proceed, let me state that property transactions are backed by several laws and statutes, but the prominent/pronounced ones are — Land Use Act (domesticated by each states e.g Land Use Charge Law of Lagos State), Capital Gain Tax, Town Planning Laws, Stamp Duties Act, Administration of Estate Laws (Wills Laws) and Constitution of the Federal Republic of Nigeria 1999.
Each of these enactments has an effect on the practice of property transactions in Nigeria. For instance, “the Land Use Act vest all lands in a state to Governor who holds in trust for the people”.
Also, CGT provides the percentage to be remitted to the government confines after a successful transfer of an asset(s).
LEGAL PRECAUTIONS
Generally, all property transactions vary depending on the party or the title covered by the property.
Based on this foregoing, let me expantiate the distinction between a land located at Lekki phase 1 owned by the Estate of Late Mr. Ajanlekoko (who died intestate), which is up for sale, and a land located at Opic Estate owned by Mr Jambalaya.
Here are the categories of real properties based on their form and the root of titles.
- Estate (Will or Letter of Administration) property.
- Corporate organisations owned property.
- Individual or Family property.
- Community, Co-operatives & Association property.
- Government land (Letter of Allocation)
- Real property being subject of court’s execution, mortgage (legal or equitable), or confiscated property for public use.
ESTATE PROPERTY:
This property is a subject of an estate – the entire asset of a demise person left behind for onward distribution. There are two aspects to a property covered by an estate. It could either be covered under the Will (Testate) or covered by a Letter of Administration (Intestate).
Either way, any party going into such a property transaction must ensure that the property is free from encumbrance and has a good title.
Precautions:
- If the property is covered by a Will. Make sure to verify the Will at Probate section of the state where the property is located.
- If there is no Will, ensure the family selling has & present a letter of administration dully authorised.
- In case of an LA, ensure the administrators and administratix of the estate are dully informed and carried along in the transaction.
- If the beneficiary of a real property under a Will is a minor, ensure to have dealt with the legal guardian or appointed trustee on behalf of the minor.
- In both circumstances, do not deal without doing a window search at the authorised places. You will need a legal practitioner (property attorney) to help guide/supervise the process.
GENERAL PRECAUTIONS
Before you conclude on any property transactions, that is for value.
Ensure you carry out these general precautions as follows:
- Always ask that all correspondence be documented and backed up.
- Get a good negotiator (a lawyer is a good negotiator, NOT an agent). That means you can get legal service at the price of two — a negotiator & lawyer.
- Inspect where the building is located, and confirm if it is safe (security) and not built on restricted areas such as waterways. Check the fittings and structural building integrity test.
- Finally, before making payment. Ensure you factchecked the seller- government ID, workplace etc.
In a nutshell, property transactions in Nigeria (Lagos State) have been more than what the naked eyes could see.
Therefore, the only way to avoid nightmares and gnashing of teeth for playing ‘smart’ yet foolish role in your own bankruptcy would be to seek legal advice when and where it is necessary.