The conveyance will only act to pass interest in land where it is delivered as a deed.
To achieve this, the vendor’s solicitor is obliged at law to obtain the state governor’s consent by virtue of S.22 of the land use act. In practice, THE PURCHASER’S SOLICITOR
a. Obtain the Governor’s consent
b. Stamps the document ad valorem under the Stamp Duties Act.
c. Registers the deed in the state`s land registry where the deed is given a registration number.
A. Application for Consent of Governor
➢ Where property is subject to a CustomaryRight of Occupancy, the consent required is that of the Local Government where the Land is located – S. 21 Land Use Act.
➢ Governor’s consent is usually sought and obtained by the Assignee’s Solicitors. Ideally, it is the vendor who should apply for and obtain the Governor’s consent.
NB – The Purchaser should ensure that he obtains a letter or application for consentfrom the vendor. The ` forwarding the vendor’s letter.
THE DOCUMENTS REQUIRED TO PROCESS GOVERNOR’S CONSENT
1. Application for consent in prescribed form-(Land Form 1C (if the land is in Lagos)
2. Covering letter
3. 5 copies of the executed deed of Assignment
4. CTC of title documents
5. Tax clearance certificate of both parties (3 YEARS preceding)
6. Evidence of payment of consent fees and other prescribed fees.
7. Receipts of payment of certain outgoings;
a. tenement rate(developed)
b. ground rent ;stamp duties etc
c. development levy
8. Attach copy of
a Survey plan.
b. Approved building plan (developed property)
If any of the parties is a company, the following additional documents must be attached:
9. CTC of the Certificate of Incorporation
10. CTC of the Memorandum of Association
11. CTC of FORM CAC 7 - Particulars of Directors of the company
12. Tax clearance certificate of at least two directors
13. Evidence of PAYEE returns for its staff
14. A Resolution of the company approving the transaction
NB: The procedure obtained in Ogun State, Lagos.
However in Lagos Form I C ie Land Form is filled and a certificate cheque of the consent fee is made between 7 – 7½ % of the value of the property.
PROCEDURE FOR APPLYING FOR CONSENT IN ABUJA
a. A written application letter addressed to the Minister of FCT by the vendor consenting to the alienation
b. Inspection and valuation of the land is conducted.
c. Payment of consent fee of N5000
d. Payment of ground rents
e. Processing fee of N5000(residential plots) &6000 (commercial plots
f. You may pay Title Registration fee if you are not (vendor) is not the direct owner of property. (5% of property value)
g. Original of title deeds for citing and the counterparts
THE EFFECTS OF A FAILURE TO OBTAIN GOVERNOR’S CONSENT ON LEGAL TRANSFER OF INTEREST IN LAND ARE AS FOLLOWS:
1. The legal transfer of interest is void but however the entire transaction is not void.- S. 22 of the Land Use Act
2. The Assignee/ Mortgagee only havean equitable interest on the property.
B-STAMPING
➢ The amount to be paid as stamp duty may be fixed fee or ad valorem charge (i.e. based on the value of the transaction).
➢ Stamping of documents which are charged ad valorem is to be stamped WITHIN 30 DAYS while others are to be done WITHIN 40 DAYS of its execution. -S. 23 of the Stamp Duties Act.
THE EFFECTS OF A FAILURE TO PAY THE STAMP DUTIES ON DOCUMENTS TO BE STAMPED ARE:
1. The document will not be acceptable for registration, S. 9 & 10 of the Land Instrument Registration Law of the States.
2. The document is not admissible in evidence in Court
3. There will be payment as penalty for late stamping of the document-s.22 SDL (Lagos);OGBATION V.REG.TRUSTEES CCCG
NB- EXAMS-Stamp duties in respect of land matters are paid to the states.
THE STEPS TOWARDS STAMPING OF DOCUMENTS :
1. Original Document is delivered in triplicate to the stamp duties commissioner for assessment.
2. The assessed duty is paid and receipt is issued
3. The instrument is impressed with a red-ink(sstamp duty paid or duty stamped)
4. The rate of duty payable is between 2-3 % of the value of the transaction
C. REGISTRATION
A conveyance is a registrable instrument
Must be done within 60 DAYS of execution
The importance /effect of registration of transactions transferring legal interest in land are:
1. It serves as constructive notice to subsequent dealers on the interest already transferred
2. The instrument is admissible in evidence
THE EFFECTS OF A FAILURE TO REGISTER SUCH TRANSFER OF LEGAL INTERESTS IN LAND ARE:
1. The instrument cannot be pleaded in evidence to prove title-s.15 LIRL
2. It has no priority over subsequent instruments registered over the same legal transfer of interest-S.16 LIRL
3. It does not serve as notice to third parties dealing on the same interest
4. Renders instrument void-S.5 RTL;S.14 LIRL; ONASHILE V.BARCLAYS BANK LTD
THE PROCEDURE FOR REGISTRATION:
1. Deliver in duplicate,2 duly stamped and executed copies of original deeds to to the deed registrar in the
2. The Registrar collects the deeds and registers it in the Register of Deeds on a particular volume, on a particular page with a particular number;
No. …………………. At Page ……………….In Vol. ………………of the lands registry___________________
3. An endorsed copy of the original deed is given back to the Purchaser, while the Counterpart is kept at the Registry. –AMADI V. ORISAKWE
4. Two copies of the original Deed dully executed and stamped are to be forwarded to the Deed Registrar in the Lands Registry of the State
5. The Registrar receives same
6. One of the original Deed will be given back to the party carrying out the registration while the other copy will be kept by the Registrar
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