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Deed of Assignment in Nigeria: A Complete Guide (2024)

In Nigeria, the Deed of Assignment is paramount for transferring property ownership. This legal document, vital for transferring land ownership, serves as a legal root of title to the property. It’s essential to meet specific legal requirements for its validity, often necessitating a lawyer’s assistance. Registering the deed with the relevant land registry is crucial to legally prove the property transfer.

Key Takeaways:

• The Deed of Assignment is a vital document for property ownership transfer in Nigeria.
• Legal requirements must be fulfilled when creating a Deed of Assignment.
• It is recommended to consult a lawyer for proper preparation of the deed.
• Registering the deed with the relevant land registry is essential for legal proof of property transfer.
• Cost of preparing a deed of assignment can vary based on property value and lawyer’s expertise.

Importance of a Deed of Assignment in Nigeria

• Transfers ownership of land or property from one party to another.
• Serves as a legal root of title to the property.
• Essential for establishing clear and legal property ownership.
• Provides security and protection for the new owner.
• Prevents potential future disputes or claims regarding the property.

Procedure for Executing a Deed of Assignment in Nigeria

• Prepare the necessary documents including names and addresses of the parties, date of transfer, nature of the assignor’s title, property description, and purchase price.
• Ensure both the assignor and assignee sign the deed.
• Have the deed prepared by a qualified lawyer to ensure its legality.
• Register the deed with the relevant land registry to establish legal proof of the property transfer.
• Consider the cost factors, such as the value of the property and the lawyer’s expertise, and budget accordingly.
• Seek legal assistance to ensure proper execution and registration of the deed.

In wrapping up, navigating the terrain of property ownership transfer in Nigeria need not be a herculean task. The Deed of Assignment is your legal compass, guiding the transfer process seamlessly. While it’s a journey filled with legalities and paperwork, remember that each step fortifies your claim, solidifying your ownership and safeguarding your investment against future disputes.

Don’t shy away from seeking legal counsel to ensure every ‘t’ is crossed and ‘i’ dotted. Your property is a significant investment; give it the legal backing it deserves. Stay guided, stay legally secured. Cheers to the new property owners

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About The Author

Azeez Onifade

Abdul Azeez is a land Surveyor and a Real Estate enthusiast. He has about 11years experience in the industry.

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Everything You Need to Know About the Deed of Assignment in Nigeria

Following the resolutions enshrined in the Land Use Act of 1978, the Governor of a State in Nigeria is the custodian of the landed properties – and is at liberty to distribute the same. That makes it essential for every property owner to have the relevant documents to have a legal claim. The Deed of Assignment is one such document.

In this article, we talk about the relevance of the Deed of Assignment and some of the benefits it offers.

What is the Deed of Assignment?

It is a legal document that records the sale of land, as well as conveys to the owner or holder, the exclusive rights to use and resell the land. Hence, the presence of this document in any real estate transaction helps to confirm the authenticity of the property , ascertaining that the holder is the original or current owner and that such a person, is by law, permitted to transfer the legal rights of ownership to the buyer or new owner – the assignee .

When is the Deed of Assignment Issued?

The document is typically issued at the end of a landed property transaction. The seller (the assignor) offers this document to the buyer (the assignee), signifying the former’s transfer of the legal rights and interests in the land to the latter.

If you are purchasing from a real estate company, like Grounds and Cribs , you will get the document on the completion of the transaction. A deep delve into this article will reveal how long it takes to get a deed of assignment in Lagos .

Who Prepares the Deed of Assignment?

Only a practicing lawyer can be allowed to prepare the Deed of Assignment in Nigeria. To ensure fairness, the lawyer will take into account the interests of the parties involved (the client/assignee, and the seller/assignor).

On preparation, the document will be released to the seller or assignor for vetting and or corrections. Once this stage is over, the lawyer will prepare the final draft for both parties to authorize the transaction.

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2 Features of the Deed of Assignment

For this document to become valid, certain pieces of information. The required data cuts across the parties’ information, the details of the land, and any other financial-related information.

1. Transacting Parties’ Information

Data of the transacting parties (the seller and buyer) will be provided. This includes:

• The names, addresses, and statuses of the transacting parties.
• Signatures of the buyer and seller
• Signatures of the witnesses to the transaction.
• The nature of the transaction.
• The vendor/seller/assignor’s capacity.

2. Property’s Details

Information about the land or property will also be required. The data includes the nature of the vendor or seller’s title, the land survey plan, and the due date for assigning the land from the seller to the buyer.

Other pieces of information required are:

• The land’s history, from the time it was it was initially obtained or paid for, down to the current transaction.
• The amount of money involved or the buy price . The seller will also specify the readiness to accept the assignee or buyer’s offer.
• The specifications, descriptions, or fixtures in the property.

Other information included in the Deed of Assignment are:

• The details of the lawyer who prepared the document, including the name, office address, and contact detail(s).
• Details of the verifiable document that the property bears.
• A dedicated section for the Governor’s Consent to be signed and validated.

3 Stages to Getting the Deed of Assignment

Before the Deed of Assignment is assigned, several steps, procedures, or stages must have been completed. These include:

a. Obtaining the Governor’s Consent

This is as per the stipulations in The Land Use Act, LFN 2004. The acquisition of the Governor’s Consent is based on the provision that the property in question must be registered at the registry, in the vendor or seller’s name.

Once this is ascertained, the following procedures will follow:

• The application for the Governor’s Consent will be made at the registry.
• The Land Form 1C will be used for this purpose.
• The parties will provide the necessary information in the form.
• Both the seller and the buyer will append their signatures to the form.
• The parties to the transaction (the buyer and the seller) will swear to the form, either before a notary public or a magistrate.
• On completion, the form will be sent to the Commission assigned by the Governor of the State to attend to such.

b. Stamping of the Deed of Assignment

Following the Governor’s approval or consent via the Commissioner specifically designed to grant such requests; the Deed of Assignment will then be ready for the next stage. This is the signing stage and it is up to the solicitor to verify that the stamp duty due to the transaction has been paid.

c. Registration of the Deed

This is the final stage of getting the Deed of Assignment prepared. In this stage, it has to do with registering the deed. It is important because the deed is deemed to be a “registrable instrument.” By the registration, it becomes admissible in the court as evidence and helps to avoid fraud and related problems, arising from the omission of instruments, after the title is deduced.

As per the stipulations of Section 25 of the Lagos State Instrument Registration Law, the deed must be registered within sixty (60) days after execution. The completion of this process paves the way for the Deed of Assignment to become a legal document, to formalize the land transaction and to serve as a solid root title of the land.

Benefits of the Deed of Assignment

Having this document goes beyond formalizing the transaction. You can use the Deed of Assignment because of these reasons:

• It serves as the valid root title of the land. Hence, it solidifies the vendor or seller’s legal rights to transfer the land.
• The Deed of Assignment also highlights the interests of the parties involved – the buyer and the seller.

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Final Words

The Deed of Assignment is the main document in a real estate transaction, as it shows the subsisting information, such as the necessary due diligence is done, the investigations, and the negotiations by the transacting parties.

Always contact a lawyer to help you draft the document, in a way that your interests and that of the other transacting party are covered.

Looking to invest in Epe, Lekki, Ibeju-Lekki, Ajah or any other parts of Lagos or Nigeria? Reach out to our team on WhatsApp, wa.me/+2347031211154 or call +2347031211154 for a list of available properties and to book an inspection

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Deed of Assignment and its Importance in Land Transactions

Buying a property or piece of land should be a great moment of joy. But that great moment of joy can get turned on its head, to be followed by sorrow and regret. This can easily happen without proper due diligence. A lot of Nigerians have fell victim due to laxity in due diligence when transacting real estate.

When a property or piece of land is purchased or transferred from one owner to another, there are some important documents the new owner must obtain from the individual transferring the land. One of these documents is referred to as a Deed of Assignment and it is the most important legal document you need to get for your land. It is akin to getting a receipt from a retailer after purchasing a valuable item.

What is a Deed of Assignment?

By definition, a Deed of Assignment is simply a contract or an agreement between the seller of a piece of land and the buyer showing details and evidence that all title, rights, and interest of ownership of the land has been transferred to the buyer.

In legal terms, a Deed of Assignment is an agreement where an assignor declares a promise that from the assignment date or any date stated within the contract, the assignor allocates the entirety of its stake in that land or property to the assignee.

By these definitions, it is easy to understand why a Deed of Assignment has such importance in real estate transactions. It is considered a must for all transactions of transfer of ownership of land.

In Nigeria, it is believed that 6 out of 10 people have been victims to property fraudsters that pretend to be owners of a piece of land. They proceed to show off the land to numerous prospective buyers who would often accept a receipt as a proof of transfer of ownership.

So, in plain terms, a Deed of Assignment can be likened to the legal equivalent of a receipt for goods purchased at a store or the particulars of a newly bought vehicle. With the Deed of Assignment document, the bearer has all legal rights to the transferred property and can use it as he or she deem fit.

For a Deed of Assignment to be legally binding, it needs to clearly identify the seller and the buyer, and it must also contain the following information:

- Date of transfer of ownership

- Addresses of the seller and buyer and how they are binding to the successors, friends and other people who represent the seller and buyer in any capacity

- Price of purchase of property

- Detailed description of property, including the size of the property

- A history of transfer of ownership of property, from the date it was first acquired to the time it is to be sold to the new owner

- Covenants or promises that the buyer and seller will undertake in order to execute the deed

- A section for the Commissioner of Oaths or Governors Consent to authenticate and sign the agreement

- Signature of the seller and buyer

As a legally binding document in real estate transactions, a Deed of Assignment is often recorded in the local land registry as a proof of transfer of the property to the new owner. The format of a Deed of Assignment is made up of a cover page that show the identities of the buyer and seller as well as a description of the land; a second page that show the date of the transfer, names and location of buyer and seller, and a history of how the seller came into possession of the land; a third page that show the description and cost of the land, a survey plan number including the date and name of surveyor, and the promises that both buyer and seller would abide after the transaction is completed; and a last page that display signatures of the buyer and seller as well as signatures of witnesses to the transaction.

Because most property buyers are not familiar with the documents that are required to be prepared and transferred to them by land sellers, it is advisable for property buyers to always get the services of a lawyer in order to protect their interest during the course of property transactions.

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Why deed of assignment is important in every property transaction..

• May 10, 2021
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The importance of deed of assignment in every property transaction cannot be over-emphasized. It is quite unfortunate that many real estate investors overlook its importance especially when they buy from the so-called omo-oniles which are popularly known as Land Grabbers. Without a deed of assignment, a real estate transaction is not conclusive. In fact, some investors have been duped just because they cannot profer the deed to show the property has been sold to them other than the receipt.

However, the cost of the deed of assignment varies from location to location.

Let us take a look at this scenario: When you buy a Nigerian used car, you have the title document that gives details of how the car was transferred from the seller to the buyer. The same thing applies to when buying a property, there has to be a document that shows how the property was transferred from the buyer to the seller in order to show the proof of ownership.

Let us now dive into what a deed of assignment truly is?

What is a deed of assignment? A deed of assignment is a legal document that shows the agreement between the seller of a property and the buyer showing evidence that the seller of the property has transferred his interest and title to the buyer.

Going deeper, there are some cases whereby after the deed of assignment has been exchanged between the buyer and the seller, a record has to be submitted to the land registry to show that the exchange is deemed in the eye of the public. This comes in the form of the Governor’s consent .

FEATURES OF A DEED OF ASSIGNMENT

The features include the following;

• Details of the parties that are involved in the property transaction (names, address, and status).
• The date of transfer of ownership from the vendor (real estate company or omo-oniles) to the purchaser.
• The description and size of the land that is transferred.
• The agreed cost of the land.
• The history of the landed property on how it was firstly gotten to the moment its been sold and including all its previous documents.
• The promises both parties undertake on perfection of the transferred document.
• Signature of both parties.
• Governor’s consent to validate and sign the agreement.

Also read: Documents you should know when purchasing land 

In conclusion

It is pertinent to seek the services of a property lawyer when buying a property from Omo-oniles, to help prepare a deed of assignment. Thanks to reputable real estate companies that have made real estate transactions easier. You might not need a property lawyer when dealing with real estate companies because you don’t have to deal with omo-oniles in your transaction. Although they charge a reasonable amount for deed of assignment and the fee differs from one location to another. Kindly share this post if you find it useful

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3 Important things you need to know about Deeds of Assignment in Nigeria

Deeds of assignment are an important part of any land transaction in Nigeria. It acts as the main record of the transaction between the Seller and the Buyer. The Deed of Assignment transfers legal ownership of the property to the Buyer. This is distinct from a Contract of Sale, which merely transfers equitable ownership to the buyer.

Where a seller delivers a Deed of Assignment to the Buyer, the law assumes that the purchase price has been paid, and other necessary conditions have been fulfilled by the parties. The Seller cannot later say that he did not receive the purchase price.

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Key elements of A Deed of Assignment

T he property’s legal owner must sign the deeds of assignment.

A Deed of Assignment of Land must be executed by the Legal Owner of the property. Legal title is the actual ownership of the property. Legal title grants true ownership of the property, along with the bundle of rights that comes with land ownership.

A simple search at your state lands registry can help you identify the title holder. We recommend that you do this search as part of your due diligence process. This saves you stress in the future.

To register your title, you must have filed an application for Governor’s Consent with your State Lands Registry. In some situations, a seller may be eligible to apply for a Certificate of Occupancy.

Where a seller has not registered his title with the State Government, he/she can only transfer equitable title to the property. This means that the Legal title still resides in the last person who registered their title with the state.

A Rule of Thumb: If the seller is not the registered title holder, they cannot sign the Deed of Assignment

You must do your due diligence beforehand

Generally, the law expects a buyer to physically inspect the property he wants to purchase. He should also verify the title documents. A seller can only transfer his/her rights to the buyer. This means that if there are any limitations to their rights, those limitations will be passed on to the buyer. This can be quite infuriating.

This process should tell you whether you are buying the land from the right person, if there is any encumbrance on the land (such as an unpaid mortgage) or whether the land is suitable for your purposes. Facts discovered during the search process may affect your negotiations with the seller.

Recitals are Important

Recitals can make or break your Deeds of Assignment. This is because the root of title has to be clearly outlined and traceable within the recital. You must always ensure that there are no gaps in the chain of title between past owners of that property and the seller. Furthermore, any errors in your recital may lead to lengthy and costly litigation in the future. You could also experience immense frustration when trying to register your title with the government.

There is a widely-held perception that the recitals are legally inconsequential, since their role is fundamentally ‘scene-setting’ in nature and they do not automatically form part of the operative, legally binding agreement between the contracting parties. However, when a dispute arises and a court or arbitrator has to decipher the contract, the recitals may aid interpretation. They are, after all, clearly a part of the written contract in some way or other.

Milton & Cross Solicitors provides transaction advisory, due diligence and contract drafting services to individuals and businesses. We are always happy to assist you in coordinating and negotiating effective Deeds of Assignment.

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Deed of assignment

Why do we collect a certificate after graduating from a school? Why collect a receipt after a purchase? All these documents likewise deed of assignment for land are all super important because they serve as legal proof .   Deed of assignment is one of the very important land documents to acquire if ownership of land is to be authentic. 

To not collect a deed of assignment for the property purchased from the buyer is tantamount to throwing your money in the ocean and hoping the waves won’t carry it away. In case of litigation, t he deed of assignment contains important information concerning the real estate transaction.

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As a savvy buyer, don’t ever buy a land without the knowledge of a solicitor and the presence of relevant  documents of land ownership in Nigeria  like  Certificate Of Occupancy , Deed Of Assignment or  Survey plan . Due to an increase in real estate scam by omonile and fraudsters, it is important not to rush the buying process.

What is a deed of assignment ?

A Deed of assignment is a   legal document  which serves as a proof that the property purchased will be transferred to the buyer on a defined date by the rightful owner.

The deed of assignment for land has to be recorded in the land registry to show legal proof and to bring to the notice of everyone that the property has been transferred from the seller to the buyer.

Never accept a receipt for the property bought has an evidence of ownership because it is the same thing has fetching water with a basket.  The seller who transfers his rights to that property is usually called the assignor and the person who receives such right from the seller is called the assignee .

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Difference between deed of assignment and deed of conveyance

The significant difference is that a deed of Conveyance  can transfer the legal title of the property’s ownership from one individual to another in the form of a mortgage, gift or other real estate transactions while a deed of assignment is primarily based on transferring ownership through sales from one person to another.

Deed of assignment format

Deed of assignment format in Nigeria  must follow this  particular order listed below:

The cover page

The cover page of the deed of assignment must show both parties involved in the transaction( assignor and the assignee )and the description of the land sold.

The second page

The second page of the deed of assignment must contain the parties to the real estate transaction and the brief history of how the land became the Seller’s property.

The third page

The third page of the deed of assignment must contain the description of the land to be sold, the surveyor that carried out the survey, the cost of the land, the acceptance of the cost of the land and the promises both parties will make to themselves to abide with after the deal has been sealed.

The final page

The final page of the deed of assignment must show the signatures of the parties and the witnesses to that transaction and finally below, the section for the commissioner of oaths to endorse or the governor to assent his consent to this transaction.

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Components of a deed of assignment

Deed of assignment must include: names of the people involved in the agreement, the origin and history of the land in relation to the transfer of ownership from the specified period it was obtained until the present day of sale, addresses of both parties involved in the transaction ,successors, representatives , description and size of the land to be transferred, the signature of the parties to the assignment and witnesses to the transaction and space for signature of the commissioner of oaths or governor’s consent .

All the above features are the important component of a deed of assignment and must be included in the documents for it to be valid. The deed of assignment can be in the form of a governor’s consent or registered conveyance .

However, ensure you consult a  lawyer before you buy a land to help you draw up a deed of assignment. It will be a grave mistake not to seek a lawyer’s counsel about the deed of assignment so you don’t get scammed of your money .

Check out PropertyPro.ng for verified land . Kindly share your opinion below about deed of assignment with other PropertyPro readers.

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Why deed of assignment is important in every property purchase

Purchasing a home in Nigeria entails more than just making payments; you must have proof of ownership, just like any other related transaction. You must have the required paperwork for a property transfer because they are necessary for proving the seller's ownership interest.

If you don't have these documents, you could end up in legal trouble with others or the authorities. This is why it is critical that you become acquainted with the many types of property documentation available in Nigeria. And such documents include; Certificate of Occupancy (C of O) , Deed of Assignment, Survey Plan, Governor’s Consent and others. But in this article, we’ll get to know more about the document “Deed of Assignment”.

What is a Deed of Assignment?

A Deed of Assignment is a legal instrument that documents a land sale and transfers interest and title in real property from one party to another beginning on the date specified in the document. It is a document that is typically requested by the buyer of real estate at the conclusion of a property transaction, and it must contain particular information in order to be valid and binding on all parties involved in the transaction. When it comes to the transfer of land ownership, a deed of assignment is required.

Characteristics of a Deed of Assignment

The following information is required to be included in every deed of assignment:

• The details of the contracting parties like the name and status.
• Both parties' addresses are shown below.
• The agreed-upon price for the land and the seller's willingness to accept that price in the end
• The background of the area in question. This history could contain everything from how it was first acquired to when it's set to be sold.
• Covenants or pledges that both parties agree to make in order to complete the transfer of the document
• The property's entire description/specifications, including any fittings and fixtures.
• The land to be transferred description and size
• Survey Plan
• Witnesses to the transaction and the signatures of the parties to the assignment

Reason For Deed of Assignment?

A deed of assignment's principal function is to transfer an interest in or assign the title of property from a seller (an assignor) to a new buyer (the Assignee). To serve its goal, a deed of assignment must include the following details we have listed in the characteristics section above.

The Benefit for Deed of Assignment?

• Formality: A deed of assignment is a formal contract formed and executed between two parties to a real estate transaction to transfer all the unexpired remainder of land to the other party. It includes not only the fundamental needs, but also the specific terms on which the parties to the transaction have agreed. It serves as a great tool for both parties.
• Guarantee: A property lawyer should design a deed of assignment to guarantee that the best interests of the parties to the transaction are properly represented. The assignee's legal practitioner drafts the deed of assignment, which is then handed to the assignor (vendor) for vetting and execution.
• Valid Evidence of Transfer: A deed of assignment is very beneficial since it serves as a valid root of title to the land. It serves as valid evidence of transfer, particularly when the legitimacy of the land is disputed or a third party attempts to claim ownership of the same land.

Steps to Registering the Deed of Assignment in Nigeria

The registration procedure is as follows:

Following the execution of the Deed of Assignment, it must be properly registered and approved by the Governor in compliance with the Land Use Act, LFN 2004.Before the actual alienation or sale of any interest in land in Nigeria, the Governor's authorization is required. The Land Use Act stipulates that the Governor's consent must be acquired.

"The Governor may, when giving his consent to an assignment, mortgage, or sub-lease, 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, 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," according to Section 22(2) of the Land Use Act. The ability to provide consent can be delegated, as stated in section 45 of the Land Use Act.

In general, after parties to a property transaction execute a deed of assignment, the procedure and steps for registering the executed deed of assignment in Lagos State or any other jurisdiction in Nigeria entail three primary steps: Obtaining Governor's Consent; Stamping of Deed; and Registration.

• Obtaining the Governor's Consent: When the purchased land is already registered in the seller's name at the registry, the application should be made with the land form 1c available at the land’s registry, and the form should be signed by the purchaser and the vendor. The application form will contain much information to be filled.
• Stamping of the Deed : Following the Governor's approval, the solicitor must guarantee that the transaction's stamp duty is paid. It is recommended that consent be obtained prior to the payment of stamp duties, as the duties paid cannot be recovered if the Governor rejects consent. Stamp duties are levied on a variety of transactions, one of which being the transfer of a property interest. Failure to pay stamp duties has the following consequences:
• The instrument will not be registered since it is not in good working order.
• According to Section 22 of the Stamp Duties Act, the instrument will be inadmissible in court as evidence.
• In the event of late registration, a penalty will be imposed.

3.Registration: The importance of registering a deed of assignment or conveyance that alienates a land interest is that it is a document affecting land in which one party confers, transfers, limits, charges, or extinguishes a right or title to or interest in land in favor of another party. Although registration does not cure defects in title, a deed of assignment is a registrable instrument that must be registered within 60 days after execution, according to section 25 of the Lagos State Land Instrument Registration Law.

In summary, in any land transaction, a deed of assignment is crucial because it serves as the main document between the original owner and the purchaser, demonstrating that all necessary negotiations have been completed and the purchase price has been paid. In addition, all other important conditions have been achieved by both parties to the transaction; and the owner has transferred all of his rights in the property to the purchaser.

Dennis Isong Helps Individuals Invest Right In Real Estate. For Questions On This Article Or Enquiring About Real Estate Email: [email protected] or Whatsapp/Call +2348164741041

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Meaning, Importance, and Purpose Of Deed of Assignment in Nigeria

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A deed of assignment is an important document to have when transferring of ownership of land or property from one party to the other. There has to be document agreement between a buyer known as assignor (the seller) and assignee (the buyer or the purchaser)before transaction can be completed.

What is A Deed of Assignment?

A Deed of Assignment is an essential legal land document that records a sale of land. Besides that, it transfers interest and title in real property from one party to another, starting from the commencement date stated in the document.

A deed of assignment’s major function is to transfer an interest in or assign the title of property from a seller (an assignor) to a new buyer (the Assignee). A good deed of assignment must include some details and they are listed below:

• Names, address, status of the transaction’s participants.
• Day on which they transferred the property from the seller (vendor) to the buyer.
• The nature of the assignor’s (vendors’) title.
• Entire description/ specifications, including any fittings and fixtures of the property.
• The history of the property being transferred from the time it was initially obtained to the current moment of sale, including all preceding documentation.
• Details about a verifiable document the property bears.
• The amount of money paid in a property transaction (buy price) and the vendor’s readiness to accept the price paid for the property.
• The nature of the transaction and the assignor’s capacity (vendor).
• Both parties to the transaction agree to keep the agreements.
• The parties’ signatures, as well as the signatures of the witnesses to the transaction, are necessary.
• Plan for the survey.
• Information about the lawyer who prepared the deed.
• The Governor’s assent must be signed and validated in this section.

RELATED: OTHER FEES YOU SHOULD KNOW WHEN BUYING A PROPERTY

What is The Importance of A Deed of Assignment?

It a legal contract between two parties to a real estate transaction therefore you can not overemphasize its important. Some of its important are:

1. It is Essential For Transferring Land To The Other Party Before It Expires

It covers not only the basic requirements but also the precise terms agreed upon by the transaction’s participants. A real estate lawyer should draft a deed of assignment to ensure that it accurately represents the interests of all parties involved in the transaction. The assignee’s legal counsel creates the deed of assignment, which is subsequently vetted and executed by the assignor (vendor). The assignor’s lawyer may prepare the deed for scrutiny by the assignee’s lawyer if the property is part of an estate.

2. It Acts As A Legal Root of Title To The Property

A deed of assignment is also important since it serves as a valid root of title to the land.

It serves as valid evidence of transfer, particularly when the legitimacy of the land is disputed or a third party attempts to claim ownership of the same land.

Note: It’s also crucial that they register the deed of assignment with the relevant land registry. Especially where the land is located for perfection once they have exchanged it between the parties to the transaction. Perfection comes at the post-completion stage, which includes receiving the governor’s approval, stamping the deed of assignment, and ultimately, registration of the document to establish legal proof that the property has changed hands and to inform the public that the property has a new owner.

What Is The Purpose of The deed?

It’s essential to always discuss issues like this with your lawyer for clarifications, especially if you want to buy land. A deed’s purpose is to transfer legal ownership of a property or asset from one person or corporation to another.

Who Needs To Sign A Deed of Assignment?

The assignor and the assignee(s) must both sign the deed, and they must tick the corresponding box (or boxes) for each signature. However, if there is a joint tenancy and two people own the policy. Therefore, both policyholders must act as assignors.

How Much Does The Deed of Assignment Cost in Nigeria?

A Deed of Assignment can only be prepared by a lawyer in Nigeria.

There is a scale of charges to checkmate the charges of lawyers for handling land matters. But because this scale of charges is primitive. Lawyers would rather negotiate their percentage in real estate transactions based on the value of the assets to be purchased. This is because they also permit them to engage in a simple contract for any services, including deed preparation.

Several criteria determine the percentage a lawyer may charge to produce a deed of assignment. Expertise or experience, as well as the value of the property to be purchased, are among these criteria.

Most lawyers in Nigeria typically charge between 5% to 10% of the cost of the property to prepare a deed of assignment. Therefore, for a property being purchased at N40,000,000, a lawyer may charge N2,000,000 (5%) of the cost to prepare deeds and other necessary documents.

In some situations, the higher the property’s worth, the lower the percentage. There could be situations where a lawyer may charge above 10% of the total cost of the property. That’s if the purchase price is very low, or even less than 5%. Or if the property’s value is very high, or other circumstances such as an existing relationship between the lawyer and the purchaser.

Finally, in Nigeria, there is no set fee or cost for creating a deed of assignment. The price of the property typically decides the cost of a deed of assignment. Besides that, other factors, such as a prior relationship, could influence its cost.

Who Prepares The Deed of Assignment?

To avoid misunderstanding along the way, you should know who has to prepare the deed of assignment. The assignee’s legal practitioner drafts the deed of assignment, which they hand to the assignor (vendor) for vetting and execution. If the property is part of an estate, the assignor’s lawyer may prepare the deed for examination by the assignee’s lawyer.

Deed of Assignment in Nigeria – How To Register

Following the execution of the Deed of Assignment, the Governor must properly register and approve it in compliance with the Land Use Act, LFN 2004.

In essence, after parties to a property transaction execute a deed of assignment, the procedure, and steps for registering the executed deed of assignment in Lagos State or any other Nigerian jurisdiction entail three primary steps: Obtaining Governor’s Consent, Stamping of Deed, and Registration.

1. Obtain A Governor’s Consent

When they already registered the purchased land in the seller’s name at the registry. They should apply with the landform 1c accessible at the lands registry. The purchaser and the vendor should sign the form.

List of Things To Submit Your Governor’s Consent Application With

• A covering letter to the Director of the Lagos State Department of Lands and Housing.
• After inspecting the property and its values, they’ll pay the consent fee.
• Both parties’ current tax clearance certificates. They only require the mortgagor’s information in the case of a mortgage.
• When one party is a corporation, the corporation must provide the government with revenue certificate papers for its employees and current tax clearance certificates for the directors.
• There will be a demand for the building plan in the case of developed property.
• The Deed of Assignment for which they requested its consent in six (6) copies.
• Proof of up-to-date ground rent and legal charges payment.
• Proof of payment of development levy.
• Payment of charting and endorsement fees receipt.
• A Certified True Copy (CTC) of the assignor’s land document is accessible from the land’s registry.

2. Pay Stamp Duties

Following the Governor’s approval, the solicitor must guarantee that they pay for the transaction’s stamp duty. They recommend that consent be obtained prior to the payment of stamp duties, as you cannot recover the duties you paid if the Governor rejects consent. They levy stamp duties on a variety of transactions, one of which being the transfer of a property interest.

The Consequences of Failure To Pay Stamp Duties

• They will not accept the instrument for registration.
• The instrument will be inadmissible in evidence in court as they stipulated it under section 22 of the Stamp Duties Act.
• In cases of late registration, it will attract a penalty.

3. Register The Deed

A deed of assignment or conveyance that alienates a land interest is important to register. This is because it is a document that affects land in which one party confers or extinguishes a right or title interest in land in favor of another party.

Although registration does not cure defects in title, a deed of assignment is a registrable instrument that they must register within 60 days after execution. This is according to section 25 of the Lagos State Land Instrument Registration Law.

Advantages of Registering A Deed of Assignment

There are several advantages to registering a deed of assignment, they include:

• It shows that the title is free of entanglements.
• It is difficult to plead an instrument that has not been registered since it is inadmissible in evidence.
• Where there are competing instruments registered, it gives priority to the first in time.

Who Pays For The Deed of Assignment?

As with any other commercial transaction, sellers provide receipts to buyers as confirmation of payment. In this context, the deed of assignment is also relevant. The buyer does not pay for receipts, rather the seller owes the buyer the responsibility of receiving a receipt. The Nigerian law compels the seller to execute a deed of assignment to the buyer.

In this scenario, the family’s leader and the most important members owe you a duty to sign the paper.

In Conclusion

In any land transaction in Nigeria, a deed of assignment is crucial because it serves as the main document between the vendor and the purchaser.

It highlights that they have completed all negotiations, investigations, and other necessary due diligence. Besides that, it shows that they’ve paid the purchase price and the parties to the transaction have met all other necessary conditions. Also that the vendor has transferred all of his rights to the property.

The parties involved must record the deed of assignment with the state government. They should do it where the land is located once all parties to a land transaction have signed it. The land-use legislation states that the registration of a land’s title must start with the governor’s approval.

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Nigeria: Importance & Purpose Of Deed Of Assignment In Nigeria

A Deed of Assignment is an important legal land document that records a sale of land and transfers interest and title in real property from one party to another starting from the commencement date stipulated in the document. It is a document usually demanded by the buyer of the real property at the conclusion of a property transaction and for it to be valid and binding on parties to the transaction; it must contain certain information. A deed of assignment is considered a must for the transaction of ownership in land.

The main purpose of a deed of assignment is to transfer an interest or assign the title of property from the seller (an assignor) to a new buyer called (the Assignee). For a deed of assignment to fit the above purpose, it must contain certain details or particulars that will be briefly discussed below:

• Particulars of the parties to the transaction (names, address, status).
• Date of transfer of ownership of the property from the vendor to the purchaser.
• Nature of assignor’s (vendors) title.
• The full description/particulars of the property with fittings & fixtures where applicable.
• History of the property being transferred from the first time it was acquired to the current time of sale, including documents it previously had to date.
• Details of a verifiable document that the property possesses.
• The consideration paid in respect of the property transaction (purchase price) and the willingness of the vendor to accept the price paid for the property.
• The nature of the transaction and the capacity of the assignor (vendor).
• Covenants both parties to the transaction undertake to fulfil.
• Signature of the parties and that of the witnesses to the transaction.
• Survey plan.
• Details of the Legal practitioner who prepared the deed.
• Section for the Governor’s consent to be signed and verified.

The importance of a deed of assignment cannot be overemphasized, as it is a formal contract duly entered and executed between two parties to a real property transaction, to transfer all the unexpired residue of land to the other party. It contains not only the basic requirements but goes further to include detailed terms of what the parties to the transaction have agreed upon.

It is important that a deed of assignment is drafted by a property lawyer, to ensure that the best interests of the parties to the transaction are duly represented. The deed of assignment is usually drafted by the assignee’s legal practitioner and given to the assignor (vendor) for vetting and execution. Where the property falls within an estate, the assignor’s legal practitioner may prepare the deed for the assignee’s lawyer to review.

Another great importance of a deed of assignment is that it serves as a valid root of title to the land. It acts as valid evidence of transfer, especially where there is a contention as to the validity of the land or where a third party tries to claim ownership of the same land.

It is also important that when the deed of assignment has been exchanged between the parties to the transaction, it is recorded or registered with the appropriate land registry where the land is situated for perfection purposes. Perfection comes at the post-completion stage which involves obtaining the governor’s consent, stamping of the deed of assignment, and finally, registration of the document to show legal proof that the property has exchanged hands and also to create public awareness that the property belongs to a new owner.

A deed of assignment is important in any land transaction because it acts as the main document between the vendor and the purchaser to show that all negotiations, investigations, and other necessary due diligence have been done; the purchase price has been paid; other necessary conditions have been fulfilled by the parties to the transaction and the vendor has transferred all his rights in the property to the purchaser.

Source: Mondaq

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Deed of Assignment

Updated: Nov 11, 2021

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Key description

• The Deed of Assignment, unlike the Deed of Lease, lets a party legally alienate their landed property to another, inclusive of their unexpired interest (usually 99 years under the Nigeria law and practice) based on a consideration. With the Deed of Assignment signed and executed under the relevant Nigerian real estate law regime, a party has no reversionary interest.

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PROCEDURE FOR THE REGISTRATION OF DEED OF ASSIGNMENT IN NIGERIA

A Deed of Assignment is a legal document that transfers a party’s rights and benefits to another party.

CHAMAN LAW FIRM

1/3/2024 4 min read

Quality, not quantity

We have made quality our habit. It’s not something that we just strive for – we live by this principle every day.

Cambridge English Dictionary describes it as, ‘a legal agreement to give an asset or to sell a debt to someone else and enables ownership of a life-insurance policy to be transferred from the existing owner to another person or organization. A deed of assignment is essentially for the Land purchases and the transfer of property and asset.

The importance of Deed of Assignment cannot be underestimated; it is valid evidence to title to land especially in dispute. The party who transfers rights and benefits is known as the’ assignor’, and the person who receives the rights and benefits is known as the ‘assignee’.

A valid deed of assignment must contain the following details:

1. Names, address, status of Participants in the transaction

2. The date on which the property was transferred from the vendor to the buyer.

3. The nature of assignor's (vendors') title’s.

4. The entire description/specifications of the property, including all prior documentation, from the time it was first acquired until the current moment of sale.

5. Details regarding the property's verified document.

6. The amount of money paid in a real estate transaction (purchase price), as well as the vendor's willingness to accept the price paid.

7. The nature of the transaction and the capacity of the assignor (vendor).

8. Signatures of the parties and witnesses 9. Survey plan 10. The details of the lawyer who drafted the deed. 11. The Governor's assent.

REQUIREMENT FOR REGISTRATION

1. Title applicant obtains an Application Form and returns the completed Application Form to the Lands Department together with the following supporting documents;

2. Tax clearance receipts from the applicant or, in the case of a corporation, two of the directors, for the previous three years.

3. An affidavit signed by the applicant, or in the case of a corporation, a Director or Secretary, attesting to the accuracy of the information on the Application form.

4. Affidavit of attestation by witnesses.

After the aforementioned requirements are fulfilled, the applicant can go ahead to execute the deed in compliance with the following procedure:

1. The Application form, along with any other supporting documentation, is to be sent by the Commissioner to the Permanent Secretary, who then sends it to the Director of Lands to be processed.

2. The Director of Lands directs the Schedule Land Officer in charge of the area in question to open a file, assign it a file number, and forward it to the Principal Valuation Officer for valuation.

3. The Land Officer II attaches a sketch plan of the property and submits it to the Principal Valuation Officer.

4. The inspection and valuation report are reviewed by the Principal Valuation Officer. The Principal Valuation Officer signs the report and returns it to the Schedule Land Officer if there are no problems in the computation or report.

5. The Schedule Land Officer advises the applicant of the fees that must be paid as well as the banks to whom the payments must be made. The Head of Accounts and/or the Sub-Treasurer receive a copy of the fee schedule.

6. The applicant pays the chosen banks and obtains copies of the bank tellers to the Sub-treasury and Accounts Departments.

7. Payments are confirmed by the Sub-treasury office by comparing bank tellers to bank manifests. If the payment information is included in the manifest, the applicant receives a receipt. However, if there is no record of payment in the manifest, the applicant should correct payments before requesting a receipt. This should be reported to the Director of Lands.

If the transaction follows the established processes, the Permanent Secretary analyzes the entire process and delivers the file to the Commissioner for approval. The Commissioner signs the approval and sends it to the Permanent Secretary, who then submits it to the Director of Lands.

Subsequently, the Director of Lands directs the Schedule Land Officer to make arrangements for stamping and registration, as well as to notify the applicant of the date when the registered Title document will be available for collection. The Schedule Land Officer submits the paperwork for stamping and registration to the Registrar of Deeds. Following which the document is registered by the Registrar of Deeds, and the applicant signs and obtains the registered title document.

Before the actual alienation or sale of any interest in land in Nigeria, the Governor's authorization is required. The Land Use Act stipulates that the Governor's consent must be acquired. Section 22 of the Act states that it is unlawful for the holder of a statutory right of occupation given by the Governor to assign, mortgage, transfer possession, sublease, or otherwise alienate his right of occupancy or any part thereof without first obtaining the Governor's consent. The Land Use Act further states that "when providing his assent to an assignment mortgage or sublease, the Governor may compel the holder of a statutory right of occupation to submit an instrument in evidence of assignment, mortgage, or sublease, and the holder shall send the said instrument to the Governor when so needed in order for the Governor's consent to be expressed by endorsement thereon."

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 [email protected]

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DIFFERENCE BETWEEN CERTIFICATE OF OCCUPANCY AND DEED OF ASSIGNMENT IN NIGERIA

The difference between a Certificate of Occupancy and a Deed of Assignment can be derived from their distinct features and the role they each individually play in the acquisition of title to landed properties in Nigeria.

Certificate of Occupancy

A Certificate of Occupancy is an authorized document of grant issued by the State Government to confer ownership and right of occupancy in a definite land for all purposes to an individual, group of individuals, or corporate bodies for a term of 99years.

Section 9 of the Land Use Act 1978 empowers the State Governor of the state in Nigeria where the land is located to issue the certificate of occupancy. The Section provides that “it shall be lawful for the Governor when a person is entitled to a statutory right of occupancy; to issue a Certificate under is hand in evidence of such right of occupancy”. 

One of the distinct features of a Certificate of Occupancy is that no land in Nigeria can bear two Certificates of Occupancy because it is the first document issued on land whether bare or developed, which has never been registered at the land registry. The land, upon which a C of O is issued, is first charted by the office of the Surveyor-General of the State or the Federation where it is Federal land. The essence of charting the land is to determine if it is free from any government acquisition.

Deed of Assignment

A deed is an important land document executed by parties in a land agreement to transfer the unexpired interest in land to another. Upon the completion of a land transaction between a buyer and a seller of land, a Deed of Assignment is executed in favor of the Assignee to evidence the transfer of the unexpired residue of the land by the Assignor to the Assignee, and such a Deed is registered at the Land Registry to perfect the acquisition.

A deed serves as the final document that will be executed between parties to a land transaction after full payment has been made by Assignee (buyer) and acknowledged by the Assignor (seller). It contains the details of parties to the transaction, the full description of the land, the consideration paid by the buyer, history of the land (which can be one whose title is derived from a Certificate of Occupancy), and the signature of the parties to the transaction.

To perfect the title conveyed by a Deed of Assignment, the Assignee (buyer) must carry out three basic steps to perfect his or her title which are;

• Obtaining the Governor’s consent and
• Stamping of the Deed of Assignment.
• Registration of the Deed of Assignment

The performance of the above steps gives priority of title to the buyer of the land against any subsequent claim of ownership to the land.

The distinction between the Certificate of Occupancy and Deed of Assignment

• A Certificate of Occupancy is issued by the State Governor or Government on new land and signed by the Governor, while a Deed of Assignment is an agreement drafted by the lawyer of the Assignee (buyer) and signed by the parties upon payment of the consideration and agreement of the terms stipulated and is only sent to the Governor for his consent as a means of perfecting the title.
• A Certificate of Occupancy is issued by the State Government for a term of 99 years from the commencement date stated in the C of O, while a Deed of Assignment has no fresh 99 years term, as the title commences from the date the unexpired interest in the land was passed.
• A Deed of Assignment must be recorded at the Land registry to show legal evidence that there has been an exchange of ownership of title in the land and to create awareness to the general public that the land is encumbered, while a Certificate of Occupancy is granted to indicate that the owner of the land has been granted a right of occupancy by the State Government where the land is located.
• A Deed of Assignment acts as the main document between a land seller and a purchaser to evidence proof of ownership in favor of the seller, while a Certificate of Occupancy simply shows that the holder is in exclusive possession of the land.
• In a Certificate of Occupancy, the Governor of a State upon which the land is located grants individuals, groups of individuals or company the land for 99 years to hold, use and occupy. A Certificate of Occupancy is issued by virtue of Section 9 (2) of the Land Use Act, while in a land transaction where a buyer sells his remaining interest in land to another without any reversionary interest a Deed of Assignment is issued.
• A Certificate of Occupancy issued by the Governor on land can be revoked on grounds of overriding public interest by Section 28 of the Act, while a Deed of Assignment cannot be revoked, but only the Governor’s consent granted upon the perfection of the Deed can be revoked.
• Finally, a Certificate of Occupancy is not a good root of title, especially where there are existing interests on the land, while a Deed of Assignment is a good root of title.

In closing, Certificate of Occupancy and Deed of Assignment are both legal means of acquiring title and ownership to land properties in Nigeria. Hence both documents must be properly investigated by a purchaser of land where the seller relies on these documents as his root of title.

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