6 Important documents to look out for during a land transaction
Any individual planning to purchase landed property must be aware of and comprehend the various types of documentation that regulate land transactions. It’s unfortunate that only approximately 12% of property buyers understand what documents they should look out for and what purpose they serve. In fact, we once had a client who wanted to buy a house and was willing to transfer the funds without first requesting the necessary documentation. This is why so many investors are duped. However, in this article, we will be talking only about documents required for land transactions.
Having the right title documents that are important and recognized by different government regulations and laws on such landed properties is one of the most crucial strategies for making a claim for land ownership as well as in any landed property swaps. So, what documents should a buyer look out for?
LAND PURCHASE RECEIPT
A land purchase receipt is a normal receipt or document reflecting the receipt of payment for a particular property or land. Usually, the seller issues a receipt to the buyer upon the sale of a property.
CONTRACT OF SALE
The contract of sale of land is used by parties to agree on certain terms before the transaction is completed. It is relevant when the buyer wishes to pay for the land in installments, but it is not a registrable document and must be followed by other documents such as a deed of assignment, which transfers ownership once the payment terms have been met. The contract of sale can be revoked in cases where the buyer cannot meet the payment terms.
This land document depicts a parcel of land’s boundary measurements in order to provide a precise measurement and description of that land. In any property transaction, it exposes the genuine ownership status. It also aids in determining whether the land is part of any government-owned or committed lands/area.
DEED OF ASSIGNMENT
This is a critical document that must be requested and provided to a buyer following the completion of any land/property transaction between the Buyer and the Seller of the property in issue.
For a real estate transaction, the Deed of Assignment contains critical information. For starters, it specifies the date on which property ownership passes from one owner to the next. The deed also includes a detailed description of the property that will be transferred to the new owner. It may be drafted by the assignor and reviewed by the assignee or vice versa.
CERTIFICATE OF OCCUPANCY (C of O)
C of O is usually issued by the state government, indicating that a person owns a parcel of land or property. It is issued to individuals that have held a piece of land before 1979. State governments also give it to the allottees of the government’s land. An Individual who subsequently takes over land by way of sale does not require a new certificate of occupancy but rather a deed of assignment with the governor’s consent.
DEED OF LEASE
Also known as Governor’s Consent, this document is obtained whenever you buy land with C of O. It’s the land document that lets the Governor and the general public know that the land in question has changed hands.
The Deed of Lease was used to transfer property especially government properties in Ikoyi, Surulere, Victoria Island axis of Lagos state during the mid-70s and 80s after the promulgation of the Land Use Act. These lands were mostly federal government lands and high profile lands and it was the first foray into the issuance of the certificate of occupancies for the first time to people.
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