Understanding land title documents

Land can be described as a free gift of nature. It was stationed to provide a platform to help man’s existence with huge mineral resources. Properties cannot exist without land and whatever is permanently invested on land becomes part of the land. Its ownership and policies vary differently in countries and environments, although there are similarities.

Land ownership and administration in Nigeria is controlled by the government since the promulgation of the Land Use Act of 1978. Before the Act, land was assigned, transferred or owned in perpetuity, which means it was administered or conveyed as freehold title. After the Act, land ownership and administration came on the basis of 99 years assignment, resting on the sole control of the state government to hold in trust for the citizens.

To perfect ownership of land, a buyer has to understand the title documents that empower, strengthen and legitimise his hold on the land as follows:

Certificate of Occupancy (C-of-O)

This is regarded as the first and final title given to a property owner by the government when assigning him a piece of land/property within a particular scheme. It is a pioneer title and every other title derives from it. It is always 99 years leasehold assignment and renewable after. Family or community lands are also shortlisted to apply for this document to authenticate their rights over the inherited land. Most of them, however, apply for customary right of occupancy which is mostly given by their local authority (local government) and which is cheaper and easier to secure.

Deed of Sublease

This is derived from the C-of-O. When the original owner of the root title has sold his rights or interest in the property, he divests his rights through a sublease or Deed of Assignment if he is handing over the entire root title. But if he is keeping part of his investment, the vendor gives sublease. The subleassor exercises rights over the property, authenticating the document by applying for the Governor’s Consent on payment of fees. Governor’s Consent fees vary from state to state, but once all fees are paid and consent got, the new buyer exercises superior authority over the property.

The consent now supersedes and can be used as a security or collateral. It is a recognised registrable instrument with citation or search numbers attached. It is less than 99 years and the buyer enjoys the unexpired term on the title. Most times the root title is kept by the original allottee or vendor. Subleases are mostly given when you are buying from schemes, especially private schemes which already have one unified Certificate of Occupancy to cover the entire estate and decided to sell a portion to an investor.

Deed of Partitions

This is derived when significant part of your property is sold out, i.e., half of your property. The interest of a part is divested and the new owner is given part of the interest through the preparation of this document. The document has some resemblance with Deed of Sublease. It will be registered on application for Governor’s Consent which will give the new owner the right to administer or resell the part bought from the original owner. This can also be used as a collateral or equity to raise money through banks.

Deed of Assignment

This is prepared when the vendor is assigning his entire interest to a new buyer. He hands over his root title (i.e., C-of-O) to the buyer who will now apply for his consent papers with prepared deed at the governor’s office or Lands Registry. This is a very popular document in Nigerian real estate market.