CERTIFICATE OF OCCUPANCY vs DEED OF ASSIGNMENT

By Mabel Orebela (AICMC)

What is a Certificate of Occupancy?

A Certificate of Occupancy, commonly known as a C of O, is a government-issued document that provides a person, a group of individuals, or a corporation the right to possess and occupy a specific parcel of land for all purposes for a period of 99 years. Section 9 of the Land Use Act 1978 empowers the State Governor of Nigeria, where the land is located, to grant a certificate of occupancy. The section stipulates, "it shall be lawful for the Governor if a person is entitled to a statutory right of occupancy; the issue of a Certificate shall be accompanied by proof of that right of occupancy." A distinctive characteristic of the Certificate of Occupancy is that it is the primary document issued for land, whether undeveloped or developed, that has not been previously recorded in the Land Registry. No Nigerian land can carry two Certificates of Occupancy simultaneously.

What is a Deed of Assignment?

A Deed of Assignment is a crucial legal document that records a land sale, transferring interest and title in real property from one party to another from the commencement date stated in the document.

Importance of Certificate of Occupancy

In Nigeria, a Certificate of Occupancy (C of O) serves as critical legal evidence of land title and ownership, with several significant implications:

• Proof of Ownership: It is the most recognized form of evidence for land ownership in Nigeria, offering legal protection against disputes.
• Security of Investment: It assures property owners that their investment is legally recognized and protected.
• Access to Credit: Financial institutions often require a C of O for loans and mortgages.
• Transfer of Ownership: A C of O validates the legitimacy of property sales or transfers.
• Land Development: It is necessary for obtaining development permits and complying with land-use regulations.
• Legal Protection: The C of O prevents unlawful encroachment and land disputes.
• Value Appreciation: Properties with a C of O are often valued higher in the market.
• Safeguarding Against Fraud: It helps prevent fraudulent land transactions.
• Urban Planning: The government uses it for infrastructure development and urban planning.
• Legal Compliance: Holding a C of O involves adhering to regulations and paying property taxes.

Importance of Deed of Assignment

• Transfer of Ownership: It legally conveys property rights from the seller to the buyer.
• Legal Validity: Without a proper Deed, property transfers may be invalid.
• Proof of Title: It ensures the buyer acquires a valid and marketable title.
• Protects Buyer's Interests: It includes warranties from the seller.
• Financial Transactions: Lenders require a registered Deed for property loans.
• Land Use and Development: Authorities need it for approving land development.
• Legal Disputes: It is a critical document in property-related litigation.
• Registration: Registration of the Deed provides public notice and legal status.
• Tax Implications: It is necessary for tax compliance.
• Succession Planning: It is used for transferring property to heirs or beneficiaries.

Differences Between a Certificate of Occupancy and Deed of Assignment

• A C of O is granted by the State Governor, signifying a right to occupy land for 99 years from the date of issuance. In contrast, a Deed of Assignment transfers the seller's residual interest without reversionary interest and does not reset the 99-year term.
• A Deed of Assignment establishes the seller's ownership, while a C of O certifies the holder's sole possession.
• A Deed of Assignment cannot be revoked; however, the Governor's consent is necessary for its perfection. Conversely, a C of O can be revoked for public interest under Section 28 of the Land Use Act.
• The Deed of Assignment is the preferred document when other interests are present on the property, rather than a C of O.

Details Found in a C of O

• Property details: Address, size, survey plan, and identification number.
• Landowner's information: Name, contact details, and photograph.
• Property usage: Intended use and any restrictions.
• Title details: Title information and acquisition method.
• Government approvals: Confirmation of approval and compliance.
• Encumbrances: Any limitations on the property.
• Duration: The validity period of the C of O.
• Seal and signatures: Government seal and authorized signatures.
• Serial number and date: Unique serial number and issuance date.
• Purpose: Specified use (residential, commercial, etc.).
• Special clauses: Any additional conditions.

Details Found in a Deed of Assignment

• Participants' details: Names, addresses, and status.
• Transfer date: When the property was transferred.
• Assignor's title: Legal right to sell.
• Property description: Details, including fixtures.
• Title history: Chain of ownership and documentation.
• Document evidence: Verification of the property's documents.
• Transaction amount: Sale price and acknowledgment of payment.
• Transaction nature: Terms and seller's authority.
• Signatures: Parties' and witnesses' signatures are required.
• Survey plan: A detailed survey layout.
• Lawyer's information: Details of the lawyer preparing the deed.
• Governor's consent: Required signature and validation.

How to Obtain a C of O and a Deed of Assignment in Lagos State

Certificate of Occupancy

1. File an application at the Surveyor General's office for land information.
2. Purchase and submit the private certificate of occupancy application form along with required documents.
3. Await a 21-day public objection period following a published notice.
4. The Land Use Allocation Committee conducts a site inspection and reports.
5. The Certificate of Occupancy is drafted, approved, and executed by the Governor.
6. It is stamped by the Commissioner for Stamp Duties and registered at the Land Registry.
7. The registered Certificate of Occupancy is collected from the Land Use Allocation Committee office.

Deed of Assignment

1. Verify the property's status for clear title and no encumbrances.
2. Engage a legal professional to draft the Deed of Assignment.
3. Calculate and pay stamp duty for legal validation.
4. Sign the Deed by all parties in front of witnesses, then notarize.
5. Register the Deed at the Lagos State Land Registry.
6. Obtain certified copies of the registered Deed of Assignment.
7. Complete the property handover process.