UNDERSTANDING REAL ESTATE TITLE DOCUMENTS
Opeyemi F. Oshobajo
Real Estate Addict // The Asset Informant// I Help People Achieve Their Investment Goals Through Real Estate Ownership Without Breaking The Bank // Interior and Architectural Solution Expert
Understanding real estate documents is important for anyone who is looking to purchase or own a property be it Land or a Home. It is important to be aware of the legal terminology and the different types of documents associated with property ownership.
Property documents contain information about the ownership and use of a particular piece of property. These documents provide evidence of title, describe the rights and obligations associated with the property and can be used to settle disputes between parties.
Before purchasing a property, it is essential to clarify the title of the land and review the key documents that demonstrate the ownership of the property in order to avert any disputes about who has the right to the property.
Even if a property is yours, another person could legally lay claim to it if your name is not on the title. However, as long as you have the appropriate title documents that are recognized by the government, you should have no concerns. The land registry office keeps a record of all legally recognized titles of land.
To avoid ownership controversy, one of the first questions you should ask before you buy a property is the title on it.
Land Classification
Land can be classified as either free or acquired. A parcel of land is considered free if the government has not indicated any interest whatsoever in that land. Such land is safe to buy because the title on it can be obtained without issues.
In most cases, such lands will either have a Gazette, a Certificate of Occupancy(C of O) or a Governor’s consent.
All lands that fall within areas that are designated as “urban areas? are under government acquisition until deemed committed or free.
There are two types of acquisition:
1. Committed Acquisition
2. Global / General Acquisition.
Committed Acquisition
A parcel of land is said to be under committed acquisition when the government has indicated an intention to use that land for a specific purpose such as the provision of amenities.
Such lands belong to the government and can never be available for use by individuals. If you purchase land that is under committed acquisition, it will be impossible for you to perfect your land title and you’ll only be occupying the land until the government decides to make use of it.
Global or General Acquisition
Lands that are under “general acquisition” or “global acquisition” can later be confirmed “free” or “committed” as the case may be.
Land under general acquisition can become free by a process called?excision.
“Excision is a process whereby the government releases a portion of an expanse of land that is not committed”?If a parcel of land that was formerly under acquisition becomes excised, it is then considered free and becomes gazetted.
The Gazette then becomes the title of the land and such land is safe to buy because a proper title can be processed on the land. A second case where lands under general acquisition can be released is if an individual purchase land that was under acquisition without going through an excision process.
Such lands can go through another process called “ratification” or “regularization” in which the landowner pays for the land to be ratified or regularized. The only condition in this case is that the land in question must not fall within a committed area and that the purpose for which the land was bought does not disrupt the original plan of the state’s government.?Conditions for ratification may differ from state to state.
MEANING OF VARIOUS TITLE DOCUMENTS
A Deed of Assignment is one of the transactional documents drawn up by a real estate attorney between the current title holder for a particular property and the new buyer.
In real estate transactions, a deed of assignment is a legal document that transfers the interest of the owner of that property?to the person to whom it is assigned (the assignee). When ownership is transferred, the deed of assignment shows the new legal owner of the property.
The deed contains very pertinent information for a real estate transaction, spelling out the date when the ownership was transferred and also giving a specific description of the property that is included in the transfer of ownership.
A Contract of Sale is a legal document used to outline the full details of a property purchase including payment terms and conditions. The Contract of Sale is used by parties to agree on some terms on or before the finalization of the transaction. It is relevant when a property is to be purchased by anyone specifically in instalments. However, It must be preceded by other documents transferring title to the applicable property.
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A survey plan is a map or drawing that shows the location, orientation, and dimensions of a piece of land or property. It is usually a document prepared by a surveyor and is used to describe the boundary lines and features of the land that is accurately measured and marked.
A survey plan must contain the following information:
An Excision means basically taking apart from a whole and the part that has been excised will be recorded and documented in the official government gazette of a particular state. In other words, not having an excision means the government could take possession of your land at any time without providing you with compensation even if you bought it “legitimately” from the Baale or the original dwellers on the land.
A Gazette is an Official record book where all special government details are spelt out, detailed and recorded.
A Gazette shows the communities or villages that have been granted excision and the amount of land that has been given to them by the government. This land, known as the excised acres or hectares, gives the traditional family the right to sell it to the public.
A Gazette is a powerful tool that the community can use to replace a Certificate of Occupancy to grant title to the villagers. The community or family head of a gazetted land has the authority to sign documents for people who purchase land within the excised area. If the government decides to revoke or acquire land located within a gazetted area, those affected are entitled to compensation. The best way to know if the land is under acquisition or falls within an excised/gazetted area is to get a surveyor to chart the site and take it to the surveyor general's office to do a land search.
A Certificate of Occupancy is a?land title document that is issued to an individual by the government, as legal proof of land ownership in Nigeria. A plot of land or property without a C of O can be seized at any time without any compensation paid. A C of O is accepted as a security or collateral for loans from banks and other financial institutions.
This document is another essential document for your real estate transaction to be deemed valid and legal. ?As the name implies, it is a document that shows the governor’s approval of a land transaction. The initial owner of virgin land is entitled to obtain a C of O but every subsequent buyer of that land is required to get a governor’s consent because there can only be one owner of the certificate of occupancy.
This is a document that shows the detailed information linked to the property purchased.
The allocation process is the final step in buying a property (Land or Home). It involves being granted possession of the property purchased after all payments and statutory fees have been paid. Allocation is usually done in batches by Real Estate Companies at intervals throughout the year.
The importance of a receipt in a real estate transaction cannot be overstated. In a real estate transaction, it is a document that confirms that a land seller has received the agreed amount of money from the buyer. The receipt shows the amount paid and the name of the person paid to and it is often required when registering land. Without a receipt, the seller can wake up one morning and say he was never paid the complete amount even if he was fully paid and win the case if taken to court.
It is important to understand the difference between a receipt and a deed of assignment when conducting a real estate transaction. A receipt is a proof that money was exchanged, while a deed of assignment is proof of ownership of a property. Therefore, it is essential to obtain a receipt that accurately reflects the amount paid and the recipient of the payment.
Conclusion
It is noteworthy that the laws governing property titles can be quite complex and frustrating so it is very important that you understand ownership rights. This will help any prospective property owner hedge against the risk of scams and bad investment experiences.
“Rule No. 1: Never lose money. Rule No. 2: Always remember rule No.1”
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