Everything You Need to Know About Deed of Assignment in Lagos

If you are buying or selling property in Lagos, you will likely come across the term “Deed of Assignment.” It is one of the most important documents in any real estate transaction, and understanding it is essential for protecting your rights and interests.

In this guide, we will break down everything you need to know about a deed of assignment in Lagos.

What is a Deed of Assignment?

A deed of assignment is a legal document used to transfer ownership of property from one person (the assignor) to another (the assignee). Think of it as a receipt that shows that the seller has officially handed over their rights to the buyer. It is not just a piece of paper; it is proof that the property is legally yours after the transaction.

Without a deed of assignment, there is no formal record that you now own the property, and this could lead to complications in the future, such as disputes or challenges to your ownership.

Why Do You Need a Deed of Assignment in Lagos?

As in other parts of Nigeria, land and property ownership can be complicated in Lagos. A deed of assignment in Lagos ensures that your ownership of the property is properly documented and recognized by law. It contains crucial details like:

The names of the buyer (assignee) and seller (assignor)
A clear description of the property
The date of the transaction
The agreed price or value of the property
Signatures of both parties involved in the transaction

This document is registered with the Lagos State Land Registry, providing legal proof of the property transfer. Without this registration, your ownership claim could be questioned in the future, especially if the land is resold or if there is a legal dispute.

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Key Elements of a Deed of Assignment in Lagos

To make sure the deed is valid and legally binding, it must include some specific details:

1. Parties Involved

This includes the names of both the person transferring the property (the seller or assignor) and the person receiving it (the buyer or assignee).

2. Property Description

A full and accurate description of the property being transferred is crucial. This typically includes details such as the size, location, and any unique identifiers that can distinguish it from other properties.

3. Terms of Agreement

The agreed-upon terms for the transfer, such as the sale price, and any conditions under which the transaction is taking place, must be clearly stated.

4. History of Ownership (Root of Title)

A section that details the property’s ownership history, tracing its legal ownership from the first person or entity to the current seller.

5. Covenants

These are agreements that bind both the buyer and seller to certain obligations. For example, the seller may promise that the property is free from legal disputes, while the buyer may promise to make payments on time.

6. Consent from the Governor

According to Nigerian law, a transfer of property or land in Lagos requires the consent of the Governor of Lagos State. This is a key element that cannot be overlooked. Without the Governor’s consent, the deed of assignment is incomplete and may not be legally recognized.

How to Obtain a Deed of Assignment in Lagos

The process of obtaining a deed of assignment involves several steps:

1. Drafting the Deed: First, the seller’s lawyer will draft the deed. This document must be prepared carefully, ensuring all legal requirements are met.

2. Signing: Once both parties agree to the terms, they’ll sign the document in the presence of witnesses.

3. Governor’s Consent: Next, you must obtain the Governor’s consent. This involves submitting the deed to the Lagos State government for approval. It can take several weeks to a few months to receive this consent, depending on the complexity of the transaction.

4. Stamping and Registration: After receiving the Governor’s consent, the deed must be stamped and registered with the Lagos State Land Registry. This is a good way to make the document official and legally recognizable.

What Happens If You Don’t Have a Deed of Assignment?

Skipping the deed of assignment or failing to register it properly can lead to major problems down the road. Here’s why it is critical:

Ownership Disputes: If there is no legal proof of the transfer, the seller (or someone else) could challenge your ownership. A deed of assignment provides clear evidence that you are the legal owner of the property.

Trouble Reselling the Property: When you decide to sell the property in the future, prospective buyers will likely want to see a registered deed of assignment. Without one, it will be much harder to prove that you own the property, which could delay or even stop the sale.

Government Issues: If the deed is not registered with the government, it might create problems when paying property taxes or applying for permits related to the property.

How Much Does it Cost to Register a Deed of Assignment in Lagos?

The cost of registering a deed of assignment in Lagos depends on several factors, including the value of the property.

According to Mixta Africa, lawyers generally charge between 5 to 10% of the property sale price to prepare the deed of assignment and other important documents.

Typically, fees include:

Consent Fee: This is paid to obtain the Governor’s consent, and it’s usually a percentage of the property’s value.
Stamp Duty: A tax paid for stamping the deed of assignment.
Registration Fee: This covers the cost of registering the document with the Lagos State Land Registry.

These fees can add up, so it is important to budget for them when planning a property transaction in Lagos.

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Conclusion

A deed of assignment in Lagos is a crucial part of any property transaction. It legally transfers ownership from one person to another, ensures that the property is free of disputes, and protects both the buyer and seller from future legal complications. Without this document, you might face ownership disputes, difficulties with reselling, or trouble with the government.

Before you purchase property in Lagos, make sure to hire a qualified lawyer to draft and register the deed of assignment. It’s an investment that can save you from future headaches and protect your rights as a property owner.

By following the steps outlined above, you can ensure that your property transaction is smooth, legal, and secure!

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