What Is Deed Of Assignment?
A Deed of Assignment is a legal instrument that documents a land sale and transfers interest and title in real property from one party to another, beginning on the date specified in the document.
It is a document that is typically requested by the buyer of real estate at the conclusion of a property transaction, and it must contain particular information in order to be valid and binding on all parties involved in the transaction.
When it comes to the transfer of land ownership, a deed of assignment is required.
This document will be provided to you by any reputable real estate business in Nigeria after the completion of a property deal.
The primary purpose of a deed of assignment is to transfer an interest in or assign title to property from a seller (an assignor) to a new buyer (the Assignee). Before you say that a land transaction has been concluded, you MUST HAVE a .
A deed of assignment must include specific details to achieve the above stated aim, which we shall discuss shortly below:
1. Information about the Participants in the transaction (names, address, status).
2. The date on which the property was transferred from the vendor to the buyer.
3. The assignor’s (vendors’) title’s nature.
4. The entire description/specifications of the property, including any furnishings and fixtures.
5. The history of the property being transferred, including all prior documentation, from the time it was first acquired until the current moment of sale.
6. Details regarding the property’s verified document.
7. The amount of money paid in a real estate transaction (purchase price), as well as the vendor’s willingness to accept the price paid.
8. The nature of the transaction and the capacity of the assignor (vendor).
9. Both parties to the transaction agree to adhere to the terms of the contract.
10. Signatures of the parties, as well as signatures of the witnesses
11.The survey plan.
12.The name of the lawyer who drafted the deed.
13.The Governor’s consent must be signed and authenticated.
Importance And Purpose Of A Deed Of Assignment
The significance of a Deed of Assignment as a legal contract made and executed by two parties to a Real Estate transaction cannot be overemphasized
1. It Serves As A Legal Foundation For The Property’s Title.
A deed of assignment is also significant since it acts as a legal root of title to the property.
It can be used as proof of transfer, especially when the authenticity of the land is questioned or a third party tries to claim ownership of the same property.
Note, that is very important to also record the deed of assignment with the appropriate land registry. Particularly where the land still needs to be for perfected.
Perfection of title comes after the conclusion of the land transaction and this includes getting the governor’s consent, stamping the deed of assignment, and finally registering the document to produce legal documentation that the property has changed hands and to alert the public that the property has a new owner, perfection arrives at the post-completion stage.
2. It is required for the transfer of land from one party to another
It includes not only the fundamental conditions, but also the specific terms that the both parties have agreed to.
What Is The Aim Of A Deed Of Assignment?
A Deed of Assignment is very important and it’s critical to constantly consult your Real Estate lawyer for clarity on land matters, especially if you’re looking to buy land. The goal of a Deed of Assignment is to legally transfer ownership of a property or asset from one person or organization to another.
Who Drafts A Deed Of Assignment?
A deed of assignment should be drafted by a Real Estate Lawyer to ensure that it appropriately represents the interests of all parties involved in the transaction.
The assignee’s legal counsel drafts the Deed of Assignment, which the assignor then reviews and signs (vendor).
If the property is part of an estate, the assignor’s lawyer may prepare the deed for review by the assignee’s lawyer.
Who Is Required To Sign A Deed Of Assignment?
Both the assignor and the assignee(s) must sign the deed and the witnesses to both parties must sign as well.
WHAT TO BE ON THE LOOK OUT FOR IN ORDER TO ENSURE THAT YOUR DEED IS PROPERLY DRAFTED
1.The Introductory part
The introductory part should include the following:
1. The Parties names and addresses
2. A column for the date. It should not be dated since if you don’t stamp it within 60 days, you’ll be charged a penalty for each day you’re late.
3. Recital – This statement of how the landowner came to acquire the land, his intention to transfer his rights, and how the buyer consented to buy the land.
2.The Operative Part
The operative part should include the following:
1.Cost of the land: It should be expressly stated that the buyer (assignee) has paid the money and that the seller (assignor) has received the same from you
2.The property’s description – If it’s registered (c of o) and the c of o’s details. You can use this content to see if the C of O is authentic. So, if you acquired a piece of property and the seller claimed to have Certificate of Occupancy, your deed should say… Certificate of Occupancy No.xxx, dated xxxxx, and registered in the Lands Registry, Alausa, Lagos state, as xxxxxx.
The details of the survey plan and land size must also be included in the Deed of Assignment. eg
Measuring 664.414 Square Meters (particularly described and delineated and shown on survey plan No xx/x/xx/xxxx,)
3. OTHER TERMS / MISCELLANEOUS AGREEMENTS BETWEEN THE PARTIES
4. Conclusion: Because all parties in the transaction must prove testimonium. execution, and attestation, this section of the transaction is critical to the overall transaction
Sample Draft/Contents Of A Deed of Assignment
1) INTRODUCTORY PART:
a) THE COMMENCEMENT
THIS DEED of ASSIGNMENT is made this ………………day of……………….. 2022 between Mr XXXXXXXXXXXXXXof NoXXXXXXXXXXX Lagos State hereinafter called the “VENDOR” (which expression shall, where the context so admits, include his heirs, legal representative, successors-in-title and assigns) of the first part,
MR.XXXXXXXXXXX of No.xxxxxxxxxxxxxxxxxxxx, Lagos State hereinafter called the “PURCHASER” (which expression shall where the context so admits, include his heirs, legal representatives, successors – in- title and assigns) of the other part.
- WHEREAS the hereditaments hereinafter conveyed originally formed part of the large expanse of land owned and possessed by the xxxxxxxxxxxx under native law and custom from time immemorial.
- AND WHEREAS the hereditaments hereinafter described and intended to be hereby granted formed portion of a piece of land measuring about 70ft by 140ft situate and lying at xxxxxxxxxxxxLagos State, well and truly seised of by xxxxxxxxxxxx under and by virtue of a Deed of Conveyance dated the 14th day of September, 2000 and registered as No.xx at page xx in Volume 1990 of the Lagos State Lands Registry, Alausa, Ikeja, Lagos State, Nigeria.
- AND WHEREAS the said MR.xxxxxxxxxx as the beneficial owner of the property herein described has by virtue of a Deed of Assignment assigned same to MR.xxxxxxxxxxxxxand who has since been enjoying the said hereditaments without disturbance or interruption.
- AND WHEREAS MR.xxxxxxxxxxxxxxx the Vendor now has agreed to convey, assign his UNEXPIRED interest in respect of all that piece or parcel of land lying and situate at ……..No. 18,xxxxxxxxxxxxxxxx Lagos State measuring 500.000 Square Metres particularly described and delineated in the Survey Plan No xxx/xxx/xxx/2010/LA signed by Surveyor xxxxxxxxx a licensed surveyor AND the Purchaser has agreed to purchase the said piece or parcel of land.
NOW THIS DEED WITNESETH AS FOLLOWS:
That in consideration of the sum of
N30,000.000.00 (Thirty Million Naira) paid to the Vendor by the Purchaser before the execution of this Deed
THE RECEIPT CLAUSE
(The receipt whereof the Vendor hereby acknowledges,
COVENANT FOR TITLE
The Vendor as the BENEFICIAL OWNER do hereby ASSIGN UNTO the Purchaser all his rights, interest and entitlement
In respect of all that piece or parcel of land known as Plot xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Lagos State, measuring 500.000 Square Metres particularly described and delineated in the Survey Plan No xxx/xxx/xxx/2010/LA signed by Surveyor xxxxxxxxxxxa licensed surveyor attached to these presents TO HOLD the same UNTO and TO THE USE of the Purchaser free from all encumbrances.
THE VENDOR HEREBY CONVENANTS THAT:
- The Purchaser shall peaceably hold and enjoy the said parcel of land herein assigned without any interruption or disturbance from the Vendor or any person lawfully claiming through, under or in trust for him.
- The Vendor will assist the Purchaser to execute all relevant documents made available to him in favour of the Purchaser to enable him obtain relevant Governor’s consent and/or Certificate of Occupancy in respect of the land the subject matter of this agreement.
- The Vendor has represented to the Purchaser that he has the authority, right and power to assign, convey, grant and sell of the land herein already assigned.
- The Vendor agreed at all times hereafter to indemnity and keep indemnified, the Purchaser and his heirs, executors, administrators, legal and personal representatives and assigns against all cost, damage, losses and/or expenses incurred in consequence of any actions, loses and/or anything done by a rival claimant or any defect in title in respect of the demised property.
IN WITNESS WHEREOF the said parties hereto have hereunto set their hands and seals the day and year first above written.
EXECUTION AND ATTESTATION
SIGNED, SEALED AND DELIVERED
By the within named VENDORS
In the Presence of:
SIGNED, SEALED AND DELIVERED
By the within named PURCHASER
In the Presence of:
|ENDORSEMENT FOR GOVERNOR’S CONSENT|
I CONSENT TO THE TRANSACTION HEREIN CONTAINED
DATED THIS ……… DAY OF …………………, 20……
ATTORNEY- GENERAL AND COMMISSIONER FOR JUSTICE, LAGOS STATE.
FOR: EXECUTIVE GOVERNOR, LAGOS STATE.
Franking Of A Deed Of Assignment
The name and address and Legal seal of the lawyer who drafted the deed must be endorsed on the document as a legal requirement.
Registration of A Deed Of Assignment
It is necessary to register a Deed of Assignment or transaction that alienates a land interest.
The Land Registry records all land ownership transfers. This is to ensure that the State Government has accurate records on the title status of all lands under its jurisdiction at all times, as well as to act as a reference point for members of the public who may be interested in learning about the existence of any land rights in the State.
When both parties have signed the deed of assignment, it must be recorded in the land registry to demonstrate legal proof that the land has changed hands and that the public is aware of the transaction.
A Governor’s consent or registration is required for such a recorded deed of assignment. The Deed of Assignment lays forth the major points of the transaction between the seller and the buyer, ensuring that there are no misunderstandings or assumptions when the property is transferred to the new owner.
After the Deed of Assignment is signed, it must be officially registered and approved by the Governor in compliance with the Land Use Act, LFN 2004.
THE STEPS FOR REGISTRATION OF DEED OF ASSIGNMENT IN NIGERIA
Before the actual alienation or sale of any interest in land in Nigeria, the Governor’s authorization is required.
The Land Use Act stipulates that the Governor’s consent must be acquired. Section 22 of the Act states that it is unlawful for the holder of a statutory right of occupation given by the Governor to assign, mortgage, transfer possession, sublease, or otherwise alienate his right of occupancy or any part thereof without first obtaining the Governor’s consent.
REQUIREMENTS FOR REGISTRATION OF A DEED OF ASSIGNMENT IN NIGERIA
- The applicant will get an application form from a designated bank and fill up the form.
- The five-part Deed of Assignment or Conveyance formally executed by the transaction’s parties.
- Tax clearance receipts from the applicant or, in the case of a corporation, two of the directors, for the previous three years.
- An affidavit signed by the applicant, or in the case of a corporation, a Director or Secretary, attesting to the accuracy of the information on the Application form.
- Every person who signed as a witness to the transaction swore an affidavit of attestation.
Procedure For Registration Of A Deed Of Assignment In Nigeria
The applicant for a title obtains an Application Form and submits it to the Lands Department together with the required supporting documents:
• 6 copies of the parties executed Deed of Assignment
• The assignee’s current tax clearance certificate
• An affidavit signed by the applicant, or, in the case of a corporation, a Director or Secretary, attesting to the accuracy of the information on the Application Form.
Every person who signed as a witness to the transaction swore an affidavit of attestation.
• The Commissioner sends the Application form, along with any other supporting documentation, to the Permanent Secretary, who then sends it to the Director of Lands to be processed.
• The Director of Lands directs the Schedule Land Officer in charge of the affected region to open a file, assign it a file number, and transmit it to the Principal Valuation Officer for valuation.
• A Land Officer II completes this task and presents it to the Principal Valuation Officer with a sketch plan of the property.
The inspection and valuation report are reviewed by the Principal Valuation Officer. The Principal Valuation Officer signs the report and returns it to the Schedule Land Officer if there are no problems in the computation or report.
• The Schedule Land Officer advises the applicant of the fees that must be paid as well as the banks to which the payments must be made. The Head of Accounts and/or the Sub-Treasurer receive a copy of the fee schedule.
• The applicant pays the chosen banks and produces copies of the bank tellers to the Sub-treasury and Accounts Departments.
Payments are confirmed by the Sub-treasury office by comparing bank tellers to bank manifests. If the payment information is included in the manifest, the applicant receives a receipt. However, if there is no record of payment in the manifest, the applicant should correct payments before requesting a receipt. Such situations should be reported to the Director of Lands.
• The applicant delivers a copy of the receipts to the Schedule Land Officer, who attaches the receipts to the file and requests approval from the Director of Lands.
Before making his comments, the Director of Lands double-checks the application to confirm that all relevant information has been submitted, and then sends the file to the Permanent Secretary, requesting the Commissioner’s approval.
• If the transaction follows the established processes, the Permanent Secretary analyzes the entire process and delivers the file to the Commissioner for approval.
• The Commissioner signs the permission and sends it to the Permanent Secretary, who then submits it to the Director of Lands. The Schedule Land Officer is instructed by the Director of Lands to arrange for stamping and registration, as well as to notify the applicant of the day on which the registered Title document can be collected.
• The Schedule Land Officer submits the paperwork for stamping and registration to the Registrar of Deeds.
• The document is registered with the Registrar of Deeds.
• The applicant signs the registered title paperwork and takes it home.
FEES FOR REGISTRATION OF A DEED OF ASSIGNMENT IN NIGERIA
The following are the fees that the applicant will be expected to pay in this transaction:
- Fee for consent/registration.
- Stamp duty Fee
- Arrears in ground rent.
- Fee for inspection and preparation.
- Fee for using the computer.
If you default, you will be charged a 10% penalty.
A deed of assignment is essential in any land transaction in Nigeria since it serves as the fundamental document between the vendor and the buyer.
It emphasizes that they have done all essential agreements, investigations, and due diligence. Aside from that, it demonstrates that they’ve paid the purchase price and that all other transactional criteria have been met. In addition, the vendor has relinquished all rights to the land.