Everything You Need to Know About a Deed of Assignment

Imagine that after weeks or months of searching for your dream home in Nigeria, you finally found it. You strike a deal with the seller and hand over a substantial amount of money as payment. You also received a receipt and think you’re set to move in.

However, a few months later, you discover that someone else has also laid claim to the property. This became a legal battle and when asked to provide your evidence of ownership, you couldn’t provide a deed of assignment, whereas your rival was able to. You then realize too late that you didn’t ask for a deed of assignment.

This could be your story if you don’t request a deed of assignment after purchasing any real estate property. It is a crucial document that legally transfers ownership from the seller to you.

In this article, we have provided every detail you need to know about the Deed of Assignment and why it is essential for anyone looking to buy property in Nigeria.

What is a Deed of Assignment?

A Deed of Assignment is a legal document that facilitates the transfer of ownership of real property from one party (the assignor) to another (the assignee). It serves as formal evidence that the seller has relinquished their rights to the property and that the buyer is now the rightful owner.

The document is a vital part of ensuring that your investment is secure and recognized by law. It needs to be recorded in the land registry. This step is important because it provides legal proof of ownership and lets everyone know that the property has officially been transferred from the seller to the buyer.

Importance of the Deed of Assignment

The following are some reasons why the deed of assignment is an essential document:

1. Legal Recognition

The Deed of Assignment provides legal proof of ownership, which can protect you against fraudulent claims. Without it, you might find yourself in a situation where someone else asserts their right to your property.

2. Prevention of Disputes

This document clearly outlines the terms of the sale. These terms include details about the property, the parties involved, and any conditions attached to the sale. By having everything documented, you minimize the risk of misunderstandings or disputes down the line.

3. Facilitates Future Transactions

If you ever decide to sell or lease your property, with a deed of assignment, it will be easier for you to prove ownership. This therefore will facilitate smoother transactions.

4. Compliance with Legal Requirements

In Nigeria, certain land transactions require documentation under local laws. The Deed of Assignment ensures compliance with these regulations and helps you avoid legal complications.

5. Access to Financing Instruments

Financial institutions often require proof of ownership through a deed of assignment before approving mortgages or loans against the property. This makes it essential for securing funding for your investment.

The Process of Obtaining a Deed of Assignment

To obtain a valid Deed of Assignment in Nigeria, you have to follow the following steps:

1. Engage Legal Counsel

Only qualified legal practitioners can prepare documents related to landed properties in Nigeria. This is why it is crucial to have a lawyer draft your Deed of Assignment.

2. Governor’s Consent

According to the Land Use Act, obtaining consent from the state governor is mandatory for any land transfer. This step ensures that all transactions are properly documented and legally binding.

3. Stamping and Registration

After securing consent, ensure that stamp duties are paid on the transaction. Once this is done, you can finally go ahead and register your Deed of Assignment with the relevant land registry to establish legal proof that ownership has changed hands.

Format of a Deed of Assignment

When it comes to the deed of assignment in Nigeria, there’s a specific format you need to follow. Here’s what it typically looks like:

1. The Cover Page

The cover page should clearly list both parties involved in the transaction—i.e the assignor (the seller) and the assignee (the buyer). It should also include a description of the land being sold.

2. The Second Page

On the second page, you’ll want to include details about the parties involved in the real estate transaction, along with a brief history of how the seller acquired the land. This helps provide context and establishes ownership.

3. The Third Page

The third page is where you’ll describe the land in detail. This includes information about the surveyor who conducted the survey, the cost of the land, and confirmation that both parties agree to that price.

Additionally, it should outline any promises or commitments both parties are making to each other after the deal is finalized.

4. The Final Page

Finally, the last and final page of the document must include the signatures of both parties and any witnesses present during the transaction. There should also be a section for a commissioner of oaths or the governor to provide their consent for this transaction.

Conclusion

The Deed of Assignment is your key to securing the ownership of any property in Nigeria. Ensure that you have this document before finalizing any real estate transaction. It will protect you from potential disputes and fraud and pave the way for your future dealings as far as the property is concerned.