Perfection Of Title In Landed Property Transaction

Perfection of title includes stamping, registration and obtaining of Governor’s Consent. This is post-completion matter and it is the duty of the purchaser to ensure that he perfects his own title in the property he has just purchased.

STAMPING:

This is governed by the Stamp Duties Act. Below are the requirements and procedures for stamping your instruments.

1.Forward the title document to the Stamp Duties Commissioner within thirty days of execution otherwise you will be liable to pay penalty.

2. Ensure that you deliver at least two (2) copies.

3. The Commissioner will assess add valorem (based on value). It is usually between (3.5%) of the consideration of the transaction.

4. Payment should be made by bank draft and sometimes in the name of the state government.

5. Upon making payments, the commissioner will impress on the instrument the words, “stamp duty paid”.

GOVERNOR’S CONSENT:

This is provided in Section 22 of the Land Use Act, 1978. The consent clause is actually tied to the instrument itself immediately after the signature of the parties. There could be minor differences in some states (or FCT Abuja). Below are the basic requirements for obtaining Governor’s Consent:

1. When the transaction is completed, write a letter addressed to the Director of Lands Department, Ministry of Lands of the relevant state (or FCT, Abuja). Most states would not accept a letter not originating from a solicitor/Law firm.

2.         Attach photocopies of the deed/agreement.

3.         Attach photocopies of the Survey map showing the property in issue.

4.         After the Director’s Approval, the Lands Department will proceed to assess the amount to be paid by the applicant. A fair gauge is estimated as follows:

i.          Application form                     N200, N500

ii.         Approval fee                           % of the consideration

iii. Registration                                    N200, N500

iv. Stamp Duties                                 3% of the consideration

v. Capital Gain Tax                 10% of taxable value.

vi. Consent fees ranges from 8% – 30% depending on the state (or FCT, Abuja)

5. Many states insist on all payments being made by a certified cheque.

6. A consent tax clearance certificate of both parties is also required in a number of states (or FCT, Abuja).

7. Where one of the parties is company, evidence to show that the payee of its staff has been remitted to the government and the current tax clearance of the directors.

8. Where the transaction involves a developed property a building plan of the property.

9. For an assignment, a Certified True Copy of the Assignor’s land document obtainable from the Lands Registry.

10. Evidence of payment of ground rent up to date.

11. Economic Development Levy receipt.

12. Charting fee

13. Endorsement fees

14. It would also be advisable that in an assignment, the following clause is inserted in the instrument. “The Assignee herein mentioned hereby undertakes to pay all government levies inclusive of land charges that my be imposed from time to time by the state government.

Registration:

A conveyance is a registrable instrument under the Land Instrument Registration Law/Act. An instrument will not be registrable unless the Governor’s Consent has been obtained and it is stamped.

Every Registrable instrument must be registered within sixty (60) days of execution otherwise it is not admissible in proof title and will lose priority.