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Land Acquistion / Purchase In Nigeria

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4. THE ACQUISITION/PURCHASE TRANSACTION PROPER



4.1. Where the Purchaser’s Solicitor is satisfied with the title, and a sale price agreed upon by the parties, he will draft the necessary documents of sale which include the following:



4.1.1. An Agreement for Sale of Land (preceding the actual sale).



4.1.2. A Deed of Assignment of title to Land.



4.1.3. A Power of Attorney to deal with the land.



4.1.4. A Purchase Receipt.



4.1.5. Form for application for Governor’s consent (Form 1C)



4.2 These documents (especially the Sale Agreement and the Deed of Assignment) must contain the names and descriptions of the parties, proper description of the property, the agreed purchase price, the acknowledgement of receipt of that amount, the capacity in which Vendor is selling, a Warranty that he has a right to sell in that capacity, condition that the contract shall be conditional on the obtaining of any requisite consents to the transaction, etc.



5. THE EXCHANGE OF CONTRACT



5.1. After ascertaining good title and preparing the necessary documents, the contract of sale is exchanged between the parties. The contract is engrossed in two parts and forwarded to the vendor’s solicitor for purposes of certifying the correctness of the contract, its approval and obtaining the vendors signature before sending back to the purchaser’s solicitor in exchange on payment of the agreed price.



5.2. The exchange of contract creates a binding agreement between parties to entitle either party to specific performance (i.e. to execute the Deed of Assignment). What is preferable is that signed documents are exchanged for the purchase price (either a transfer or payment by bank certified cheque). Although a common practice today is to have the purchaser credit the account of the vendor prior to any exchange of documents, I strongly advice against this.



5.3. On exchange of contact and after obtaining Governor’s consent the Assignor [Vendor] becomes a trustee of the legal estate while purchaser becomes a Beneficial owner and acquires equitable interest. He could deal on the land and becomes entitled to all improvements and increases in the value of property.



Compiled by Sola Adun (sola(at)ngex.com)



You may also read "BEFORE YOU PURCHASE THAT LAGOS PROPERTY Click Here







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