UNIT 8

FREEHOLD

Freehold refers to the ownership of real property (land and buildings) for an indefinite period. It is the most complete form of ownership one can have under Nigerian law, providing the holder with full control over the property, subject to statutory and regulatory constraints. This type of ownership can be contrasted with leasehold, where the ownership is for a specified duration. See section 43 of the Constitution which guarantees the right to acquire and own immovable property anywhere in Nigeria. This section underpins the concept of freehold ownership by providing a constitutional basis for property rights and section 34 of the Land Use Act which provides for the conversion of freehold titles existing before the Act into statutory rights of occupancy. This ensures that previous freehold rights are preserved, albeit under a new legal framework. See also the case of Savannah Bank Ltd v. Ajilo (1989) 1 NWLR (PT. 97) 305 which clarified the implications of the Land Use Act on pre-existing freehold titles and the Supreme Court held that freehold titles existing before the Act could be converted to statutory rights of occupancy, preserving the ownership rights of the holder, the case of Maduke v. Maduke (2011) 12 SCNJ 105 where the Supreme Court reaffirmed that holders of freehold titles before the Land Use Act are entitled to statutory rights of occupancy and the court emphasized the protection of property rights under the Act and the case of Olodo v Joseph (2014) LPELR-24383(CA) where the Court of Appeal in this case discussed the nature of freehold estates in the context of the Land Use Act and held that the Act did not abolish freehold titles but rather converted them into a form of statutory right, ensuring continuity of ownership.

CHARACTERISTICS OF FREEHOLD

1. Indefinite duration: this is a key characteristic of freehold ownership is that it does not have a fixed duration. The owner holds the property for an indefinite period, potentially forever.
2. Full control: This is where the freeholder has extensive rights over the property, including the right to sell, lease, or bequeath it. The owner can also make alterations to the property, subject to planning and zoning laws.
3. Inheritability: this is where freehold property can be passed down to heirs through inheritance. This makes it an attractive form of property ownership for those looking to secure assets for future generations.
4. Exclusive possession: this is where the freeholder has exclusive possession of the property, meaning they can exclude others from entering or using the property without permission.

TYPES OF FREEHOLD ESTATES

1. Fee simple absolute: this is the most common type of freehold estate because it provides the maximum rights to the owner, including the right to dispose of the property during their lifetime or upon death.
2. Fee tail: A fee tail estate limits the inheritance of the property to the direct descendants of the original owner. This type of estate is not commonly practiced in Nigeria.
3. Life estate: A life estate grants ownership for the duration of an individual's life. Upon the individual's death, the property reverts to another party, usually specified in the original grant.

ADVANTAGES OF FREEHOLD

1. Long-term security: this is where freehold ownership provides long-term security for the owner and their heirs, given its indefinite duration.
2. Flexibility: this is where owners have the flexibility to use the property as they see fit, subject to legal and regulatory constraints. This includes the ability to sell, lease, or develop the property.
3. Value appreciation: this is where freehold properties generally appreciate in value over time, providing a significant financial asset for the owner.

DISADVANTAGES OF FREEHOLD

1. Cost: this is where acquiring freehold property can be expensive, often requiring substantial financial investment upfront.
2. Maintenance responsibility: this is where the freeholder is responsible for all maintenance and upkeep of the property, which can be costly and time-consuming.
3. Legal complexity: this is where navigating the legal landscape of freehold ownership, particularly in relation to the Land Use Act, can be complex and may require legal assistance.

CONCLUSION

Freehold ownership remains a fundamental aspect of property law in Nigeria, offering significant benefits in terms of security, flexibility, and potential for value appreciation. Despite the changes introduced by the Land Use Act, the concept of freehold continues to be recognized and protected, ensuring that property owners can enjoy long-term and robust rights over their land and buildings.