PROPERTY LAW

UNIT 2

  • DEEDS
  • REQUIREMENTS FOR A VALID DEED
  • TYPES OF DEEDS
  • FORMALITIES AND REGISTRATION OF DEEDS

DEEDS

A deed is a formal written document that conveys or transfers an interest in real property. Under Nigerian property law, deeds are commonly used for the conveyance of land or real estate and must meet specific legal requirements to be valid. A deed is a special type of written contract that must be executed with a higher level of formality than ordinary agreements. In property law, a deed typically serves as the instrument for transferring legal title from one person known as the grantor to another known as the grantee. The document must be clear and indicate the parties involved, the property being transferred, and the nature of the transaction. Under Nigerian law, deeds are essential in land transactions because the land use act 1978 places all land in the hands of the government, and any transfer of legal title requires a formal process that often includes the execution of a deed.


REQUIREMENTS FOR A VALID DEED

According to Nigerian law, a deed must meet the following requirements to be considered valid:

  1. Writing: A deed must be in writing, as stipulated by the statute of frauds. This is particularly important in land transactions. See section 4 of the statute of frauds which requires that contracts for the sale or transfer of an interest in land be in writing.
  2. Parties: The deed must clearly identify the parties involved, specifically the grantor which is the person transferring the interest and the grantee which is the person receiving the interest. See the case of Mogaji v Cadbury (Nig.) Ltd (1985) 2 NWLR (Pt. 7) 393 where the court emphasizes the requirement for clear identification of the parties in a deed and the need for a proper description of the property being conveyed.
  3. Consideration: Although many deeds in land transactions are executed for consideration such as money, this is not always necessary for the validity of a deed. A deed without consideration may still be valid, but it would be considered a deed of gift.
  4. Description of the property: The deed must provide a clear and precise description of the property being transferred. This includes the location and size of the land. See the case of Mogaji v Cadbury (Nig.) Ltd (1985) 2 NWLR (Pt. 7) 393 where the court emphasizes the requirement for clear identification of the parties in a deed and the need for a proper description of the property being conveyed.
  5. Execution: The deed must be signed by the parties involved. The signature of the grantor is crucial, as this signifies their intention to be bound by the deed. Additionally, the deed must be attested by at least one witness.
  6. Seal: Traditionally, deeds were required to be sealed, but modern Nigerian law does not insist on a physical seal. The requirement for a seal has been substituted by the phrase “signed, sealed, and delivered.”
  7. Delivery: The deed must be delivered to the grantee. Delivery refers to the intention of the grantor to be immediately bound by the terms of the deed. See the case of Awojugbagbe Light Industries Ltd v Chinukwe (1995) 4 NWLR (Pt. 390) 379 where the court affirmed that a deed of assignment must be executed and delivered to pass legal title in land.

TYPES OF DEEDS

There are several types of deeds in Nigerian property law, each serving a different function in land transactions and they include the following:

  1. Deed of assignment: A deed of assignment is the most common form of deed used in Nigeria to transfer an interest in land from one party to another. It is executed after a contract of sale and serves as the formal document transferring ownership from the seller called the assignor to the buyer called the assignee. See the case of Savannah Bank of Nigeria Ltd v Ajilo (1989) 1 NWLR (Pt. 97) 305 where the court held that the transfer of land under the land use act requires the governor’s consent, and the deed of assignment must reflect this consent for it to be valid. The key elements of a deed of assignment includes the following:
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    1. The names of the assignor and assignee.
    2. A description of the property.
    3. The consideration paid by the assignee.
    4. Execution by the assignor and assignee.
  2. Deed of lease: A deed of lease is used to grant a leasehold interest in property. It sets out the terms under which the leaseholder known as the tenant holds the property, including the duration of the lease and the rental payments. See the case of Nigerian Telecommunications Ltd v Ogunbiyi (1992) 7 NWLR (Pt. 255) 543 where the court discussed the formalities required for a valid lease agreement, including the execution of a deed of lease for long-term leases exceeding three years.
  3. Deed of gift: A deed of gift is used when property is being transferred without consideration, typically between family members. Since there is no financial transaction involved, it is crucial that the deed be executed with proper formalities to avoid future disputes. See the case of Akande v Adisa (2012) 15 NWLR (Pt. 1324) 538 where the court illustrates the importance of the intention of the grantor in a deed of gift, and the court affirmed that delivery of the deed signifies the donor’s intention to pass the property.
  4. Deed of mortgage: A deed of mortgage is executed when property is used as security for a loan. In this case, the property owner called the mortgagor transfers an interest in the property to the lender called the mortgagee as collateral for the loan. See the case of Union Bank of Nigeria Ltd v Ozigi (1994) 3 NWLR (Pt. 333) 385 where the court established that a deed of mortgage must clearly state the rights and obligations of both parties and that the interest conveyed is limited to securing the loan.
  5. Deed of release: A deed of release is executed to release a party from any obligations or claims against the property. This is common when a mortgage is paid off and the mortgagee releases the interest held in the property. See the case of Woluchem v Gudi (1981) 5 SC 291 where the court highlighted the use of a deed of release in a situation where a party was discharged from legal obligations regarding a property.

FORMALITIES AND REGISTRATION OF DEEDS

In Nigeria, deeds must be registered to be effective against third parties. The registration of deeds is governed by the registration of titles law and the land registration act. See section 15 of the land instruments registration act (LIRA) which makes it mandatory for deeds affecting land in states that have adopted the act to be registered with the appropriate land registry. Unregistered deeds may still be valid between the parties but cannot affect third-party rights, especially in disputes involving ownership. See the case of Amankra v Zankley (1963) 1 All NLR 304 where the court stressed the importance of registering land instruments, noting that failure to register renders the deed inadmissible in evidence to establish title.


CONCLUSION

Deeds play a crucial role in the transfer and regulation of property interests in Nigeria. Understanding the different types of deeds, their components, and the legal requirements for their validity is essential for any property transaction. Proper execution, delivery, and registration of deeds ensure that property rights are effectively transferred and protected under Nigerian law.