UNIT 6

REGISTERED CONVEYANCING

Registered conveyancing is the process of transferring interests in land that has been registered under a formal land registration system. In Nigeria, the principal legislation governing registered conveyancing is the land use act of 1978, alongside the registration of titles law applicable in some states like Lagos. The purpose of these laws is to provide security of title and a formal system for recognizing and transferring ownership rights in land. Registered conveyancing simplifies land transactions by maintaining an official record of all registered land and interests in land. Once land is registered, its legal title is reflected in the land registry, and transfers or dealings with the land must be done following certain formalities to maintain an accurate and up-to-date record of ownership. The key principle of registered conveyancing is that the registration of land titles makes the registered owner’s interest in the land legally secure and easily verifiable, reducing the risks of fraud, mistakes, or multiple sales of the same piece of land.

LAND REGISTRATION UNDER THE LAND USE ACT

Under the land use act 1978, all land in urban areas is vested in the governor of each state, who holds the land in trust for the people. The governor has the authority to grant statutory rights of occupancy, which are the closest to a title in the land ownership structure. Such grants must be registered to be enforceable and to allow the holder to legally transfer their interest in the land. See section 22 of the land use act which requires the consent of the governor for any alienation, that is, sale, transfer, or mortgage of statutory rights of occupancy. Without this consent, any transaction involving the land is void. The process of obtaining consent and registering the transfer is a key component of registered conveyancing in Nigeria. See also the case of Abioye v Yakubu (1991) 5 NWLR (Pt. 190) 130 where the supreme court reiterated the supremacy of the land use act in governing land tenure in Nigeria and emphasized that any alienation of land without compliance with the act’s provisions is null and void.

REGISTRATION OF TITLES LAW

The registration of titles law governs the registration of land in certain states like Lagos. This law is particularly important in Lagos, where land transactions are abundant. The law provides that titles to land may be voluntarily registered, and once registered, future transfers and interests must also be registered. The registration system provides a conclusive record of ownership and ensures that a registered title is not easily disputed, thus securing the interests of the landowner. This is in line with the principle of indefeasibility of title, meaning that a registered title cannot be defeated except in cases of fraud, mistake, or other exceptional circumstances. The steps in registered conveyancing includes the following:

1. Investigation of title: Before any transaction, the buyer must investigate the seller’s title by conducting a search at the relevant land registry. This search ensures that the land is free from encumbrances and that the seller has the legal right to transfer the property. See the case of Akerele v Atunrase (1969) All NLR 201 where the court highlights the importance of due diligence in land transactions. The court held that a purchaser who fails to investigate title properly before purchasing property takes the risk of any defect in the title.
2. Governor’s consent: For land under a statutory right of occupancy, the seller must apply for the governor’s consent to alienate the property. See section 22 of the land use act. Without this consent, the sale is void and the case of Savannah Bank of Nigeria Ltd. v Ajilo (1989) 1 NWLR (Pt. 97) 305 where the court underscores the importance of obtaining the governor's consent in transactions involving statutory rights of occupancy. The court ruled that the failure to obtain such consent renders the transaction null and void.
3. Preparation of deed of assignment: A deed of assignment is drafted, which serves as the legal document transferring ownership from the seller to the buyer. This deed must be registered at the land registry.
4. Stamp duty and registration: The deed of assignment must be stamped and registered at the land registry. Registration is crucial as it ensures the buyer’s title is recognized under the law.
5. Issuance of certificate of occupancy: Once registered, the buyer may apply for a new certificate of occupancy in their name, which formally recognizes them as the owner of the property.

EFFECTS OF REGISTRATION

1. Legal protection: Once a transaction is registered, the purchaser’s interest is legally protected. In the event of a dispute, the registered document serves as evidence of ownership.
2. Indefeasibility of title: In line with the doctrine of indefeasibility, a registered title is immune to most challenges except in cases of fraud or mistake. See the case of Savannah Bank of Nigeria Ltd. v Ajilo (1989) 1 NWLR (Pt. 97) 305 where the supreme court held that failure to comply with the statutory requirement of obtaining governor's consent invalidated the transaction.
3. Ease of transfer: Registered land is easier to transfer since the title is publicly recorded. A potential buyer or lender can simply conduct a search at the land registry to verify the seller’s ownership.

ADVANTAGES OF REGISTERED CONVEYANCING

1. Certainty of title: Registration provides certainty of ownership, as the land registry maintains a clear and up-to-date record of the owner’s legal interest.
2. Reduces fraud: conveyancing minimizes the chances of fraudulent transactions since every transfer must be registered and is subject to legal scrutiny.
3. Simplifies transfer process: The process of transferring registered land is more straightforward and transparent, as there is a clear procedure for investigating and registering ownership.

DISADVANTAGES OF REGISTERED CONVEYANCING

1. Costly process: The process of obtaining governor’s consent, paying stamp duty, and registering documents can be expensive, making registered conveyancing more costly than unregistered transactions.
2. Time-consuming: The bureaucracy involved in obtaining consent and registering documents can delay the transaction process, especially in states with inefficient land registries.

CONCLUSION

Registered conveyancing plays a vital role in ensuring security and clarity in land transactions in Nigeria. The system reduces the risks associated with land transactions, providing both legal protection and certainty of ownership for purchasers. However, it requires strict compliance with statutory requirements, particularly under the land use act, to ensure the validity of transactions.