Sale Of Land

Question 1

What are the ways a person can acquire an interest in land?

Answer 1

A person can acquire an interest in land by inheritance, gift, or purchase.

Question 2

What is the age restriction for acquiring interest in land under the Land Use Act?

Answer 2

Under section 7 of the Land Use Act, a person under 21 years of age cannot acquire interest in landed property directly.

Question 3

What are customary restrictions on land transfer?

Answer 3

Customary restrictions require consent from the communal or family head before transferring customary or family lands.

Question 4

What statutory restriction exists for land transfer?

Answer 4

Section 22 of the Land Use Act requires obtaining the consent of the Governor before any transfer of interest in land.

Question 5

What is the restriction on land transfer to foreigners?

Answer 5

Section 47 of the Land Use Act restricts the transfer of land to foreigners without the approval of the National Council of States.

Question 6

What is the doctrine of lis pendens?

Answer 6

The doctrine of lis pendens states that no sale of land pending a dispute regarding its title will be valid.

Question 7

What is an oral/parole contract in land sale?

Answer 7

An oral/parole contract is a sale of land without any written agreement, generally unenforceable by law.

Question 8

What conditions must exist for an oral sale of land under customary law to be valid?

Answer 8

The purchase price must be paid fully, the purchaser must take possession, and there must be at least two witnesses.

Question 9

What is an open contract?

Answer 9

An open contract is a written sale of land that provides only the bare minimum requirements of the Statute of Frauds.

Question 10

What are the advantages of an open contract?

Answer 10

It is binding on the parties and can sustain an order for specific performance.

Question 11

What are the disadvantages of an open contract?

Answer 11

Important terms are orally agreed upon, making it difficult to prove disputes, and the purchaser usually acquires only an equitable title.

Question 12

What is a formal contract in land sale?

Answer 12

A formal contract is a modern sale of land that follows the legal stages for transferring legal interest to a purchaser.

Question 13

What are the advantages of a formal contract?

Answer 13

It allows for title investigation, ensures the contract survives the death of parties, and prevents unilateral price increases.

Question 14

What is the significance of a deposit in a land sale?

Answer 14

A deposit ensures commitment from the purchaser and prevents the vendor from selling to another person.

Question 15

What is the difference between a deposit and part-payment?

Answer 15

A deposit is a security for commitment, while part-payment is a portion of the agreed purchase price.

Question 16

What are the stages in the sale of land?

Answer 16

The stages include pre-contract, contract, post-contract, completion, and post-completion stages.

Question 17

What is required for a vendor to deduce title?

Answer 17

A vendor can deduce title by proving the root of title or producing an abstract and epitome of title.

Question 18

What constitutes a good root of title?

Answer 18

A good root of title must be genuine, establish legal and equitable ownership, adequately describe the property, and not cast doubt on its authenticity.

Question 19

What are examples of a good root of title?

Answer 19

Examples include a registered deed of assignment, a registered deed of legal mortgage, and a court vesting order.

Question 20

What must a good root of title adequately describe?

Answer 20

The property and clearly state or describe the owner.

Question 21

What should not cast doubt on the authenticity of a title?

Answer 21

Nothing on the face of it should cast doubt on its authenticity (integrity).

Question 22

What is a requirement for a good root of title regarding higher interests?

Answer 22

It must not be subject to a higher interest; Akinduro v Alaya.

Question 23

What are examples of a good root of title?

Answer 23

A Deed of Assignment (registered), A Deed of Legal Mortgage (registered), A Deed of Gift, Court Vesting Order/Certificate of purchase, Assent, Certificate of title issued by the Court for a judgment debtor’s property.

Question 24

What constitutes a bad root of title?

Answer 24

A Will, A Deed of Lease, An Equitable mortgage, A Power of Attorney, Certificate of Occupancy (unless it is a state grant or statutory right of occupancy).

Question 25

What is the first step in investigating the title?

Answer 25

The purchaser’s solicitor should investigate the title after the vendor has deduced his title.

Question 26

What should the purchaser do upon receiving the abstract/epitome of title?

Answer 26

The purchaser should proceed to verify the authenticity and genuineness of the documents relied on by the vendor.

Question 27

Where should searches be conducted to investigate title?

Answer 27

Searches at the Lands Registry, Companies Registry, Probate Registry, and through Traditional Evidence.

Question 28

What is required for a search at the Lands Registry?

Answer 28

A written application stating the particulars of the property, accompanied by a letter of consent from the owner and evidence of payment of the search fee.

Question 29

What should a search report contain?

Answer 29

Letterhead of the legal practitioner, title of the search report, date of search, place of search, name of owner, description/nature of title, valuation report (for Mortgage), encumbrances, comments/recommendation.

Question 30

What can a purchaser’s solicitor do if ambiguities arise during the title investigation?

Answer 30

He has a right to make a requisition by asking questions aimed at clearing the ambiguity.

Question 31

What are some reasons for conducting pre-contract enquiries?

Answer 31

To ascertain a good root of title, discover patent defects, ensure clear registration, avoid future disputes, avoid constructive notice, and confirm requisite consents.

Question 32

What are the effects of failing to investigate the vendor’s title?

Answer 32

The purchaser may acquire a bad root of title, face constructive notice, encounter future disputes, and the legal practitioner may be liable for professional negligence.

Question 33

What does the completion of sale of land procedure entail?

Answer 33

Preparing the deed of assignment or conveyance and executing the deed, preceded by a completion (financial) statement.

Question 34

What does a completion statement convey?

Answer 34

The financial commitment of the parties and any other financial obligations towards successful completion.

Question 35

What amounts to completion for the vendor?

Answer 35

Conveying a good root of title and delivering actual possession and enjoyment.

Question 36

What amounts to completion for the purchaser?

Answer 36

Accepting the title, taking possession of title documents, obtaining a draft for payment of the balance, and taking possession.

Question 37

What documents should the purchaser collect on completion?

Answer 37

Copies of the executed deed of assignment, all prior original title documents, receipt of payment of outgoings, duly executed form for Governor’s consent, and original Power of Attorney if applicable.

Question 38

What is required for applying for a Governor’s consent?

Answer 38

The application must be made in the prescribed form, submitted with a covering letter, evidence of payment of consent fee, tax clearance certificates, and other relevant documents.

Question 39

What is the consequence of failing to pay stamp duties on a deed of assignment?

Answer 39

The instrument will not be accepted for registration and may be inadmissible in court unless duties are paid.

Question 40

What is the importance of registering title documents?

Answer 40

It indicates that the title is encumbered, ensures admissibility in evidence, and gives priority in cases of rival instruments.

Question 41

What is the nature of the receipt given by Mr. James to Chief Nath?

Answer 41

It is an open contract of sale of land, binding and enforceable against the parties.

Question 42

What is the effect of Mr. James’s death on the transaction?

Answer 42

His death will not affect the transaction as his personal representatives will complete it.

Question 43

Why should parties execute a formal contract of sale before completion?

Answer 43

To ensure clarity and enforceability of the transaction.

Question 44

List four reasons to investigate the title of the vendor.

Answer 44

To ascertain a good root of title, discover patent defects, ensure clear registration, and avoid future disputes.

Question 45

Is it advisable for one solicitor to represent both parties?

Answer 45

Generally not advisable unless the vendor’s title is sound, terms are clear, no likelihood of dispute, and consideration is small.

Question 46

What stages should parties follow in the sale of land for valid title transfer?

Answer 46

Obtain epitome and abstract of title, conduct physical inspection, conduct searches, carry out family/communal enquiries, raise requisitions, and prepare a search report.