Deed of Assignment and How to Obtain It (+Sample)

Harrison, a property developer in Lagos wants to sell his property to Mr. Michael. They conclude on a price and Harrison executes a deed of assignment in favor of Mr. Michael. However, Harrison has not yet registered the property with the Land Registry, and the property is still governed by the traditional ownership system.

Once it was registered, the deed of assignment bestows legal ownership of the property on Mr. Michael, and he can now sell the property.

In Nigeria, this scenario is very common, especially in urban areas where traditional ownership systems synchronize with modern registration systems.

In this blog post, I will breakdown what a Deed of Assignment is, its importance, and the common mistakes to avoid.

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What Is Deed of Assignment?

A deed of assignment in Nigeria is a legally binding agreement document used in real estate transactions whereby the current owner (seller) transfers their right, title, and interest in a property to a new owner (buyer).

As vital as the deed of conveyance document is, so is the deed of assignment document and cannot be overlooked as it contains key details about the property, including its description, the terms of the sale, and the agreed-upon price.

When you are buying land or property in Lagos, you will most likely come across the term “Deed of Assignment” in your transactions. It is one of the most important house document in any real estate purchase you make. It helps protect your rights and interest.

It contains all the essential details of the transaction, including:

• The names and addresses of the parties involved
• A well detailed description of the property
• The agreed purchase price
• The date of transfer
• The terms and conditions of sale
• The witnesses
• The signatories attached to the document
• Plan for the survey.
• Information about the lawyer who prepared the deed.
• The Governor’s assent must be signed and validated in this section.

This document is the most recognized document for property transfer in Lagos state and is required for registration at the Lagos State Land Registry.

Why Is a Deed of Assignment Important?

1. Proof of Legal Ownership
If you do not have a registered deed of assignment, you cannot claim full ownership of a property. This document is recognized by government agencies, banks, and the court.

2. Hedge against Disputes
This property document protects the buyer and the seller from future disputes. It clearly states the terms of the transaction and serves as evidence in case of any dispute.

3. Requirement for Registration
The Lagos Land Registry requires this document for property registration and for obtaining the Governor’s consent, as mandated by the Land Use Act.

4. Facilitate Resale and Inheritance of Property
With a registered deed of assignment, you can resell a landed property or pass it on to your heirs.

In Lagos State alone, over 70% of landed properties are not properly registered, leaving many land owners at the risk of losing their investment during government land audits.

How to Obtain a Deed of Assignment

Follow this step-by-step guide to obtain this legal document:

1. Conduct Due Diligence: As a golden rule in property transactions, always conduct due diligence before you break the bank for this long term investment. Verify the seller’s title and ensure there is no encumbrance or dispute on the property.

2. Consult a Lawyer: Be sure to get a professional and qualified real estate lawyer to guide you on the process and ensure your deed of assignment is comprehensive.

3. Negotiate and Agree Terms: The seller and the buyer must agree on the price and terms of sale. The real estate lawyer should be a witness in this negotiation process.

4. Draft the Deed: After the price have been determined and agreed upon, a qualified property lawyer proceeds to draft the deed of assignment, ensuring all legal requirements are met.

5. Review and Execute the Deed: Both the buyer and the seller along with the lawyer will carefully review the deed before appending their signatures.

6. Governor’s Consent and Deed Registration: Once signed by all parties, the deed is sent to the Lagos State Land Registry for the Governor’s consent and final approval which may attract additional fees.

Common Mistakes to Avoid When Getting a Deed of Assignment

1. Failing to Register the Deed: An unregistered deed is not legally binding against third parties and is not recognized in the court of law.
2. The Use of Incomplete and Incorrect Documents: Always ensure to use a qualified property lawyer to draft and review your documents.
3. Ignoring Traditional Ownership Claims: This is a common mistake people make before purchasing a landed property. Always ensure the property is free from all customary claims before you purchase it.
4. Not Conducting Due Diligence: Ignoring this important step could lead you to buying disputed or encumbered property.
5. Delaying Governor’s Consent: Without this important step, your property is not recognized, and your ownership is not perfected under the land Use Act.
   

Conclusion

A deed of assignment is not just for formalities or an ordinary document. It is your legal shield in any property transaction. With over 70% of land transactions still unregistered, the risks are high. A deed of assignment is proof that you paid for the property and met all the conditions to claim rightful ownership.

Always insists on proper documentation, due diligence, and registration to secure your investment.

Frequently Asked Questions on Deed of Assignment

1. What is a Deed of Assignment?

A deed of assignment is a legal document that transfers ownership of land or property from one party to another or between a seller and a buyer.

2. Is a deed of assignment valid without registration?
No, it is not valid without registration. While it may be valid between the buyer and seller, it is not legally binding against third parties or in court unless registered at the land registry.

3. How long does it take to register a deed of assignment?
On average, it takes 3 to 6 months to register a deed depending on the efficiency of the Land Registry and the completeness of your documents.

4. What are the cost involved in obtaining a deed of assignment?
Costs include legal fees, stamp duties, registration fees, and Governor’s Consent charges. These can range from 5% to 10% of the property value.

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