By Layi Babatunde, SAN; FCTI
Over the years, it has been generally accepted that a purchase receipt issued to a purchaser of land is not a Registrable instrument, but may be evidence of an acknowledgement of money. However, many Land buyers are being issued receipts daily on the purchase of land. It is not being said that it is out of place to issue receipts to persons who pay for a piece or parcel of land or other landed property. The caution is that persons issued with such receipts need to do more than hold on to such receipts if they ever hope to have any document to show as evidence of title.
Quite a number of times, persons who have been issued with purchase receipt go on to apply for a Certificate of Occupancy. Most land buyers are apparently aware that since 29th March, 1978, land has been vested in various tiers of Government and therefore approach these Governments for the issuance of relevant Certificates. Based on these receipts and after meeting other conditions as may be imposed by the various Government authorities, a certificate as appropriate is issued. And because a certificate of occupancy is generally accepted as a Registrable instrument, it is accordingly registered in the name of the buyer, bearing an appropriate Registration Number, given by the Land Registry.
However, experience has shown that some of the receipts issued by land “owners” to prospective purchasers are indeed not worth more than the little piece of paper or indenture paper it is written or typed upon. For instance, it is a common practice that land purchase receipts are indiscriminately back-dated, so as to beat or mitigate the provisions of the Land Use Act. This certainly portends greater danger to land buyers in certain situations.
Take for example, where the land being sold was, previous to the coming into effect of the Land Use Decree, vested in a family. It follows that for any prospective purchaser to claim that he derived his title from the said family, prior to the coming into effect of the Land Use Act, he gets a receipt pre-dating 29th March, 1978, from such family. Now, family land has set rules governing its alienation. A purchase cannot bypass the rules and get a good title in the long run. Major in the rule, is that such a receipt must be issued by or with the consent of the family head (whom the law regards indeed as an INSTITUTION) and the majority of other principal members.
For purposes of illustration, let us take it that a prospective purchaser of family land negotiates the purchase and pays in 1997, but for reasons aforesaid, gets a receipt backdated to 1976. What happens, were it to be discovered later that the family head as of 1976 was not alive as of the time of this land transaction in 1997? Meanwhile, someone who became family head only in 1997 signs a receipt bearing 1976!
The unpleasant truth is that a certificate of occupancy issued by the Governor based on such misrepresentation rests on a very shaky foundation, if and when properly challenged (some would say in good faith). A certificate of occupancy issued on false or misleading information can be set aside by the court. Ditto for any approved plans. In fact, in some states, an endorsement is made on approved plans to the following effect:
“This approval becomes Null and void if it is discovered to have been obtained by false presentation.”
Prospective land purchasers should therefore not assume that a certificate issued under a misrepresentation by the Governor or other appropriate authority is conclusive of what the Certificate states. They will do well to adopt better lawful ways of mitigating the problems caused by the Land Use Act than accepting just any receipt. Buying Land is a far cry from buying any commodity, and no one should take chances with his hard-earned income. The wisdom in land purchase is to make haste slowly, ensuring that all necessary enquiries and documentation are made with all diligence and seriousness.
Extract from HINTS ON LAND DOCUMENTATION AND LITIGATION IN NIGERIA
Authored by LAYI BABATUNDE, SAN.
