Disclaimer: This article is not a legal advice. It is for education
Real estate is profitable, but buying land or house when there are parties contesting ownership is wrong. This is a fact that everyone knows here in Nigeria but this article is meant to bring to your knowledge how to find out when there is a litigation or a dispute in a land or house you want to buy in Nigeria.
We have repeatedly advised that you must engage a Lawyer of your choice whenever you want to buy a property. The problem here in Nigeria is that people ignore this advice and go into property transaction on their own until there is a problem.
The principle is that once there is a dispute over a property and the matter is in court, the property cannot be sold, leased, mortgaged, or altered until the court decides. Akiboye v Adeko (2011) 6 NWLR Pt 1244 p.415: It is known as the doctrine of Lis pendis , the doctrine prevents a party from “overreaching” court judgment by transferring title before decision. Niki Tobi JSC in Matthew Enekwe v IMBN Ltd (2006) 12 SC 82: noted “A person who buys real property in pendency of litigation has bought litigation for himself. His fortune will be dictated by outcome of the case.”
THESE ARE WAYS TO FIND OUT when there is a dispute in the land or house.
1: Start your purchase by visiting the property on your own without the seller or the agents. Ask questions from Neighbors. Do this as many times as you can. Use proxies at different times to do this as fraudulent sellers know this practice, therefore they notify some dubious neighbors to give you wrong information in their favor. They station informants around as they bring you for inspection so when you come back, these informants will approach you to deceive you with wrong information. Be careful upon inspection of properties.
2: If the property is family land, do the same. Go to the family heads and other members of the executives of the family. If you know the enemies of the family, go to them and ask questions, you may get some useful information
- Court Search: Search at High Court, Federal High Court, Land Use Tribunal registries in the property’s jurisdiction. Ask for “Certificate of Lis Pendens Search”. Lagos, Abuja, Rivers now have e-filing portals where cases can be tracked by party’s name/plot. Get an expert in this area to conduct this search so he/she would cover appropriate areas. This applies in all states of Nigeria.
- Land Registry Search: Land Instruments Registration office of each state. Search for caveats/pending registration. Ask if “Lis Pendens Notice” has been lodged. Section 15 Land Instruments Registration Law Lagos allows lodging notice of pending suit on title.
- Survey and C of O verification: Get survey plan, verify at Surveyor General’s office. Here we advise that you take your surveyor to the property to pick the coordinates of the land and confirm it is the same with the ones in the survey plan in the title you are verifying. Conduct the search with the coordinates you have picked, but you must ensure surveyor is using the latest equipment that can pick the current coordinates of the land. The reason for this is because in some cases the land identified in the title document is different from the land that is physically being sold, this could be as a result of fraud, mistake or ignorance. Whichever it is, find out.
- Family/Probate Registry: For family land check with Local Government Area where the land is located and then check with the probate registry too. Many family disputes start here.
- 5. Bank Search:Confirm property is not pledged/mortgaged in litigation with bank or any financial institution. Read the cases bello for more clarity.
- Osagie v. Oyeyinka & Anor (1987) 3 NWLR Pt. 59 pg. 144 [SC]
- Ogundaini v. Araba (1978) 6 & 8 SC. 55
- Nigerian Industrial Development Bank Ltd; M.M. Adaba v. Kan Biscuits Company Ltd [SC]
- Fidelis Ohaegbu & 2 Ors v. The Registered Trustees of the Capuchin Friars Minor Nigeria 10 NWLR Pt. 1839 P. 506
The summary of the judgements in the above cases by the supreme court is that the doctrine of lis pendens prevents the effective transfer of rights in any property which is the subject matter of an action pending in court.
The title of this article is “property pending litigation “but PROPERTYGROOM expanded it to draw your attention to the fact that there are other disputes which may have not gone to court that may affect you as a purchaser at the end. Take your time and hire a professional, in most cases a lawyer of your choice to conduct a proper investigation on any property you want to buy, A simple search at the Land’s ministry is the beginning.
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