Sale Of Land 1 Flashcards
(38 cards)
What are the two categories of restrictions on sale of land in Nigeria?
A. Legislative restrictions
B. Contractual restrictions
In what situation may failure to complete a contract lead to rescission?
When time is made essential to the completion of the contract, unless the vendor ratifies the delay.
What is the advised time frame for completion of a contract to avoid uncertainties?
Within 3 months.
What two additional covenants are included in a lease contract?
- The lease is valid and subsisting
- The rents have been paid and the covenants have been observed.
What covenants are implied when conveying as a BENEFICIAL OWNER?
- The vendor has a good right to convey
- The vendor grants quiet possession to the purchaser
- The property is free from encumbrances
- Vendor agrees to indemnify the purchaser against claims by other claimants.
What must the vendor have to convey property legally?
The vendor must have legal capacity, not being a minor, insane person, or lunatic.
What should the contract expressly state regarding the vendor?
The capacity in which the vendor is conveying interest.
What is the common law interest rate for unpaid balance in a contract?
Usually fixed at 4%.
What is the implication of vacant possession in a sale?
The vendor is obliged to give vacant possession free from any claim of right to possession by a third party.
When does possession generally go hand in hand with ownership in a sale?
The purchaser is not entitled to possession until completion of sale.
What is the doctrine of caveat emptor?
It applies to patent defects but not to latent defects.
What must the purchaser do to avoid being bound by undisclosed defects?
Carry out an inspection of the property.
What does a formal contract provide for in a sale of land?
- Time for investigation of vendor’s title
- Certainty of terms
- Binding nature of terms
- Matters relating to chattels
What types of terms may be voided by the court in a sale contract?
- Purchaser retains vendor’s solicitor
- Purchaser pays for vesting order
- Parties cannot inquire into sufficiency of stamp duties
- Purchaser seeks consent of equitable owner
- Purchaser accepts imperfect title.
When does risk pass to the purchaser in a sale?
Immediately after the contract is exchanged.
What is the difference between chattels and fixtures?
Chattels are movable personal property; fixtures are fixed to the land.
What is the definition of a deposit in a sale contract?
A token payment that is non-refundable in the event of default by the purchaser.
What is an oral contract of sale of land?
Generally prohibited and not enforceable unless there is sufficient evidence of part performance.
What are the stages in the conveyance of land?
- Pre Contract
- Contract stage
- Post Contract Stage
- Completion/Conveyance Stage
- Post completion Stage
What is the doctrine of lis pendens?
It preserves the subject matter of litigation during the pendency of an action in court.
What are legislative restrictions on sale of land in Nigeria?
- Governor’s/Minister’s consent under LUA
- Statutory restrictions on age and nationality
- Town Planning Law regulating building designs.
What are the applicable laws to sale of land transactions in Nigeria?
- 1999 Constitution
- Statute of Fraud 1677
- Law Reform (Contract) Act 1961
- Conveyancing Act 1882
- Property & Conveyancing Law 1959
- Land Use Act 1978
- Stamp Duties Act
- Rules of Professional Conduct 2007
- Legal Practitioners Act
- Personal Income Tax Act
- Land Instrument Registration Law
- Lagos State Land Registration Law 2015
What does a formal contract of sale include?
- Parties
- Property
- Price
- Signature
- Special terms agreed by the parties.
What is the effect of exchange of contracts in a sale?
Parties become bound by the contract.
