NIGERIAN LAW SCHOOL
LAGOS CAMPUS
2015/2016 SESSION (NOVEMBER SET)
PROPERTY LAW PRACTICE
WEEK 4 (DEEDS)
TASKS
FOR NOVEMBER 25, 2015
Mr Bashir Kitunde is a retired
Nigerian Army Colonel and lives at 23, Uguru Street, Yaba, Lagos. He is the
owner of the two plots of land at 55 Ladoke Lane, Ikeja, Lagos, covered by the
Certificate of Occupancy No 864500 dated 11/11/2008 and registered as
23/23/2008B in the Lands Registry, Ikeja, Lagos. He purchased the property in
2008, and in 2009, he erected a block of nine flats on the property. He retired
in May 2014 and obtained a loan of N250 million from Skye Bank Plc of 27,
Marina, Lagos, and used the property at 55, Ladoke Lane, Ikeja, Lagos as the
collateral. In July 2014, he purchased the following properties with the loan
he obtained from Skye Bank:
-
a four bedroom bungalow
in Enugu, Enugu State;
-
a duplex in Ilorin,
Kwara State;
-
a block of four flats
at Sapele, Delta State,
-
and a three-bedroom bungalow at 119 Balogun
market Road, Obalende, Lagos.
Now, with a view to raising money
to repay the loan he took from Skye Bank and also to establish himself in
business, Mr Kitunde has agreed to do the following:
-
to create a term of six
(6) years over the property in Enugu in favour of Ogui Fish Farmers
Microfinance Bank Limited currently having its head office at 34, Lam Crescent,
Ogui, Enugu; rent is N6 million per annum.;
-
Mr Kitunde plans also
to obtain a loan of N50 million from GTBank of 16, Adeyemo Alakija, Victoria
Island, Lagos, and to use the property at Sapele as security for the loan.
-
He has also concluded
plans to transfer his unexpired residue in the property at Obalende to the
Lord’s Chosen Church, a body registered under Part C of the Companies &
Allied Matters Act, Cap C20, LFN, 2004 for N200 million only,
-
and and to create a
term of three years over the property in Ilorin in favour of Alhaji Kam Saliu of 67, Gudu Street, Ilorin, Kwara
State.
Mr Kitunde wants DonPad Properties
Limited of 100, Government Secondary School Road, Ilorin, to handle the transactions
in respect of the properties outside Lagos, on his behalf. The Company is owned
by Mr Kitunde’s classmate in the university, Mr Don Padua. Mr Kitunde is
undecided on how else to use the property at Ikeja, Lagos to raise some more
money, in view of the fact that the property is still the subject of a
subsisting mortgage with Skye Bank.
Mr
Kitunde had earlier in October 2014 instructed Mr Sam Duru (a solicitor) to
document his (Mr Kitunde’s) instructions on disposition of his estate, to take
effect after his death, with the following persons as his personal
representatives: Mrs Uju Kitunde (Mr Bashir Kitunde’s wife), Miss Jane Bom of
12, Ajah Road, Lekki, Lagos (Mr Kitunde’s sister), and Mr Leke Jibril of 54,
Ojota Close, Surulere, Lagos (Mr Kitunde’s brother); Mr Duke Obey of 56,
Marina, Lagos and Miss Aminat Kitunde (12 yrs old) who is Mr Kitunde’s youngest
daughter.
Answer
the following questions, based on the above scenario:
- State
the final documents of transfer executed or required to be executed by the
parties in each of the following (completed or contemplated) transactions
in order to conclude each transactions:
(a) The
2008 transaction in respect of the property in Ladoke Lane, Ikeja, Lagos
(b) The
transaction in respect of the property in Enugu, Enugu State;
(c) The
transaction in respect of the property in Oba Crescent, Zaria, Kaduna State;
and
(d) The
transaction in respect of the property in Sapele, Delta State.
(e) Would
your answer to question 1 (a) above be different if the property was located in
Victoria Island, Lagos?
- Assuming
Mr Kitunde purchased the property at 55 Ladoke Lane, Ikeja, Lagos from the
Ikeja branch of the Nigerian Bar Association at the rate of Ten Million
Naira only:
a.
Mention with
reasons the final document to be executed by the parties in order to complete
the transaction. Would your answer be different if the same property was at (b) Agbani Enugu State or (c) at No 88, Edidi Lane, Ijora,
Lagos State, with title No LO123456.
b. List out the particulars of instructions you would as
a lawyer take from the parties in the transaction referred to in question 2 (a) above, to enable you prepare the
mentioned final document.
c.
Mention the various
parts/segments of the final document to be executed by the parties in order to
complete the transaction and the matters to be included in each of the part
mentioned.
d. Draft the document you mentioned in question 2 (a) above, ready for execution.
e. Assuming
the property in Enugu is to be sold to Ogui Fish Farmers Microfinance Bank
Limited draft the introductory and concluding parts only of
the final document the parties would need to execute in order to complete the
transaction.
f.
Assuming the
Assignor in the transaction involving the property in Enugu is Abaniwonda
Family of 89, Ring road, Jos, Plateau State, with the following as the
principal members: Alheri Zainab
Abaniwonda (family head), Mr. Ferdinard Abaniwonda, Mrs Zitta Jones (nee
Abaniwonda), and Mr. Femi Abaniwonda. Beauty
Zone Enterprises, registered under Part B, of the Companies and Allied Matters
Act, 1990 is the buyer. Mr Samuel Ajayi, and Jonah Adams are the Partners of
Beauty Zone Enterprises. Draft the introductory and concluding parts of the
final document the parties would need to execute in order to complete the
transaction.
g.
Mention (a) five
property transactions in which the use of a Deed is mandatory, and (b) five
instances when a Deed is unnecessary when transferring legal interest in
property.
h.
Identify FIVE
Similarities and Three differences between the transaction involving the
property in, Obalende Lagos State and the transaction in Ikeja Lagos State.
i.
Draft the
introductory and concluding parts of the document referred to in question 1 (D)
above, assuming Mr. and Mrs Joe and Josephine Ojulari (husband and wife) of 38,
Family Crescent, Anthony Lagos are the sellers and Mr. Chang Zex of 56, Marina
Lagos, a Chinese who speaks only Spanish is the buyer.
- Comment briefly on the functions of each of the
following clauses in a Deed, and the legal implications of their absence
in a Deed:
a)
Recital;
b)
Schedule
c)
Date
d)
Attestation
e)
Signing
f)
Franking
- Highlight the legal implications (if any) of
leaving the document un-dated. How is the commencement date of un-dated
Deed ascertained?
- Assuming a formal seal was not actually affixed on the final
document executed to complete the transaction between Mr. Kitunde and
GTBank Plc over the property in Sapele, even though the document was
signed by all parties and duly attested. Now, upon Mr. Kitunde’s default
in repaying the loan, GTBank Plc commenced an action in the High Court for
recovery of the mortgage sum & interests. Mr Kitunde is opposed to the
court action on grounds that the document is void because the document was
not sealed. Advise the parties.
- Would your answer to question (5) above be different if the mortgagee in the transaction was
Mr. Nathaniel Jeremiah? Give reasons for your answer.
- Comment
briefly on the correct order for the perfection of the document you
drafted in answer to question 2 a above. Are they any legal implications
for failure to get the document perfected?
INSTRUCTIONS:
1.
All groups to consider
ALL questions in groups.
2.
Answers to group
questions MUST be submitted online to plp@lawschoollagos.org
not later than 9pm on Tuesday, 24th
November 2015.
3.
Hard copy to be
submitted to any of the lecturers in the department not later than 9am on
Wednesday, 25th November 2015.
4.
Each student MUST study
the topic (Deeds) in advance, and get ready for presentations in class and to
answer questions on the topic as well as on the above tasks.
5.
Some relevant reading
materials:
a) Real
Property Law & Practice In Nigeria (published in 2014 (by Felicia O.
Eimunjeze);
b) Understanding Legal Drafting &
Conveyancing) (2012 edition, by Sylvester Imhanobe);
c) Property
Law Practice In Nigeria (3rd edition 2015 by Y.Y Dadem);
d) Source
Book On Property Law Practice (by Ada Odor & F.J. Oniekoro ).
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