Sunday, 22 November 2015

PROPERTY LAW PRACTICE WEEK 4 (DEEDS)

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:
  1. 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?

  1. 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.
  1. 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

  1. Highlight the legal implications (if any) of leaving the document un-dated. How is the commencement date of un-dated Deed ascertained?
  2. 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.

  1. Would your answer to question (5) above be different if the mortgagee in the transaction was Mr. Nathaniel Jeremiah? Give reasons for your answer.

  1. 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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