A Client called me up last week Thursday, half in distress, to inquire if he should go ahead with a land purchase he got offered. His fear stemmed from the fact that the only title the owner of the land claimed to have was a Family receipt. Being that it was a land purchased decades ago in the 70s, the land owner claimed there was no deed of assignment executed with the original family that sold the land for him. Neither did he have a survey plan made on his portion of land, even though he later erected a bungalow on the land. My Client wanted to know my learned view on it as a real estate lawyer, whether he should go ahead and pay the land owner in exchange for the land.

The thing is, a Family Receipt which signifies the evidence of payment of consideration by the buyer of land to the seller in exchange for the piece of land sold can constitute a valid title, provided it is well executed. It does not confer legal title but it is part of documents the buyer will rely on to prove ownership if need be. It is an equitable title document in the absence of superior legal documents like a deed of assignment which is required by law to be executed in perfection of title. A well-executed Family receipt must have the family name as letterhead and must be signed (or thumbprinted) by the Head of the Family, witnessed by at least two other family members. If the land being offered for sale is a family land, a personal, agent or company receipt cannot serve in lieu as Family Receipt for it to constitute a valid title document in law.

However, as a precaution I advised my Client to ensure he got a signed Undertaking from the Land Owner under my Chambers hand stating that he is the rightful owner of the land and is desirous of selling. This is after my client has conducted critical background checks on the claim of ownership of the seller and reviewing other documents presented such as Land Use Charge letters and receipts of payments on the property for over 5 years, utility bills issued in the owner’s name and in the property’s address and others. This is because it is IMPERATIVE TO VERIFY ALL CLAIMS AND TITLE and confirm it is encumbrances free before you make payment for a land or house. Failure or neglect to do this could be very costly, to both your finance and state of mind.

So in all, a family receipt can constitute a valid transferable title document for purchase of land. The new owner as a RULE must execute a deed of assignment with the seller (with the old family receipt annexed) to enhance the title he just got with the Receipt newly issued by the seller. REMEMBER: In a contract of sale for land, what is most paramount is that the TITLE the OWNER/SELLER is transferring is his/hers and the OWNER/SELLER has the capacity to sell. Once this is the case, you can go ahead to pay and OWN the land.

Cheers

BARR. WALE 07033763276, CEO LAGOS HOMES & PROPERTIES

www.lagoshomesproperties.
Rent or buy your dream house without hassles

most virgin land in ogun state village has only family receipt and no deed of assignment