Deed Of Assignment: All You Need To Know About The Legal Document

A Deed of Assignment (DOA) is an important legal document that every property owner, buyer, or investor should understand, particularly in Nigeria.

Land or property, DOA plays a vital role in legally transferring ownership from one party to another.

Let’s discuss the significance, key components Deed of Assignment should include, and why it is indispensable for any real estate transaction.

What is a Deed of Assignment in Real Estate?

A Deed of Assignment is a legal document that officially transfers property rights from one party (known as the assignor) to another party (known as the assignee). It is typically prepared when the sale of a property is concluded, ensuring that the buyer receives full ownership of the property being sold. In Nigeria, for example, a Deed of Assignment is one of the most important documents in real estate transactions, especially when dealing with land ownership and property sales.

Importance of the Deed of Assignment

The Deed of Assignment serves several vital functions:

1. Legal Proof of Ownership Transfer: This document is the formal evidence that ownership rights have been transferred from the seller to the buyer. It gives the buyer legal standing and helps avoid future disputes.
   
   
2. Essential for Obtaining a Certificate of Occupancy (C of O): In Nigeria, a Certificate of Occupancy is also an important document that confers statutory rights over land. A registered Deed of Assignment is often required to process and obtain the C of O.
   
   
3. Prevents Property Disputes: Real estate is an asset often prone to legal battles. Having a well-drafted and registered Deed of Assignment protects both the buyer and seller from any potential disputes that could arise regarding the property’s ownership.
   
   
4. Facilitates Smooth Future Transactions: When the buyer eventually decides to sell the property, the Deed of Assignment becomes an important document in the chain of title that prospective buyers and legal professionals will review.

Key Components of a Deed of Assignment

For a Deed of Assignment to be legally valid and enforceable, it should include the following components:

1. Parties Involved: Clearly state the names and addresses of both the assignor (seller) and the assignee (buyer).
   
   
2. Property Description: A detailed description of the property being transferred, including its location, size, and any unique features. This section should be clear enough to avoid ambiguity.
   
   
3. Purchase Price: The amount paid by the buyer for the property should be explicitly mentioned. This financial detail solidifies the transaction.
   
   
4. Recitals: A brief history of the property, including how the seller obtained the property and their rights to transfer ownership. This section helps establish the legitimacy of the seller’s claim to the property.
   
   
5. Covenants: Any promises or conditions related to the property transfer. For example, the assignor might promise that the property is free from legal encumbrances.
   
   
6. Indemnity Clause: A section where the assignor agrees to indemnify the assignee against any future claims or issues that could arise due to the transfer.
   
   
7. Execution and Attestation: The document must be signed by both parties in the presence of witnesses. This is crucial for its enforceability in court.
   
   
8. Survey Plan and Other Supporting Documents: The Deed of Assignment should be accompanied by the property’s survey plan, building plan (if applicable), and other relevant documents.

The Legal Process of Registering a Deed of Assignment

After the Deed of Assignment is prepared and signed by both parties, it needs to be registered with the appropriate land registry in the state where the property is located. The registration process involves several steps:

1. Stamp Duty Payment: The Deed must be stamped to validate it. The stamp duty is calculated based on the value of the property.
2. Submission to the Land Registry: The Deed, along with other supporting documents like the survey plan, is submitted to the land registry.
   
   
3. Title Verification and Approval: The land registry conducts a thorough check to ensure that the property title is free from encumbrances and that the seller has legitimate ownership rights.
   
   
4. Issuance of a Governor’s Consent: In some Nigerian states, the Governor’s Consent is required before the Deed can be officially registered. This is in line with the Land Use Act, which vests land ownership in the hands of the state government.
   
   
5. Final Registration: Once all processes are completed, the Deed of Assignment is registered, and the buyer officially becomes the property owner.

Common Mistakes to Avoid When Dealing with a Deed of Assignment

1. Failure to Register the Deed: An unregistered Deed of Assignment may not hold up in court in the event of a dispute. Always ensure that the Deed is properly registered.
   
   
2. Not Conducting a Proper Title Search: Before finalizing the transaction, a comprehensive title search should be conducted to verify that the property is free from legal issues.
   
   
3. Omitting Important Clauses: Ensure that the Deed includes all necessary clauses, such as indemnity and recitals, to protect your interests.

In a nutshell, always engage experienced real estate professionals like Starzij Realtors and legal experts when preparing this document to avoid costly mistakes.