GENERAL REVISION QUESTIONS ON PROPERTY LAW

COUNCIL OF LEGAL EDUCATION

NIGERIAN LAW SCHOOL

LAGOS CAMPUS

2017/2018 ACADEMIC SESSION

PROPERTY LAW PRACTICE

GENERAL REVISION QUESTIONS

(MARCH 28, 2018)

QUESTION ONE

 Chief Obande Truman of 53, Tilda Way, Aba, Abia State, is the owner of the twin duplex at 12, Okez Road, Owerri, Imo State; the block of nine flats at 33, Coleman Way, Ibadan, Oyo State and the large hall located at and known as Plot D4, Rayan Avenue, Ikeja, Lagos, covered by the Certificate of Occupancy registered as 45/45/2014C in the Lands Registry, Ikeja, Lagos. Chief Truman inherited the property at Rayan Avenue, Ikeja, Lagos from his late mother, Madam Miriam, who had lived and died testate in Ibadan, Oyo State, in 1998. Chief Truman has decided to give exclusive possession of the hall at Plot D4, Rayan Avenue, Ikeja, Lagos to DOM Nigeria Ltd of 56, Alex Crescent, Abuja for a term of five years, for use by the company as venue for workshops and seminars. Rent is N15 million per annum; rent for the first year has been paid, to take effect on August 01, 2016. Answer the following questions:

• Mention the instrument/instruments of transfer by which the transaction in respect of the property in Ikeja, Lagos would be completed;
• Draft the operative part of the document you mentioned in paragraph 1 (a) above. State the covenant that should be included in the final document to enable Chief Truman to take advantage of capital appreciation on the demised premises, and draft the user covenant and also the covenant that would enable DOM Nigeria Limited to create a fresh of term of 3 years at the end of the current term;
• Would your answer in 1 (a) above be the same if the property was to be sold? Give reasons for your answer;
• Without drafting, mention the elements of each of the rent review clause and the insurance clause in a lease or sublease, and identify the factors the parties would consider in determining the party to bear the burden of insurance of the demised premises;
• Assuming Chief Truman has now advertised his property at 12, Okez Road, Owerri, Imo State for sale, and your client (Dr Tom Hanadu of 98, Ogui Lane, Enugu, Enugu State) is interested in buying the property, explain the steps you should take toward ascertaining the genuineness of Chief Truman’s title to the property. List any three major reasons why you should investigate the property, and state all known implications of your failure to carry out any investigations on the property;
• Who has the responsibility of deducing title in respect of the transaction involving the property in Owerri, Imo State . By what means is the title deduced? And at what stage of the transaction is the title expected to be deduced?
• Comment briefly on the steps taken during the exchange of the contract in respect of the transaction involving the property in Owerri. Describe the procedure for completion of the transaction;
• Assuming that Chief Truman took a loan of N100 million from Skye Bank Plc, and now plans create a legal mortgage in respect of his property at Coleman Way, Ibadan, Oyo State in favour of the Bank, mention the final document the parties would execute in order to complete the transaction, and draft the introductory part of the document you have mentioned. How would you draft the concluding part of the document you have mentioned, assuming Chief Truman is an illiterate and has, by the relevant instrument, authorised Peter Garba (32 years old, of 21, Tantam Street, Ojota, Lagos) to take all necessary steps to complete the transaction on his (Chief Truman`s) behalf? How would such mortgage have been created if the property was in Lagos? Identify the various steps the parties would have taken after the creation of the legal mortgage towards perfection and state the effect of default in taking such steps, assuming the mortgage property was in Lagos?
• How would you draft the introductory part (up to appointment) and the concluding part of the relevant document Chief Truman executed in order to confer the authority on Mr Peter Garba. State any two instances in which it may become desirable for Mr Peter Garba to also sign the instrument of authority;
• Mention the document that vests title to the property at Plot D4, Kay Avenue, Ikeja, Lagos on Chief Truman. Draft only the testimonium of the mentioned document, and set out any five essentials of the document;
• List out six examples of documents or transactions that must be under seal, and six examples of documents or transactions that do not constitute good root of title;
• Assuming that Chief Truman has now settled the loan he took from Skye Bank Plc, mention the document that would need to be executed in order for the mortgage to be discharged. Would your answer be different if the property was located in Enugu and the mortgage was created by Assignment?
• Assume that Skye Bank merely accepted title documents as security from Chief Truman, and the parties executed an agreement. However, Chief Truman has defaulted in repayment of the loan. Advise the Bank on the options available to it in realising the loan and interests. Assuming that the Bank desired to be able to exercise the power of sale (in the circumstances) in order to realize the loan and interests, what special steps should the Bank have taken at the creation of the mortgage?
• As a solicitor retained in the mortgage transaction, mention any ten professional responsibilities that you owe your client(s) and the legal profession, and list out the various modes you might adopt in charging your professional fees.
• Assuming you acted as Solicitor for Skye Bank in the mortgage transaction, and you have successfully concluded your work but the client is yet to pay your professional fees despite repeated demands by you, set out briefly and in numbered paragraph the steps you would take in recovering your professional fees.

• Assuming that you have served your Bill of Charges on Skye Bank for the purpose of recovering your fees, and the Bank in response claims that the fees are excessive, state the various options available to the parties in the circumstances, and comment briefly on the time limit within which each of the stated options may be taken.
• Mention any six taxes that are commonly applicable to the sale, lease and mortgage transactions identified, contemplated or concluded above, and state the rate of each tax.

QUESTION TWO
Mr Sena Akpana was, until his death, resident at 42, Lagos Street, Ebute-Meta, Lagos, and was married to Marcella Akpana. Their marriage was celebrated at the Ebuta-Meta Marriage Registry. About two months before his death, Mr Akpana had held a meeting with his lawyer (Mrs Amina Ogu) who was accompanied to the meeting by two Nigerian Law School Externs attached to her (Mrs Amina Ogu`s) law Firm. The externs are Miss Favour Bida and Mr Usman Ilupeju. During the meeting, which held in Mr Akpana`s hotel room, Mr Akpana had instructed his lawyer to draft his (Mr Akpana`s) Will, based on the following instructions:

• He was at some time known as Mr Sena Dolobuchi,
• Executors to the proposed Will: Lady Queenette Adagun of 27, Imole Street, Yaba, Lagos and his bosom friend, Chief Ako Iyen of 99, Tapa Street, Lagos,
• His house at 7, Wilberforce Street, Surulere, Lagos to be given to his wife, Marcella, for her use during her life and upon her death, to be given to the Surulere Local Government for use as a public library,
• His shares in Wema Bank Plc to his younger brother, Ben Akpana,
• The N10 million in his fixed deposit account with Sterling Bank, Ikeja branch, to be given to his only child, Miss Aduragba Akpana.
• N20 million to be paid annually to the Disabled Children`s School, Ikeja, Lagos, for the School fees of its final year students,
• N2 million to be given to the best graduating student in each year in Igbobi College, Yaba, Lagos, for the next ten years,
• His Accountancy Firm and everything in it to his sons who are Chartered Accountant.
• The remainder of his estate to be sold and the proceeds to be shared equally among my children.

The lawyer (Mrs Ogu) had instructed Miss Favour Bida to take notes during the meeting, which was done. At the end of the interview and as a precautionary step, Mrs Ogu had read over the notes to Mr. Akpana who had confirmed the contents, signed it in the joint presence of two members of the housekeeping department of the hotel, who also subscribed the Will in Mr Akpana`s presence. Mrs Ogu had then promised to prepare the Will and bring the final draft to his client within three (3) working days, for his execution. Mr Akpana died later the same day the instructions were taken. Mrs Akpana thereafter submitted the document signed by Mr Akpana to the Probate Registry as Mr Akpana’s last Will. Answer the following questions:

• Comment briefly on the propriety or otherwise of the lawyer’s conduct in the above scenario, supporting your answer with relevant authorities.
• Upon an application for a grant in respect of Mr Akpana’s estate, Miss Arat Akpana is opposing the application on grounds that:
• The document could not be regarded as her father’s Will because it was not typed;
• The document does not look like a Will;
• Her father’s Mistress, Lady Queenette (one of the executors), had manipulated her father into discussing with a lawyer;
• Comment on the validity of the document bearing in mind the grounds of objection raised by the testator’s daughter. State the document Miss Arat Akpana filed in order to register her opposition to the application, and advise Lady Queenette Adagun and Chief Ako Iyen on how they may respond to the opposition;
• At Mr Akpana’s death, only two sons were Chartered Accountants --- Lekan and Dipupo--- although a third (Sunkanmi) had written the last stage of the ICAN Examinations, but the results had not been released. The results were released two months after the death of Mr Akpana. Sunkanmi is now claiming that he must be included in Clause (viii) of Mr Akpana’s Will. Advise Sunkanmi.
• Mention the contents of the accounts to be filed by the personal representatives of Mr Akpana, and state when the accounts are to be filed.
• Marcella sold the property given to her to Starino Nigeria Limited of 22, Jebba Avenue, Ibadan, Oyo State. Comment on the validity of her action.
• Assuming the sale by Marcella was not valid, advise Marcella on how the property could be used to generate income for her.
• State any four instances in which the personal representatives Mr Akpana may be excused from any liability which they may have incurred during the administration of the estate of Mr Akpana.

QUESTION THREE
Sometime in February 2009, Mr Tim Melako of 22, Awolowo Street, Ikoyi, Lagos, had approached the traditional ruler and head of Obotoke community in Ikeja, Lagos, the Olobotoke of Obotoke, His Royal Majesty, Alhaji, Musafejo Kwento Oganti for purchase of the plot of land located and known as 35, Obongana Road, Obotoke, Ikeja, Lagos measuring 120 by 60 feet, property of the entire Obotoke community, which the community had earlier authorised the traditional ruler to sell on the community’s behalf. Alhaji Oganti agreed to sell the property to Mr Melako. The agreed purchase price was N10,000,000.00 (Ten Million Naira) only, which Mr Melako paid in full on March 01, 2009 and was on the same day issued a purchase receipt duly signed by Alhaji Oganti who also agreed to execute the formal Deed of Assignment on August 26, 2009. When however Mr Melako approached Alhaji Oganti for execution of the Deed as agreed, the traditional ruler informed Mr Melako that as at February 2009, the family had not obtained a Certificate of Occupancy in respect of the piece of land, and that since the community had now obtained a C of O dated 22/03/2009 and registered as 34/34/2009G in the Ikeja Lands Registry in respect of the property, which had now enhanced the value of the land, Mr Melako would only have the piece of land if he (Mr Melako) would pay an additional sum of N5 million to Alhaji Oganti. Answer the following questions:

1. (i) Mention the status of the parties under the receipt of payment issued by Alhaji Oganti

• Discuss briefly the validity of the position maintained by Alhaji Oganti vis-à-vis the remedies available to Mr Melako in the circumstances
• Assuming you were solicitor to Mr Melako,
• state in numbered paragraphs the steps you would take to thoroughly investigate title to the property
• Assuming you have just concluded investigation and searches into the title to the property, mention all the matters to be included in the search report to be submitted to your client.
• Draft the testimonium, execution, and attestation clauses to be inserted into the final document to be executed by the parties in order to complete the transaction
• Assuming the property was located in Ikoyi, Lagos and the transaction was a lease, mention the final document the parties would need to execute in order to complete the transaction as well as four taxes payable at the perfection stage of the transaction

1. Assuming the sale transaction between Alhaji Oganti and Mr Melako had been completed and fully perfected, and Mr Melako now desires to create a legal mortgage over the same property in favour of BroadBank Plc of 12, Marina, Lagos, to secure a loan of N5 million he took from the Bank, answer the following questions:

• Mention the various rights available to Mr Melako in the legal mortgage transaction
• Mention and draft the introductory part of the final document the parties to the legal mortgage would need to execute in order to complete the transaction
• Assuming Mr Melako had defaulted in repaying the loan, describe briefly the conditions the Bank must fulfil in order to validly exercise its power of sale in respect of the property
• If the Bank had obtained an order of foreclosure absolute against Mr Melako, advise Mr Melako on instances in which he may be justified in applying for re-opening of the foreclosure order
• Mention the document that would need to be executed in order to discharge the legal mortgage between Mr Melako and the Bank. Would it be necessary to obtain Governor’s consent in respect of the mentioned document?

QUESTION FOUR

Chief Ogadem got married under native law and custom to Mrs Ego Ogadem in January 2002. In June 2004, he made a Will in which he made the following gifts, among others:

1. My Toyota Camry motor car, reg No LAG 2376 IKD to Mr Samuel, my driver
2. A sum of N5 million to Mrs. Ogadem
3. A sum of N5 million from my current account at GTBank, Plaza branch, Victoria island, Lagos, to my first son, John
4. My N5 million naira at Zenith Bank, Adeyemo ALkija branch, Victoria Island, Lagos to Friday.
5. A sum of N20 million to be given to the Rev Father in charge of SS Mulumba & David Catholic Church, Surulere, Lagos
6. My house at 10, Aba road, Port Harcourt, Rivers State to Mr. Jimi, my second son.

He appointed the following his executors: Mr. Ogar (25); Mrs. Mewe (33); Miss Nonye (25); Mr. Charles; Miss Nkem (15); and Mr. Mangu. Mr. Mangu has been living in the USA for the past 20 years. In 2009, married a second wife, Mrs. Uju Ogadem under the Act. On 22 February 2011, Chief Ogadem, intending to revoke the will, later placed a phone call to his bank manager and instructed him to destroy the Will. The bank manager on February 24 2011 carried out Chief Ogadem`s instructions in the presence of two accounts of the bank; unknown to him, however, Chief Ogadem had died on February 13, 2011. After the father`s death, Mr. Jimi decided to use the house at Aba road to raise some money for to fund his children`s further education. He has come to you for advise, and also want you to advise him generally on the father`s will made in June 2004.
Answer the following questions:

1. Mention the type of gifts made in clauses (a), (b), (c), (d), and (e) above;
2. Mention the document that should be applied for to enable the executors administer Chief Ogadem`s estate;
3. Assuming all the executors appointed in the will (except Mr Mangu) have together applied for a grant, what will be your reaction, assuming you were the Probate Registrar
4. Assuming that after the first grant, Mr Ogadem returns from the United State, and wishes to join in the administration of Chief Ogadem`s estate, advise him on the step he must take to enable him join
5. Obe, Chief Ogadem`s younger brother intends to challenge the Will on grounds that the will had been revoked first by Chief Ogadem`s second marriage and the destruction of copies of the will by the Bank manager. What are Mr Obe`s chances of success?
6. Assuming Mr. Jimi decides to grant a term of seven years over the property at Aba Road, Port Harcourt to Chief Jumbo, draft the concluding part of the document required to be prepared to complete the transaction;
7. What document will be required to complete the transaction, assuming the property is in Surulere, Lagos
8. Assuming he does not want to be personally involved in the transaction, and has instead decided to delegate Ade Agency Ltd to commence and conclude the transaction on his behalf, draft the concluding part of the document he would be required to execute in favour of Ade Agents Ltd, to enable it act on his behalf. And the revocation clause, assuming no consideration is offered.

QUESTION FIVE

Consider following scenarios carefully and answer the accompanying questions:

1. Mrs Toyin Agbado of 66 Awolowo Street, Lekki Phase 1, Lagos, wants to grant a term of six years over her three-bedroom bungalow at Lekki, Lagos in favour of Greenfields Nigeria Limited.

• Mention the final document that would be executed by the parties, to complete the transaction and whose lawyer will prepare the document? Would your answer be different if the property was located in Yaba, Lagos?
• State seven major laws that will govern the transaction
• Assuming the Mrs. Agbado in this scenario was a Spanish businesswoman who does not understand the English Language, draft the concluding part of the final document the parties would execute to conclude the transaction
• Mention the document required to complete the transaction, assuming the term was for only two years
• Assuming the same property was now located in Ikeja GRA, Lagos and Mrs. Agbado desires to prevent her property from falling into wrong hands, mention the clauses her solicitor would need to insert into the final document the parties would execute, in order to complete the transaction; and draft the clause in a standard form.
• Mention the clause that needs to be inserted into the final document, to enable the Landlord take advantage of capital appreciation on the property. What are the particulars of information that need to be included in the clause.

1. Agbado also intends using her three-storey building in Sapele, Delta State to secure a loan of N75 million she took from Ecobank Plc of 45, Marina, Lagos. Assuming the proposed mortgage property at Sapele belongs not to Mrs. Agbado, but to Chief Magnus Musa of 56, Obi Street, Ibadan, Oyo State, and Mrs. Agbado has merely agreed with Chief Musa to use the property (Chief Mus`s) to secure the loan from Ecobank. Answer the following questions

• Draft the introductory part of the final document the parties would need to execute, in order to complete the transaction.
• Mention two major documents Ecobank’s solicitor would need to collect from Chief Musa to enable the solicitor conduct searches/investigations on the title of the proposed mortgage property. Would your answer be different, assuming the property was located in Surulere, Lagos.
• Mention the document the lawyer to the Bank would prepare after the investigation of title, and mention at least nine particulars of information the document would contain
• Assuming the parties have elected to create a legal mortgage in respect of the property at Sapele, mention the options are available to them as per the modes of creation. And state what your answer would be if the property was located in Onitsha, Anambra State
• Assuming mortgage property was in Ohafia, Abia State, state the reason it may be impossible for the mortgagor to use the same property to create any further legal mortgage while the first legal mortgage is still subsisting. But, also state whether it is still possible to create any form of second or further mortgage on the property?
• Mention one tax that Mrs Agbado/Chief Musa would not be required to pay in respect of the mortgage transaction.

7845. Mrs Agbado has decided to make a gift of her four bed-room duplex at 45, Wukari Road, Maiduguri, Borno State to her first son, Dr Musa Agbado. The property is covered by Certificate of Statutory Right of Occupancy No 863902 dated 23/09/2011 and registered as 89/89/7845.

• Mention the condition(s) the document evidencing the gift must comply with in order to be effective and enforceable. Give reason(s) for your answer.
• Assuming, however, Mrs. Agbado was instead transferring the entire unexpired residue in the property in Maiduguri to Prof Fashanu Okoh of 76, Iwo Street, Wuse, Abuja, for a consideration of N70 million, briefly set out in numbered paragraphs at least SIX major steps the solicitor to Prof Okoh would take during investigation of the property, to thoroughly ascertain the genuineness of Mrs. Agbado’s title and absence or otherwise of encumbrances to the property. And state whether and how the mentioned steps would differ if the property was located in Obalende, Lagos State.
• As part of the completion process for the sale transaction involving the property in Maiduguri, draft the operative part of the formal document the parties would execute in order to complete the transaction
• State at least seven items Mrs. Agbado would need to hand over to Prof Fashanu or his (Prof Fashanu’s) solicitor Still as part of (or during) the completion process of the sale transaction.

1. Meanwhile, Mrs Agbado wants to appoint Mrs Alice Thomas of 345, Brown Road, Houston, Texas, USA, to manage her properties in the USA and UK.

• Mention the document Mrs Agbado would need to execute in order to give effect to the appointment. And state what precautionary measure should be taken since the document is for use outside Nigeria. Give reason(s).
• Draft the introductory part (up to appointment) of the appointment document referred to in question 3 (d) (i) above
• What does it mean to say a particular property transaction is registered as 13/13/1998?
• Mention the various ways by which Mrs Agbado’s solicitor(s) could charge her for the various legal services rendered to Mrs Agbado in the various transactions mentioned above.

THE END