PROPERTY LAW: AN OVERVIEW OF THE LAND REGISTRATION LAW (LRL), 2014 (LAGOS)

AN OVERVIEW OF THE LAND REGISTRATION LAW (LRL), 2014 (LAGOS) 

PURPOSE OF THE LAW
The main purpose of the Land Registration Law, 2014 (Lagos) is to harmonise the system of registration of titles and the systems of registration of land instruments and transactions in Lagos State and bring the entire Lagos State under one uniform system. The Law expressly repeals all the laws existing on the subject, including the Registration of Titles Law Cap R1, Laws of Lagos State 2003, Land Instruments Registration Law, Lagos Cap L58 Laws of Lagos State, 2003, Electronic Management Systems Law 2007 and Registration of Titles Law & Registration of Titles (Appeal) Rules Cap R4, Laws of Lagos State, 2003; and replaced them with one uniform system of registration, thereby erasing the dichotomy that had existed between the system of registration of instruments under the Land Instruments Registration Law (LIRL), Lagos, and the system of registration of titles under the Registration of Titles Law (RTL), Lagos. The Law tries to strike a balance between the two systems. A look at the definition given to the words, “document,” “holder,” “registration,” “registered land,” Registrar,” in the interpretation section of the Law, reveals that the term “registration” under the Law is used to  include any one or more of the following:

• “registration of documents affecting Land;”
• “registration of holders of land;
• “registration of titles to land;” and
• “registration of dealings/transactions in land; and
• “registration of land.”

While the short tile of the Law tends to suggests that it is all about “land registration,” a look at the Long Title would reveal that the object of the Law is to make provisions for the “registration of title to land in Lagos State.” Besides, section 4 (1) of the Law provides that the Head of the Land Registry Division of the Ministry of Lands shall be referred to as “The Registrar of Titles.” On the other hand, it would appear that the Law is also concerned with registration of “documents of interest or title to land in Lagos State” as shown in section 1 of the Law, or “registration of transactions” relating to land, as is seen in section 3 (4) (a), which provides for a “register of all transactions relating to transfer of interest in land.” See also section 17, which talks about registration of “land documents,” and section 26 which deals with “registration of documents.”

In view of the above, it is suggested that the purpose of the Law could be summarised thus: a law for the synchronization of the systems of registration of titles to land, registration of land instruments and registration of transactions and dealings relating to land in Lagos State. It is neither entirely about registration of titles, nor entirely about registration of documents or transactions. It incorporates all the systems in one single document, and thus puts in place uniform procedures, processes and systems applicable to all parts of the State.
Unlike the repealed RTL, “first registration” under the LRL refers to registration of any dealing with the land or any sublease or mortgage affecting the whole or any part of the land (excluding a document having effect only as caveat or caution).

DOCUMENTS TO BE KEPT AND MAINTAINED IN THE LANDS REGISTRY:

• Register of Transactions relating to transfer of interest in land
• Land Registry Map ---showing the boundaries of every parcel of land that is registered under the Law. Submission of a survey plan is a condition precedent to registration of any document under the Law ---s. 12 (3).
• Parcel Files—is like a register of the land parcels, usually as shown in the survey plan – see s. 12 (4).
• The Day List ---- all applications to the registry shall be recorded in this document and numbered consecutively
• Mutation Record – containing changes made by the Registrar of Titles to the land registry map kept by the Registrar. The Registrar is empowered to make necessary alteration on any boundary shown on the map – see ss. 1 and 13. But note that the altered or new parcels shall still vest in the person or persons in whose names there are registered (ie, the registered holders). See s. 15 (2).
• Nominal Index --- contains names of all land holders in the State
• Register of Power of Attorney --- indicating that Power of Attorney is a registrable instrument in the State

THE LAND INFORMATION MANAGEMENT SYSTEM (LIMS)

Every land document must be registered using the LIMS procedure. Land documents already registered before the commencement of the LRL must registered using the LIMS. The following registers shall be kept in the Registry for purpose of registration by the LIMS:

• Day List;
• Register of Mortgages;
• Register of Caution; and
• Any other register as the Registrar may prescribe.

Each of these registers must contain the names and addresses of the parties to the affected transaction, description and location of the property that is subject of the transaction, and the survey plan of the property. See s. 20. All registers kept in the Land Registry before the commencement of the LRL shall now form part of the registers in the LIMS. (s. 19 (3)). A document produced electronically from the LIMS is admissible in court provided that such document qualifies as a document under any relevant law. See s. 24. An application for the CTC of any document kept in the Registry may be made by completing the prescribed Form 5. See s. 21 (1). On being issued with a Letter of Accreditation after the payment of prescribed fees, any of the following persons or organisations may log on to the LIMS to conduct searches or to download information (s. 25):

• Law Firms
• Financial Institutions;
• Corporate Organisations; and
• Registered Estate Surveyors & Valuers.

PROCEDURE FOR CONDUCTING A SEARCH UNDER THE LIMS

• Submit an application in the prescribed form to the Registrar of Titles. The prescribed form is Form 3, attached to Schedule 1 of the Law.
• Application may be submitted online after the applicant has made relevant payments by Credit Card or by other permissible form of electronic payment. See s. 22 (2), (3) and (4).
• Consideration of application and conduct of search by or on the orders of the Registrar
• The Registrar shall issue an official report of Search, as is in Form 4, attached to Schedule 1 to this Law.

REGISTRATION OF DOCUMENTS (see ss. 6, 7, 26, 27)

• Time for application for registration --- within sixty (60) days after the grant of Governor’s consent, where applicable;

• Prescribed Forms for registration of interests covered by Certificate of Occupancy or Deeds are contained in Form1 and 2 attached to Schedule 1 of the Law

• The Registrar shall not register any assignment or sublease unless the land has been surveyed to the satisfaction of the office of the Surveyor-General (s. 101).

• Interests, Lands, Transactions and Documents requiring registration include:

• Documents of grants, subleases (excluding a sublease below three years), and all Power of Attorney;
• Any succession to land under Will or Intestacy, on production of the Grant of Probate or letters of Administration; see also section 31 (b)

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• Any revocations, acquisition and excision of land pursuant to the Land Use Act --- this is the responsibility of the Director of Land Services in the State.
• Trusts, rights or interests acquired by operation of law and overriding interests – s. 31
• Purchaser of a mortgage property after a foreclosure or in exercise of mortgagee’s power of sale. Note that in such a case, production of the Land Certificate for endorsement, as required under section 36 (1) of the Law, is unnecessary – s. 36 (3).

• Mortgages created by a holder of land, sublease or mortgage. To be registered as an encumbrance, and shall have effect only as a security– s. 49.

• Judgment or writ of execution issued by any court in respect of any land, sublease, or mortgage in Lagos State. Note that the Registrar shall not accept for registration any document in respect of such land, sublease or mortgage if the document is inconsistent with the judgment or writ already registered. While registration of a judgment does not cure any defect in that judgment, non-registration of the same would not affect its validity or effect. See ss. 58 – 59. See also section 60 for cancellation of registered judgments.

• Subject to obtaining Governor’s consent, Certificate of Purchase issued to a purchaser pursuant to the provisions of the Sheriff & Civil Process Law – s. 61.

• Every transfer of land, sublease or mortgage by Deed. Transaction is not complete until registered. Note that no transfer of part of a registered land shall be allowed unless the holder has first subdivided the land, after which the new interest shall then be registered. See s. 62 and 63

• Registration of “Restrictions” ---- registration of restrictions is done for the purpose of protecting unregistered interests in land or mortgage created before or after registration, by prohibiting subsequent registration of any disposition or change of holding affecting the land or mortgage. See s. 64

• Registration of CAUTION/caveat – A person having an interest in an unregistered land that entitles the person to object to any disposition of the land being made without the person’s consent may apply to register a CAUTION to the he (the CAUTIONER) is entitled to notice of any application for registration in respect of the land --- 69 (2). But where notice is served on the Cautioner or Caveator and he or she fails to respond within 14 days, the Registrar may go ahead with registration

• Registration of any interest shall be sufficient evidence of holding such interest on the affected land, together with all accompanying rights, privileges and appurtenances, except the right to mineral resources or mineral oils.

• MANDATORY AND OPTIONAL REGISTRATION. Registration is optional in the case of an original land holder. Thus, a person who has power to assign or is entitled to any land within the State may apply to be registered as the holder of the land. Registration is mandatory in the case of any “grant” or “sublease” of State land that exceeds five years. Thus, every sublease or grant by a land holder must be registered. Until so registered and the seal of the Land Registry impressed upon the document or documents evidencing such grant or sublease, such documents shall not be admissible in court. The Registrar may by notice require the registration of a registrable document. Registration fees and any additional fees payable in respect of such documents shall become payable as soon as the Registrar has given the notice, whether or not the notice is complied with by the person who has the authority to present the same for registration. In other words, once the Registrar has issued a notice to the person having the authority to present a registrable document for registration, any registration and other relevant fees payable in respect of such document would become due and payable whether or not such documents are presented for registration. Any person upon whom such notice is given must comply within one month of service of the notice. There is penalty for noncompliance. Every mortgage or sublease must be registered within six months from the date on which consent is given to such transaction; penalty applies also for late registration of subleases and mortgages.

• REFUSAL OF REGISTRATION--- The Registrar may refuse registration in any of the following (s 7 and s. 9):

• Power of Attorney relating to transfer of land on which the consent of the Governor has b=not been endorsed;
• Documents declared void or in respect of which registration is prohibited under the Law; and
• Document that has not complied with the provisions of the Law.

• EVIDENCE OF REGISTRATION --- Every document registered shall be sealed and marked by registrar as evidence of such registration. See sections 6 and 11.

• EFFECT OF REGISTRATION/NON REGISTRATION ---

• Registered document (or CTC of the same issued by or on the authority of the Registrar) shall be admissible in any court to prove the interest/transaction so registered– s. 6, 24, 30, 108 and 109 (2).
• Any document or instrument registrable under the Law, but is not registered shall not be admissible in court as affecting the land to which it relates – s. 30
• Late registration attracts fine – s. 28
• Registration governs priority – s. 29
• Transaction remains inchoate – i.e., no interest is transferred or created) unless and until the relevant document is registered –s.40
• The Registrar shall produce or cause to be produced, free of charge, any register or file of registered document in his office or CTC of same on subpoena or order of any court (s. 108).

• Documents submitted for registration shall be registered the same day or the next working day -- s. 29 (2); But note that the Registrar reserves the right to refuse to proceed with any matter (including registration) until the appropriate fees and rates have been paid [ss.113 (4)] & 118]   For determination of the appropriate fees, see s. 113 (1) to (3).

• On completion of registration, the Registrar shall issue to the registered holder a Land Certificate, which shall be a prima facie evidence of matters contained in it – see s.35. Such registered holder shall produce the Certificate to the Registrar for endorsement each time any mortgage or further disposition is made in respect of the land [s. 36 (1)] and at any time rectification is ordered in respect of the land [s. 99(5)]. The Registrar shall upon request give a CTC of any book, register or filed document (s.109)

• The Register shall constitute conclusive evidence of all entries in it, and extract of the contents of the Register may, with leave of the court, be given as evidence in court. Such extract or certified copy shall be prima facie evidence of the original entry in the registry. However, no such leave may be granted where secondary evidence would suffice.—s. 39

CREATION & REGISTRATION OF SUBLEASE  (ss. 42 --- 48)

The holder of land may create a sublease for a fixed term, or subject to the happening of a contingency, and such must be registered where the term is five (5) years or above, subject to obtaining of Governor’s consent (s.43). No sublease may be created in respect of land or property subject of a mortgage except with the prior written consent of the mortgagee; similarly, no sublease which is subject of a mortgage or under-lease may be surrendered except with the written consent of the mortgagee or under-lessee as the case may be. Where a sublease is created to commence on a future date, such date shall not exceed twenty-one days from the date of creation of the sublease, else the document creating sublease is void. The agreements, conditions and terms contained in any sublease may be varied, and when so varied, the documents shall be submitted for registration before the expiration of the current sublease.

MORTGAGES

Under sections 49 (1) and 54, mortgages or charges created in respect of property or land within Lagos State are registrable under the Law. Further, Creation of subsequent mortgages is permitted, provided that exercise of power of sale by the subsequent mortgagee shall be subject to the rights of the prior mortgagee – s. 50. Consolidation of mortgages is permitted, the right of consolidation shall take effect only after the registration of the proposed consolidation by the holder of the mortgage –s. 52. A mortgage shall be discharged by registration in the Registry of a Deed of Release – s. 55.

POWER OF ATTORNEY  (s. 56)

Power of Attorney authorising any person to deal with any land, sublease or mortgage must be delivered to the Registrar for registration. Notice of revocation of any such registered Power of Attorney must be given to the Registrar, otherwise the Power of Attorney shall be deemed to be subsisting and, as such, no disposition in purported exercise of such Power of Attorney to a person who was ignorant of such revocation shall be adversely affected by reason only that such Power has been revoked. The aforesaid shall not apply to an irrevocable Power of Attorney. Revocation of a Power of Attorney shall not affect any payment made or steps taken in good faith pursuant to the Power of Attorney if at the date of making the payment or taking the step, the Power of Attorney had been revoked without the knowledge of the done. There is penalty of a fine of N1,00,000 for noncompliance with provisions of section 56 relating to Power of Attorney. Governor’s consent and registration are mandatory for an Irrevocable Power of Attorney relating to any land in Lagos State, and the Registrar shall not accept such Power of Attorney for registration unless the consent of the Governor has been obtained in respect of the same. See s. 57. A document (of transfer – such as Deed of Assignment, Deed of Legal Mortgage or Deed of Sublease, etc) executed by an Attorney shall not be accepted for registration unless it there is an irrevocable power of attorney authorizing such attorney to execute the said document and the power of attorney has been duly registered or filed in the registry. (s.94).

ENCUMBRANCES & RESTRICTIONS ON POWER OF A REGISTERED HOLDER TO DISPOSE OF LAND

The interest of a registered holder shall be indefeasible. Accordingly, a registered holder who is a purchaser for value is not affected by an express or implied notice of any unregistered interest of a previous registered holder. Besides, such registered purchaser for value is not required to inquire whether the terms of any caution or restriction have been complied with, where such caution or restriction relate to a time prior to his own (the holder’s) registration (s.111).  However, the interest of a registered holder subject to the following:

• Registered encumbrances, conditions or restrictions;
• Liabilities, rights or interest not requiring registration under this law;
• Interests prior to the transfer
• The law relating to bankruptcy;
• Provisions relating to the winding up of companies;
• Overriding interests. See s. 66 for the list of interests that make up overriding interest.
• “Restrictive covenants” affecting the land (not being a covenant made between a sub-lessor and a sub-lessee), in respect of which a NOTICE has been registered in accordance with the provisions of the Law, unless such restrictive covenant has been cancelled or released. See s. 67 and 68.
• Prohibition or restriction of transfer or disposal on grounds of fraud or improper dealing or for other sufficient cause – s. 73.
• Prohibition and restriction on dealings on land or any interest therein by persons under 18 years of age – see s. 93. And where there a document is already registered in the name of a minor, the registrar shall place a restriction on the on it as he may deem fit. For the purpose of dealing in his land or interest in it, a minor, idiot, lunatic, or a person under any other form of disability is to be represented by his/her Guardian duly appointed for that purpose, and such Guardian shall produce evidence of such appointment otherwise the document so executed shall not be accepted for registration [s. 94 (3) & (4)]. See also s. 95

FORMS & EXECUTION OF REGISTRABLE DOCUMENTS

1. Forms of documents (s.74)
2. Any documents for registration must be presented in duplicate copies – consisting of the original and a true copy. The original copy shall be returned to the holder on completion of registration

• A document for registration must state the consideration, and the part of it that has been paid. And where consideration is monetary, the amount must be stated in both words and figure;
• The following constitutes an offence under the Law:
• Making of false statements in a registrable document,
• Destruction or counterfeiting of register, book, filed document or part of it,

1. Form of Execution of Documents –

Every document shall be executed by all parties, and shall be deemed  to have been                                                                                                                                                                                                                                                                          executed in any of the following instances [s.76 (1)]:

1. If signed by a natural person
2. In the case of a corporation aggregate, if sealed with the seal of a corporation and attested to by its clerk, secretary, director or other officer;
3. In the case of a corporation sole, if signed and the official seal affixed;
4. In the case of a corporation not required by law to have a common seal, if signed by persons so authorised by law or the statute of the corporation or, in the absence of any such express provision, by two or more persons duly appointed for that purpose by the corporation;
5. Documents required by this law to be stamped but which are not so stamped shall not be accepted for registration unless otherwise exempted under this law from such stamping (s.77)
6. For purposes of registration, a document includes all certificates and matters endorsed on or attached to it. (s.75).

MANDATORY ATTESTATION BY MAGISTRATE, JP, JUDGE, NOTARY PUBLIC OR COMMISSIONER FOR OATHS [s. 76 (2) & (3)]

1. A document executed outside Nigeria shall not be registered unless it has attached to it a certificate showing that it was attested to by a Nigerian or foreign judge, magistrate, JP or Notary Public
2. Where a grantor is an illiterate, the document of transfer must be attested to by a judge, magistrate, JP, Notary Public or Commissioner for Oaths.

Transmission, Trust & Bankruptcy --- (see section 80 to 93)

REGISTRATION OF FAMILY REPRESENTATIVES FOR THE PURPOSE OF DEALINGS ON FAMILY PROPERTY (ss. 89 --- 92)

Where land is registered in the name of a particular family name, without any representatives, the family shall hold a family meeting and appoint not more than 10 (ten) members of the family to represent the family. The appointment shall be published in at least one national newspaper, and calling for objections if any. Where no objection is received by the Registrar within 21 days from the date of such publication, the Registrar shall enter the names of such representatives in the register. But where an objection is received from a member of the affected family, the registrar shall not enter the names of the representatives in the register unless he has received a RETRACTION of the objection or a court order directing him (the registrar) to enter the names of the representatives in the register. The Registrar shall not entertain any application for registration of a disposition of family property where the number of representatives is beyond ten (10) persons (S.89 (5). When registered, the family representative shall have EXCLUSIVE power to act for the family in respect of family land. (s.91). A disposition of family property shall not be valid if it is executed by a number of family representatives less than those whose names appear on the register (s.92).

PROVISIONS RELATING TO AMENDMENT TO THE REGISTER OF FAMILY REPRESENTATIVES

• The registrar shall delete the name of a family representative from the register where there is proof that a family representative whose name is on the register has died; or
• The registrar shall delete the name of a family representative from the register if the registrar is satisfied that the family representative is unable to act by reason of mental or physical incapacity, absence or imprisonment.
• On the application of a family member, the Registrar may insert additional family representatives where it consists of less than ten (10) members;
• On receipt of a CTC of a court order to that effect, the Registrar shall delete or add insert additional family representatives to the register.
• Addition or removal or the name of a family representative from the register shall not limit the powers of the remaining family representatives to act on behalf of the family
• A sole representative duly appointed shall have powers to act for the family.

RECTIFICATION OF THE REGISTER (ss. 96 –100)

The Registrar may, with the consent of all affected persons, or upon an application by a registered owner or owner of a registered interest, amend the contents of the register or correct any error or errors therein. Rectification may be done notwithstanding that it may affect any land, rights, mortgage or interest acquired or protected by registration or entry in the register [s.99 (3)]. For the purpose of any rectification, the land certificate and any mortgage certificate which may be affected must be delivered to the Registrar [s.99(5)].

Grounds For Rectification

1. Where a court has decided that a person other than the registered holder is entitled to an interest in the registered land;
2. Where the Court makes an order for rectification;
3. Where all affected persons consent to rectification;
4. Where entry in the register is obtained by fraud;
5. Where two or more persons are mistakenly registered as holders of the same land or mortgage;
6. Where any person appears to have acquired land or interest under sections 11 and 51 of this Law --- ie, concealment of registration or consolidation of mortgages
7. In any other justifiable case for reasons of error or omission, etc.
8. Where the title of the registered holder has been extinguished under the limitation law. And in such a case, the holder shall not be entitled to any compensation.

1. Rectification for the purpose of giving effect to an overriding interest, which may affect the interest of a registered holder in possession may only be carried out where it is shown that [s.99 (3)]:

• The registered holder or his privy is privy to, or has by his act or neglect caused or contributed to, the fraud, mistake or omission in consequence of which such rectification is sought [s.99 (3 (a) & (6)];
• The disposition to the holder is void or the disposition to the person through whom the holder claims is void; but the second leg of this paragraph does not apply where the disposition to such person (through whom the holder claims) is for valuable consideration;
• On just and equitable grounds;
• Pursuant to a court order.

MISCELLANEOUS

1. Matters a purchaser or his solicitor shall rely on for investigation of the title

• Inspection of the register of title or of a certified true copy of an extract from the register;
• Statutory declaration as to the existence or otherwise of encumbrances; and
• Evidence of registered encumbrances

2. Role of the Court in resolving disputes under the LRL [ss. 103, 104, 105, 106, 107, 108, 116 & 120]

The Chief Judge of the State shall make rules of practice and procedure to regulate proceedings before the Registrar and appeals from decisions of the Registrar. But note that the Magistrates’ Court’ Rules shall apply pending when the Chief Judge makes rules for proceedings before the Registrar . The Commissioner is empowered to make regulations in respect of incidental matters. Where the Registrar is in doubt or encounters any difficulty in relation to any question of law or fact, he may apply to the court for direction. He may also state a case for the opinion of the court where any question arises in the performance of his duties or functions. If anyone fails to comply with an order of the Registrar, the Registrar may refer the matter to the Court to enforce compliance. Any person aggrieved by a decision of the registrar may give Notice of Appeal to the registrar in the prescribed form of his intention to appeal against such decision. On receipt of such Notice of Appeal, the registrar shall prepare a brief statement of the question in issue to the court, the appellant and other interested person, and on the hearing of such appeal, a party may appear and be heard in person or by a legal practitioner. After hearing the appeal, the court may make any other as it may deem fit, and all parties shall be bound by such order. A Notice that an appeal is pending shall be entered against the entry in the register affected by the appeal. But such appeal shall not affect any dealing for value registered prior to the delivery of the Notice of Appeal to the Registrar. These provisions shall apply to appeals to the Court of Appeal in the same manner as they apply to an appeal to the High Court. Note the power of the Registrar to order production of relevant title documents (s.110).

3. ACQUISITION OF TITLE BY ADVERSE POSSESSION (s. 112)--- The holding of land may be acquired by adverse passion against the state after a period of twenty (20) year and in any other case, after a period of twelve (12) years. After the expiration of the period (20 or 12 years as the case may be), the person acquiring such interest shall give notice of such acquisition to the Registrar, and thereafter apply to the court for an order directing him to be registered as the holder of such land/interest. But note that a person (ie, an agent) who is in possession on behalf of another person (a principal) shall be deemed to be holding the possession of such other person.

4. Legal Representation --- Any application required to be signed by any person may be signed or made on that person’s behalf by a Legal Practitioner.

5. Immunity of Officers of the Lands Registry – Officers in the lands registry and other officers engaged for the purpose of the Law are immune from civil action for acts or omission made in good faith and in exercise of their statutory powers (s. 117)
6. For offences and penalties, see s. 199.

7. For repeals, see section 122 – among the laws repealed under section 122 of LRL, 2014 are the Registration of Titles Law Cap R1, Laws of Lagos State 2003, Land Instruments Registration Law, Lagos Cap L58 Laws of Lagos State, 2003, Electronic Management Systems Law 2007 and registration of Titles Law & Registration of Titles (Appeal) Rules Cap R4, Laws of Lagos State, 2003. Meanwhile, note that by virtues of the provision of section 121, any reference to any title made under the Registration of Titles Law Cap R1, Laws of Lagos State 2003, Land Instruments Registration Law, Lagos Cap L58 Laws of Lagos State, 2003, Electronic Management Systems Law 2007 and registration of Titles Law & Registration of Titles (Appeal) Rules Cap R4, Laws of Lagos State, 2003 shall be applicable under the LRL.

8. Forms & Precedents:

• LRL Form 1 ---- application form for registration of titles to land
• LRL Form 2—
• LRL Form 3 – application for conducting searches
• LRL Form 4 – Lagos State Land Registry Electronic Search report
• LRL Form 5 – application for obtaining CTC
• LRL Form 6 – Application form for registration of caution
• LRL Form 7 – Application form for withdrawal of caution