If you want to buy a property in Abuja, you must know a few things about the deed of conveyance first.
The deed of conveyance is an essential land document required to seal the sale of a property from one party to another.
This article discusses the document in detail, including its definition, and the processes required to obtain it.
What is a Deed of Conveyance?
A deed of conveyance, also known as a conveyance deed or property deed, is a legal document used to transfer property ownership from one party to another. It’s a fundamental document for real estate transactions. A purchase of property isn’t complete without a valid conveyance deed.
Like a deed of assignment, a conveyance deed transfers ownership of real properties, such as lands and buildings.
Top 10 Things You Need to Know About Deed of Conveyance in Abuja
1. Legal Requirement
The deed of conveyance is a legal requirement for transferring property ownership in Abuja. It’s essential to ensure it’s executed in writing, signed by all parties involved with third-party witnesses, and duly registered by the legal authorities in charge.
2. Property Description
A good deed of conveyance contains a detailed and accurate description of the property being transferred. It includes the property size, location, boundaries, and other physical features.
3. Parties Involved
A deed of conveyance typically involves two parties, the seller (grantor) and the buyer (grantee). The deed should clearly state the names of the parties involved and their addresses. Both parties should also sign the document.
4. Consideration
Consideration is the monetary value exchanged between parties in a real estate transaction. That is, the amount the buyer pays the seller to acquire the property.
A deed of conveyance contains the consideration involved in the transaction. And with both parties signing on it, there’s an agreement on the price.
5. Terms and Conditions
If there are terms and conditions in the transaction, the deed of conveyance contains the information. Terms and conditions in a real estate transaction may include payment schedules, warranties, restrictions, easements affecting the property, etc.
6. Execution
The parties involved in the transaction must be of their own volition, without coercion or fraud. That means the two parties must understand the terms of the deed and agree to it by appending their signature.
7. Witness
According to Nigerian law, the deed of conveyance must be signed in the presence of at least two witnesses who are not parties to the transaction. The witnesses will also sign, alongside the parties involved, in case of future disputes.
8. Stamp Duty
Stamp duty is a tax the Nigerian government levies on a deed of conveyance and other written and electronic documents. You must pay the required stamp duty before the deed can be registered or approved as a legal document. The stamp duty rates may vary due to the value of the property involved and other factors.
9. Registration
A deed of conveyance must be registered with the appropriate land registry, in this case, the Abuja Geographic Information Systems (AGIS), to make it valid.
Registering the deed provides public notice of the property transfer and establishes the buyer’s ownership rights.
10. Legal Assistance
Real estate transactions are complex and involve many legal requirements. Therefore, when drafting a conveyance deed, you must seek legal assistance from a qualified property lawyer.
How Can You Obtain a Deed of Conveyance in Abuja?
Here’s a simple process you can use to obtain a deed of conveyance in Abuja:
1. Negotiation and Agreement
The entire process begins with both parties involved in the transaction negotiating on the property sale. The negotiation involves discussing the price, discounts, warranties, and terms and conditions.
2. Drafting the Deed
Once an agreement is reached on the sale of the property, the next step is to formalize it by drafting a deed of conveyance.
The deed should include vital details of the agreement, including the purchase price, property description, payment terms, and any relevant warranties or conditions.
3. Legal Review
At this point, after the deed is drafted, the parties involved should have a qualified property lawyer review it. The lawyer ensures that the deed complies with all the applicable laws and regulations and adequately protects the rights of the parties involved.
4. Execution
Once the deed of conveyance is finalized, it needs to be executed by the parties involved. The signatures must be witnessed by at least two witnesses who are not parties to the transaction.
5. Payment of Stamp Duty
The next step is to pay the stamp duty to the Federal Inland Revenue Service (FIRS). The amount to pay depends on the value of the property being transferred.
6. Registration
Finally, the deed of conveyance should be registered with the AGIS to formalize it and make it a legal document. The registration process might require you to provide the original deed and other required documents. You will also have to pay a registration fee to the AGIS to facilitate the process.
What is the Difference between a Deed of Conveyance and a Deed of Assignment?
The major difference between a deed of conveyance and a deed of assignment is that a deed of assignment is only used to transfer ownership through sales. On the other hand, a deed of conveyance can be used to transfer ownership in the form of a mortgage, gift, lease, etc.
Are Sales Deeds and Conveyance Deeds the Same?
Yes, a sales deed is simply a type of conveyance deed. Other conveyance deeds are lease deeds, gift deeds, mortgage deeds, exchange deeds, etc.
Who Prepares a Deed of Conveyance?
A deed of conveyance is prepared by a lawyer with a good understanding of property law. It’s illegal for a non-lawyer to draft a conveyance deed for another person for a fee.
Conclusion
The sale of a property is not complete without a conveyance deed. It is what seals the transfer of ownership between the parties involved. Understanding a conveyance deed lets you avoid disputes or buying non-existent or fraudulent properties.
Hopefully, this article has given you insights into what a conveyance deed is, its importance, and how to obtain it.
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