TYPES OF TRANSACTIONS IN LAND

TYPES OF TRANSACTIONS IN LAND

Pledge of Land

This exists where a person referred to generally as the ‘Pledgor’ gives or deposits any land or interest in land to another party, referred to as the ‘Pledgee” in which the person depositing the property binds himself to do or forbear from doing a particular thing. In this case, only possession is given as the title or the legal interest in the land is not transferred. In a pledge, land is usually put as a security to get something from the Pledgee.

Gift of Land

Gift of Land in property practice is the voluntary transfer or conveyance of any interest in land made gratuitously to a recipient and without any consideration paid by the recipient. The essential quality of a gift is that it lacks the element of bargain based on quid pro quo by which a sale is characterised.

Sale of Land

A contract of sale of land is an agreement whereby the vendor promises to sell and the purchaser to buy the land in question. It is a binding agreement that the courts will enforce if necessary. The most important significance of this agreement is that it allows the purchaser ample time to investigate the title of the vendor. The parties to the transaction are Vendor and Purchaser. The Vendor’s solicitor is to prepare the Formal Contract of Sale of Land.

Leases/Sub-Lease

This is a written agreement under which a property owner (landlord) allows another (tenant) to use the property for a specified period of time and rent and known as a Landlord/Tenant relationship. A tenancy is a lease which is 3 years and below while a lease is one above 3 years. The parties are Lessor/Sub-Lessor and Lessee/SubLessee. The lessor’s or sub-lessor’s solicitor is to prepare the Deed of Lease (Sub-Lease).

Tenancy

The parties are the Landlord and Tenant. The Landlord’s solicitor is to prepare the Tenancy Agreement.

License

This is simply the permission to engage in a certain activity, granted by the appropriate authority.

Mortgage and Charge of Land

This is generally the conveyance of a legal or equitable interest in a property with a provision for redemption, that is, the conveyance shall become void or the interest shall be re-conveyed upon the repayment of the loan.

Donation of Power

This is an agency relationship by which a person gives power to another so that the agent acts on behalf of the principal in respect of specific transactions affecting land, such as to let out premises and collect rent, or to sell property and execute the document of sale. The parties are the Donor and Donee. The Donor’s solicitor is to prepare the Power of Attorney.

Assignment

The parties include: Assignor and Assignee. The assignor’s solicitor is to prepare the Deed of Assignment.

Will and Codicil

The parties are the Testator/Testatrix, Executors/Executrixs and Beneficiaries. The testator’s solicitor is to prepare the Will. There is a difference between a will and a codicil in spite of the fact that they are both testamentary documents. For there to be a codicil, there must have been a will in existence. A codicil amends, revoke and add to the provision of a will.

NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com

WRITTEN BY CHAMAN LAW FIRM TEAM

EMAIL: chamanlawfirm@gmail.com

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