Why a “Deed of Gift” Requires Governor’s Consent Before Selling the Property to a Third Party Buyer in Lagos
A Deed of Gift is one of the legally recognized methods of transferring ownership of land or property in Lagos and throughout Nigeria. It is commonly used where a property owner voluntarily transfers land to another person without receiving monetary consideration. Such transfers frequently occur between parents and children, spouses, siblings, relatives, charitable organizations, religious bodies, or as part of estate planning.
Many recipients of gifted property assume they can immediately sell the property to a third-party buyer without taking additional legal steps. However, where the transfer involves a statutory right of occupancy governed by the Land Use Act 1978, the legal position is more complex.
In many circumstances, a Deed of Gift transferring an interest in land requires Governor’s Consent to perfect the transfer. If the recipient later wishes to sell the property to another buyer, that subsequent transaction may also require Governor’s Consent, depending on the nature of the title and the applicable legal requirements. Buyers, lawyers, and Estate Surveyors and Valuers should carefully examine the property’s title history before proceeding with any sale.
This comprehensive guide explains why Governor’s Consent is important after a Deed of Gift, the legal framework governing gifted property in Lagos, the risks of failing to perfect title, and the practical steps required before selling gifted property.
What Is a Deed of Gift?
A Deed of Gift is a legal instrument through which a property owner (the donor) voluntarily transfers ownership or an interest in land to another person (the donee) without receiving payment.
It is commonly used for:
- Family property transfers.
- Gifts to children.
- Gifts between spouses.
- Charitable donations.
- Religious organizations.
- Estate planning.
- Lifetime succession planning.
Unlike a sale, a Deed of Gift is based on voluntary transfer rather than financial consideration.
Is a Deed of Gift a Valid Title Document?
Yes.
A properly executed Deed of Gift can form part of a valid chain of title.
However, execution of the deed alone does not necessarily complete all statutory requirements applicable to land transactions in Lagos.
Additional perfection steps may still be required.
Why Governor’s Consent Matters
Section 22 of the Land Use Act 1978 generally requires the Governor’s Consent before a holder of a statutory right of occupancy alienates that interest by assignment, mortgage, transfer of possession, sublease, or otherwise. Courts have interpreted this provision in numerous decisions, and its application depends on the nature of the land interest and the transaction.
Where a Deed of Gift transfers a statutory right of occupancy, obtaining Governor’s Consent is typically an important step in perfecting that transfer.
Does Every Deed of Gift Require Governor’s Consent?
Not necessarily.
The requirement depends on factors including:
- The nature of the land title.
- Whether the property is held under a statutory right of occupancy.
- The history of previous transactions.
- Applicable legal requirements.
- The circumstances of the transfer.
Professional legal advice should always be obtained before assuming consent is unnecessary.
Why Buyers Prefer Perfected Gifted Property
A purchaser carrying out due diligence will normally prefer property with a complete and properly documented chain of title.
Where Governor’s Consent has not been obtained after a Deed of Gift, buyers may be concerned about:
- Incomplete title perfection.
- Future registration difficulties.
- Mortgage eligibility.
- Marketability.
- Transaction delays.
Selling the Property to a Third Party
Suppose:
A father transfers property to his daughter through a Deed of Gift.
Years later, the daughter decides to sell the property.
Before the buyer completes the purchase, the parties should determine:
- Whether the original gift transfer required Governor’s Consent.
- Whether the title has already been perfected.
- Whether the proposed sale itself also requires Governor’s Consent.
Each transfer in the chain of title should be carefully reviewed.
Risks of Selling Without Proper Title Perfection
Failure to complete the appropriate perfection process may create practical challenges, including:
- Delays during buyer due diligence.
- Difficulty obtaining mortgage finance.
- Reduced marketability.
- Increased legal costs.
- Requests for additional documentation.
- Extended completion timelines.
The legal consequences depend on the facts of each transaction and the applicable law.
Importance of Registration
Apart from Governor’s Consent where required, parties should also consider:
- Payment of Stamp Duties.
- Registration of the instrument.
- Updating Land Registry records.
Registration helps protect ownership interests and provides public notice of the transaction.
Due Diligence Before Purchasing Gifted Property
A prudent buyer should verify:
- The original title.
- The Deed of Gift.
- Governor’s Consent status.
- Registration records.
- Survey plan.
- Chain of title.
- Existing encumbrances.
- Identity of the donor.
Land Registry Search
A search at the Lagos State Land Registry may reveal:
- Registered owner.
- Registration history.
- Registered Deed of Gift.
- Existing mortgages.
- Caveats.
- Restrictions.
- Other registered interests.
Registry searches form an important part of title verification.
Role of Property Lawyers
Property lawyers typically:
- Review the Deed of Gift.
- Examine the chain of title.
- Conduct Land Registry searches.
- Advise on Governor’s Consent requirements.
- Prepare transfer documentation.
- Manage title perfection.
- Register completed instruments.
Role of Estate Surveyors and Valuers
Estate Surveyors and Valuers assist by:
- Assessing market value.
- Advising on investment potential.
- Conducting property inspections.
- Preparing valuation reports.
- Supporting financing transactions.
- Advising on marketability.
Role of Registered Surveyors
Registered surveyors assist by:
- Confirming property boundaries.
- Verifying survey coordinates.
- Identifying encroachments.
- Preparing updated survey plans where required.
Common Mistakes Made by Property Owners
Property owners frequently:
- Assume a Deed of Gift alone completes title.
- Delay title perfection.
- Fail to register the transfer.
- Ignore Land Registry requirements.
- Sell without obtaining professional legal advice.
- Rely solely on family agreements without proper documentation.
Benefits of Completing Governor’s Consent
Completing title perfection where required may:
- Improve marketability.
- Strengthen the chain of title.
- Increase buyer confidence.
- Facilitate mortgage financing.
- Reduce legal uncertainty.
- Simplify future transactions.
Legal Framework
The principal legal framework includes:
- Land Use Act 1978.
- Lagos State Land Registration Law.
- Registration of Titles Law (where applicable).
- Stamp Duties Act.
- Evidence Act.
Court decisions interpreting Section 22 of the Land Use Act also play an important role in determining how these requirements apply.
Best Practices Before Selling Gifted Property
- Review the complete chain of title.
- Confirm whether Governor’s Consent was previously obtained.
- Register all title documents.
- Conduct Land Registry searches.
- Obtain independent legal advice.
- Verify survey information.
- Resolve any outstanding title issues before marketing the property.
Conclusion
A Deed of Gift is an effective legal instrument for transferring property without payment, but it does not automatically complete every statutory requirement applicable to land transactions in Lagos. Where the transfer involves a statutory right of occupancy, Governor’s Consent is often an important element of title perfection under the Land Use Act.
Before selling gifted property to a third-party buyer, owners should ensure that the chain of title has been properly perfected, registered where required, and independently reviewed by experienced property lawyers. Completing these steps strengthens buyer confidence, improves marketability, and helps reduce the risk of future title disputes.
Helpful Resources
The following official and professional resources provide authoritative information on land title perfection and property transactions:
- Lagos State Lands Bureau
- Lagos State eGIS Portal
- Lagos State Government
- Federal Ministry of Housing and Urban Development
- Nigerian Institution of Estate Surveyors and Valuers (NIESV)
- Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON)
- Nigerian Bar Association
- Federal Inland Revenue Service (Stamp Duties)
Frequently Asked Questions (FAQs)
What is a Deed of Gift?
A Deed of Gift is a legal instrument used to transfer ownership or an interest in property voluntarily and without monetary consideration.
Is a Deed of Gift a valid title document?
Yes. A properly executed Deed of Gift can form part of a valid chain of title. However, additional perfection steps may still be required depending on the circumstances.
Why is Governor’s Consent important after a Deed of Gift?
Where the transfer involves a statutory right of occupancy, Governor’s Consent is generally an important requirement for perfecting the transfer under the Land Use Act.
Can I sell gifted property immediately?
You may be able to sell the property, but before doing so you should confirm that the title has been properly perfected, registered where required, and that any necessary Governor’s Consent requirements have been satisfied.
Does every Deed of Gift require Governor’s Consent?
No. The answer depends on the nature of the title, the interest being transferred, and the applicable legal requirements. Professional legal advice is recommended.
What happens if I fail to perfect the title?
Incomplete title perfection may lead to delays during due diligence, reduced marketability, financing challenges, and requests for additional documentation by prospective buyers or lenders.
Should I register a Deed of Gift?
Yes. Registration is generally an important step in protecting ownership interests and maintaining a complete chain of title.
Can a bank finance property transferred through a Deed of Gift?
Many lenders will require evidence of a properly perfected and registered title before accepting the property as security. Their requirements vary depending on the circumstances and internal lending policies.
What professionals should I engage before selling gifted property?
It is advisable to engage an experienced property lawyer, a registered Estate Surveyor and Valuer, and, where necessary, a registered surveyor to review the legal, valuation, and technical aspects of the property.
What is the safest approach before selling a property received by gift?
Review the complete chain of title, verify the status of Governor’s Consent and registration, conduct Land Registry searches, ensure all required perfection steps have been completed, and obtain independent professional advice before entering into a sale agreement.
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