What you Need to Know About Deed of Assignment

Deed of assignment is one of the most crucial documents you must have when you complete a land and property transaction.

What is A Deed of Assignment?

A deed of assignment is an agreement between a seller of land or property and a buyer of that land or property that verifies the seller has given the buyer all of the seller’s rights, titles, interests, and ownership in the land they have just purchased.

The Deed of Assignment serves as the fundamental instrument establishing ownership in the seller’s favor between the buyer and seller.

The person or Seller who transfers his rights or interests in that property is typically referred to as the Assignor, and the person to whom the Seller transfers those rights or interests is referred to as the Assignee.

Read this now: Reasons to conduct Due Diligence in Land transactions in Nigeria

Therefore, a Deed of Assignment is an Agreement in which the assignor promises to transfer ownership of the Land or property to the assignee as of the date of the assignment or any other date specified therein.

For any real estate transaction, the deed provides important information. One benefit is that it clearly states the day on which one owner becomes the new owner of the property.

Additionally, the deed provides a detailed description of the properties that are covered by the ownership transfer.

The exchange of a Deed of Assignment between the parties must be documented in the land register in order to provide official documentation that the land has changed hands and for the benefit of the general public. Such a documented Deed of Assignment might be a registered transfer or a governor’s consent.

The Deed of Assignment outlines the main transactions that took place between the Seller and the Buyer so that there won’t be any misunderstandings or assumptions once the property has been transferred to the new owner.

Also Read: What you should know about Real Estate HIDDEN FEES in Nigeria

The Key transactions you need to know in the deed of assignment

  1. The Parties, such as Mr. A and Mrs. K, to the Agreement
  2. The addresses of the parties and how the agreement binds their successors, friends, acquaintances, and anyone else acting in their interest.
  3. The history of the property, from how it was initially acquired to the point when it is about to be sold, as well as any earlier records that have been made available to this point.
  4. The agreed-upon price of the land and the Seller’s readiness to formally accept that sum as the price for the land.
  5. The description and size of the transferred land.
  6. The commitments or covenants that both parties decide to make in order to complete the transfer of the document
  7. The signatures of the parties to the Assignment and the Transaction Witnesses
  8. The paragraph where the agreement is signed and validated by the Commissioner of Oaths or the Governor.

For a Deed of Contract to be legitimate, all Documents must have these essential components.

What is The Importance of a Deed of Assignment?

I have witnessed individuals purchase land from friends, relatives, omo-onile, and real estate firms while failing to recognize the importance of the seller’s need to provide a copy of the land or property’s document.

A deed of assignment is important because it is a binding legal agreement made and signed by two parties to a real estate deal.

The deed contains all of the specific details that were agreed upon by all parties to the transaction.

To guarantee that a deed of assignment appropriately represents the interests of all parties involved in the transaction, a real estate attorney should prepare it. The deed is drafted by the assignee’s attorney and then approved and signed by the assignor (vendor). If the property has been assigned, the assignor’s attorney may prepare the deed for review by the assignee’s attorney.

The deed of Assignment acts and serves as a valid root of the title and also states the foundation and occurrence of the land or property

In cases when the ownership of the property is in question or a third party makes an attempt to claim ownership of the same land, the deed acts as legal proof of transfer.

Who Needs to Sign A Deed of Assignment?

The deed must be signed by both the assignor (seller) and the assignee(s) (buyer), who must also check the appropriate box (or boxes) for each signature. However, if two persons hold the policy and they are both joint properties. Thus, both owners are required to serve as assignors.

Who prepares a Deed of Assignment?

In Nigeria, a lawyer is the only person who may draft a Deed of Assignment. According to Nigerian law, the seller must give the buyer a deed of assignment.

But most sellers will always shy away from contacting their lawyer to prepare the deed of assignment cause of the fee and percentage they will pay to the lawyer, so, when a real estate transaction is about to get to a conclusion, in avoiding misunderstanding, you the buyer or the seller should discuss who has to prepare the deed of contract.

When dealing with Omo-onile, the assignee’s attorney or legal counsel often drafts the deed of assignment, which is then submitted to the assignor (vendor) for review and signature.

If the land or property is bought from real estate, the assignor’s lawyer will prepare the deed for the assignee’s lawyer.

How Much Does the Lawyer Charge to Draft a Deed?

In real estate deals, lawyers like to negotiate their percentage largely on the assets or property’s value. This is so because they draft the deed of assignment, which is a service they are authorized to do.

The percentage a lawyer will charge to create a deed of assignment depends on a number of factors, including the amount of the property to be acquired and their experience or competence in real estate transactions.

For the majority of attorneys in Nigeria, creating a deed of contract normally costs 5 to 10 percent of the property’s cost.

Also Read: What You Need To Know Before Buying A House In Nigeria

Conclusion

In any land transaction in Nigeria, a deed of assignment is crucial because it serves as the main document between the vendor and the purchaser.

Don’t buy land or property without having the deed. Some call it Deeds of Contract.

Always consult a property lawyer before you buy land to help prepare a deed of assignment. It will be your greatest mistake if you don’t have one. Don’t fall, victim to land scams.

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