A land sale agreement in Nigeria is a legally binding document that outlines the terms and conditions of a land transaction between a seller (vendor) and a buyer (purchaser). It serves as proof of the transaction and protects both parties from future disputes, fraud, or ownership challenges.
Whether you’re buying land for residential development or real estate investment, understanding the property agreement clauses in Nigeria helps ensure your transaction is valid, transparent, and enforceable under Nigerian law.
In this article, we have listed essential clauses you should pay attention to when it comes to land sale agreements in Nigeria.
13 Essential Clauses In Land Sale Agreement In Nigeria You Should Know
1. Parties to the Agreement
Clearly identify the parties involved:
- Seller (Vendor) and Buyer (Purchaser): Include their full legal names, addresses, and valid means of identification (such as an international passport, national ID, or driver’s license).
- In cases involving family or community land, ensure the head of the family and principal members are named and sign the agreement. Under customary law, their consent is essential for validity.
Example: If Mr. Ade sells family land in Ogun State without the signatures of the family head and key members, the transaction could later be voided by the community.
2. Description of the Property
This section provides a clear and verifiable description of the land to avoid ambiguity or encroachment issues. Include:
- Location: Address or geographical coordinates.
- Size: The exact dimensions in square meters or acres.
- Boundaries: Clearly defined boundary points referencing permanent landmarks.
- Survey Plan: Reference the survey plan number and attach a copy as an annexure.
A detailed description ensures that the land in the land contract in Nigeria is easily identifiable, traceable, and free from overlap with adjoining plots.
3. Title and Ownership Clause
The seller must have a legal right to sell the land. This section should:
- Reference title documents, such as a Certificate of Occupancy (C of O), Deed of Assignment, Gazette, or Customary Right of Occupancy.
- Contain a warranty clause stating that:
i. The seller is the rightful owner of the property.
ii. The land is free from encumbrances, disputes, or pending litigation.
This clause protects buyers from acquiring disputed or government-acquired land, a common issue in many Nigerian states.
4. Purchase Price and Payment Terms
Clearly outline:
- The agreed purchase price.
- Payment terms are either lump-sum or installment.
- Mode of payment: bank transfer, cheque, or cash.
- Receipt acknowledgment or schedule for completing payment.
This section should also state that ownership transfer will only occur after full payment, ensuring transparency and protecting both parties.
5. Conditions Precedent
These are actions that must be completed before the sale becomes effective. Examples include:
- Verification of title documents by the buyer’s lawyer.
- Obtaining the Governor’s Consent, where applicable.
- Payment of outstanding ground rent, taxes, or survey fees.
Failing to meet these conditions can delay or invalidate the transfer of ownership under Nigerian property law.
6. Transfer of Ownership Clause
Specify:
- The date of transfer of ownership.
- The seller shall execute a Deed of Assignment in favor of the buyer upon completion of payment.
- The buyer will take possession of the land immediately after execution.
It’s also good practice to state that the buyer will register the Deed of Assignment at the relevant Land Registry to perfect their title.
7. Indemnity Clause
The indemnity clause protects the buyer from any losses or claims that may arise after the sale. It should state that:
- The seller will indemnify (compensate) the buyer against any future disputes, claims, or encumbrances related to the property.
This ensures that if any hidden defect or ownership issue surfaces later, the buyer has legal recourse.
8. Dispute Resolution Clause
Disputes may arise even in well-documented transactions. The agreement should outline how these will be handled:
- Negotiation: First attempt to resolve disputes amicably.
- Mediation or Arbitration: Encouraged before litigation to save time and cost.
- Court Jurisdiction: Specify the court that has authority, usually the High Court of the state where the land is located.
This clause ensures that any disagreement follows a structured legal process rather than escalating informally.
9. Termination Clause
This clause outlines when the agreement can be terminated, such as:
- Breach of contract by either party.
- Failure to fulfill conditions precedent.
- Non-payment or misrepresentation by any party.
A clear termination clause helps prevent prolonged disputes and protects the innocent party.
10. Force Majeure Clause
This provision covers unforeseen events such as natural disasters, war, or government acquisition that may delay or prevent completion of the transaction.
It ensures neither party is unfairly held liable for circumstances beyond their control.
11. Signatures and Witnesses
For a land sale agreement to be legally enforceable:
- Both parties must sign in the presence of at least two witnesses each.
- Include full names, addresses, and signatures of witnesses.
- For family or community land, the family head and principal members must also sign.
This adds authenticity and prevents forgery or future denial of consent.
12. Governing Law Clause
State that the agreement is governed by the laws of the Federal Republic of Nigeria, especially the Land Use Act of 1978.
This confirms that the contract operates within Nigeria’s legal framework and protects the transaction under Nigerian land law.
13. Attachments and Annexures
Attach supporting documents to strengthen the agreement:
- Copy of the seller’s title documents.
- Survey plan.
- Receipt of payment (if applicable).
- Deed of Assignment (to be executed after full payment).
These annexures provide tangible proof of the transaction and reduce ambiguity.
At this point, we’d look at what suffices when the property is under the customary law.
Requirements Under Customary Land Transactions
If the property is under customary law, ensure:
- The transaction follows community customs.
- All necessary family or community consents are obtained.
- Witnesses familiar with the customary process sign the agreement.
Failure to comply with customary requirements could render the legal agreement for land purchase invalid.
Given the complexity of Nigerian property laws, parties should engage a qualified property lawyer to draft, review, and verify all documents.
A lawyer ensures compliance with statutory laws, proper execution, and protection of client interests.
Conclusion
A comprehensive land sale agreement in Nigeria safeguards your investment and minimizes the risks of disputes or fraud. By including these essential clauses from title verification to indemnity and dispute resolution.
Following the information in this article, real estate investors can ensure their transactions are valid, enforceable, and secure.
Other Articles On The Blog
- Land Ownership in Nigeria: Customary and Statutory Rights
- Omo Onile in Nigeria – Dealing With Them Legally
Navigating property laws in Nigeria can be complex, but the right legal guidance makes all the difference.
At Scotts Legal, we provide expert support in property acquisition, title investigation, registration, and property management, helping real estate investors make confident, compliant, and secure decisions.
For consultations and inquiries, send us a message – here.
