LAND DEALINGS

LEARNING OUTCOMES
At the end of the unit you will be able to:
 state the meaning of land dealings.
 list the types of dealings under the NLC.
 state the meaning of Transfers, Leases and Tenacies.
 define the importance of land registrations and dealing in land.
 list the dealing instruments that require registration under the NLC.
 state the meaning of Charges and Liens.
 state the meaning of Easement.
 state the meaning of caveat and its types.
 state the meaning of prohibitory order and its effect.
 Definition

 The term “dealing” is defined in section % NLC to

mean any transaction with respect to alienated
land effected under the powers conferred under
Division IV of the NLC

 It includes any similar transaction effected under

any previous land law

 It does not include any caveat or prohibitory

order, which are actually restrain on dealings
 Under Division IV of the Code, only four types
of dealings are recognized and these are :

Transfer
Lease and Tenancies
Charges and Liens
Easements
The importance of registration in land
dealings
 All dealings have to be registered and no
instrument effecting any such dealing shall
operate to transfer the title to any alienated
land until it has been registered

 However, even before registration is being

effected the dealing is still effective since the
parties are bound by contractual obligation
 According to section 304 of the NLC, the registration of
any instrument of dealing is effected by the Registrar
making, under his hand and seal, a memorial of the
dealing on the register document of title, under his hand
and seal, on the instrument of dealing itself. The memorial
consists of a short description of the nature and effect
of the instrument, the identity of the parties thereto, and
a statement of its number in the “Presentation Book”, the
reference under which it is filed, and the time and date
from which the registration is effective.
(Hj. Salleh,1989)
 The effect to registration is that the
law confers on the transferee, leasee
or chargee or the person or body in whose
favour an easement has been granted and
registered, as the case may be, the seal
indefeasibility.

See section 340(1) NLC

 INSTRUMENTS OF DEALING

 According to section 206(1) NLC provides that

every dealing shall be effected by the relevant
instrument prescribed for that purpose and must
be properly registered with the competent
authority

 There are fourteen types of instrument that

require registration under the NLC

 These are as follows:-

TRANSFER

What may be transferred?

 According to section 214 NLC, the following are

capable of being transferred under the Code namely,

the whole, but not part only, of any alienated land 

the whole, but not part only, of any undivided share in any
alienated land
any lease of alienated
any charge and
any tenancy exempt from registration
Powers of Transfer and its Restrictions

 The power to transfer is subject to limitations and

prohibitions whether imposed by the National
Land Code or any other written law for the time
being in force

 It is also limited by any restriction in interest to

which the land is for the time being subject and in
relation to leases, charges and tenancies exempt
from registration, the provisions thereof, express
or implied.
Note:

  No lease or charge may be transferred to two or more

persons or bodies otherwise than as trustees or
representatives.

 Transfer of land must be effected by Form 14A and the

title passes and vest in the purchaser upon the
registration of the transfer. The purchaser also gets
the benefits of any registered interest then enjoyed
with the land
LEASES AND TENANCIES
 A lease is defined as a conveyance by which the proprietor of land
(lessor) grants to another person (lessee) an interest in the land less
than a freehold and less than that to which the lessor is himself
entitled

 The NLC provides for two distinct types of leases and they are a term
not exceeding three years and for a term exceeding three years

 The first type is referred to as a tenancy exempt from registration

and it is not a registerable interest

 If all leases were registerable the title to the land would very quickly
be filled up with a great deal of short tenancies
 With regard to leases for term exceeding three years, they may
be granted either over the whole or over part only of the land

 Leases for a part of the land may be granted for a maximum of

thirty years

 If the proprietor – lessor is holding the land under a State lease

he may not grant a lease to another person for longer than is
tenancy has still to run

 Leases for a part of the land must include a plan and description
of the land so that the portion may be accurately identified
CHARGERS AND LIEN
 The NLC recognizes two types of security dealings with land
and they are charges and liens

 A charge is a transaction (or a dealing for the purposes of the

Code) whereby registered proprietor of an alienated land or a
lease conveys it as a security for the repayment of a loan, an
annuity or any other periodical payment, to another

 The proprietor of the land or lease is known as the “chargor”

and the person whom the property is conveyed or in whose
favour the charge has been effected is called the “chargee”
 A lien is not a registerable dealing.

 Under section 281(1) of the NLC, it can be created in respect of any alienated
land or any lease or sub-lease of alienated land

 A lien is created when the proprietor of any alienated land or the lessee or the
sublessee for the time being of any alienated land deposits with another his
IDT, duplicate lease or duplicate sublease respectively as security for a loan

 The person with whom the IDT, duplicate lease or duplicate sublease is
deposited is known as the lien-holder and to protect his interest he may apply
for the entry of a lien-holder’s caveat

 A lien can also be created in respect of an undivided share in any alienated
land and the document that needs to be deposited is the copy of the IDT
EASEMENT

 Section 282(1) of the Code defines easement

simply as “any right granted by one
proprietor to another, in capacity as such and
for the beneficial enjoyment of his land”.

 The land for the benefit of which the easement

granted is called the “dominant” land and the
land of the proprietor by whom the easement is
granted is called the “servient” land
 Rights of easement are either positive or
negative in nature.
 Thus under section 283(1), the Code explicit
states that the rights capable of being
granted as easement are:

any right to do something in, over or upon the

servient land and
any right that something should not be so done
 Section 283(2) then states that the said rights
do not include::

any right to take anything from the servient land

any right to the exclusive possession of any part
thereof.
 Transfer of land, share or lease (Form 14A) 
 Transfer of charge (Form 14B)
 Lease of land (Form 15A)
 Sub-lease of land (Form 15B)
 Surrender of lease (Form 15C)
 Charge – to secure payment of a principal sum (Form 16A)
 Charge – to secure payment of a periodic sum (Form 16B)
 Postponement of a charge (Form 16C)
 Certificate of sale by Court (Form 16F)
  Certificate of sale by LA (Form 16I)
 Discharge of charge (Form 16N)
 Grant of easement (Form 17A)
 Grant of cross-easement – in respect of a party-wall (Form 17B)
 Release of easement (Form 17C)
 CAVEAT AND
PROHIBITORY ORDER
 A caveat is an entry in the RDT to any land made by RT / LA on his

initiative (in the case of a Registrar’s caveat) or upon receiving an

application for it’s entry from a certain person or body (in the case
of any other caveat).

 It has the effect of preventing certain instrument of dealing from

being registered by the RT / LA. The purpose of a caveat depends

on its type

 The NLC provides four types of caveats. These are the Registrar’s

caveat, private caveat, lien-holder’s caveat and the trust caveat.

Registrar’s Caveat

 A Registrar’s caveat is entered by the Registrar on

the registrar document of title(RDT).

 So long as the caveat is in force no dealing may be

effected in regard to that piece of land.

 Even dealings pending registration are frozen

 A Registrar’s caveat also takes precedence over all

other caveats.
Basically, the Registrar’s caveats serve four main functions.

 To prevent fraud or improper dealings

 To protect the interests of the Federation or the State authority or any person
who is under disability, e.g. minority, mental disorder, or unsoundness of mind
or any person who is absent from the Federation

 To secure that land will be available to satisfy the whole or any part of any
debt due to the Federation or the State Authority, whether such debt is
secured or unsecured and whether or not judgement thereon has been obtained

 To correct errors which appear to the registrar to have been made in the
register or issue document of title to the land or any other instrument relating
thereto
Private Caveat
 A private caveat may be entered either to bind the land
itself or merely an interest therein. The persons and
bodies who may enter private caveat are:-

Any person or body claiming title to, or any registerable interest

in any alienated land or any right to such title or interest

Any person or body claiming to be beneficially entitled under

any trust effecting and such land or interest

The guardian or next-of kin of any minor claiming to be entitled

Lien- Holder’s Caveat
 Section 281 of the NLC provides that any proprietor of land or any lessee
for the time being may deposit with any other person or body, as
security for a loan, his issue document of title of duplicate lease.

 Upon such deposit being made, the depositee may thereupon apply to
the Registrar for the entry of a lien’s holder caveat in respect of the land
or lease.

 Upon entry of such caveat, the depositee becomes entitled to a lien over

the land or lease.

 Where the lien-holder has obtained judgement against the land owner or
the lessee for the amount due to him as secured by the lien, he shall be
entitled to apply to the court for an order for the sale of the land or lease
Trust Caveat
 A trust caveat may be entered by the Registrar in respect of
any land or interest which is expressed to be held by any
persons or bodies as trustees

 The effect of the trust caveat shall be precisely stated

therein and may be to prohibit, either absolutely or except
subject to conditions, the registration, endorsement or
entry of all or any of the followings:-

any instrument of dealing, or class or description of instrument of d
ealing, directly affecting the trust property
any lien-holder caveat in respect of the land
Prohibitory Order

 According to section 334 of the NLC, ‘prohibitory

order’ means, where land or interest in land held
by a judgement-debtor is to be sold in execution
proceedings, an order made pursuant to the rules
of court by a court of competent
jurisdiction prohibiting the judgement-
debtor from effecting
any dealing therewith or from effecting such
dealing therewith as may be specified in the order