Many land purchasers assume that once they have paid for land and obtained a deed, their ownership is secure. However, recent reaffirmations of long-established principles by the Supreme Court demonstrate that land ownership disputes are often determined not merely by who bought first, but by who properly protected their interest.
The Supreme Court has consistently emphasized that in disputes involving competing interests over the same property, registration, priority, and due diligence play a decisive role.
The Risk of Multiple Sales
One of the most common forms of land fraud occurs when the same land is sold to multiple purchasers.
A buyer may honestly pay for land, execute a Deed of Assignment, and even take possession. Yet another purchaser may later emerge claiming ownership of the same property.
When such disputes arise, the courts will examine not only the dates on the documents but also the legal status of the parties’ interests and the steps taken to protect those interests.
Registration Matters More Than Many Buyers Realise
The Supreme Court has repeatedly held that under land registration laws, priority is generally determined by the date and time of registration rather than the date an instrument was executed.
In practical terms, a deed signed earlier may lose priority if it is registered later than another competing instrument.
The rationale is straightforward. Land registration systems exist to provide certainty, transparency, and protection against fraud. Allowing unregistered interests to defeat properly registered interests would undermine the integrity of the registration process.
For investors and property purchasers, this highlights the importance of registering title documents promptly after acquisition.
A Seller Cannot Give What He No Longer Owns
The Court also reaffirmed the principle of nemo dat quod non habet—no person can transfer what he no longer owns.
Where two parties derive title from the same vendor, the vendor’s first valid transfer may effectively exhaust his interest in the property. Any subsequent purported transfer may be incapable of passing legal title because the vendor has already parted with his ownership rights.
This principle underscores why buyers must investigate not only the seller’s current claim to ownership but also whether previous transactions involving the property exist.
Why Land Registry Searches Are Not Optional
Perhaps the most significant lesson from the Supreme Court’s decision is the importance of conducting thorough searches.
The Court emphasized that purchasers are deemed to have notice of matters properly registered in the Land Registry. A buyer who fails to conduct adequate searches may be treated as having constructive notice of existing interests affecting the property.
In other words, ignorance may not be a defence.
A purchaser who neglects to investigate registered interests may find it difficult to claim protection as a bona fide purchaser for value without notice.
The Protection of a Bona Fide Purchaser
Nigerian law provides special protection for a bona fide purchaser for value without notice.
However, this protection is only available where the purchaser:
- Acquired a legal interest;
- Paid valuable consideration;
- Acted in good faith; and
- Had no actual, constructive, or imputed notice of an existing competing interest.
Where a purchaser fails to conduct reasonable inquiries or deliberately ignores warning signs, the courts may conclude that the purchaser had notice of prior interests and therefore cannot rely on this protection.
Practical Lessons for Land Buyers
Before purchasing land, every buyer should:
1. Conduct Comprehensive Land Registry Searches
Verify whether any registered interests, mortgages, leases, assignments, or encumbrances affect the property.
2. Investigate the Seller’s Root of Title
Establish how the seller acquired ownership and whether previous transfers exist.
3. Verify All Title Documents
Do not rely solely on documents produced by the seller.
4. Register Your Interest Promptly
Delays in registration may expose your interest to competing claims.
5. Engage Legal Professionals Early
A proper due diligence exercise before payment is significantly less expensive than litigating a title dispute after purchase.
Key Takeaway
The Supreme Court’s position is clear: land transactions are not won merely by paying first or obtaining a signed document. Registration, due diligence, and proper investigation are often the factors that determine who ultimately succeeds when competing claims arise.
For investors, developers, lenders, and property buyers, the lesson is simple: before paying for land, verify everything. After acquiring it, protect your interest without delay.
In real estate transactions, legal due diligence is not an administrative formality, it is often the difference between owning valuable property and becoming embroiled in years of avoidable litigation.