A prospective buyer finds the perfect piece of land.
The seller appears legitimate. He produces a Power of Attorney and insists that he has authority over the property. The buyer pays the purchase price and takes possession.
Months later, a dispute arises.
The buyer discovers that the person who sold the land was not actually the owner.
This is precisely why the Supreme Court’s decision in Katagum v. Umar & Anor deserves the attention of every property investor and land buyer.
The Court reaffirmed a fundamental principle of Nigerian law: a Power of Attorney does not transfer ownership. It merely authorizes the donee to perform specified acts on behalf of the donor.
In other words, the power to act is not the same as the right to own.
For anyone purchasing land, this raises an important question:
What documents should you insist on obtaining before concluding a land transaction?
1. The Root of Title
Before paying for any land, ask how the seller became the owner.
The seller should be able to produce documents showing the chain of ownership, such as:
– Certificate of Occupancy (C of O);
– Deed of Assignment;
– Deed of Gift;
– Court Judgment;
– Letters of Administration;
– Traditional History (see 7 below):
or
– Any other valid title document.
A seller who cannot establish ownership may have nothing to transfer.
2. Survey Plan
A survey plan helps identify the exact location, dimensions, and boundaries of the property.
It is also useful for conducting searches to determine whether the land is under government acquisition, committed, or affected by other restrictions.
3. Deed of Assignment
This is one of the most important documents in a land transaction.
While a Power of Attorney may authorize a person to act, a properly executed Deed of Assignment is the document that transfers the seller’s interest in the land to the buyer.
Without it, proving ownership can become difficult.
4. Governor’s Consent (Where Applicable)
Under the Land Use Act, transfers of interests in land generally require the Governor’s Consent.
Failure to regularize this aspect of the transaction can create legal complications in the future.
5. Receipts and Evidence of Payment
Every payment made should be properly documented.
Receipts, acknowledgements, and bank transfer records can become crucial evidence if disputes arise later.
6. Verification and Due Diligence
Even where all documents appear genuine, independent verification remains essential.
Searches at the relevant land registry and other due diligence checks can reveal encumbrances, competing claims, or defects in title that may not be apparent from the documents alone.
7. Understand the Traditional History of the Land
Not every valid title begins with a Certificate of Occupancy or a Deed of Assignment.
In many parts of Nigeria, ownership traces back to the original settlement of a family, community, or village. Consequently, a prudent buyer should inquire into the traditional history of the land.
The Real Lesson
The Supreme Court’s decision is a reminder that documents serve different purposes.
A Power of Attorney may authorize a person to negotiate, execute documents, or act for the owner. It does not automatically make that person the owner.
For land buyers, the question should never be:
“Does the seller have a Power of Attorney?”
The better question is:
“Can the seller prove ownership and validly transfer that ownership to me?”
In property transactions, the most expensive mistakes often occur before construction begins. A careful review of title documents and transaction structure can save years of litigation and protect what may be one of the most significant investments a person ever makes.