In our courts today, one of the frequent civil litigation matters on the cause list usually emanates from land transactions. This undoubtedbly is as a result of the fact that most parties to a land transaction either fails or neglects to hire the services of a legal practitioner from the onset not until they want the title documents to be prepared.
Let me state emphatically that the preparation of title documents is not the only role a lawyer plays in a land transaction. Therefore, in order for a lawyer to properly, effectively and efficiently protect the interest of his/her client, ensure that the deal is lawful, and complies with all relevant laws and regulations, the lawyer has the following roles to play:
Title Verification: Lawyers thoroughly examine the property’s title to confirm its ownership history, spot any liens, encumbrances, or restrictions that may be in place, and make sure that the title is free of obstacles and marketable. There abound various instances where people who do not have title to a land will sell same to unsuspecting buyers which will become a subject of litigation.
Due Diligence: Lawyers carry out due diligence to look into the property’s physical state, environmental issues, and adherence to the Land Use Acts amongst other concerns. This in turn will help the buyer make an informed decision. Imagine a scenario where a land owner sells a land that have been earmarked for drainage construction or any other purpose by the state government to a buyer who fails to hire a lawyer to conduct due diligence on his/her behalf. I’m sure you know where the matter would end up.
Review of Contract and Drafting: it is the role of a lawyer to review existing contracts, draft new ones, and negotiates contracts pertaining to land transactions, such as easements, leases, and purchase agreements. They make sure the agreements are valid legally and safeguard their client’s interests.
Legal Advice: Throughout the transaction, lawyers give their clients legal advice and guidance while outlining their rights and obligations, potential dangers, and available options. They also advice about the strength of the title, the enforceability of contracts, and the compliance with laws and regulations.
Regulatory Compliance: Lawyers ensure that the transaction conforms with all applicable laws and regulations, including tax laws, building permits, and environmental laws.
Escrow and Closing: Attorneys supervise the closing procedure, making sure that all legal papers are properly signed, money is transferred securely, and the deal is closed in accordance with the terms of the agreement.
Resolution of Disputes: If there are problems or disputes during the transaction, lawyers can negotiate on behalf of their clients, mediate disputes, and, if need be, offer legal representation in court proceedings.
Ownership Structuring: Lawyers counsel their clients on the best ownership structure for their needs, whether it be sole ownership, joint ownership, or through a corporate entity like a company, partnership, or trust.
Tax Planning: Lawyers offer significant guidance on tax planning strategies associated with land transactions, including property taxes, capital gains taxes, and transfer taxes.
Liabilities and Risk Management: Attorneys assist clients in identifying potential liabilities and risks connected to the property and the transaction and design methods to reduce such risks.
Regulatory Filings: Attorneys prepare and file the necessary legal documents, including deeds, mortgages, and title documents transferring ownership of property, with the relevant government bodies.
Documentation & Record-Keeping: Lawyers maintain accurate records of all legal documents related to the transaction, ensuring that they are properly executed, recorded, and archived for future reference.
Finally, involving a lawyer from the beginning of your land transaction could be expensive. Howbeit, it is the BEST option for you in order to avoid the potential legal pitfalls and legal quagmire usually associated with land transactions. Also, I can guarantee that the cost you will incur in litigation will far outweigh the cost to involve a lawyer from the beginning of the transaction. In my law practice, I am yet to see, nor hear, nor read that a land matter before our courts have been expeditiously heard and determined. Hence, I will leave you with this popular wise saying that “a stitch in time saves nine”.
J. E. HILARY, ESQ. (GIAMP, ACIAP, AICMC)
hilaryjoehills@gmail.com
08036670671