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Tuesday 20 December 2016

PROPERTY LAW PRACTICE DEPARTMEMNT 2016/2017 WEEK 4: DEEDS TASKS

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COUNCIL OF LEGAL EDUCATION
NIGERIAN LAW SCHOOL
LAGOS CAMPUS

PROPERTY LAW PRACTICE DEPARTMEMNT

2016/2017 ACADEMIC SESSION

WEEK 4: DEEDS
DECEMBER 07, 2016

TASKS

Enefaa Chamberlain lives at 45, Teller Road, Onitsha and he is the sole importer of Latung laptops in Nigeria. He also has interests in real estate, telecommunications and agro-allied businesses. He is from Bayelsa State, Nigeria. He purchased the following properties through his estate consultant, Prince Ignatius Bako, of Brock Estate Brokers and Property Consultants:

(1)   The 4-bedroom duplex at 22, Bank Road, Ikoyi, Lagos with Title number: LO/986597;
(2)   The sixty-feet wide warehouse at 31, Kreku Street, Auchi Road, Benin City, Edo State;
(3)   The block of six flats at 44, Apple Avenue, Enugu, Enugu State;
(4)   A vacant plot of Land at Kilometre 77, Zaria-Kano Road, Kaduna, Kaduna State; and
(5)    The two-winged duplex at 13, Works Road, Wuse, Abuja registered as 87/87/2011

Enefaa Chamberlain retained the services of Prof Owena Briggs, SAN, under a general retainership, which began in 2012. In view of the economic recession in the country, Enefaa Chamberlain has decided to source for funds to expand and boost the liquidity of his businesses. To this end, he intends to do the following:

a.       Obtain a loan of N350 million from Nigeria Agric Bank Plc (having its head office at 61 Abba Crescent, Area 10, Garki, Abuja), and plans to use the property in Ikoyi as security for the loan.
b.      Dango Ventures Nigeria (a business outfit owned by Mr Terry Bam) has agreed to purchase the property in Enugu for N210 million;
c.       Mr Terry Bam is personally negotiating purchase of the property in Benin City, Edo State.
d.      Enefaa Chamberlain has just rounded off negotiations with the National Secretariat of National Association of Nigerian Students (NANS) in respect of the right wing of the property in Wuse, Abuja. NANS intends to take the property for a term of seven years, for use as its national headquarters.
e.       Den-Cruz Nigeria Limited (of 13, Asokoro Road, Wuse, Abuja) has agreed with Enefaa Chamberlain to take the second wing of the property in Wuse on a three-year lease, which the company plans to use as the official residence for its Managing Director, Dr Oyin Mogaji.

Meanwhile, Enefaa Chamberlain has instructed his lawyer (Prof Briggs) to immediately undertake the following legal jobs:

(a)    to draft a document, for the purpose of authorizing Brock Consulting Limited to find a buyer and sell the property in Kaduna for a sum not less than N70 million within six months of receiving the instructions; and

(b)   to draft a document to contain specific instructions on disposal of Enefaa Chamberlain`s assets and properties on Enefaa Chamberlain`s death. Enefaa Chamberlain wishes to be buried inside the sitting room of his residential house at 45, Teller Road, Onitsha, when he dies. He wishes also that his three children, Tom Chamberlain (19 years old), Mary Chamberlain (13 years old) and Rita Chamberlain (22 years), together with his friend, Prince Jibola Jaja to be in charge of managing his estate, after his death. Enefaa Chamberlain would want Prof Briggs to also reflect these wishes in the said written instructions.

For these two instructions, Prof Briggs has written Enefaa Chamberlain for a professional fee of N500,000:00 and has asked Enefaa Chamberlain to make a down payment to him N300,000:00 “on account.” Enefaa Chamberlain intends to object to Prof Briggs` demand for N500,000:00 as professional fees. Enefaa Chamberlain is of the opinion that since Prof Briggs has been collecting N1 million annually from him (Enefaa Chamberlain) as retainership fee, he is not obliged to pay Prof Briggs any other fees for the work he has just given to Prof Briggs.

Answer the following questions, based on the above scenario:

(1)   State the final document of transfer executed or required to be executed by the parties in each of the following (completed or contemplated) transactions in order to complete each transactions:

(a)    Creation of legal mortgage in respect of the property in Ikoyi, Lagos
(b)   The transaction between Dango Ventures Nigeria and Enefaa Chamberlain;
(c)    The planned purchase of the property in Benin City, Edo State;
(d)   The transaction involving the National Association of Nigerian Students (NANS);
(e)    The transaction involving the second wing of the property in Wuse, Abuja;

(2)   List out the particulars Professor Owena Briggs would need to obtain from the parties in the transaction referred to in question 1 (b) above, to enable him prepare the final document the parties would execute in order to complete the transaction.

(3)   Mention the various parts/segments of the document referred to in question 1(b) above, and enumerate all the matters/clauses to be included in each of the parts/segments mentioned.
(4)   Draft the document you mentioned in question 1 (b) above, ready for execution.

(5)   Draft the introductory and concluding parts only of the final document the parties would need to execute in order to complete

(i)                 the transaction involving the property in Enugu and
(ii)               the transaction involving the right wing of the property in Wuse, Abuja.

(6)   Assuming the Assignee in the transaction involving the property in Enugu is Jamiu Family of 90, Arin Street, Lokoja, Kogi State, with the following as the principal members: Alheri Zainab Jamiu (family head), Mr. Ferdinard Jamiu, Mrs Zitta Jones (nee Jamiu), and Mr. Femi Jamiu.  Draft the introductory and concluding parts of the final document the parties would need to execute in order to complete the transaction.

(7)   Would your answer in question (6) above be different if Mr. Jude Jerewo and His wife, Mrs Jemima Jerewo, both of 44, Duro Street, Anthony Lagos were the assignors of the property in Enugu and Mr. Chang Wungi, who lives at 88, Marina Lagos and speaks and understands only the Chinese Language, was the assignee?

(8)   State any six (6) instances in which the use of Deed is mandatory in property transactions, and any six (6) instances in which the use of Deed is not mandatory.

(9)   Identify all known similarities and differences between the transaction involving the right wing of the property in Wuse, Abuja and the transaction involving the second wing of the same property.

(10)                       Highlight briefly the functions of each of the following clauses when found in a Deed.
Discuss also the effect (if any) of non-inclusion of each of the clauses in a Deed:

a)      Recital;
b)      Schedule
c)      Date
d)     Attestation
e)      Signing
f)       Franking

(11)                       Comment on the implications (if any) of leaving a Deed un-dated. How is the
commencement date of an un-dated Deed ascertained?

(12)                       Assuming a formal seal was not actually affixed on the final document executed to
complete the transaction involving the property in Ikoyi, even though the document was signed by all relevant parties and duly attested. Now, the Bank has commenced an action in the High Court for recovery of the mortgage sum & interests, following Mr. Chamberlain’s default in repaying the loan. Mr. Chamberlain is opposing the action on grounds that the document executed is void because it (the document) was not sealed. Advise the parties.

(13)                       Would your answer to question (12) above be different if the mortgagee in the
transaction was Mr. Nat Okoro? Give reasons for your answer.

(14)                       Comment briefly on the correct order for the perfection of the document you drafted
in answer to question (4) above. Are they any legal implications for failure to get the document perfected?

      INSTRUCTIONS:

1.                  All groups to consider ALL questions in groups.

2.                  Answers to group questions MUST be submitted online (as an attachment) to plp@lawschoollagos.org, not later than 9pm on Tuesday, December 6, 2016.

3.                  Hard copy to be submitted to any of the lecturers in the department not later than 9am on Wednesday, December 7, 2016.

4.                  Each student MUST study the topic (DEEDS) in advance, and get ready for presentations in class and to answer questions on the topic as well as on the above tasks.

5.                  Some relevant reading materials:

a)      Real Property Law & Practice In Nigeria (published in 2014 (by Felicia O. Eimunjeze);
b)      Understanding Legal Drafting & Conveyancing) (2012 edition, by Sylvester Imhanobe);
c)      Property Law Practice In Nigeria (3rd edition 2105 by Y.Y Dadem);
d)      Source Book On Property Law Practice (by Ada Odor & F.J. Oniekoro ).

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