Week 3 Property Law: Applicable Laws, Jurisdictions & Ethical Duties

Hello Class! Welcome back to our Property Law Practice journey. Today we are tackling Week 3: General Overview and Applicable Laws in Property Law Practice.

This week forms the foundation of your Bar Finals. If you do not know the correct law that applies to a transaction based on its location or nature, your entire draft and legal advice will be fatally flawed. We have broken this down into 5 Highly Detailed Segments, complete with mnemonics and exam tips to guarantee your recall in the exam hall. Let's get to work!

SEGMENT 1: LAND TRANSACTIONS & THE GOLDEN DRAFTING RULE

Before you can apply a law, you must correctly identify the nature of the transaction. Clients will bring various requests to your law firm. Misidentifying the transaction is a fatal error.

The Major Land Transactions:

• Sale of Land / Assignment: The absolute transfer of the unexpired residue of an interest in land for valuable consideration.
• Lease: A grant of exclusive possession of property for a term exceeding 3 years, usually for rent, with a reversionary interest retained by the Lessor.
• Tenancy: Similar to a lease, but for a term of 3 years and below.
• Mortgage / Charge: The conveyance of a legal or equitable interest in property as security for the repayment of a loan, with a proviso for redemption.
• Pledge: Depositing land as security where only possession is given, but title is not transferred. Remember: "Once a pledge, always a pledge."
• Gift of Land: Transfer of interest in land without consideration.

Critical Exam Distinctions:
- A Will is not a land transaction -- it only affects an interest in land.
- An Assent is an instrument, not a transaction in land.
- Never write "Contract of Sale Agreement" in your exam. It is either an "Agreement to Sell" or a "Contract of Sale."

The Golden Rule of Drafting (Who Drafts What?):

The general rule is that the document is drafted by the solicitor for the party who stands to lose the most if the document is poorly drafted.

• Sale / Assignment: The Purchaser's / Assignee's Solicitor prepares the Deed of Assignment.
• Lease: The Lessor's Solicitor prepares the Deed of Lease.
• Mortgage: The Mortgagee's Solicitor prepares the Deed of Legal Mortgage.

SEGMENT 2: THE APPLICABLE LAWS (THE "TRELLS" MNEMONIC)

When an examiner asks you to list the applicable laws for a property transaction, you must provide a blend of General Laws and Specific Laws.

Received English Law (applies where no local legislation exists):

• Statute of Frauds 1677
• Conveyancing Act 1881 / 1882
• Wills Act 1837

Nigerian Legislation -- General Framework:

Mnemonic: "TRELLS"

• T
  Tax LawsCapital Gains Tax Act, Personal Income Tax Act, Stamp Duties Act, Value Added Tax Act.
• R
  Rules of Professional Conduct (RPC) 2007Governs the ethical duties of the lawyer handling the transaction.
• E
  Evidence Act 2011Governs the admissibility of title documents.
• L
  Land Use Act 1978The principal law regulating land tenure and Governor's consent.
• L
  Legal Practitioners ActRegulates the lawyer's remuneration and professional standing.
• S
  Statutes on Companies CAMA 2020Applies when a company is a party to the transaction.

Exam Tip: Always state each law in FULL, accompanied by the correct year (e.g., Land Use Act, 1978). Do not abbreviate in your exam answer!

SEGMENT 3: THE JURISDICTIONAL DIVIDE (WHERE IS THE PROPERTY?)

This is the most critical segment for Week 3. Nigeria is divided into distinct property law jurisdictions. You must look at the location of the property in the exam scenario to know which specific law applies. Getting this wrong will collapse your entire answer.

1. The PCL States (Old Western and Mid-Western Regions):

• Applicable Law: Property and Conveyancing Law (PCL) 1959.
• The States:

  Mnemonic: "O4 D E2"

  Ondo, Oyo, Osun, Ogun, Delta, Edo, Ekiti.

2. The CA States (Old Northern and Eastern Regions):

• Applicable Law: Conveyancing Act (CA) 1881 & 1882.
• The States: All Northern States (e.g., Kano, Kaduna, FCT Abuja) and Eastern States (e.g., Enugu, Anambra).
• Note / Exception: Rivers and Abia States have enacted their own property laws. If the property is there, cite "Law of Property of Abia State" or "Law of Property of Rivers State" respectively.

3. The Lagos State Exception:

Lagos has revolutionized its property laws and does not use the PCL or CA. Instead:

• Registration: Land Registration Law of Lagos State, 2015.
• Mortgages: Mortgage and Property Law of Lagos State, 2010.
• Tenancy: Tenancy Law of Lagos State, 2011.

Exam Tip: If there is no Lagos property in the transaction scenario, do NOT cite Lagos laws!

SEGMENT 4: FACTORS DETERMINING APPLICABLE LAWS (THE "LANDS" MNEMONIC)

How do you comprehensively determine which laws apply to a specific exam scenario? Apply the LANDS checklist to every scenario.

Mnemonic: "LANDS"

• L
  Location of the PropertyDetermines whether the PCL, CA, or Lagos laws apply. Exception: For Wills or a Power of Attorney, the applicable law is where the testator/donor resides, not necessarily where the property is located.
• A
  Applicable LawsDetermine whether customary law, Islamic law, or received English law governs the transaction.
• N
  Nature of the TransactionLook for keywords. Is it a sale, a lease, or a mortgage? In Lagos, a mortgage triggers the Mortgage and Property Law, while a sale triggers the Land Registration Law.
• D
  Documents RequiredA Deed of Assignment triggers the Stamp Duties Act; a Will triggers the Wills Act/Law; a Mortgage Deed triggers the Mortgage and Property Law (Lagos) or PCL/CA.
• S
  Status of the PartiesIf one party is a company, CAMA 2020 applies. If a party is an illiterate, the Illiterates Protection Law applies.

SEGMENT 5: ETHICAL DUTIES OF THE PROPERTY SOLICITOR

In every Property Law question, the examiner will test your knowledge of the Rules of Professional Conduct (RPC) 2007. Always relate the ethical issues directly to the facts of the scenario.

Key Ethical Duties (RPC 2007):

1. Duty of Competence (Rule 16): A lawyer must demonstrate competence and expertise. Do not handle a complex commercial mortgage if you lack the requisite skill.
2. Conflict of Interest (Rule 17): A lawyer should generally avoid acting for both parties (e.g., Vendor and Purchaser) to avoid a conflict of interest.
3. Safeguarding Client's Funds (Rule 23): A lawyer must keep a separate client account and must never mix client funds (like purchase money or rent) with personal funds.
4. Bounds of the Law (Rule 15): A lawyer must not counsel or assist a client in illegal dealings (e.g., under-declaring the value of land to evade stamp duties).
5. Aiding Unauthorized Practice (Rule 3): A lawyer must not sign or frank a document prepared by a non-lawyer (e.g., an Estate Agent).

SUMMARY CHECKLIST FOR EXAMS

• Identify the transaction first: Sale, Lease, Tenancy, Mortgage, Pledge, or Gift -- each has different rules on who drafts and which laws apply.
• Who drafts? Purchaser's solicitor (sale), Lessor's solicitor (lease), Mortgagee's solicitor (mortgage).
• Applicable Laws: Use the TRELLS mnemonic -- Tax, RPC, Evidence Act, Land Use Act, Legal Practitioners Act, Statutes on Companies.
• PCL States: O4 D E2 -- Ondo, Oyo, Osun, Ogun, Delta, Edo, Ekiti -- PCL 1959.
• CA States: All Northern and Eastern states (except Rivers & Abia which have their own laws) -- CA 1881.
• Lagos: Own special laws -- Land Registration Law 2015, Mortgage and Property Law 2010, Tenancy Law 2011. Never cite PCL or CA for Lagos!
• LANDS checklist: Apply it to every scenario -- Location, Applicable Laws, Nature of transaction, Documents, Status of parties.
• Ethics: RPC Rules 3, 15, 16, 17, and 23 apply to every property transaction.

Ready to test your knowledge?

Try this quick 3-question Joust taken straight from our past questions database.