TRANSACTIONS AFFECTING LAND.
Land is a priced commodity and from time immemorial to date, it has continued to serve as a means of livelihood to many, income for others, and as home to many more. Land has been the subject of wars, laws, religion, and many other life defining events. There are a whole lot of transactions carried on with land. In this article, we’ll be looking at each of these transactions briefly:
The following are some of the transactions affecting land:
- Pledge of land
- Sale of land
- Mortgage
- Charge of land
- Gift of land
- Leases or leasehold
- License
- Donation of power
1. PLEDGE OF LAND.
This kind of land transactions exists where a person referred to as the ‘Pledgor’ gives or deposits any land or interest in land to another party, referred to as the ‘Pledgee” in which the person depositing the property binds himself to do or forbear from doing a particular thing. A pledge is thus a security transactions in which land is given as security for the sum borrowed.
READ MORE: LAGOS REVOKES 2018 LAND USE CHARGE.
It is worthy of note that the only transfer made here is the transfer of the possession and use of the land and not a transfer of the title or the legal interest in the land. In the case of ANYAEGBUNAM V. OSAKA (2000) 5 NWLR (PT.657)386 (2000) 3 S.C 1, the court established four (4) pointers which the party alleging a pledge must prove and they are:
- The pledge itself;
- The parties to the pledge;
- The witnesses, time and circumstances of the pledge; and
- The consideration for the pledge.
The principle regulating a pledge transaction is the right of the Pledgor to recover possession of the land which is perpetual and is never extinguished hence the cliché: “once a pledge, always a pledge”. So irrespective of how long it takes time cannot affect the principle of redemption of a pledged land by the pledgee. The supreme court in the case of Dr. David Chukwuemeka Obiefuna Okoye & Anors V. Christopher N. Obiaso & 3 Ors (2010) LCN/4028(SC) held that “…a pledge does not ripen into ownership because once a pledge, always a pledge”.
TYPES OF PLEDGE
(a) Traditional Pledge
This type of pledge is perpetual in nature and remains a pledge until redeemed. The right of redemption is not affected by the effluxion of time. In this type of pledge, the pledge enjoys the yields of the land unconditionally until the land is redeemed. This type of pledge is prominent in our rural areas and enjoys recognition of customs.
(b) Term Pledge
The term pledge is time bound. That is it lasts for a period agreed by the parties to the pledge and determines upon the expiration of the said period or term. Upon reasonable notice given to the pledgee, the pledgor can redeem at any time even before the term effluxes.
(c) Self-Redeeming Pledge
In a self-redeeming pledge, the pledgee enters into possession and uses the land, the yields therefrom being applied to the repayment of the loan or discharge of the obligation or which the land was appropriated such that the land pledged redeems itself.
At all material time during the transaction, the pledgee has the right of possession and usage over the pledged land and the pledgor has the right of redemption over the pledged land.
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