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LAND – REGISTRABLE INSTRUMENT NOT REGISTERED CREATES EQUITABLE INTEREST

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It is however trite law that a purchaser of land who has paid and taken possession of the land by virtue of a registrable instrument which has not been registered has thereby acquired an equitable interest which is as good as legal estate. This equitable interest can only be defeated by a purchaser of the land for value without notice of the prior equity. Nsiegbe v. Mgbemena (2007) 10 NWLR pt. 1042, pg. 364, Okoge v. Dumez (Nig.) Limited (1985) 1 NWLR, pt. 4, pg. 783.

— O.O. Adekeye, JSC. Agboola v UBA (2011) – SC.86/2003

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REGISTERED LAND SYSTEM VS UNREGISTERED LAND SYSTEM

The title which the plaintiff claims in respect of plots 89, 91 and 93 derived from the system of registration of title first introduced into Nigeria in 1935 and the law applicable to the case is the Registration of Titles Law Cap. 166, Laws of Lagos State of Nigeria, 1994. The courts below did not realise that the claim before them is in respect of land located in a Registration District under the aforementioned Cap. 166 Laws of Lagos State. The conveyancing of unregistered land depends upon production by the vendor of a series of documents which recite previous dealings or transactions affecting the land showing the ability of the vendor to convey what he has agreed to convey. In that case title has to be proved afresh each time a disposition of land is made. On the other hand, the conveyancing of registered land is different. As soon as title to land is registered, its past history becomes irrelevant, from that time title is guaranteed by the State and a purchaser can rely on it and transfer of land becomes the substitution of one person’s name for another’s in the Registry. The property register describes and identifies the land and the interest in the land which is the subject-matter of the title. Registration of titles is however distinct from registration of instruments, the former is simpler, cheaper, speedier and more reliable.

— Ogwuegbu, JSC. Onagoruwa & Ors. v. Akinremi (2001) – SC.191/1997

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UNREGISTERED INSTRUMENT IS ADMISSIBLE TO SHOW POSSESSION

It would therefore seem to me apposite and admissible in this action where the documents, Exhibits ‘E’ & ‘F’ were tendered in an action against the respondents for a declaration and trespass, not for the purposes of claiming title but as evidence that respondents were lawfully on the land in dispute. It is admissible to show that respondents were not trespassers to the land in dispute. In my opinion where a registrable unregistered Instrument is regarded as inadmissible in evidence, it may be necessary on a proper consideration of the document itself, and the purposes for which it was tendered to determine whether it is not admissible for that purposes. If the purpose for which it is tendered did not affect any legal interest in land, it is in my opinion admissible for the purpose for which it was produced – namely in this case an equitable right to remain all the land.

— Karibe-Whyte JSC. Okoye v Dumez & Ors. (1985) – SC.89/1984

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THE PURPOSE OF REGISTERING INSTRUMENT

The purpose of registration is to protect third parties from fraud and the element of surprise likely to arise from non-registration. Hence where a purchaser with notice of the possession by a third party enters into contract, with respect to the land, with respect to the land he will not be entitled to rely on the want of registration by the third party. See Ogunbambi v. Abowab (1951) 13 WACA. 222. The equity of the non-registered instrument binds subsequent purchasers with the exception of bona fide purchasers for value without notice of the existence of the equity. – See Fakoya v. St. Paul’s Church, Shagamu (supra).

— Karibe-Whyte JSC. Okoye v Dumez & Ors. (1985) – SC.89/1984

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REGISTRABLE UNREGISTERED INSTRUMENT CAN BE USED AS PROOF OF SALE OF LAND

On the findings of the Courts below, respondents have only claimed possession, not even exclusive possession. Chief Ajayi, S.A.N. has submitted that if Exhibit C was the basis of defendants’ title, and requires registration under the Land Instrument Registration Law Cap, 65 to constitutes evidence in this case, and is not registered to be admissible, not being registered it was inadmissible. The Court below ought not have relied on Exhibit C for rejecting the grant of the land in dispute. Exhibit C is however admissible as an acknowledgment of the receipt of money and gifts to Medusope Family. Our Courts have held in several cases that payment of purchase money and delivery of possession to a grantee creates a valid title by native law and custom – See Ogunbambi v. Abowaba 13 WACA. 22. On this principle appellant on the facts which was neither denied nor challenged had a valid title. In the circumstances the mere possession relied upon by the Court below ought not have been relied upon to defeat the claim to title of the appellant established on the facts.

— Karibe-Whyte, JSC. Adesanya v Otuewu (1993) – SC.217/1989

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UNREGISTERED INSTRUMENT ADMISSIBLE TO PROVE RECEIPT OF MONEY

The law is well settled that an unregistered document which falls within the provisions of section 2 of the Land Registration Law of Kaduna State or under the corresponding provisions of the Land Instrument Registration Act can be admitted in evidence as a receipt of money transaction and memorandum of sale only. It cannot certainly be used to prove title. It may give rise to an equitable interest enforceable by specific performance.

– Sanusi JCA. Enejo v. Nasir (2006)

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WHAT UNREGISTERED REGISTRABLE INSTRUMENT MAY PROVE

An unregistered registrable instrument, sought to be tendered for the purpose of proving or establishing title to land or interest in land, would be inadmissible under Section 15 of the Land Instruments Registration Law; if it is however tendered to show that there was a transaction between the lessor and the lessee, it will be admissible as a purchase receipt. It will also be admissible if it is meant to establish a fact which one or both parties have pleaded. Under these two conditions, such a document does not qualify as an instrument as defined in the Land Instruments Registration Law.

– Nweze JSC. Abdullahi v. Adetutu (2019)

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