The seller of a piece of land we want to buy just brought the documents, and we saw it was allocated to a company. Can land be allocated to a company? He claims it's his company, but how do I confirm that? The land is located in FCT, Abuja.
Land can be allocated to individuals as well as companies. Companies are treated same as private inviduals in the eye of the law.
However you need to confirm the existence of such company, and if indeed the said seller is one of the stakeholders in the company. You do so by carrying out a search at CAC. The search report will show whether or not the company is indeed registered and if the said seller has stake in the company.
Note, if the company isn’t registered and a land was allocated to it, then such land has a serious title problem because you can’t allocate land to something that doesn’t exist.
Note also for a company to sell a property, it must prepare a resolution to do so, and such must be signed by it’s directors empowering the sale.
Aside confirming that the company is the appropriate owner, you need to carry other search as well, this time at AGIS or AMAC, the appropriate agency, depending on the location or type of title of the land.
For AGIS, they need to sight the original title documents. Ensure the said owner or his representative has the documents when he goes with you to AGIS for such verification.
Aside the confirmation at AGIS, you need to also carry a physical examination of the property, most preferably with a surveyor. This will show the exact position of the land, the size as indicated on the title documents and other important discoveries that will aid in making the right decision.
Be sure you are given the right title documents and transaction sealing documents such as Deed of Assignment, Sale Agreement and Power of Attorney.
Make sure you involve a lawyer and a surveyor. This will save you some costly mistake.
Tony Ekwoaba Esq.