Buying land from someone who does not actually own it can turn what appeared to be a straightforward property investment into a serious legal and financial problem.
The situation can arise in several ways. A person may deliberately sell another person’s land, a family member may purport to sell family property without the required authority, an agent may exceed the authority given to them, or a seller may have acquired documents that do not give them a valid title to the property.
In some cases, the seller may have acted fraudulently. In others, the seller may genuinely believe that they own the property but have a defective title.
Whatever the circumstances, the buyer should act quickly once the problem is discovered.
A fundamental principle of Nigerian property law is that a person cannot generally transfer a better title than the person actually possesses. The principle is commonly expressed by the Latin maxim nemo dat quod non habet — no one can give what they do not have.
The Supreme Court has applied this principle where a person purports to transfer land after having already divested himself of the relevant interest. The later purchaser cannot acquire from the same grantor an interest that the grantor no longer possesses.
The important question, therefore, is what the buyer should do after discovering that the seller did not own the land.
How Can Someone Sell Land They Do Not Own?
There are several ways this can happen.
A Person Deliberately Sells Another Person’s Land
This is one of the most serious situations.
A person may know that land belongs to someone else but nevertheless present themselves as the owner and collect money from an unsuspecting buyer.
Where false representations are deliberately made to obtain money, the transaction can raise both civil and criminal issues.
A Person Sells Land They Previously Sold to Someone Else
A seller may sell the same property to Buyer A and subsequently sell it again to Buyer B.
The second buyer does not automatically become a co-owner simply because the second transaction was documented.
Where competing purchasers trace their claims to the same grantor, the question of priority and the validity of the competing transactions becomes critical.
The Supreme Court has applied the principle that once a grantor has effectively divested himself of title, he has nothing left to convey to a subsequent purchaser.
A Family Member Sells Family Land Without Proper Authority
Family property creates another common source of disputes.
A person may represent themselves as the owner of family land and sell it without having the authority required to bind the family.
The fact that the person is a family member does not automatically establish that they have authority to sell the entire property.
The buyer must investigate the nature of the family ownership and the authority of the person purporting to sell.
An Agent Exceeds Their Authority
A property may also be sold by someone acting as an agent.
The existence of a Power of Attorney or agency relationship does not mean that the agent can automatically do anything with the property.
The scope of the authority must be examined.
For example, authority to negotiate or manage property does not necessarily mean authority to sell and transfer the property.
The Seller Has Documents but No Valid Title
Possession of documents does not automatically establish ownership.
A person may possess a Deed of Assignment, survey plan, receipt, allocation document or even other apparently official documents without having a valid title capable of being transferred.
This is why examining only the seller’s immediate document is not enough.
The buyer must investigate the root of title and determine whether the seller actually acquired a valid interest.
What Does the Law Say About a Seller Who Has No Title?
The principle of nemo dat quod non habet is fundamental.
A person cannot ordinarily transfer to another a proprietary interest that the person does not possess.
For example, if A has no title to a parcel of land, A cannot simply create good title for B by signing a deed purporting to sell the land to B.
Likewise, where A previously transferred the relevant interest to B, A cannot ordinarily recover the divested interest and transfer it again to C.
The Supreme Court has repeatedly applied this principle in land disputes.
However, the legal consequences of a particular transaction depend on its facts. Questions of priority, notice, registration, consent, estoppel, customary law and the nature of the respective interests can affect the outcome.
That is why a buyer should have the particular transaction examined rather than assuming that every defective sale produces exactly the same legal result.
Does the Buyer Automatically Lose the Land?
Not necessarily.
Discovering that the person who sold the property did not have good title does not mean that the buyer should simply abandon the property without investigating the circumstances.
Several questions must first be answered.
For example:
- Who actually owns the property?
- What interest did the seller purport to transfer?
- Did the seller have any interest at all?
- Was the seller an agent or representative?
- Was the property previously sold to another person?
- Did the true owner authorise the transaction?
- Did the true owner receive or retain any part of the purchase price?
- Was the buyer misled?
- Is the true owner willing to recognise or ratify the transaction?
- Has the buyer entered into possession?
- Has the buyer developed the property?
- Is there existing litigation?
- Are there criminal elements to the transaction?
The answers can determine what remedies are available.
What Should You Do Immediately After Discovering the Problem?
The first step is to stop and preserve your position.
Do not immediately confront the alleged true owner or make statements that could prejudice your legal position.
Instead:
1. Stop Further Payments
If the purchase price has not been fully paid, consider stopping further payment until the title problem has been investigated and your legal position is clear.
Do not allow the seller to persuade you to complete payment simply because:
“The problem will be sorted out later.”
A defective title can become substantially more difficult to resolve after the seller has received the full purchase price.
2. Gather Every Document
Preserve all documents relating to the transaction, including:
- agreement of sale;
- Deed of Assignment;
- survey plan;
- receipts;
- payment evidence;
- allocation documents;
- correspondence;
- WhatsApp conversations;
- emails;
- text messages;
- advertisements;
- photographs;
- inspection records;
- Power of Attorney;
- title documents supplied by the seller; and
- documents relating to any subsequent communication with the seller.
Do not delete messages because you believe they are no longer important.
They may become important evidence.
3. Preserve Evidence of Payment
Keep evidence showing:
- the amount paid;
- date of payment;
- account to which payment was made;
- identity of the recipient;
- description used for the payment;
- instalment arrangements; and
- any acknowledgement of receipt.
Bank transfer records can be particularly important in establishing the financial aspect of the transaction.
4. Obtain Independent Legal Advice
At this stage, the buyer should engage a lawyer who is independent of the seller and the seller’s agent.
The lawyer should review the transaction and determine:
- what interest was purportedly transferred;
- whether the seller had title;
- whether the transaction was valid;
- whether the seller made false representations;
- whether another person has a superior title;
- what remedies are available; and
- what steps should be taken immediately.
Do not rely solely on the lawyer who acted for the seller or the agent.
Conduct an Independent Investigation of the Title
The buyer should establish who actually owns or has the superior interest in the property.
Depending on the circumstances, this can involve:
- an official land search;
- examination of registered instruments;
- examination of the root of title;
- verification of survey information;
- investigation of previous transactions;
- examination of relevant government records;
- investigation of litigation or court judgments; and
- physical inspection of the property.
The purpose is to establish the actual history of the property.
This is particularly important where the seller has produced documents that appear genuine.
A document can be genuine without proving that the person holding it has the title they claim.
What If the True Owner Is Already in Possession?
This can be a particularly serious warning sign.
Suppose you buy land from A and subsequently discover that B has been occupying the property for years and claims to be the owner.
Do not assume that B is simply trespassing.
B’s possession may be connected to an underlying ownership claim.
The buyer should investigate B’s claim and compare it with the seller’s title.
The Supreme Court has recognised that a person in possession may have enforceable possessory rights, while also distinguishing such rights from the rights of a person with a better title.
The identity of the person with the superior legal interest must therefore be established before the buyer decides how to proceed.
Can You Recover Your Money From the Seller?
Potentially, yes.
Where a seller has received money for land that they had no right to sell, the buyer may have a claim for recovery of the purchase money and, depending on the circumstances, other losses.
The precise remedy depends on the contractual documents, representations made by the seller, the circumstances of the transaction and the nature of the seller’s failure.
The Supreme Court has recognised that a sale of land carries an implied covenant for title. the Court has held in some cases that the consequences where a vendor did not have the title they purported to convey the buyer is entitled to recover the purchase money, among other consequences arising from the particular facts.
A buyer should therefore not assume that the only possible remedy is to sue for the land.
Recovery of the money paid can be an important part of the claim.
Can You Claim Compensation for Money Spent Developing the Land?
Potentially.
If a buyer purchased the land in good faith and subsequently spent money on:
- clearing the land;
- fencing;
- architectural plans;
- construction;
- foundation works;
- buildings;
- professional fees; or
- other improvements,
those losses should be documented.
Whether they are recoverable will depend on the legal basis of the claim and the facts of the case.
The Supreme Court has recognised, in an appropriate case, recovery beyond the purchase price, including certain expenses incurred in connection with the property.
However, a buyer should not assume that every expense automatically becomes recoverable.
The nature, necessity and legal basis of each claimed loss matter.
Can You Sue the Seller for Fraud?
Possibly, depending on the facts.
Not every failed property transaction is automatically a criminal fraud.
For example, a seller may genuinely but mistakenly believe that they have good title. That situation is different from a person who knows that another person owns the land but deliberately represents himself as the owner in order to obtain money.
Where a person deliberately uses false pretences to obtain money or property with intent to defraud, criminal liability may arise under applicable Nigerian legislation.
The Advance Fee Fraud and Other Fraud Related Offences Act, for example, criminalises obtaining or inducing the delivery of property through false pretence with intent to defraud.
The Criminal Code also contains provisions dealing with fraudulent transactions involving property, including concealing material title information or making false statements about title with intent to defraud.
Therefore, where there is evidence of deliberate deception, the matter may require consideration from both civil and criminal perspectives.
Can You Report the Seller to the Police or EFCC?
The appropriate law-enforcement agency depends on the facts and the nature of the alleged conduct.
A genuine civil dispute over title is not automatically transformed into a criminal case merely because one party has lost money.
However, where there is evidence of deliberate fraud, forgery, obtaining money by false pretence, conspiracy or related criminal conduct, a criminal complaint may be appropriate.
The buyer should obtain legal advice before deciding how to frame or pursue such a complaint.
The existence of a civil claim and a potential criminal complaint are not necessarily mutually exclusive, but they involve different legal questions and procedures.
Can You Sue the Person Who Actually Owns the Land?
This depends on the circumstances.
If the true owner never authorised the transaction, the buyer cannot simply assume that the true owner is legally bound by the seller’s conduct.
The buyer’s primary claim may instead be against the person who purported to sell the property without authority.
However, the precise position depends on matters such as:
- whether the alleged owner authorised the seller;
- whether the seller acted as an agent;
- whether there was ratification;
- whether the buyer has acquired any recognised interest;
- whether the true owner made representations;
- whether the true owner received any benefit from the transaction; and
- the nature of the competing titles.
This is why the true owner’s identity and legal position must be established before commencing proceedings.
What If the Seller Says the True Owner Gave Them Permission?
Ask for proof.
An informal statement such as:
“The owner asked me to sell it.”
is not enough where ownership is disputed.
The buyer should investigate the alleged authority.
If the seller relies on a Power of Attorney, examine:
- who granted it;
- whether that person had title;
- when it was granted;
- whether it covers the property;
- what powers it confers;
- whether those powers include sale;
- whether it remains valid; and
- whether any subsequent event affected the authority.
A Power of Attorney should not be treated as independent proof that the person granting it owned the property.
What If the Seller Is a Family Member?
Extra caution is required.
A family relationship does not automatically confer authority to sell family land.
Where family property is involved, investigate:
- the history of the land;
- who owns or holds the family interest;
- the role of the family head;
- the role of principal family members;
- whether the required consent was obtained;
- whether any family member opposed the transaction; and
- whether previous transactions affect the property.
The Supreme Court has emphasised in family-land disputes that a person claiming an entitlement to family land must establish the basis of that entitlement.
A buyer should therefore not assume that a family member who possesses documents or occupies the land necessarily has authority to sell the entire property.
What If the Seller Has Already Disappeared?
Act quickly.
A seller who disappears after receiving a substantial amount of money can make recovery considerably more difficult.
The buyer should immediately preserve evidence and obtain legal advice concerning available remedies.
Depending on the circumstances, possible steps can include:
- issuing a formal demand;
- commencing civil proceedings;
- seeking appropriate interim relief;
- identifying and tracing relevant assets;
- reporting suspected criminal conduct to the appropriate authorities; and
- taking steps to protect the buyer’s legal position.
The specific strategy should be determined after reviewing the evidence.
Can You Place a Restriction on the Property?
Where there is a risk that the disputed property will be sold again or otherwise dealt with, urgent legal advice is important.
Depending on the circumstances, a court may have jurisdiction to grant appropriate interim or interlocutory relief to preserve the subject matter of litigation.
The precise order required will depend on the facts.
The important lesson is that a buyer should not wait indefinitely while a disputed property continues to be dealt with by the person who wrongfully sold it.
What If You Have Already Built on the Land?
Do not assume that continuing construction will improve your legal position.
If you discover that the seller did not own the land, stop and obtain legal advice before making further substantial expenditure.
Continuing to build can increase the amount of money at risk without resolving the underlying title problem.
The buyer should first determine:
- whether the seller had any title;
- whether the buyer has acquired any enforceable interest;
- whether the true owner is prepared to recognise the transaction;
- whether compensation or another remedy is available; and
- whether litigation is necessary.
The fact that substantial money has already been invested does not automatically convert a defective title into a valid one.
What If You Bought the Land in Good Faith?
Good faith can be important, but it does not automatically cure a defective title.
A buyer may genuinely have believed that the seller owned the property and may have paid valuable consideration without knowing about the defect.
That fact can be relevant to the remedies available and to the buyer’s position against other parties.
However, good faith does not necessarily enable a person to acquire a title that the seller did not have.
The buyer should therefore distinguish between:
“I did not know the seller lacked title”
and:
“The law automatically gives me good title because I acted in good faith.”
Those are not necessarily the same proposition.
What If You Have a Registered Deed of Assignment?
Registration is important, but registration does not necessarily create a valid title where the transferor had no title capable of being transferred.
A buyer should not assume:
“My deed is registered, so nobody can challenge me.”
The fundamental question remains whether the person from whom the interest was acquired had a valid interest to convey.
The Supreme Court’s application of the nemo dat principle demonstrates why tracing the root of title remains essential.
What If the Seller Had a Certificate of Occupancy?
A Certificate of Occupancy is an important document, but its existence does not automatically settle every question concerning title.
The buyer should investigate the title underlying the seller’s interest and determine whether there are competing or pre-existing rights.
The fact that the seller presented a Certificate of Occupancy therefore does not mean that the buyer should stop investigating the property’s history.
What If the Transaction Violated the Land Use Act?
The Land Use Act contains provisions governing transactions involving rights of occupancy.
Section 26 provides that a transaction or instrument purporting to confer or vest an interest or right over land contrary to the Act is null and void.
This is another reason why the buyer should have the transaction examined for compliance with applicable statutory requirements.
Where a transaction involves a statutory right of occupancy, questions concerning Governor’s Consent can also arise.
A buyer should therefore not treat the execution of a deed as the end of the legal process.
What Claims Can a Buyer Potentially Bring?
Depending on the facts, a buyer who has been sold land by someone without title may consider claims such as:
Recovery of the Purchase Price
The buyer may seek recovery of money paid under the transaction.
Damages
Where legally recoverable, the buyer may claim damages resulting from the seller’s breach or wrongful conduct.
Rescission or Other Contractual Relief
Depending on the circumstances, the buyer may seek to unwind the transaction and obtain appropriate relief.
Declaration
Where competing interests exist, declaratory relief may be necessary to establish the parties’ respective rights.
Injunction
Where there is an ongoing threat to the property or the buyer’s interests, appropriate injunctive relief may be considered.
Recovery of Certain Additional Losses
Depending on the facts and applicable law, certain expenses incurred by the buyer may be recoverable.
Criminal Complaint
Where there is evidence of deliberate fraud or another criminal offence, the buyer may consider reporting the conduct to the appropriate law-enforcement authority.
The appropriate combination of remedies should be determined after reviewing the transaction and evidence.
What Evidence Should You Preserve?
If you believe you have been sold land by someone who did not own it, preserve everything relating to the transaction.
Important evidence can include:
- signed agreements;
- Deeds of Assignment;
- receipts;
- bank statements;
- transfer confirmations;
- WhatsApp messages;
- emails;
- text messages;
- voice notes;
- advertisements;
- photographs;
- videos;
- survey plans;
- title documents;
- Power of Attorney;
- correspondence with the seller;
- correspondence with the agent;
- evidence of the seller’s representations;
- evidence of the true owner’s claim;
- evidence of possession; and
- construction or development expenses.
Do not alter, delete or destroy potentially relevant evidence.
How to Protect Yourself Before Buying Land
The best remedy is prevention.
Before paying for land in Lagos, a buyer should:
- Identify the true owner.
- Trace the root of title.
- Conduct an appropriate official search.
- Verify the property’s identity and survey details.
- Investigate government acquisition and other restrictions.
- Check for competing interests and encumbrances.
- Confirm the seller’s authority.
- Examine the transaction documents independently.
- Avoid paying substantial money before the material title issues are resolved.
- Obtain independent legal advice.
A proper investigation can reveal a defective title before the buyer becomes financially committed.
The Difference Between a Bad Investment and a Recoverable Loss
Discovering that a seller did not own the land does not necessarily mean that all the buyer’s money is lost.
The law provides different forms of relief depending on the circumstances.
The key is to act promptly.
A buyer who immediately preserves evidence, stops unnecessary payments, investigates the title and obtains legal advice is generally in a much stronger position than a buyer who continues developing the property, signs additional documents or waits for the seller to resolve the problem informally.
Conclusion
If someone sells you land they do not own, do not assume that you have simply “lost the property” and do not attempt to solve the problem by confronting the alleged true owner without first understanding your legal position.
The first priority is to establish exactly what happened.
Find out who owns the property, what title the seller actually had, what the seller represented to you, whether the seller acted fraudulently, and whether any part of the transaction can still be preserved or enforced.
The principle that a person cannot ordinarily give what they do not have is fundamental to property transactions. A seller without a transferable interest cannot ordinarily create good title merely by signing a document in favour of a buyer.
At the same time, the buyer may have important remedies, including recovery of the purchase price and, depending on the circumstances, damages, rescission, declaratory relief, injunctions or other appropriate remedies.
If you discover that you have purchased land from someone who did not own it, do not make further payments or substantial investments until the title and your legal options have been independently reviewed.
At Lexforte Attorneys, we assist property buyers with title investigation, property disputes, recovery claims and legal remedies arising from defective or fraudulent property transactions.
If you are about to buy property in Lagos, the safest time to discover that the seller has no title is before you pay—not after.