Contract for Deeds Template [Nigeria]
Updated June 24, 2023
A contract for deed is a legally binding agreement wherein the buyer is granted immediate possession of a parcel of land and pays the purchase price over a specified period of time, while the seller retains the legal title until all payments are made.
After the full purchase price is paid, the seller is obligated to sign a Deed of Assignment or Deed of Conveyance as well as a Power of Attorney in order to transfer the legal title of the land to the buyer. This arrangement often requires an initial down payment to be made by the buyer.
How to use this
This agreement is used when the buyer intends to purchase a landed property from the seller.
This type of agreement is mostly drawn up where the buyer intends to make payment for the land on an installment basis
For this type of agreement to be effective, it has to contain the following:
- The precise purpose of the agreement
- A detailed description of the land to be purchased by the buyer
- The purchase price of the land
- The instalment payment schedule
- Date of completion of the agreement
- Interest for default of payment if need be.
- Responsibility of the parties.
- Indemnity clause of the parties.
- Governing law of the agreement. This is usually the governing law of the country where the land is located.
Other names for
- Contract for Sale of Land
- Sale of Land Contract
Applicable Laws in Nigeria
- The Land Use Act
- The Law of Contract applicable in Nigeria.
- The Commercial Laws in Nigeria
- Nigeria Property law if applicable in the contract
- Federal Competition and Consumer Protection Act
- Negotiable Instrument Law in Nigeria.