Are you interested in knowing the difference between Deed of Assignment and C of O? If you are trying to get a property then this post is for you.
In Nigeria’s real estate landscape, understanding property documents is crucial to avoiding costly mistakes.
Two of the most commonly referenced terms during land or property transactions are the Deed of Assignment and the Certificate of Occupancy (C of O).
While both documents are essential, they serve different legal purposes. Many buyers and investors confuse the two, often leading to misunderstandings or incomplete ownership processes.
Knowing the difference between Deed of Assignment and C of O can help you make informed decisions, secure your investment, and ensure that your property ownership is legally recognized and protected.
What Is a Deed of Assignment?
A Deed of Assignment is a legal document that transfers ownership of property from one party to another. It shows that a seller has assigned their interest in a property to the buyer.
This document includes vital details like:
- Names of the buyer and seller
- Description and location of the property
- Purchase price and payment terms
- Date of ownership transfer
- Signatures of both parties and witnesses
It serves as proof that the transaction has taken place. Without this deed, a buyer cannot claim full ownership rights.
What Is a Certificate of Occupancy (C of O)?
A Certificate of Occupancy, commonly called C of O, is issued by the government. It legally confirms that an individual or entity has the right to occupy and use a parcel of land.
The C of O contains:
- The name of the holder
- Plot number and location
- Size and approved land use
- Duration of occupancy (usually 99 years)
This certificate is usually issued for land that was formerly under government ownership. Without a C of O, your land claim could be challenged.
Difference Between Deed of Assignment and C of O
Without wasting much of your time, here are the difference between Deed of Assignment and C of O:
1. Nature of the Document
The Deed of Assignment is a private legal document between a land seller and buyer. It confirms that a transfer of ownership has occurred and includes essential details such as the parties involved, the date of transfer, and the property description. It is contractual in nature and often drafted by a lawyer.
On the other hand, the Certificate of Occupancy (C of O) is an official government document issued by the state. It publicly affirms the legal right to occupy and use a specific parcel of land, typically for a 99-year term. It serves as formal state recognition.
2. Purpose and Function
The primary function of a Deed of Assignment is to transfer property ownership from one individual to another. It serves as proof that the former owner has relinquished all interests, rights, and claims to the property.
Meanwhile, the C of O serves a different function. It provides legal authority from the government to occupy, use, and develop the land. It not only validates land ownership but also protects it under Nigerian land use laws. While the deed facilitates the sale, the C of O establishes the government’s official acknowledgment of the new owner’s rights.
3. Issuing Authority
The Deed of Assignment is typically prepared by a legal practitioner or real estate professional on behalf of the buyer and seller. Once both parties sign it, the document is submitted to the state land registry for official registration. It becomes legally binding after registration.
In contrast, the C of O is issued exclusively by the state government, through the office of the governor or a designated land authority. The process involves land inspection, verification, and approval. This public issuance gives it stronger legal weight in disputes and recognition by financial institutions.
4. Legal Importance
Both documents hold significant legal value, but their weight differs in certain contexts. A Deed of Assignment is vital for recording the transaction between private parties. However, in the event of a legal dispute, its authority depends on proper registration and support from stronger documents.
The C of O, being government-issued, carries more legal force. It confirms that the land is not under acquisition or encumbrance and that the holder has statutory rights. For investors, a property with a registered deed and a valid C of O offers greater protection and peace of mind.
5. Time of Use
A Deed of Assignment is usually available immediately after the purchase transaction is completed. It is one of the first documents a buyer receives and must be registered quickly to ensure legal protection.
In contrast, obtaining a C of O takes longer. The buyer must apply through the relevant government agency, and the process may involve several months of inspection, evaluation, and approval. In cases where the property already has a C of O, the document is transferred or updated in the buyer’s name. The deed comes first; the C of O typically follows.
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