CONTRACT FOR SALE OF LAND
A land purchase agreement is usually referred to as “Contract of Sale” or “Sale Agreement". This is an agreement between a vendor and a purchaser with intention to sell and buy land. This contains a promise to transfer a property in question in future, on satisfaction of certain terms and conditions. It does not, in itself, create any interest in or charge on a property. To alienate interest in a property, it is best by practice for both parties to first execute a contract for sale before the conveyance itself. Although, at this stage legal interest has not been passed from the vendor to the purchaser but it is still a binding contract. This also give the purchaser time to investigate the vendor's title.
DEED OF CONVEYANCE
A Deed of Conveyance or Deed of Assignment as it is used in different states is a written instrument through which title in a unexpired property is transferred or passed on from the owner of a property to the interested buyer. This agreement is negotiated by the lawyer of the appointed party (buyer), and is concluded by both parties on the payment, and the terms and conditions. Upon execution of land transaction, it must be registered with the state government land registry where the property is located to show legal proof of exchange in ownership in the title of a land upon which a governor's consent is obtained for perfection of title conveyed by the deed.
CERTIFICATE OF OCCUPANCY
A certificate of occupancy is a government issued document that grants a person as evidence of possession and rights of occupancy on a land which already exists. The state governor where the land is situated is empowered to issue a C of O which grants a buyer to hold, use and occupy a piece of land for all purposes for 99years if there are no existing or overriding interest on the property. One distinct feature is that no land can bear two C of O. It should be the first document issued on an existing land that has never been recorded in the land registry.
GOVERNOR'S CONSENT
A Governor's consent is mandatory upon execution of a deed of conveyance. Unlike a C of O which is issued by the government and signed by the state governor, a governor's consent is an action that indicates through appending of signature on an executed document that a land sale transaction is completed and valid between respective parties. The consent of a Governor appended on the deed of assignment does not grant the beneficiary a fresh term, as a C of O does. It only affirms the transaction and the unexpired term stated in the C of O is maintained.
SURVEY PLAN
A Survey Plan is vital document in every property transaction. It depicts with proper description, property size and shape, underlying legal lot pattern, location of right of ways and easements, designation of pertinent ownership documents and more. Often times, a survey plans reveal hidden deficiencies such as building encroachments and other property dimensions that do not coincide with the descriptions included in the deed. A survey plan is also attached to a deed of conveyance in the processing of certificate of occupancy.
Read Expenses That Often Accompany Land Purchase
