Land Use Act & Mortgage Law (Nigeria) – Lecture Review

33 question-and-answer flashcards summarising key provisions of Nigeria’s Land Use Act and basic mortgage principles for exam preparation.

What is the tripartite system of land holding introduced by the Land Use Act?

State Land, Federal Land, and Private/Individual Land.

What is the effect of Section 1 of the Land Use Act?

All land in a state is vested in the Governor to hold in trust for the benefit of Nigerians, subject to the Act.

Are there lands excluded from the Governor's control under Section 1 of the LUA?

Yes. Lands held by the Federal Government or its agencies before the Act remain with the Federal Government (Section 49 LUA).

What is the legal implication of Section 49 of the Land Use Act?

It protects federal lands from being controlled by state governors if held before the LUA.

Who controls urban and non-urban land under the LUA?

Governors control urban land; Local Governments control non-urban areas (Section 2 LUA).

What is the role of the Land Use and Allocation Committee?

To advise the Governor on urban land matters and compensation disputes.

What are the two types of rights of occupancy under the LUA?

Statutory right of occupancy (granted by the Governor) and Customary right of occupancy (granted by the Local Government).

What is the difference between granted and deemed rights of occupancy?

Granted rights are formally issued by the proper authority; deemed rights arise automatically by operation of law.

What is a Certificate of Occupancy (C of O)?

A document evidencing an existing right of occupancy; it does not create that right (Section 9 LUA).

Is a Certificate of Occupancy the same as a statutory right of occupancy?

No. The C of O is evidence of the right, whereas the statutory right is the actual legal interest.

What does Section 22 LUA require before alienating land subject to a statutory right of occupancy?

Prior consent of the Governor must be obtained.

What is the consequence of alienating land without the Governor’s consent?

The transaction is void and the right of occupancy may be revoked (Sections 28(2)(a) & (3)(d) LUA).

Under what conditions can a right of occupancy be revoked?

For overriding public interest or for breach of Certificate of Occupancy conditions (Section 28 LUA).

What is required for a valid revocation of a right of occupancy?

Notice must be issued and properly served (Sections 28(6) and 44 LUA).

Is compensation available when land is revoked under the LUA?

Yes, but only for unexhausted improvements on the land, not for the land itself (Section 29 LUA).

What alternative to monetary compensation may be provided on revocation of residential land?

Resettlement in another place (Section 33 LUA).

What principle was established in Savannah Bank v. Ajilo?

Governor’s consent is mandatory for alienation of both granted and deemed rights of occupancy.

What shift in judicial attitude occurred in Adedeji v. National Bank?

Courts began prioritizing substantial justice over strict technicalities.

Differentiate legal and equitable interests in land.

Legal interests (e.g., statutory right of occupancy) are enforceable at law; equitable interests (e.g., equitable mortgage) are protected in equity/fairness.

What is a mortgage in Nigerian land law?

A transfer of an interest in land as security for a loan, redeemable upon repayment.

What are the two main types of mortgage in Nigerian law?

Legal mortgage and equitable mortgage.

What is required to create a valid legal mortgage?

A deed and, where applicable, the Governor’s consent.

Can an equitable mortgage exist without Governor’s consent?

Yes, but it must later be perfected (e.g., by consent and registration) for full enforceability.

What is a clog on the equity of redemption?

Any provision that prevents or unduly restricts a mortgagor from redeeming the property; such a provision is void.

What rights does a mortgagee have upon the mortgagor’s default?

Sale of the property, foreclosure, possession, or appointment of a receiver.

What is the doctrine of consolidation in mortgage law?

A mortgagee holding multiple mortgages can require all debts to be repaid before allowing redemption of any single mortgage.

What is the general priority rule among multiple mortgages?

Legal mortgages take precedence; among equitable mortgages, the first in time generally prevails.

May a mortgagor lease the mortgaged property without the mortgagee’s consent?

Generally no; doing so may invalidate the lease or allow the mortgagee to override it.

What is the redemption period in mortgage law?

The time frame within which the mortgagor can repay the loan and reclaim the property.

Distinguish between a mortgage and a charge.

A mortgage transfers an interest in the property; a charge merely secures payment without transferring the interest.

Can a mortgagee buy the mortgaged property at auction?

Yes, but the purchase must be fair and at proper valuation; courts will set aside fraudulent sales.

Is registration necessary for a mortgage to be valid?

Yes, for a legal mortgage. Failure to register renders it only equitable and less enforceable.

What role does the Land Use Act play in regulating mortgages?

It mandates Governor’s consent for alienations and governs possible revocation for improperly executed transactions.