Landed property purchase in Uyo or anywhere in Nigeria is a transaction that ought to be properly documented. One would expect that the documentation would include a purchase receipt, issued by the seller to the buyer, acknowledging the receipt of the consideration sum in respect of the transaction, but this is not always the case.
The issuance of a purchase receipt is a necessity, as this proves that the purchaser has paid the consideration sum for the property purchase. A purchase receipt is usually issued in circumstances where the transaction is documented in an informal manner e.g in a handwritten agreement or as personally prepared by the purchaser for the purpose of execution by both parties. Such documents are not title documents and they are not registrable.
However, where one has consulted a Property Attorney to draft and prepare title documents for a landed property purchase in Uyo or anywhere in Nigeria, the Property Attorney will do well to include a receipt clause in the title document. With the inclusion of the receipt clause in a title document, a purchase receipt is no longer required and can be dispensed with.
The receipt clause which is usually in brackets would read as follows; “….(the receipt of which sum the donor hereby acknowledges)”.
The receipt clause has three major importance;
- The insertion of the receipt clause in the agreement dispenses with the need for a separate receipt.
- The clause serves as evidence of payment in favor of a subsequent purchaser for value without notice that the notice had been paid.
- The insertion of the clause serves as authority for a Solicitor acting for the vendor to collect or receive money on behalf of the vendor.
In a landed property purchase in Uyo or anywhere in Nigeria, it is always pertinent to consult with a Property Attorney to prepare your title document as the purchaser, or consult with a Property Attorney to vet the already prepared title document and protect your interest, as the seller.
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