Faozahny Properties Consultants Limited

15/09/2026

LEGAL RISKS PEOPLE WALK INTO BECAUSE THEY TRUST TOO MUCH

A Nigerian Legal Perspective

Trust is good. Friendship is good. Family relationships are good.
But trust is not a legal substitute for protection.

Many people only appreciate the need for documentation after a relationship breaks down and the person they trusted denies the transaction.
The law does not say you should distrust everybody. Rather, the law provides mechanisms by which your rights, obligations and transactions may be properly established and protected.
Here are 10 common legal risks arising from excessive or blind trust.

1. SIGNING A BLANK OR INCOMPLETE DOCUMENT
Never sign a blank document, even when you trust the person who gives it to you.
A signed document may become evidence in a dispute. If its contents have been altered, inserted or fraudulently used, serious questions of fraud, forgery, alteration or deception may arise, depending on the facts.
The Evidence Act 2011 also elevates the importance of documentary evidence in establishing the terms of transactions.

Legal lesson:
Do not sign what you have not read, understood and approved.
If a document is incomplete, insist on its completion before signing.

2. LENDING LARGE SUMS OF MONEY BECAUSE "WE ARE FRIENDS"
Friendship does not prove a loan.
The person giving the money should be able to establish:
1. how much was given;
2. when it was given;
3. whether it was a loan or gift;
4. the agreed repayment date;
5. the agreed interest, if any;
6. whether there was security; and
7. under what circumstances repayment became due.
While the Nigerian law does not render every ordinary loan transaction unenforceable solely because it was oral, relying solely on oral evidence presents avoidable evidential difficulties.
Legal lesson:
A written loan agreement, acknowledgment of debt, receipt or other reliable documentary evidence can protect both parties

3. ALLOWING SOMEONE TO USE YOUR NAME OR BANK ACCOUNT
This is one of the most dangerous trusts.
If another person uses your account to receive or transfer money relating to fraud, money laundering or proceeds of crime, you may be required to explain transactions over which you have little or no control.
Nigeria's Money Laundering (Prevention and Prohibition) Act 2022 forms part of Nigeria's legal framework for preventing and addressing money laundering, while the Proceeds of Crime (Recovery and Management) Act 2022 provides mechanisms relating to the proceeds of unlawful activity. The Nigerian Financial Intelligence Unit lists both Acts amongst Nigeria's applicable laws and regulations.
Legal lesson:
Never lend your bank account, identity or financial credentials to another person for a transaction you do not fully understand

4. BUYING LAND BECAUSE YOU TRUST THE SELLER
One of the costliest mistakes one can make is buying land merely because the seller seems trustworthy.
Before buying land, a prudent buyer should investigate:
1. the root of title;
2. the seller's authority;
3. survey information;
4. registration;
5. existing interests;
6. government acquisition;
7. pending litigation;
8. family or customary ownership issues; and
9. whether the transaction requires governmental consent or approval.
The Land Use Act 1978, in particular sections 21 and 22 thereof, governs the alienation of customary and statutory rights of occupancy and requires the applicable consent or approval as specified by the Act.

Legal lesson:
Never buy land with your eyes closed because you trust the seller.
Trust the person. Verify the title.

5. GIVING AN UNLIMITED POWER OF ATTORNEY
A Power of Attorney may give an attorney considerable power.
The danger is not necessarily in the Power of Attorney existing, but in the possibility of giving wider authority than intended.
A well-drafted instrument should identify, where appropriate:
1. the property involved;
2. the transaction authorised;
3. the powers granted;
4. limitations on the powers;
5. duration;
6. whether the authority is revocable; and
7. when the authority terminates.
Legal lesson:
Do not give somebody unlimited control over your property merely because you trust them.
A Power of Attorney should reflect exactly what you intend the person to do—not what the person says they mean to do.

6. BECOMING A GUARANTOR WITHOUT UNDERSTANDING THE LIABILITY
Many people sign guarantee documents as a favour to friends or relatives without reading the terms;
this can be financially dangerous.
Before becoming a guarantor, you should ask:
What exactly am I guaranteeing?
What is the maximum amount for which I may become liable?
When can the creditor proceed against me?
Does my liability include interest, costs and other charges?
The answers will depend heavily on the terms of the guarantee and the applicable law.

Legal lesson:
Never sign a guarantee merely because someone says, "It is only a formality."
It may be a legally binding financial obligation.
Many businesses start with:
"We are friends. We understand each other."
Unfortunately, many disputes begin with:
"That is not what we agreed."
Nigeria's Companies and Allied Matters Act 2020 (CAMA) provides statutory frameworks for various business structures including companies, limited liability partnerships and limited partnerships. CAMA 2020 repealed and replaced the former CAMA 1990.
CAMA 2020 provides for limited liability partnerships as separate legal entities and regulates limited partnerships.
Legal lesson:
Before embarking on a serious business relationship, document:
1. capital contribution;
2. ownership percentages;
3. responsibilities;
4. profit sharing;
5. loss sharing;
6. management powers;
7. withdrawal;
8. death or incapacity;
9. admission of new partners;
10. dispute resolution; and
11. dissolution.
Friendship should never take the place of proper business documentation.

8. SIGNING AN AGREEMENT WITHOUT READING IT
A document is not rendered harmless merely because somebody tells you:
"Just sign here."
The person who prepared the document may have interests distinct from yours.
Before signing an important agreement:
Read it carefully.
1. Ask questions about unclear provisions.
2. Confirm the names and particulars.
3. Confirm the amount involved.
4. Check dates and deadlines.
5. Check termination provisions.
6. Check penalties and liabilities.
7. Obtain independent legal advice where necessary.
Legal lesson:
Never sign first and ask questions later.
If you do not understand a legal document, seek professional advice before signing it.

9. TRANSFERRING PROPERTY INTO SOMEONE ELSE'S NAME ON A PROMISE THAT IT WILL BE RETURNED
This is particularly dangerous.
Consider this statement:
"Put the property in my name for now. I promise I will transfer it back."
What happens when the relationship goes wrong?
The person may deny the promise.
You may end up in litigation to establish the real substance of the arrangement and the rights arising therefrom.
Depending on the facts, issues of trusts, beneficial ownership, equitable remedies, fraud, conveyancing and proprietary interests may arise.
Land transactions also have to comply with the applicable statutory requirements. For example, the Land Use Act regulates alienation of rights of occupancy and the required consent or approval as necessary in specified circumstances.
Legal lesson:
If the real arrangement is different from the name appearing on the document, document the real arrangement properly.

10. FAILING TO DOCUMENT FAMILY TRANSACTIONS BECAUSE "WE ARE FAMILY"
Family relationships do not prevent disputes.
In fact, disputes over family property can become especially problematic because they may involve:
1. customary law;
2. family ownership;
3. inheritance;
4. gifts;
5. settlements;
6. family land;
7. administration of estates;
8. competing claims by descendants; and
9. historical oral arrangements.
A transaction is not rendered legally redundant merely because the parties are brothers, sisters, parents, children or other relatives.
Legal lesson:
Document family transactions while everybody is alive, healthy and in agreement.
Documentation is not an insult to the family.
It is protection against future misunderstanding.

WHAT DOES THE LAW REALLY TEACH US?
The law does not want you to distrust everybody. It teaches you to protect your rights and to create reliable evidence of your transactions.
You can trust your friend and execute a written agreement.
You can trust your brother and obtain a receipt.
You can trust a land seller and investigate the title.
You can trust your business partner and sign a partnership agreement.
You can trust your agent and limit a Power of Attorney.
You can trust a debtor and document the loan.
That is not wickedness.

That is prudence.
FIVE GOLDEN LEGAL RULES
1. BEFORE YOU SIGN — READ.
2. BEFORE YOU PAY — VERIFY.
3. BEFORE YOU BUY LAND — INVESTIGATE TITLE.
4. BEFORE YOU TRANSFER PROPERTY — DOCUMENT THE REAL ARRANGEMENT.
5. BEFORE YOU TRUST COMPLETELY — PROTECT YOUR LEGAL RIGHTS.

FINAL WARNING
Trust is good, but blind trust can become an expensive legal mistake.
The person you trust today may become the person you have to sue tomorrow.

Do not wait for a relationship to break down before discovering the importance of documentation.
Protect your property.
Protect your money.
Protect your identity.
Protect your rights.
Protect your peace of mind.

Trust people—but let the law protect you.
Legal awareness is not about creating suspicion. It is about preventing avoidable disputes.

S. A. Tadese, Esq. LL.M
FAOZAHNY CHAMBERS
Legal Practitioners & Human Rights Advocates

28/06/2026

WHAT MAKES LAND OWNERSHIP VALID UNDER NIGERIAN LAW?
A Legal Perspective with Statutory and Judicial Authorities

Land ownership is one of the most litigated subjects in Nigeria. Many people wrongly assume that once money is paid for land, ownership automatically passes to the purchaser. However, under Nigerian law, payment alone is insufficient. A valid title to land must be established through recognized legal means.

1. PROOF OF TITLE TO LAND
The Supreme Court of Nigeria in Idundun v. Okumagba (1976) 9–10 SC 227 laid down five recognized methods of proving title to land:
1.By traditional evidence;
2.By production of valid documents of title;
3.By acts of ownership extending over a sufficient period;
4.By acts of long possession and enjoyment; and
5.By proof of possession of connected or adjacent land in circumstances rendering it probable that the owner of such adjacent land is also the owner of the land in dispute.
These principles remain the foundation of land ownership claims in Nigeria.

2. PAYMENT OF PURCHASE PRICE ALONE IS NOT ENOUGH
Although payment is an essential element of a land transaction, it does not by itself transfer legal ownership.
The purchaser must show:
1. Payment of the purchase price;
2. Intention of the vendor to transfer title; and
3. Proper ex*****on and delivery of relevant title documents.

Documents commonly used include:
1. Receipt of purchase;
2. Contract of Sale;
3. Deed of Assignment;
4. Conveyance;
5. Deed of Gift.
A person who merely pays money without obtaining a valid transfer may face difficulties establishing ownership.

3. VALID DOCUMENTS OF TITLE
Ownership is strengthened where the purchaser possesses authentic land documents, including:
1. Survey Plan;
2. Deed of Assignment;
3.Registered Conveyance;
4. Certificate of Occupancy (C of O);
5. Governor's Consent;
6. Registered Deed of Transfer.
In Romaine v. Romaine (1992) 4 NWLR (Pt. 238) 650, the Supreme Court emphasized that title documents must be genuine, valid, and traceable to a lawful owner.

4. POSSESSION AS EVIDENCE OF OWNERSHIP
Possession of land is an important factor recognized by law.
Acts showing ownership include:
1. Fencing the land;
2.Building on the land;
3..Farming or cultivation;
4.Leasing the property;
5.Exercising control over the land.

Statutory Authority
Section 143 of the Evidence Act, 2011 provides that when the question is whether a person is owner of anything of which he is shown to be in possession, the burden of proving that he is not the owner is on the person who affirms that he is not the owner.

Judicial Authority
In Da Costa v. Ikomi (1968) 1 All NLR 394, the Supreme Court held that possession raises a rebuttable presumption of ownership.

5. THE SELLER MUST HAVE THE RIGHT TO SELL
A fundamental principle of law is that:
"Nemo dat quod non habet" — No one can give what he does not have.
Therefore, a purchaser can only acquire the title possessed by the vendor.
In Awojugbagbe Light Industries Ltd. v. Chinukwe (1995) 4 NWLR (Pt. 390) 379, the Supreme Court stressed that a purchaser must investigate the vendor's title before buying land.

6. FAMILY LAND MUST BE SOLD WITH PROPER CONSENT
Under Nigerian customary law, family land cannot validly be sold by one family member acting alone.

The consent of:
1. The Head of the Family; and
2. Principal Members of the Family
is generally required.
Authorities include:
1. Ekpendu v. Erika (1959) SCNLR 186
2. Mogaji v. Nuga (1960) 5 FSC 107
A purported sale without the necessary consent may be declared void or voidable.

7. GOVERNOR'S CONSENT UNDER THE LAND USE ACT
The Land Use Act, Cap. L5, Laws of the Federation of Nigeria 2004 regulates land ownership in Nigeria.

Relevant Provisions
Section 1
Vests all land in each State in the Governor to hold in trust for the people.
Section 22
Requires Governor's Consent before the holder of a Statutory Right of Occupancy can alienate or transfer his interest.
Section 26
Provides that any transaction carried out contrary to the provisions of the Act may be null and void.

8. DUE DILIGENCE BEFORE PURCHASING LAND
A prudent purchaser should:
1. Verify the seller's identity;
2. Conduct a land registry search;
3. Inspect the survey plan;
4. Confirm there is no litigation over the land;
5. Verify family or community consent where necessary;
6. Obtain professional legal advice before payment.

CONCLUSION
Under Nigerian law, valid land ownership is not determined merely by payment of money. Ownership is established through lawful acquisition, valid title documents, possession, acts of ownership, and compliance with statutory requirements, particularly the Land Use Act.

Any person intending to acquire land should ensure that all legal requirements are satisfied in order to avoid future disputes and litigation.

S. A. TADESE ESQ.
Legal Practitioner
Iwo, Osun State, Nigeria.

25/10/2025

House For Sale.
No7, Deacon Laosebikan Street, off Winners Chapel, Behind Iwo Divisional Police Station, Adeeke Avenue, Iwo.

Facilities:
1. Two units of 2 Bedroom semi- detached flats
2. Two rooms of boys' quarter/ stores
3. Generator house
4. Car park
5. Security post
6. Deep well with pumping machine and storage tank
7. Three toilets & bathrooms
8. Eight feet high fence
9. Mounted Chinese Security wire round the fence
10. Easy access road and close to Iwo Divisional Police Station

ASKING ( NEGOTIABLE) PRICE : N50 MILLION
Iwo odidere
Jagun Iwoland
'Niyi Rufai
Bashir Lawal

07/11/2024

SALES ALERT

For more information contact. 07060933326.

Faozahny Properties Consultants Limited
Distinct Property and Estate Management

22/10/2024

15/10/2024

Just finished the course "Realtors Accelerator Program"
by FIPS Realtors Academy

02/10/2024

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25/09/2024

IBADAN