Mortgage and Property Law

by Oserogho & Associates

In this Issue:-

1. Legal Alert – July 2013 – Mortgage and Property Law of Lagos State

2. Disclaimer Notice.

3. Copyright Notice.

Legal Alert – July 2013 – Mortgage and Property Law of Lagos State

What is a Mortgage?

A Mortgage is described by the Lagos State Mortgage and Property Law to be the transfer of any interest in a specific movable or immovable property, for the purpose of securing the repayment of a loan against an existing or future debt, or the performance of an engagement which may give rise to pecuniary liability.

A Mortgage also includes any charge or lien on any property for securing the repayment of money or money’s worth.

Lagos State Mortgage Board

The Lagos State Mortgage and Property Law established the Lagos State Mortgage Board (“the Mortgage Board”) to principally generate a conducive environment for accessible and affordable Mortgages or credit facilities for the benefit of the citizens of Lagos State, so that more of these citizens can acquire their own homes.

It is also the statutory function of this Board to advise the Executive Governor of Lagos State with regard to the funding, administration and structure of the State’s Mortgage Finance Program or policy for the benefit of all the residents of Lagos State.

The Mortgage Board is further charged to make regulations which protect the residents of Lagos State from any unconscionable business practices or unfair terms that may be imposed by Mortgage lenders, providers, brokers and all such other persons holding themselves out as offering Mortgage facilities and services in Lagos State.

The Mortgage Board is also charged to mediate and arbitrate on any dispute which may arise from Mortgage transactions covered under the Mortgage and Property Law.

The activities of the Mortgage Board must not however be in direct or indirect competition with the activities undertaken by registered Mortgage lenders, Mortgage brokers or real estate developers.

The Mortgage Board is also statutorily required to promote the culture of concessions, deferred payments or instalmental payment of stamp duties and land title registration fees, with respect to the stamping of Mortgages and the registration fees payable to the Commissioner of Stamp Duties and the Registrar of Titles respectively.

Modes of Creating Legal Mortgages

Significantly, with the enactment of the Mortgage and Property Law, the provisions of the Conveyancing Act, 1881 no longer have any application or effect to mortgage transactions in Lagos State.

Generally, a Mortgage is created either by the temporary passing of the title to a property to a lender for a term of years, with the Mortgagor/Borrower’s right of redeeming or repaying the loan; or by the execution of a Deed of Legal Mortgage.

A Mortgage of a leasehold is also created in the manner above described save that the term of years charged shall be at least less by One (1) day and subject to the provision for redemption or repayment of the loan.

Equitable Mortgages

Under the Lagos State Mortgage and Property Law, an Equitable Mortgage of a right of occupancy cannot be created by a mere deposit of the title deed or charge on a property except the deposit of the title deed is accompanied by an agreement to create a Legal Mortgage in favour of the Mortgagee/Lender.

Where the deposit of a title deed is accompanied by an agreement to create a legal mortgage, and such a legal mortgage is not executed, the Mortgagee may within thirty (30) days commence legal proceedings to compel the Borrower or Mortgagor to execute a legal mortgage in the Mortgagee’s favour and thereafter exercise the powers of a mortgagee as conferred under the Mortgage and Property Law.

Realisation of Right of Occupancy

A Mortgagee – i.e. the securer of the loan on a landed property - has, subject to the express terms of the Mortgage Agreement which must be registered with the Governor’s consent affixed, the express power to sell the Mortgaged property where the Mortgagor or Borrower defaults in fulfilling the Mortgage repayment terms and conditions.

Subject to no prior superior charge, a valid legal title will thereon vest on the purchaser of the Mortgagee’s legal entity where the conditions described in the above paragraph are fulfilled by the Mortgagee.

Realisation of Equitable Mortgage

A Mortgagee and a Purchaser of an equitable interest in land can by filing an Originating Summons in Court, obtain a vesting Court Order conveying the Mortgaged property to the Purchaser, or may appoint a person to so convey the equitable interest in land to the Purchaser. This and other similar provisions apply to Equitable Mortgages made or arising before or after the commencement of the Mortgage and Property Law.

Other Mortgagor & Mortgagee Rights

THE RIGHT TO SUE. Where a Mortgagor or Borrower binds himself to repay a Mortgage loan, or the Mortgaged property is insufficient to liquidate the Mortgage loan, or the Mortgaged property is wholly or partly destr

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Oserogho & Associates | Attorney Advertising

Written by:

Oserogho & Associates

Oserogho & Associates on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.