AN APPRAISAL OF MORTGAGE OF LANDED PROPERTY AS SECURITY FOR LOAN FROM BANKS IN NIGERIA

AN APPRAISAL OF MORTGAGE OF LANDED PROPERTY AS SECURITY FOR LOAN FROM BANKS IN NIGERIA

Abstract:

This dissertation aimed at examining the problems associated with mortgage transactions in Nigeria which has created a lacuna in using Landed Property as security for loan. Land being one of the most important security for capital investment business and agriculture because of it’s acceptability is used to raise loans and advance from banks. The sources of information relied upon here are, related text materials, Judicial authorities, Statutes, Journals and Conference papers. Based on this sources this research found that mortgage of Landed Property is beset with a lot of litigation, default, delay and high cost of registration, discouraging investors and bankers, making mortgage transaction difficult and unattractive. Therefore using land as security for loan under banking law in Nigeria is hampered by an interplay of institutional, economic and social factors, such as protracted litigation, default, delay and high cost of registration as a result of inefficient and ineffective laws and also the entrenchment of the Land Use Act in the Constitution. On this note, this research was concluded by recommending that there is need to review laws, policies guiding mortgage transactions. There is also the need for a well defined policy in mortgage transaction and institutions to ease the registration process, the need to separate the Land Use Act from the Nigeria Constitution so as to make room for flexibility of transfer, alienation of interest and obtaining Governors consent in mortgage of Landed property.

AN APPRAISAL OF MORTGAGE OF LANDED PROPERTY AS SECURITY FOR LOAN FROM BANKS IN NIGERIA