LEGAL PRINCIPLE: LAND LAW – Registration of Titles – Registered Title – Effect on Purchaser – Protection from Unregistered Interests
PRINCIPLE STATEMENT
A registered purchaser for value is not affected by notice, whether express or implied, of any unregistered estate, interest or claim affecting the estate of any previous registered owner.
RATIO DECIDENDI (SOURCE)
Per Ogwuegbu, JSC, in Onagoruwa v. Akinremi & Ors (2001) NLC-1911997(SC) at p. 19; Paras A–B.
"A registered owner of any land or charge, being a purchaser for value, is not affected by notice, whether express or implied, of any unregistered estate, interest or claim affecting the estate of any previous registered owner, or concerned to inquire whether the terms of any caution or restriction, so far as they relate to the time prior to the registration of himself as owner of such land or charge, have been complied with."
EXPLANATION / SCOPE
A registered purchaser for value is not affected by notice (express or implied) of any unregistered interest or claim affecting the previous registered owner’s estate. The purchaser need not inquire whether cautions or restrictions relating to prior times were complied with. Registration cures prior defects and extinguishes unregistered interests. The principle protects bona fide purchasers who rely on the register. The holder of an unregistered interest cannot assert it against a subsequent registered purchaser for value. The remedy for the holder of an unregistered interest is against the person who sold or transferred the land—not against the registered purchaser. The rule ensures finality and marketability.