The Supreme Court of Nigeria has reaffirmed the legal position that a purchaser of land who makes part payment but fails to complete the balance does not acquire valid title to the property, even where the buyer is already in physical possession of the land.
The apex court held that such possession cannot defeat the vendor’s superior title, especially where the purchase price has not been fully paid.
The ruling was delivered by Justice Abubakar, JSC, in the case of Mustapha v. Abubakar (2026) 7 NWLR (Pt. 2043) 541 SC, where the Supreme Court upheld the decision of the Court of Appeal and dismissed the appeal filed by the defaulting purchaser.
Court Nullifies Order For Specific Performance
The dispute arose from a land transaction in which the buyer made part payment and took possession but failed to pay the outstanding balance within the agreed timeframe.
Despite an extension granted by the vendor, the purchaser still defaulted, prompting the vendor to challenge the transaction in court.
The trial court had initially ordered specific performance compelling the vendor to complete the sale. However, the Court of Appeal overturned the ruling, a decision the Supreme Court upheld.
Justice Abubakar held that a buyer in default cannot compel a seller to transfer ownership.
“Where a purchaser of land makes part payment of the purchase price but defaults in paying the balance, there can be no valid sale even where the purchaser is in possession. Such possession is incapable of defeating the vendor’s title,” the court stated.
Supreme Court Cites Established Land Law Principles
The apex court relied on its earlier decision in Odusoga v. Ricketts (1997) 7 NWLR (Pt. 511) 1, reaffirming that possession alone does not override ownership where payment is incomplete.
The court also restated key principles of Nigerian land law, including:
- Part payment does not complete a land sale
- Legal title does not pass until full payment and proper conveyance
- Possession does not equal ownership
- Default in payment constitutes breach of contract
- Specific performance is discretionary, not automatic
Implications For Land Buyers And Sellers
The judgment has significant implications for land transactions across Nigeria.
For buyers, the court made it clear that part payment and occupation of land do not guarantee ownership. Failure to complete payment may result in loss of both the property and money already paid.
For sellers, the ruling confirms that their title remains valid where a buyer defaults, even if the buyer has taken possession.
