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The Memorandum Of Understanding Between Buyer And Seller Of Land is a crucial preliminary document in Nigerian land transactions, used to establish the framework for a land sale before proceeding to a formal sale agreement. This document is particularly important in the Nigerian context due to the unique land tenure system established by the Land Use Act of 1978, which requires government consent for land transactions. The MOU typically precedes the full sale agreement and is used when parties have reached initial agreement on key terms but need to formalize their intentions while completing due diligence, obtaining necessary approvals, and arranging financing. It includes essential information about the property, parties, purchase price, and conditions that must be met before the sale can proceed, while providing protection for both parties during the pre-sale period. The document serves as a roadmap for the transaction while allowing flexibility for the parties to address any issues that arise during the due diligence process.

1. Parties: Identification and details of the buyer and seller, including their full legal names, addresses, and contact information

2. Background: Context of the transaction, including brief description of the property and the parties' intention to enter into a land sale transaction

3. Definitions: Key terms used throughout the MOU, including definitions of Property, Purchase Price, Completion Date, etc.

4. Property Details: Comprehensive description of the land, including location, boundaries, and current title information

5. Purchase Price: Agreed purchase price and payment terms, including deposit arrangements and payment schedule

6. Due Diligence: Buyer's right to conduct property investigations and seller's obligations to provide necessary documentation

7. Conditions Precedent: Prerequisites to be fulfilled before the sale can proceed, including obtaining necessary government consents

8. Representations and Warranties: Seller's assertions regarding property ownership, encumbrances, and legal status

9. Completion Process: Steps to be taken for transaction completion, including documentation and transfer procedures

10. Costs and Taxes: Allocation of transaction costs, including registration fees, stamp duties, and legal fees

11. Governing Law: Specification that Nigerian law governs the MOU and subsequent transaction

12. Dispute Resolution: Process for resolving any disputes arising from the MOU

13. Notices: Method and addresses for formal communications between parties

14. Term and Termination: Duration of the MOU and circumstances under which it can be terminated