INTRODUCTION: THE INVISIBLE RISK THAT CAN DESTROY YOUR INVESTMENT
In property transactions, many investors focus on location, price and documentation yet overlook one of the most fundamental pillars of ownership, which is legal identity. You may intend to own a property. You may even pay for it in full and hold all the documents. But if that ownership is tied to a name that the law does not recognize, then legally, you do not own anything.
This is the silent risk behind the use of fictitious names or aliases in property transactions. A mistake that can invalidate ownership, collapse transactions and even expose parties to criminal liability.
LEGAL IDENTITY: THE FOUNDATION OF PROPERTY OWNERSHIP
In law, ownership is not based on intention, it is based on recognition. The law only acknowledges ownership where it is tied to a legal person.
So, who can own property?
The law recognizes the following as legal personalities:
- A natural person (a real, identifiable human being with a legally recognized name).
- A company registered with the Corporate Affairs Commission.
- Registered trustees
What is immediately clear is this: a fictitious name or alias, standing alone, is not a legal person.
WHY FICTITIOUS NAMES ARE LEGALLY USELESS
A fictitious name is in the eyes of the law, a non-entity. It has no legal existence.
This means:
1. It cannot own land
2. It cannot enter into contracts
3. It cannot sue or be sued
In essence, it is nothing.
This position aligns with the Land Use Act particularly, Section 1; which vests all land in the Governor to be held in trust for persons.
NOT IMAGINARY IDENTITIES OR FABRICATED NAMES
PROPERTY TRANSACTIONS ARE CONTRACTS AND CAPACITY IS EVERYTHING
Every property transaction is fundamentally a contract. For a contract to be valid, the parties involved must have legal capacity. Where one party lacks capacity, the entire agreement becomes defective.
This is where the danger lies:
If a property is acquired using a fictitious or false name, there is no legal person behind that transaction. And where there is no legal person, there is no valid contract.
THE REAL RISKS: WHEN EVERYTHING FALLS APART
Using a fictitious name is not just a technical mistake, it is a fatal flaw.
Here’s what can happen:
1. The transaction may be declared void.
2. You may be unable to resell the property.
3. Your ownership may be challenged and invalidated.
4. You may face allegations of fraud, misrepresentation or forgery.
Nigerian courts have consistently upheld strict compliance with legal requirements in property transactions.
IN SAVANNAH BANK v AJILO
The Supreme Court emphasized that transactions affecting land must comply strictly with the law or risk being voided.
Similarly;
IN AWOJUGBAGBE LIGHT INDUSTRIES LTD v CHINUKWE
The court held that where a party lacks legal capacity, the entire transaction collapses.
IN AGWUNEDU v ONWUMERE
The court further established that misrepresentation capable of inducing a transaction can render it voidable.
The principle is simple:
You cannot place something on nothing and expect it to stand.
A PRACTICAL SCENARIO: HOW INVESTORS GET TRAPPED
Consider this:
You purchase land in Abuja using the name “Michael Johnson”—a name that has no legal connection to you. Years later, you decide to sell. A prospective buyer conducts due diligence and discovers that the named owner cannot be verified.
At that moment, the deal collapses because legally, the “owner” does not exist. No serious investor will proceed with a transaction built on uncertainty. What seemed like a harmless shortcut becomes a costly mistake.
WHEN IT BECOMES CRIMINAL
The use of fictitious names can escalate beyond civil consequences into criminal liability, especially where the following elements are present:
1. Intent to deceive
2. Use of a false identity
3. Misrepresentation that influences the transaction.
At this point, the issue is no longer just about ownership, it becomes a matter of fraud and possible prosecution.
WHY PEOPLE USE FICTITIOUS NAMES AND WHY IT BACKFIRES
Many individuals use fictitious names for:
1. Privacy
2. Anonymity
3. Concealing identity or source of funds
However, these motivations often raise serious legal concerns, including money laundering risks. What may begin as an attempt to “stay private” can quickly turn into a legal red flag.
LAWFUL WAYS TO PROTECT YOUR IDENTITY
The law does not prohibit privacy, it only requires that it be achieved legally. Here are the correct approaches:
1. USE A REGISTERED COMPANY
Acquire property through a company registered with the Corporate Affairs Commission.
This separates personal identity from ownership while maintaining legal validity.
2. CREATE A PROPER TRUST STRUCTURE
Use registered trustees to hold property on behalf of beneficiaries.
This is a recognized and secure method of structuring ownership.
3. LEGALLY LINK YOUR ALIAS
If you must use an alias, attach it to your real identity (e.g., “John Doe also known as JD”).
This ensures traceability and legal recognition.
These methods provide:
✅ Legal protection
✅ Clear ownership structure
✅ Enforceable rights
THE BOTTOM LINE: IDENTITY IS EVERYTHING
In property law, identity is not a minor detail, it is the foundation of ownership. You cannot hide behind a fictitious name and expect real legal protection. If the identity is defective, the ownership is defective.
PROTECT YOUR INVESTMENT BEFORE IT’S TOO LATE
Before you sign any property document, pause and verify every detail especially the identity tied to the transaction.
At EncumberedProperties.com, we help you:
✅ Verify property titles
✅ Structure ownership properly
✅ Avoid costly legal mistakes
You can also book a one-on-one consultation and get expert guidance tailored to your investment.
If you are serious about protecting your assets, get a copy of “7 Steps to Acquiring a Clean Property Title: A Practical Checklist”
It is a resource built from over 20 years of real estate fraud investigation and prosecution.
Our Mortgage and Due Diligence Services are as follows:
FOR NEGOTIATION SUPPORT (VIRTUAL OR ON-GROUND), SEND US AN EMAIL. 👉 moc.liamg@seitreporpderebmucne
FOR MORTGAGE OPTIONS AND FACILITATION, SEND US AN EMAIL. 👉 moc.liamg@seitreporpderebmucne
If your inquiry isn’t attended to within 24 hours, reach out directly via WhatsApp: +234 703 523 4985
FINAL WORD
- Your property is only as secure as the identity behind it.
- Don’t build your investment on a name that does not exist.
- Get it right from the start and secure your future.
THIS ARTICLE WAS WRITTEN BY:
Madueke Enwere
Real Estate Lawyer | Chief Superintendent of Police|
Founder, EncumberedProperties.com (the only real estate frauds prevention platform).