Can You Truly Own Property You Haven’t Fully Paid For? Insights from the Supreme Court in Mustapha v. Abubakar (2025)

By Aishat Olajumoke Ojo

It is common practice to buy real property and make payment in instalments. When the transaction is structured on an instalment payment basis, a contract of sale is usually entered into by the seller and the buyer, fixing the price, detailing the payment plan, and detailing the terms of sale.

However, there are instances where a buyer contracts to pay the balance at a specific time but defaults in the payment of the balance sum. This usually creates a legal problem, especially for the buyer who is yet to completely acquire legal title to the property. In Mustapha v. Abubakar (2025) LPELR-83092(SC), the Supreme Court was confronted with such a situation, and the Supreme Court made very insightful conclusions.

In Mustapha v. Abubakar, a buyer agreed to purchase a property for N600,000. He paid N350,000 upfront and promised to pay the remaining N250,000 by a specific date. He failed to pay on time. The seller then sold the property to another person. Upon in-depth consideration of the legal issues emanating from the lower court to the apex court, the Supreme Court held that:

• Part payment alone does not complete a sale. Paying some money does not transfer ownership to you.
• Failing to pay the balance on the agreed date is a serious breach of contract. It goes to the root of the agreement.
• A buyer who defaults cannot force the seller to complete the transaction. You cannot use the court to help you enforce a contract you yourself broke.
• The seller has the right to sell to someone else once you have breached the agreement.
• The new buyer who paid the full price without knowing about the earlier incomplete deal is protected by law.

Going by the position of the law, paying part of the purchase price of a property is not enough reason to think the property has been legally purchased. A contract of sale is by nature an agreement that must be followed, and it is unlikely that the Court would assist a party defaulting in payment of the balance sum to take ownership of a property.

Even in instances where the buyer is allowed to take possession of the property before paying the balance, failure to effect balance payment still deprives the buyer of ownership rights and status.

In conclusion, it is safe to state that buyers who are yet to fully pay the balance sum for land purchase cannot claim full ownership; they only have an equitable interest which follows the law and is subject to full payment. The idea behind a contract of sale and part payment is not to immediately transfer ownership but to fix the price, document the terms, and create a roadmap to full legal ownership.

The Bottom Line

Paying part of the price does not make the land yours. It creates a legal relationship, but one that depends on you fulfilling your obligation to pay the rest. If you fail to pay on the agreed time, the seller can walk away, keep the property, and sell it to someone else. At best, you may get a refund of your deposit, but you will not get the property.

Aishat Olajumoke Ojo is a legal research intern at Olives and Candles – Legal Practitioners and a student of Koladaisi University. You can contact her via email – [email protected]