How I Avoided Real Estate Scam in Nigeria: No more Fraud

My first encounter with a real estate scam occurred 15 years ago. A “property agent” offered me a plot of land at a ridiculously low price. While it seemed like a dream deal, my experience told me otherwise.

I hired a lawyer to verify the property documents. It turned out that the seller had no legal claim to the land. This experience reinforced the importance of due diligence and professional assistance.

Since then, I’ve implemented strict measures to ensure my transactions are fraud-free:

  1. I never engage in verbal agreements.
  2. Every transaction is documented and legally binding.
  3. I only deal with registered professionals.

To prevent any mistake of any form in real estate that would result in a scam, this article aims to help you with the best comprehensive guide on how to avoid scammers in Nigeria.

Are you ready? Let’s go.

The Rise of Real Estate Fraud

Nigeria’s booming real estate sector has attracted both investors and fraudsters. The rapid urbanization in cities like Lagos, Abuja, and Port Harcourt has increased the demand for properties.

However, this growth has also led to various fraudulent schemes targeting unsuspecting buyers, renters, and investors. Scammers exploit legal loopholes, lack of due diligence by buyers, and the absence of centralized property records to perpetuate fraud.

According to the Lagos State Real Estate Regulatory Authority (LASRERA), over 1,577 petitions regarding real estate fraud were received between 2020 and 2024, Punch  reveals.

Top Nigerian Real Estate Scams to Avoid

The Nigerian real estate market is a goldmine for both investors and homeowners. However, with its rapid growth comes a significant risk of scams that can leave you financially devastated. But join me as I disclose ways to catch them.

Fake Property Listings

Scammers create online advertisements for properties that don’t exist or are not for sale. These listings often feature beautiful homes at ridiculously low prices to lure victims. The fraudsters request deposits or full payments upfront, only to disappear after receiving the money.

To avoid them, always insist on inspecting the property before making any payments. Verify the agent’s identity and check their registration status with the Nigerian Institution of Estate Surveyors and Valuers (NIESV) and other estate agents association. Avoid deals that seem too good to be true, and please make out time for physical inspection or virtual inspection of the property.

Double Sales of Property

One of the most common scams involves selling the same property to multiple buyers. This scam thrives due to the lack of a centralized property registry in Nigeria. Victims end up in lengthy and costly legal battles trying to reclaim ownership.

To be free from scam, engage a lawyer to verify ownership documents at the land registry. Obtain a Certified True Copy (CTC) of the property title to confirm its authenticity. Never rely solely on the seller’s claims.

“Omonile” Fraud

“Omonile” fraud refers to extortion by local land grabbers who claim ownership of land in urban areas. They demand payment for “community levies” or “approval fees” after the land is purchased. Failure to comply may result in harassment or legal issues.

Always verify land ownership at the state land registry. Hire a lawyer familiar with local customs and land ownership laws. Avoid making payments directly to community representatives without proper documentation. Following these techniques will save you from being scammed.

Title Fraud

This scam involves falsified property ownership documents. Fraudsters may alter genuine titles or create entirely fake documents to sell land or properties they don’t own. Victims often discover the scam when the rightful owner emerges.

To curb being a victim of fraud, obtain a lawyer to cross-check all property documents. Conduct a thorough search at the land registry to verify the title’s authenticity. Be cautious of sellers who hesitate to provide original documents for verification.

Rental Scams

Rental scams involve fake landlords or agents renting out properties they don’t own. Victims pay deposits or rent for a property, only to find out later that it was never available. This scam is prevalent in high-demand rental areas.

Always meet the landlord in person and request proof of ownership. Speak with neighbors or the building’s security personnel to confirm the landlord’s identity. Avoid paying rent in cash without proper documentation for your good.

How to Protect Yourself from Real Estate Fraud in Nigeria

The task is simple. Just follow these instructions.

Conduct Extensive Due Diligence

Due diligence is the cornerstone of avoiding real estate fraud. Always verify the authenticity of property documents by visiting the local land registry. Check for encumbrances, such as unpaid taxes or ongoing legal disputes. Physical inspection of the property is equally important to ensure it matches the description provided.

Hire Professionals

Hiring a real estate lawyer is non-negotiable for any property transaction in Nigeria. A lawyer will scrutinize the documents, ensure compliance with legal requirements, and protect your interests. Additionally, working with registered agents under NIESV provides an extra layer of security, as these professionals adhere to industry standards.

Use Verified Payment Channels

Avoid cash transactions, as they leave no trace and can complicate disputes. Opt for bank transfers or checks, which provide a paper trail for accountability. Never rush into making payments without thoroughly verifying all details. Take your time to review the terms and conditions of the transaction.

Secure Proper Documentation

Ensure that every transaction is documented, including receipts, contracts, and agreements. The Deed of Assignment is a crucial document that transfers ownership rights to the buyer. For land transactions, obtaining the Governor’s Consent is essential to validate your ownership under Nigerian law.

Be Educated

Education is your best defense against scams. Regularly update yourself on common fraud schemes and new trends in the real estate market. Attend seminars and workshops to gain deeper insights into the industry. Knowledge empowers you to make sound decisions and recognize red flags.

Common Real Estate Scams to Avoid When Investing in Nigeria

Scammers often exploit ignorance and desperation.

Some common scams to watch out for include:

  • Fraudsters request upfront payments for properties or services they never intend to deliver.
  • Scammers sell government-owned or communal land without proper authorization.
  • Developers collect funds for projects but fail to deliver as promised.

Frequently Asked Questions (FAQs)

Q1: How can I verify property documents in Nigeria?

A: Visit the local land registry and cross-check all property documents with the help of a lawyer.

Q2: How do I avoid rental scams?

A: Always meet the landlord, inspect the property, and verify ownership documents before making any payments.

Q3: What are the warning signs of a real estate scam?

A: Red flags include unrealistic prices, pressure to pay immediately, and reluctance to provide documents for verification.

Q4: Are online property deals safe?

A: While convenient, online deals require extra caution. Verify all details offline before proceeding.

Q5: How can I identify fake agents?

A: Check their registration with NIESV and ask for verifiable references.

Conclusion

I know my first encounter in real estate will help you on how to avoid being scammed. I have also taken my time to list out ways to be free from fraud in Nigeria.

Know this: avoiding real estate scams in Nigeria is not just about luck; It’s about knowledge, preparation, and the right professional support.

I wish you luck in your real estate business.

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