Many Nigerians have fallen victim to fraudulent real estate developers or agents who exploit the high demand created by Nigeria’s housing deficit. These scams include purchasing properties with fraudulent titles or selling non-existent properties. Sometimes, buyers are asked to make upfront payments before a property inspection, or they fall victim to double-selling plots of land.
According to the State of Lagos Housing Market Report, Volume 3, Lagos and Ogun States face persistent land scams, with over 500,000 reported cases annually. Experts note that this has contributed to more than $150 billion in “dead capital” tied up in properties that are disputed or improperly documented.
The MD/CEO of HTH AnnePearc Ltd, a real estate advisor, Mrs Anne Azonobi, narrated a case where a buyer lost N300 million after purchasing a non-existent piece of land in Lagos. After making the payment, he discovered that the land did not exist and that the documents provided were fake. Unfortunately, the agents involved subsequently disappeared without a trace.
Azonobi warned that some scams can be dangerous and life-threatening. She said, “The ‘omo oniles’ scams can be life-threatening. I recall an instance where my mother purchased a piece of land in Okorodu, Lagos. After paying for the land, we didn’t have the money to develop it, so we put up a makeshift fence. The omo oniles came through the back door to sell the land to another person. We initiated a court case, which, of course, did not go down well with them. They sent hired criminals to kill my mom. It was the grace of God that enabled her to escape. We reported the matter to the local king, who promised alternative land, but we had to let it go.”
TIPS ON HOW TO AVOID REAL ESTATE SCAMS
- Real estate investors must check the track records of developers and verify all documents. Always involve qualified surveyors to confirm authenticity.
- Prospective investors and homebuyers are advised to exercise caution, conduct thorough due diligence, and follow established best practices to navigate the real estate landscape safely. Awareness and proactive verification remain the first line of defence against scams. “Many transactions go wrong because buyers fail to verify property ownership or rush into deals without proper documentation,” said Toheeb Lawal, an Abuja-based real estate consultant.
- Before committing to a purchase, buyers should confirm property ownership at the state land registry, verify land titles such as the Certificate of Occupancy or Governor’s Consent, and ensure the property is not subject to government acquisition or any pending legal disputes.
- Meeting the actual owner and their legal representatives, rather than relying solely on agents, is critical. Physical visits to the property and discussions with residents or community leaders can provide valuable insight into potential disputes or irregularities.
- During transactions, transparency is essential. Avoid cash payments in favour of traceable bank transfers, engage qualified real estate lawyers to review documents, and ensure that original titles, survey plans, and deeds of assignment are verified.
- Documenting all communications and transactions creates a paper trail for protection in case of disputes.
- After the acquisition, it is crucial to officially register the property and retain all signed agreements and receipts.
- Leveraging technology platforms and verified online property listings can further reduce risk.
Experts believe that by combining traditional due diligence with modern verification tools, informed buyers can effectively avoid scams and secure legitimate property investments in Nigeria.
