By Olawale Fatunwase
Introduction
Nigeria’s real estate market is a goldmine for investors, offering lucrative opportunities in residential, commercial, and industrial properties. However, this booming sector is also riddled with fraudsters who exploit unsuspecting buyers through sophisticated scams. From fake property listings to forged title documents, the tactics used by fraudsters are becoming increasingly complex, leading to devastating financial losses and legal battles.
One of the most effective ways to safeguard investments is through professional due diligence —engaging lawyers, land surveyors, and estate professionals before making any payments. This article explores the prevalence of real estate scams in Nigeria, highlights common fraudulent schemes, and makes a compelling case for why due diligence is non-negotiable for investors.
The Rising Menace of Real Estate Scams in Nigeria
Real estate fraud in Nigeria takes many forms, including:
Fake Property Listings: Scammers advertise non-existent properties with attractive prices to lure victims into making deposits.
Title Fraud: Fraudsters forge Certificates of Occupancy (C of O) or Deeds of Assignment to sell land they do not own.
Omonile (Land Grabber) Scams: Local land grabbers claim ownership of land, extort buyers, and disappear after collecting payments.
Multiple Sales of the Same Property: A single property is sold to multiple buyers using fake documents.
Off-Plan Property Fraud: Developers collect funds for uncompleted projects but abandon them after payment .
These scams thrive due to ignorance, desperation, and lack of proper verification by buyers. Many victims rush into transactions without verifying ownership, physical inspections, or legal checks—only to realize too late that they have been defrauded.
Why Professional Due Diligence is Non-Negotiable
To mitigate risks, investors must involve professionals before committing funds.
Here’s why:
Lawyers Ensure Legal Compliance & Authentic Documentation.
A real estate lawyer plays a crucial role in:
Conducting a title search at the land registry to confirm true ownership and uncover hidden liens or disputes.
Reviewing contracts to ensure terms are fair and legally binding.
Verifying government approvals (e.g., C of O, Governor’s Consent) to prevent buying disputed land.
Without a lawyer, investors risk purchasing properties with defective titles, leading to future demolitions or legal battles.
Land Surveyors Prevent Boundary Disputes
A registered surveyor:
Conducts a proper land survey to confirm exact boundaries and prevent encroachment issues.
Verifies if the land matches the description in the title documents.
Provides a registered survey plan, which is critical for securing government approvals.
Many scams involve selling land that does not match advertised dimensions—a surveyor helps avoid this trap.
Estate Surveyors & Valuers Assess Fair Market Value
An estate valuer:
Determines the true market value of the property to prevent overpayment.
Identifies red flags, such as inflated prices or unrealistic appreciation promises.
Scammers often lure buyers with "too good to be true" prices—a professional valuation exposes such frauds.
Key Steps for Investors to Avoid Scams
Never Pay Before Verification: Always involve professionals before releasing funds.
Insist on Physical Inspection: Visit the site multiple times to confirm its existence.
Avoid Cash Transactions: Use traceable payment methods like bank transfers or escrow.
Beware of High-Pressure Sales Tactics: Scammers rush buyers to prevent due diligence.
Report Suspicious Deals: Notify authorities like the Nigerian Police Special Fraud Unit (PSFU) or EFCC if fraud is suspected.
Conclusion:
Protect Your Investment with Professional Help
Real estate scams in Nigeria are rampant, but they can be avoided with proactive due diligence. By engaging lawyers, surveyors, and valuers at the negotiation stage, investors can:
-Verify legal ownership.
-Confirm land authenticity, and
-Avoid financial losses.
The cost of hiring professionals is minimal compared to the potential loss from fraud. As the saying goes, "If a deal seems too good to be true, it probably is." Protect your hard-earned money—invest wisely and verify thoroughly.
Profile:
Olawale Fatunwase ESQ is a seasoned legal practitioner with an experience spanning over a decade in real estate sales, management and corporate consulting. I offer consultations also in the field of foreign admissions and study. For consultations on property matters, you can write directly to
luxe.solicitors@yahoo.com
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