27/05/2025
To avoid scams in the Nigerian real estate industry, follow this structured approach:
1. Verify Ownership and Legal Documents.
- Certificate of Occupancy (C of O): Ensure the property has a valid C of O issued by the state government. Confirm its authenticity at the state land registry.
- Survey Plan: Check with the Office of the Surveyor-General to validate the survey plan. Engage a registered surveyor to match the plan with the physical site.
- Governor’s Consent: Required for transferring ownership; verify this for any resold property.
2. Engage Professionals
- Real Estate Lawyer: Conduct due diligence on title history, liens, and government acquisition. They can navigate cultural issues like "Omo-Onile" (local land vendors).
- Registered Surveyor: Confirm land boundaries and authenticity.
- Reputable Agents: Use REDAN-registered developers and verify their track record via the Corporate Affairs Commission (CAC).
3. Physical Inspection and Site Visits
- Visit the property multiple times, preferably with a surveyor, to check for disputes, encroachments, or inconsistencies with the description.
- Avoid "virtual-only" inspections, which may hide issues.
4. Secure Payment Practices
- Avoid Cash Payments: Use traceable methods like bank transfers.
- Escrow Services: Hold funds until all conditions are met, especially for off-plan purchases.
- Staged Payments: Tie payments to milestones (e.g., after title verification, physical handover).
5. Due Diligence on Sellers/Developers
- Research the seller/developer’s reputation online and through references.
- Confirm registration with regulatory bodies (e.g., REDAN, CAC).
- Verify physical office addresses and avoid agents operating solely online.
6. Check for Red Flags
- Too-Good-to-Be-True Deals: Extremely low prices often indicate fraud.
- Pressure Tactics: Scammers may rush you to pay upfront. Take time to verify details.
- Vague Documentation: Insist on written contracts, stamped receipts, and witnessed agreements.
7. Community Verification
- Consult local leaders, neighbors, or community members to confirm the seller’s legitimacy and history of the property.
- Be wary of "family land" sales; ensure all heirs consent legally.
8. Avoid Government-Acquired Land
- A lawyer can check if the land is under government acquisition or has unresolved disputes.
9. Digital Vigilance
- Reverse image search online listings to detect stolen photos.
- Cross-check listings on multiple platforms and avoid unverified websites.
10. Documentation and Contracts
- Ensure all agreements are in writing, signed, and stamped by both parties.
- Retain copies of receipts, contracts, and communication records.
By systematically applying these steps, you can significantly reduce the risk of falling victim to real estate scams in Nigeria. Always prioritize thorough verification and professional guidance over convenience or speed.
