How to Avoid Common Real Estate Scams in Nigeria

Real estate in Nigeria is a booming industry, offering numerous opportunities for investors and homebuyers. However, with these opportunities come risks, particularly in the form of scams. Understanding how to avoid these scams can save you a lot of money, stress, and legal troubles. This article will guide you through some common real estate scams in Nigeria and how to avoid them.

• According to the Nigerian Institution of Estate Surveyors and Valuers (NIESV), real estate fraud accounts for a significant portion of the industry’s criminal activities.
• A report by the Economic and Financial Crimes Commission (EFCC) indicates that real estate scams are among the top five most common frauds in Nigeria.
• The Nigerian Urban Reproductive Health Initiative (NURHI) revealed that over 50% of real estate transactions in Nigeria involve some form of fraud or malpractice.

1. Fake Property Listings

Scam: Fraudsters post fake property listings online or in newspapers, luring unsuspecting buyers with attractive prices and pictures. When potential buyers show interest, the scammers request deposits or fees for viewing.

How to Avoid: Always verify the property’s existence and the ownership details. Visit the property in person, and ensure you are dealing with the actual owner or a legitimate agent. Use reputable real estate websites and agencies for your search.

See>>> How to Spot Fake Real Estate Sellers and Avoid Real Estate Fraud

2. Omonile Scams

Scam: In some areas, particularly in Lagos, people known as “Omonile” claim ownership of land and demand payment from buyers. They may even sell the same piece of land to multiple buyers.

How to Avoid: Conduct a thorough investigation of the land’s title. Engage a lawyer to verify the ownership and ensure there are no pending disputes or multiple claims on the land. Obtain and verify the land’s Certificate of Occupancy (C of O).

3. Title Document Fraud

Scam: Fraudsters forge title documents to make it appear they own a property. They then sell or lease the property to unsuspecting buyers.

How to Avoid: Verify the authenticity of title documents through the appropriate government land registry. Employ a real estate lawyer to conduct due diligence and confirm the documents are genuine.

See>>> 14 Mistakes to Avoid When Investing in Real Estate

4. Overpricing

Scam: Some agents or sellers overprice properties, exploiting buyers who are not familiar with the market rates.

How to Avoid: Research the market to understand the average prices in the area you are interested in. Use multiple sources to get an idea of the fair market value. Engage a trusted real estate agent to help with negotiations.

5. Ghost Buyers

Scam: Fraudsters pose as buyers, making high offers to lure sellers. They then request sensitive information or a small fee to proceed with the transaction, disappearing afterwards.

How to Avoid: Never share sensitive personal or financial information without verifying the buyer’s identity. Insist on meeting potential buyers in person and conducting transactions through trusted channels.

See>>> Top Real Estate Companies in Lagos Nigeria

6. Rental Scams

Scam: Fraudsters collect rent for properties they do not own, often advertising them at very low prices to attract tenants quickly.

How to Avoid: Always inspect the rental property in person and meet the landlord. Request proof of ownership and cross-check it with the relevant authorities. Be cautious of deals that seem too good to be true.

7. Land Grabbing

Scam: Fraudsters claim ownership of a piece of land through illegal means, such as forging documents or intimidating legitimate owners. They then sell the land to unsuspecting buyers this is one of the reasons Why Buying Land Through a Real Estate Company Makes Smart Sense.

How to Avoid: Conduct thorough due diligence. Check the land’s history, including past ownership and any disputes. Use legal channels to verify the land’s status and ensure it is free from encumbrances.

Conclusion

Real estate scams in Nigeria are a real threat, but with careful attention and due diligence, you can protect yourself. Always verify property details, work with trusted professionals, and avoid deals that seem too good to be true. By staying informed and cautious, you can make safe and successful real estate investments.

Invest wisely and stay safe!