FIVE COMMON REAL ESTATE SCAMS IN NIGERIA AND HOW TO AVOID THEM

Many people find the Nigerian real estate market to be a profitable place to invest. However, it is also plagued by scams that target unsuspecting buyers, renters, and investors. Below is a guide to Nigeria's most common real estate scams and tips on avoiding them.

1. Fake Property Listings
Scammers create enticing listings for properties that don’t exist or are unavailable for sale. They often post these listings on social media or real estate platforms to lure victims.

How to Avoid:

  • Always verify the listing’s authenticity.

  • Request a physical inspection of the property.

  • Research the agent or platform before making any commitments.

    2. Forged Property Documents
    Scammers create fake Certificates of Occupancy (C of O), Deeds of Assignment, or other property documents to deceive buyers.

    How to Avoid:

  • Cross-check all documents with the land registry or relevant authorities.

  • Engage a qualified property lawyer to verify document authenticity.

  • Be wary of deals that seem too good to be true.

    3. Multiple Sales of the Same Property
    This scam involves fraudsters selling the same property to multiple buyers. They provide fake documents and disappear after collecting payments.

    How to Avoid:

  • Conduct a thorough title search at the appropriate land registry.

  • Insist on seeing the original property documents.

  • Use a trusted legal practitioner to review all documents before payment.

    4. Omonile (Land Grabber) Fraud
    Local individuals or groups, often referred as “Omonile,” claim ownership of land and demand payment from buyers. These claims are usually false, leading to disputes and financial losses.

    How to Avoid:

  • Confirm the land’s ownership and survey plan with the land registry.

  • Avoid making payments to third parties without proper documentation.

  • Engage a reputable real estate agent or lawyer to mediate.

    5. False Promises on Off-Plan Properties
    Developers sell properties that are still under construction but fail to deliver or complete the project as promised.

    How to Avoid:

  • Investigate the developer’s track record and completed projects.

  • Ensure the developer has the necessary permits and approvals.

  • Read and understand the terms of the purchase agreement before making payment

    General Tips to Protect Yourself
    1. Conduct Due Diligence: Verify all property details and ownership through the appropriate authorities

    2. Use Reputable Professionals: Work with trusted real estate agents, surveyors, and legal practitioners.

    3. Avoid Rushed Decisions: Scammers often pressure victims into making hasty payments. Take your time to evaluate the deal.

    4. Document Everything: Ensure all transactions, agreements, and communications are documented.

    5. Trust Your Instincts: If a deal sounds too good to be true, it probably is.

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