Avoiding Property Scams in Nigeria: A Smart Investor’s Guide

Investing in real estate is one of the most profitable ventures for small businesses and entrepreneurs in Nigeria. However, the industry is rife with scams that can cause investors to lose their hard-earned money. From fraudulent land sales to fake property documents, the dangers are numerous. Understanding how to avoid property scams in Nigeria is crucial to ensuring a safe and profitable investment. In this guide, we’ll explore practical tips and insights to help you navigate the Nigerian real estate market without falling victim to fraud.

Before committing to any property purchase, conduct in-depth research. Scammers often use fake listings, misrepresent property ownership, or sell government-acquired land to unsuspecting buyers. To avoid this:

• Verify the seller’s credentials and track record.
• Check if the property has been previously sold to multiple buyers.
• Use Google searches, real estate forums, and reviews to gather information about the seller or agent.

Example: A Lagos-based investor almost lost millions when he purchased land that had multiple claimants. A simple background check would have revealed the fraudulent nature of the deal.

Fraudulent documentation is a common scam in Nigeria’s real estate sector. To avoid being scammed:

• Request original documents such as the Certificate of Occupancy (C of O), Deed of Assignment, and Survey Plan.
• Conduct a land title search at the relevant government land registry.
• Cross-check the details on the documents with the seller’s identification.

Example: A businessman in Abuja discovered that the C of O presented to him was forged when he conducted a search at the land registry.

Scammers often request cash payments, making it difficult to track transactions. To protect yourself:

• Make payments via bank transfers for transparency and proof of payment.
• Ensure payment goes to a registered business account rather than a personal one.
• Keep all receipts and transaction records for future reference.

Engaging with trusted and licensed real estate professionals can save you from scams. Here’s how to find credible agents:

• Check for registration with professional bodies like the Nigerian Institution of Estate Surveyors and Valuers (NIESV).
• Ask for references and past transaction records.
• Be wary of agents who rush transactions or discourage due diligence.

Example: A businesswoman in Port Harcourt avoided a scam by using a real estate firm with verifiable office addresses and business credentials.

Never buy property based on pictures or videos alone. Visiting the property ensures:

• You verify the actual existence and condition of the property.
• You confirm there are no illegal occupants or encroachments.
• You assess the environment, infrastructure, and accessibility.

Example: A property in Lekki, advertised as waterfront land, was discovered to be a swamp upon physical inspection by the buyer.

Real estate transactions involve legal processes that must be handled professionally. A property lawyer can:

• Review all documents to ensure authenticity.
• Draft and validate agreements that protect your interests.
• Prevent legal disputes arising from unclear ownership.

Example: A business owner in Ikeja avoided a legal tussle by having his lawyer scrutinize the contract before signing.

If a deal sounds too good to be true, it probably is. Scammers lure investors with below-market prices. Always:

• Compare the property price with similar listings in the area.
• Investigate why the seller is offering a significantly low price.
• Avoid pressure tactics such as “buy now or lose the deal.”

A government-verified survey plan provides legal backing for land ownership. Ensure:

• The property is not under government acquisition.
• The survey plan matches the property location and description.
• The document is properly registered.

Example: A small business owner in Ogun State avoided purchasing a property marked for future road expansion by checking the survey plan.

‘Omo Onile’ (land grabbers) are notorious for selling land multiple times or demanding illegal fees after purchase. To avoid issues:

• Confirm ownership from the local community.
• Get a court affidavit or indemnity clause to protect against future claims.
• Engage local authorities or a lawyer to negotiate if necessary.

Many investors lose property due to a lack of proper registration. After buying, ensure you:

• Obtain a governor’s consent if necessary.
• Register the deed with the land registry.
• Get all necessary approvals from local authorities.

Real estate investment in Nigeria offers great opportunities, but it also comes with risks. By following these essential steps—researching sellers, verifying documents, engaging professionals, and avoiding cash transactions—you can protect yourself from scams. Always remember: due diligence is key to a successful and secure investment.

By being informed and cautious, small business owners and entrepreneurs can confidently invest in Nigerian real estate without falling victim to fraud. If you’re planning to buy property, take these precautions seriously and work with reputable professionals to safeguard your investment.

Have you had any experiences with property scams in Nigeria? Share your insights in the comments below! If you need assistance verifying property documents, reach out to trusted legal and real estate experts today!