The process of buying property in Nigeria can be exciting, whether it's for residential, commercial, or investment purposes. However, it’s no secret that the real estate market in the country is rife with potential pitfalls, including fraudulent schemes. From fake documents to double-dealing agents, scams are a significant concern for both locals and foreign investors. Here’s a comprehensive guide to help you avoid scams and make a safe and informed property purchase in Nigeria.
1. Work with Verified Professionals
Engaging the services of trusted professionals, such as real estate agents, surveyors, and legal practitioners, is essential. Ensure that any agent or broker you work with is registered with a recognized regulatory body, such as the Nigerian Institution of Estate Surveyors and Valuers (NIESV). Avoid individuals or companies with no track record of legitimate transactions.
How to Verify Professionals:
Request certifications or membership details of relevant professional bodies.
Check online reviews and seek recommendations from trusted individuals.
Visit their office to ensure legitimacy.
2. Conduct a Comprehensive Title Search
One of the most common scams involves selling property with fake or unclear ownership documents. Before making any payments, hire a lawyer to conduct a title search at the Land Registry in the state where the property is located.
Key Documents to Verify:
Certificate of Occupancy (C of O): This document proves the land has been officially allocated.
Governor’s Consent: Required for properties sold in the secondary market.
Survey Plan: This shows the exact location and boundaries of the property.
A title search will help confirm the property’s ownership and ensure there are no legal encumbrances, such as unpaid taxes, liens, or pending litigations.
3. Beware of Deals That Seem Too Good to Be True
If the price of a property is significantly below market value, it’s often a red flag. Fraudsters use this tactic to lure unsuspecting buyers into making hasty decisions.
Always compare prices of similar properties in the area and be cautious about sellers pushing for immediate payment.
4. Avoid Cash Transactions
Whenever possible, avoid making cash payments for property transactions. Instead, use traceable payment methods like bank transfers.
This provides a verifiable record of all financial transactions, which can be crucial in resolving disputes or proving ownership.
5. Confirm Land Use and Zoning
Some properties are designated for specific uses, such as residential, commercial, or agricultural purposes. Purchasing land without verifying its zoning can result in losses if the land cannot be used for your intended purpose.
Visit the town planning office to confirm zoning regulations before committing to a purchase.
6. Watch Out for Fake Developers and Projects
Scammers often pose as developers selling off-plan properties or estates under construction. They may promise lavish amenities or quick completion times to lure buyers. Always verify the developer’s reputation by checking their past projects, visiting the construction site, and reviewing client testimonials.
7. Insist on Written Agreements
Verbal agreements are not enforceable in Nigeria’s legal system. Always insist on a written agreement detailing the terms of the transaction, including the purchase price, payment schedule, and timeline for delivery of the property.
Ensure this document is reviewed and signed by your lawyer before proceeding.
8. Engage the Local Community
Before finalizing a purchase, visit the property location and engage with the local community. They may provide valuable information about the property’s history, ownership disputes, or other potential red flags.
9. Perform Due Diligence on the Seller
If the seller is an individual, request valid identification and verify their identity. If it’s a company, ensure the company is registered with the Corporate Affairs Commission (CAC). Confirm that the person acting on behalf of the company has the authority to sell the property.
10. Report Suspicious Activities
If you suspect a scam or encounter fraudulent behavior, report it to the appropriate authorities
such as: the Economic and Financial Crimes Commission (EFCC).The Nigerian Police Force.Regulatory bodies like the NIESV or the Real Estate Developers Association of Nigeria (REDAN).
Investing in property in Nigeria can be lucrative, but the risks of falling victim to scams are real. By taking the time to conduct thorough due diligence, working with reputable professionals, and adhering to the guidelines above, you can safeguard your investment and avoid common pitfalls.
Remember, a well-informed buyer is a scammer’s worst enemy. Always prioritize caution and transparency in all property transactions
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