Property transactions are among the most significant investments many people make in their lifetime. Unfortunately, the real estate sector is not immune to property fraud. Property scams can result in devastating financial losses, legal battles, and emotional stress. To safeguard your interests, it is essential to understand the common types of property fraud and the measures you can take to avoid being scammed.
Step 1: Understand Common Types of Property Fraud
1. Fake Property Titles
Scammers may forge title documents to sell land or property they do not own.
2. Multiple Sales of the Same Property
A single property is sold to multiple buyers, leaving the rightful owner to fight for possession.
3. Encroachment Fraud
Buying property only to discover it encroaches on government land or private property can result in legal complications.
4. Developer Fraud
Some developers collect payments for properties that are never built or completed.
5. Identity Theft
Scammers impersonate the legitimate owner to sell or lease a property fraudulently.
Step 2: Conduct Due Diligence
Verify Ownership
- Request Title Documents: Ensure the seller provides authentic documents such as the Certificate of Occupancy (C of O), Deed of Assignment, or Governor’s Consent.
- Conduct a Title Search: Visit the relevant Land Registry to confirm ownership and check for encumbrances.
Inspect the Property
- Physical Inspection: Always visit the property to confirm its existence and condition.
- Boundary Verification: Use a licensed surveyor to confirm the property’s boundaries and avoid encroachment issues.
Check the Seller’s Identity
- Request valid identification and verify the seller’s connection to the property.
- Be cautious when dealing with middlemen or unverified agents.
Step 3: Engage Professionals
Hire a Property Lawyer
A property lawyer will:
- Review all legal documents for authenticity.
- Conduct due diligence on your behalf.
- Advise on risks and liabilities.
Work with Licensed Surveyors
A surveyor will:
- Ensure the property’s location aligns with the survey plan.
- Verify that the property is not on government-acquired land.
Use Reputable Agents or Developers
Engage agents and developers with a proven track record. Check reviews, references, and their registration status with relevant authorities.
Step 4: Avoid Red Flags
Pressure to Pay Quickly
Be cautious if the seller pressures you to make payments urgently or refuses to allow time for due diligence.
Unbelievably Low Prices
If a deal seems too good to be true, it probably is. Conduct market research to ensure the price aligns with the area’s property values.
Incomplete Documentation
Avoid transactions where the seller cannot provide complete and verifiable documents.
Unregistered Agents
Always verify that agents or intermediaries are licensed and affiliated with credible organizations.
Step 5: Secure Payment Processes
Use Bank Transfers
Always make payments through traceable means like bank transfers, and avoid cash transactions.
Request Receipts
Ensure you receive a detailed receipt for every payment made, indicating the purpose and amount.
Escrow Accounts
Consider using an escrow account managed by a legal professional to hold funds until all conditions of the transaction are met.
Step 6: Verify Construction and Development Projects
Research the Developer
- Confirm their registration with professional bodies such as the Real Estate Developers Association of Nigeria (REDAN).
- Check for reviews or previous projects to gauge reliability.
Inspect Progress
- Regularly visit the site if purchasing off-plan.
- Request updates and documentation on construction milestones.
Final Thoughts
Property fraud can happen to anyone, but being informed and vigilant can significantly reduce your risk. From verifying ownership to engaging professionals, each step of due diligence matters. Always trust your instincts, and when in doubt, consult a qualified property lawyer.
Remember, it’s better to delay a transaction than to lose your hard-earned money to fraud. Be proactive, stay informed, and protect your property investment.
Call to Action
Worried about property fraud? Chaman Law Firm specializes in real estate law and offers comprehensive services to ensure your property transactions are secure. Contact us today via email at chamanlawfirm@gmail.com or call us on +234 8065553671 or +234 8096888818. Let us help you invest safely and confidently!