Introduction

The Nigerian real estate market is a booming sector that attracts numerous investors and property buyers. Unfortunately, the market is also rife with fraudsters who exploit unsuspecting individuals. Property scams can lead to significant financial losses, legal complications, and emotional distress. Understanding how these scams operate and implementing preventive measures is crucial to protecting your hard-earned investment.

In this article, we provide 7 powerful tips to help you identify and avoid common property scams in Nigeria while ensuring your real estate transactions are legitimate and secure.

1. Verify the Seller’s Ownership and Title Documents

One of the most common real estate scams in Nigeria involves fraudulent sellers presenting fake or invalid property documents. To avoid this:

• Request Original Documents: Ensure you see the original title documents, such as the Certificate of Occupancy (C of O), Deed of Assignment, or Governor’s Consent.
• Conduct a Title Search: Visit the appropriate Land Registry office to verify the authenticity of the documents.
• Work with a Lawyer: Hire a trusted real estate lawyer to validate ownership and prevent manipulation of legal documents.

2. Beware of “Omonile” Fraud

The term “Omonile” refers to landowners, often in rural or developing areas, who sell the same property to multiple buyers. This scam is prevalent, particularly in Lagos. To safeguard against it:

• Insist on Proper Documentation: Ensure the seller provides valid documentation proving ownership.
• Conduct Due Diligence: Engage professionals to research the property’s ownership history.
• Request a Written Agreement: Avoid verbal transactions; always have a legal agreement in place.

3. Avoid “Too Good to Be True” Deals

If a deal sounds too good to be true, it probably is. Fraudsters often entice buyers with unbelievably low prices.

• Research Market Prices: Understand the fair market value of properties in your desired location.
• Be Cautious of Pressure Sales: Scammers use urgency tactics to pressure buyers into quick decisions.
• Inspect the Property in Person: Always visit the property before making any financial commitments.

4. Confirm the Legitimacy of Agents and Agencies

Many fraudulent activities are carried out through fake real estate agents. To avoid this scam:

• Verify the Agent’s Credentials: Check if the agent or agency is registered with professional bodies like the Association of Estate Agents in Nigeria (AEAN).
• Ask for References: Speak with previous clients or check online reviews to confirm credibility.
• Sign a Legal Agreement: Ensure the terms of the engagement are outlined in a binding contract.

5. Conduct Physical Property Inspections

Some scammers sell non-existent or incomplete properties to unsuspecting buyers. To avoid falling victim:

• Visit the Property Site: Conduct multiple inspections to verify its existence and state.
• Engage Surveyors: Hire a professional surveyor to confirm the property’s boundaries and physical status.
• Check for Encumbrances: Ensure the property is not under dispute or legal restrictions.

6. Demand a Proper Deed of Assignment

The Deed of Assignment is a vital document that legally transfers ownership from the seller to the buyer. Without this, you may lose your investment.

• Ensure It Is Legally Drafted: Work with a qualified lawyer to prepare the Deed of Assignment.
• Register the Document: File the deed with the relevant land authorities to solidify ownership.
• Obtain a Governor’s Consent: For properties in Lagos and other urban areas, Governor’s Consent is mandatory for the transaction to be valid.

7. Partner with Trusted Real Estate Professionals

Navigating property transactions on your own can be risky. To secure your investment:

• Hire a Licensed Real Estate Lawyer: A professional will help verify documents, conduct due diligence, and ensure legal compliance.
• Work with Reputable Agencies: Choose registered and well-known real estate agencies for property transactions.
• Consult Real Estate Experts: Seek advice from experienced professionals before making any major decisions.

Common Property Scam FAQs

Q1: What is the most common real estate scam in Nigeria?
The most common scams include fake ownership claims, Omonile fraud, and selling non-existent properties.

Q2: How can I verify property ownership in Nigeria?
You can verify ownership at the Land Registry and hire a lawyer to conduct due diligence.

Q3: Is it necessary to have a lawyer when buying property?
Yes, hiring a lawyer ensures the property is free from disputes and the documentation is legally valid.

Conclusion

Property scams in Nigeria can be devastating, but with the right knowledge and precautions, you can avoid becoming a victim. By verifying ownership documents, conducting due diligence, and working with trusted professionals, you can protect your investment and enjoy peace of mind.

At Chaman Law Firm, we specialize in providing expert legal guidance for secure property transactions. Whether you are buying land, a home, or commercial property, our team of professionals is here to assist you every step of the way.

Protect your real estate investments today! Contact Chaman Law Firm for expert legal services on property verification, documentation, and dispute resolution. Let us help you avoid property scams and secure your future.

Call us at 08065553671 or email us at info@chamanlawfirm.com to schedule a consultation.

Our offices are conveniently located in Lagos, FCT Abuja, Ogun State, and the UK. We are readily available to assist you with your legal needs.