5 Common Real Estate Scams in Nigeria and How to Spot Them

There are a few common real estate scams on the rise in the real estate market in Nigeria. Vigilance is the key to avoiding these pitfalls as these fraudulent individuals prey on unsuspecting individuals eager to secure their dream property or make a smart investment. From fake property deals to dubious land “sales,” scammers use increasingly clever tactics.

If you’re in the market, here’s what you need to know to protect yourself.

1. The Too-Good-To-Be-True Deals

If the price of a piece of land or property seems too good to be true, it most likely is. Selling properties at absurdly low prices to entice buyers is a common scam. Real estate doesn’t follow the same pattern as Black Friday sales for clothing or electronics. Therefore, before making any payments, always check the title and ask why the property is being sold at such a steep discount.

2. Non-existent Properties

This is also one of the most common real estate scams in Nigeria. Fraudsters promote real estate that isn’t for sale or doesn’t exist. They frequently use fake photos or display someone else’s property to unwary purchasers. Imagine becoming pleased with a beautifully landscaped estate only to discover it is a delusion. Insist on a physical inspection to prevent this, and confirm the seller’s ownership claim with the appropriate authorities, like the land registry.

3. Fake Documentation

Fraudsters create fake deeds of assignment or certificates of occupancy to trick purchasers into believing they are authentic. Even though these fake documents might seem authentic at first, they will eventually fall short of legal verification. Make sure your attorney or a reliable consultant carefully reviews all documentation to prevent becoming a victim. Before spending your hard-earned money, compare ownership claims with official government records. 

Land Purchase Checklist: Documents You Need will help you understand the documentation process before acquiring a land. 

4. The Multiple Sale Scam

This one is particularly heartbreaking. Scammers sell the same property to multiple buyers, each of whom believes they’ve secured exclusive rights. It usually comes to light when construction begins, and multiple “owners” show up to claim the same land. To protect yourself, always register the property after purchase to ensure no one else can stake a claim. Additionally, confirm that the property isn’t under litigation or encumbrance before sealing the deal.

5. The Quick Investment Opportunity Trap

Many Nigerians are looking for safe investment options as inflation rates rise. Scammers take advantage of this by promising large returns on false real estate initiatives. These schemes frequently entail funding questionable land banking projects or off-plan developments that never come to become reality. Always do extensive research on the company offering the investment. Look into their history, confirm that they are registered with the appropriate authorities, and confirm that they are the land’s owner.

How to Avoid Falling for Common Real Estate Scams

• Do Your Homework: Research the company or individual you’re dealing with.
• Visit the Property: Never buy land or property you haven’t physically inspected.
• Engage Professionals: Work with trusted lawyers, real estate consultants, or agents.
• Verify Documentation: Cross-check all documents with the land registry.
• Avoid Pressure Tactics: If someone is rushing you to pay, take it as a red flag.

In conclusion, surviving  the real estate market in Nigeria can be challenging, but knowledge is your best defence. Common real estate scams thrive on ignorance, so spend time learning the ropes. By following the steps outlined above, you can be confident that you have secured a property free of complications and scams. 

For expert guidance, consult with us at Catalyst Properties. We provide professional advice on the best areas to invest in and connect you with trusted opportunities to buy land securely. Let us help you make smart real estate decisions!

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