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Have you or anyone you know experienced Housing Fraud And Land Scam In Lagos Nigerian Real Estate before?
In a bustling city like Lagos, where opportunities and challenges collide, spotting a housing scam can be tricky.
With a mix of flashy ads and too-good-to-be-true deals, distinguishing between authentic rentals and scams might feel like solving a puzzle.
But don’t worry! With the right information and a bit of caution, you can avoid falling victim to housing fraud.
The Nigerian real estate market has seen significant growth, especially in bustling cities like Lekki, Lagos, and Abuja, where demand for property continues to skyrocket.
However, this boom has been accompanied by a rise in real estate scams in Nigeria, which have left many unsuspecting renters, buyers, and investors at a loss.
Fraudsters, corrupt agents, and shady developers continue to exploit the market, taking advantage of those eager to invest in property.
In this article, we’ll explore some of the common real estate scams in Nigeria, and provide practical tips on how to avoid falling victim.
Let’s dive into practical tips to help you stay safe.
What Is a Rental Scam?
A rental scam occurs when a person, posing as a landlord or agent, tricks prospective tenants into paying money for a property they don’t own or have no right to rent.
Housing Fraud And Land Scam In Lagos Nigerian Real Estate
These fraudsters use various methods, such as posting fake listings on platforms like the Nigerian Property Centre, Jiji, or Instagram. Their goal? To pocket your cash before you realize the truth.
How to Avoid Housing Fraud in Lagos
1. Beware of Deals That Seem Too Good to Be True
If a property’s rent is significantly cheaper than similar ones in the area, raise an eyebrow. Check the local rent index to verify typical pricing. Also, watch for:
- Lavish interiors in photos that don’t match the area’s standards.
- Offers for immediate move-ins without background checks.
Always remember: if it seems too good to be true, it probably is!
2. Avoid Sharing Personal Information Too Soon
Scammers might ask for sensitive details like your ID or bank account info early in the conversation. Don’t fall for it! Legitimate landlords request such information later in the process. Use apps to blur out sensitive parts of your ID and add watermarks for extra security.
3. Don’t Be Rushed Into Making Payments
Fraudsters often pressure you to pay quickly, claiming there are other interested tenants. This high-pressure tactic is a major red flag. Take your time to verify the details before sending any money.
4. Ask Questions—Watch for Frustration
A genuine landlord will patiently answer your questions. But if the person becomes irritated when you ask for additional photos, videos, or documents, it could indicate a scam.
5. Scrutinize the Rental Agreement
Fake landlords often create bogus rental agreements. Here’s what to check:
- Is the property address included and correct?
- Are the landlord’s details accurate?
- Are they pressuring you to pay before signing?
- Is the deposit unusually high compared to local standards?
Trust your instincts. If anything feels off, walk away.
6. Avoid Untraceable Payments
Legitimate landlords typically accept traceable payment methods like bank transfers. Avoid paying via cash, Bitcoin, or other untraceable methods. Once your money is gone, tracking it becomes almost impossible.
7. Insist on Seeing the Property
Never rent a property sight unseen. If you can’t visit yourself, send someone you trust to inspect the home. This simple step helps verify the property exists and is in good condition.
8. Research the Landlord or Agent
Google the landlord’s name, phone number, and email address. If reviews or complaints pop up, take them seriously. For extra security, work with trusted housing platforms like Marock Resources, which ensure legitimacy and transparency in all dealings.
9. Verify Ownership
Request proof of ownership or confirmation that the person renting the property has the legal right to do so. You can also check with neighbors or previous tenants for added assurance.
10. Consult a Verified Real Estate Agent
Using a licensed agent minimizes your chances of falling victim to fraud. Agents often have access to verified listings and can guide you through the rental process.
Why Housing Scams Persist in Lagos
The high demand for rental properties and the influx of newcomers make Lagos fertile ground for scammers. They exploit desperation and ignorance, often targeting people eager to secure housing quickly. Common scams include:
- Fake inspection fees (e.g., charging multiple renters ₦5,000 for a non-existent property).
- Leasing properties they don’t own to multiple tenants.
Some Of The Common Real Estate Land Scams in Nigeria and How to Avoid Falling Victim
Whether you’re buying land, a home, or a commercial property, understanding the risks and learning how to safeguard your investment is crucial. Let’s dive in.
[Also Read] Fractional Real Estate Crowdfunding in Nigeria: How To Invest Amazing Way In 2024
1. Overselling Properties – The Hidden Danger
One of the most prevalent real estate scams in Nigeria is overselling. This occurs when estate agents or developers sell more properties than what is available, often in newly developed estates or high-demand areas. Once the buyers make payments, they’re told the property is no longer available, and they’re forced to accept an alternative plot or location that may not align with their original expectations.
This scam often happens when agents are under pressure to meet sales targets or earn higher commissions. In some cases, the buyer’s money is even pocketed, and they may be left waiting indefinitely for their property.
How to Avoid This Scam:
- Always ask for a physical allocation of the property you’re purchasing.
- Demand an allocation document or receipt, signed and stamped by the developer, as proof of your purchase.
- Make sure the property is properly demarcated and accessible before making any payment.
2. Fake Title Documents – Don’t Get Duped
Fraudulent title documents are another huge concern for real estate buyers in Nigeria. Some agents or developers may present fake title deeds, such as Certificates of Occupancy (C of O) or Approved Excision documents, to make a property look legitimate. These documents are often forged or incomplete, leaving buyers vulnerable to losing their investment once the true owners of the land reclaim it.
Unfortunately, this issue is widespread, even among well-known real estate companies that try to skirt the system by using fraudulent or manipulated legal documents. The worst part is that it may take years before you realize the property you bought doesn’t have proper documentation.
How to Avoid This Scam:
- Verify the title of any property before you make a purchase by conducting a land search with the state’s land registry or Ministry of Lands at Alausa Ikeja Lagos
- Request a copy of the C of O, and have a lawyer or real estate expert verify its authenticity.
- Work only with licensed, reputable estate agents who are members of recognized associations like the Association of Estate Agents in Nigeria (AEAN).
3. Hidden Charges – The Unseen Costs
Hidden fees are another major issue in the Nigerian real estate market. Some estate agents or developers might present a property at an attractive price, only to add hefty hidden charges later. These can include administrative fees, survey fees, legal fees, documentation fees, and other miscellaneous charges that may go unmentioned during initial negotiations.
While it’s normal to pay some statutory fees, the amount should be clearly outlined in the agreement. Unscrupulous agents often inflate these charges to boost their own profits, and without proper documentation, you could end up paying more than the property is worth.
How to Avoid This Scam:
- Request a breakdown of all fees associated with the property before you sign any agreement.
- Ensure that the purchase agreement includes all terms and conditions, including any additional charges.
- Have a lawyer review the agreement to make sure there are no hidden or ambiguous terms.
4. Delayed or No Allocation – The False Promise
Some developers or real estate agencies in Nigeria advertise “instant property allocation”, promising that buyers will immediately receive their plot of land after making full payment. However, many buyers discover that this is just a marketing gimmick. After making the payment, they end up waiting for months or even years before their land is allocated to them, or in some cases, they receive a plot that is far from what they expected.
This scam is particularly common in new developments where property demand is high, and the company may oversell properties to attract more buyers.
How to Avoid This Scam:
- Always request a written confirmation with a clear timeline for property allocation.
- Ensure that you get official documents such as a receipt of payment and allocation papers as proof of your transaction.
- Visit the site personally to confirm the availability of plots before you pay.
5. Documents in Process – The Endless Wait
Some agents or developers advertise properties with the promise that the land documents are in process and will be available after the transaction is complete. The process of obtaining legal documents in Nigeria can be lengthy, taking months or even years in some cases, and many buyers are left waiting for documentation that may never materialize.
This scam is particularly dangerous because it often involves a series of fake assurances and promises that the property will be officially registered.
How to Avoid This Scam:
- Don’t rely solely on promises. Ensure that all documents are ready and verified before making any payments.
- Make sure the agency has valid registration with the Ministry of Lands, and request proof of their ongoing applications or registrations.
- Consult with a real estate lawyer to ensure the property is legally registered and that all documents are in order.
6. Overpricing – Know the Market Value
While overpricing isn’t as common as some other scams, it can still pose a serious risk, especially in highly sought-after locations like Lekki, Victoria Island, and Ikeja. Some sellers or agents may inflate the asking price for properties to create a sense of urgency or scarcity, tricking buyers into paying more than the market value.
This can also happen when certain real estate companies monopolize a location, making it difficult for buyers to compare prices or find competitive deals.
How to Avoid This Scam:
- Always research the market rates for properties in the area you’re interested in.
- Compare prices from multiple agents or agencies to ensure you’re getting a fair deal.
- Work with an agent who is transparent about pricing and willing to provide evidence of market trends.
7. Agent-to-Agent Inflation – The Price Tag Game
This scam happens when multiple agents are involved in the sale of a single property, and each one adds their own commission or markup to the price. This agent-to-agent inflation results in the final price being far higher than what the property is worth.
Investors who are unaware of this practice may end up overpaying because they don’t know about the extra commissions added by each agent involved.
How to Avoid This Scam:
- Always ask for full transparency on the property price and request a breakdown of costs before agreeing to anything.
- Work directly with a single agent or agency to avoid the middleman markup.
- Confirm the final sale price with the property owner or developer to ensure no extra fees have been added.
8. Bogus Property Descriptions – The Deceptive Ads
In a competitive real estate market, bogus property descriptions are a rampant scam that often targets remote buyers or those who cannot inspect the property in person. Real estate ads may promise luxurious amenities, proximity to key locations, or premium features that do not exist in reality. When the buyer visits the property, they may find that the promised features are nowhere to be found.
How to Avoid This Scam:
- Always perform a physical inspection of the property if possible.
- Ask for detailed photographs and videos of the property before making any decisions.
- Read reviews or seek references from previous buyers who have dealt with the agent or agency.
Final Thoughts on How to Avoid Real Estate Scams in Nigeria
Conclusion:
Avoiding rental scams in Lagos requires vigilance, skepticism, and thorough research. Always verify property details, scrutinize landlords, and insist on transparent dealings. By staying informed and following these tips, you can protect yourself from fraud and confidently secure your dream home. Remember, when in doubt, seek guidance from trusted professionals like licensed real estate agents or reputable platforms like Marock Resources. Stay cautious, and don’t let scammers catch you off guard!
The real estate market in Nigeria is teeming with opportunities, but it’s also fraught with scams. By being diligent, conducting thorough research, and working with trustworthy agents and developers, you can protect yourself from falling victim to these common frauds.
Always ensure that all transactions are backed by legal documents, and don’t hesitate to seek professional advice from a real estate lawyer to verify the authenticity of any documents.
To avoid falling into the traps set by real estate scams in Nigeria, follow the tips in this guide, and remember: when in doubt, always double-check.
