How to Spot Real Estate Scams in Nigeria (And Avoid Them!)

Real estate is a lucrative investment in Nigeria, but it’s also a hotspot for scams, especially in bustling markets. Scammers exploit unsuspecting buyers and investors with fake deals and fraudulent documents. To protect your hard-earned money, here’s a guide on how to spot real estate scams in Nigeria and avoid them in 2025.

1. Unrealistic Prices or Deals That Seem Too Good to Be True

One of the biggest red flags in Nigeria’s real estate market is properties offered at suspiciously low prices.

• What to Watch For:
  • A plot of land in a prime area like Lekki or Maitama priced far below market rates (e.g., ₦5 million when similar plots cost ₦50 million).
  • Sellers claiming urgency, such as “distress sales” due to relocation or debt, pressuring you to pay quickly.
  • Promises of massive returns with no clear documentation or evidence.
• How to Avoid:
  • Research market prices using platforms like Virexhomes.com.ng or Nigeria Property Centre. Compare similar properties in the same area.
  • Consult a registered real estate agent or valuer to confirm if the price aligns with current trends.
  • Be wary of deals requiring immediate payment without verification.

Pro Tip: If it feels too good to be true, it probably is. Always verify before committing.

2. Fake or Incomplete Property Documents

Scammers often present forged or incomplete documents to deceive buyers into believing a property is legitimate.

• What to Watch For:
  • Missing key documents like the Certificate of Occupancy (C of O), Survey Plan, or Governor’s Consent.
  • Photocopies instead of original documents, or documents with inconsistent details (e.g., mismatched names or dates).
  • Sellers refusing to allow verification at the state’s land registry.
• How to Avoid:
  • Hire a trusted real estate lawyer to verify documents with the state’s land registry or Ministry of Lands. For example, in Lagos, check with the Lagos State Land Registry.
  • Ensure the C of O is genuine by confirming the land isn’t under government acquisition or litigation.
  • Request a physical inspection of the property to match the survey plan’s coordinates.

3. “Omo-Onile” or Unauthorized Sellers

In Nigeria, “Omo-Onile” (local landowners) sometimes sell land they don’t legally own, leading to disputes after payment.

• What to Watch For:
  • Sellers claiming to represent a family or community without legal documentation.
  • Demands for extra payments after the initial purchase for “community fees” or “ratification.”
  • Lack of transparency about the land’s history or ownership chain.
• How to Avoid:
  • Work with reputable real estate firms or agents registered with the Nigerian Institution of Estate Surveyors and Valuers (NIESV).
  • Ensure all agreements with Omo-Onile are documented and signed by recognized family or community representatives.
  • Conduct a community inquiry to confirm the seller’s authority before paying.

Pro Tip: Avoid cash payments. Use traceable bank transfers and insist on receipts for every transaction.

4. Fake Real Estate Agents or Developers

Fraudulent agents or developers often pose as legitimate professionals, luring buyers with fake listings or non-existent projects.

• What to Watch For:
  • Agents or developers without verifiable credentials or office addresses.
  • Listings with generic photos or no physical property to inspect.
  • Pressure to pay deposits for “off-plan” projects without a track record of completed developments.
• How to Avoid:
  • Verify the agent’s credentials through NIESV or the Real Estate Developers Association of Nigeria (REDAN).
  • Visit the developer’s past projects or request references from previous buyers.
  • For off-plan properties, confirm the developer has land title documents and building approvals from the state government.

Additional Tips to Stay Safe

• Conduct Due Diligence: Always inspect the property physically and cross-check its status with local authorities.
• Hire Professionals: Engage a lawyer, surveyor, and registered agent to guide you through the process.
• Avoid Rushed Decisions: Take time to verify every detail, even if the seller claims the deal is time-sensitive.
• Use Escrow Services: For large transactions, consider using an escrow account to hold funds until all conditions are met.

What to Do If You Suspect a Scam

• Stop Communication: Cease contact with the seller or agent immediately.
• Report to Authorities: File a complaint with the Economic and Financial Crimes Commission (EFCC) or the police.
• Seek Legal Help: Consult a lawyer to recover funds or resolve disputes, especially if documents were signed.

Conclusion

Real estate scams in Nigeria can be costly, but with vigilance and proper due diligence, you can protect yourself. By spotting red flags like unrealistic prices, fake documents, unauthorized sellers, and fraudulent agents, you’ll be better equipped to make safe investments. Whether you’re buying land in Kano or a house in Abuja, always verify, verify, verify!