The Nigerian real estate market offers immense opportunities, but it is also fraught with risks, particularly for those unfamiliar with the landscape. Real estate fraud is a significant concern, with various scams targeting unsuspecting buyers and investors. This blog delves into common real estate scams and provides practical steps to avoid falling victim to them.

1. Forged Documents

Forged documents involve the creation of fake property titles, deeds, or other legal documents to deceive buyers into believing they are purchasing legitimate property.

How to Avoid It

• Verify Authenticity: Always verify the authenticity of property documents with the relevant government agencies, such as the Land Registry.
• Engage Professionals: Hire a reputable lawyer to conduct thorough due diligence and confirm the documents’ validity.
• Cross-Check Information: Compare the information on the documents with the details at the Land Registry to ensure they match.

2. Encumbrance Fraud

Encumbrance fraud occurs when a property is sold without disclosing existing legal claims, debts, or other liabilities attached to it.

How to Avoid It

• Conduct Title Search: Perform a comprehensive title search to uncover any encumbrances on the property.
• Request Encumbrance Certificates: Obtain an encumbrance certificate from the Land Registry to verify the property’s status.
• Legal Assistance: Have your lawyer review all documents and conduct necessary checks to ensure the property is free of encumbrances.

3. Zoning Fraud

Zoning fraud involves misrepresenting the zoning status of a property, leading buyers to believe they can use the land for purposes that are not permitted.

 How to Avoid It

• Check Zoning Laws: Verify the property’s zoning status with local planning authorities to ensure it aligns with your intended use.
• Obtain Zoning Certificates: Request zoning certificates to confirm the property’s designated use.
• Professional Guidance: Consult with real estate professionals or urban planners to understand zoning regulations.

4. Misrepresentation

This scam involves providing false information about a property’s features, condition, or potential to deceive buyers into making a purchase.

How to Avoid It

• Inspect the Property: Conduct thorough physical inspections to verify the property’s condition and features.
• Demand Transparency: Ask for detailed information and documentation about the property’s specifications.
• Professional Evaluations: Hire independent experts, such as surveyors or property appraisers, to assess the property’s value and condition.

5. Double Selling

Double selling occurs when a property is sold to multiple buyers, leading to disputes over ownership.

How to Avoid It

• Exclusive Agreements: Ensure that the sale agreement includes clauses preventing the seller from engaging in other sales agreements for the same property.
• Immediate Documentation: Once you decide to purchase, immediately initiate the transfer and registration process to secure your ownership.
• Due Diligence: Conduct a thorough title search to confirm the property’s ownership history and ensure no concurrent sales are in progress.

6. Land Grabbing

Land grabbing involves forcibly taking possession of land without the legal right to do so, often involving threats or illegal evictions.

How to Avoid It

• Secure Ownership Documents: Ensure all ownership documents are legitimate and registered with the relevant authorities.
• Community Engagement: Engage with the local community and authorities to establish the legitimacy of your ownership.
• Legal Support: Be prepared to take legal action if you encounter any attempts of land grabbing.

 7. Ghost Land Scam

The ghost land scam involves selling non-existent land or property to unsuspecting buyers.

How to Avoid It

• Site Visits: Always visit the property in person to verify its existence and condition.
• Maps: Use satellite imagery and maps to confirm the property’s location and physical presence.
• Engage Professionals: Work with reputable real estate agents and lawyers who can confirm the property’s existence and legitimacy.

Navigating the Nigerian real estate market requires vigilance and due diligence to avoid falling victim to fraud. By understanding common scams like forged documents, encumbrance fraud, zoning fraud, fraudulent misrepresentation, double selling, land grabbing, and ghost land scams, you can take proactive steps to protect your investments. Partnering with reputable real estate companies like ROI SAFE can provide the expertise and security needed to ensure safe and successful transactions. For secure and informed real estate investments, contact ROI SAFE today on WhatsApp.

Photo Credit: By DC Studio on Freepik