In Nigeria, we don’t joke with the real estate business, as it is a very lucrative business if you understand how it works. Real estate scams are a type of fraud where fraudsters take possession of property to dupe people into paying them. Unfortunately, the real estate industry is also a contributing factor to the problem, as they do not take serious action to curb the activities of these scammers.
They eventually sell the same property to different purchasers, confusing as to who rightfully owns the property. From fraudulent and fake land sales to rental scams and all sorts of scams you can think of, scammers have continued to cause financial losses to unsuspecting people. That is why we have decided to work on this article about the top real estate scams you must avoid.
5 Real estate scams in Nigeria and how to avoid them
Varied tactics are used by impostors to trick asset renters and buyers. But as usual, I will recommend you read this article on How to create wealth investing in real estate – 10 Tips, while you take time to digest our top 5 real estate scams in Nigeria and how to avoid them. These are some ways real estate scams operate and how to avoid them:
1: Fake Property Listings:
This tops the list of real estate scams in Nigeria. That is why we encourage our readers to list, rent, and buy from travla.xyz. It is a trusted platform for real estate transactions. All users are vetted before approval.
Make sure you confirm the asset through several visits and look for legal guidance before you make a payment. Fraudulently publicize assets that are not real or not for sale. Some of the most common Nigerian real estate scams involve fake property and accumulating deposits from buyers.
There are high requirements for rents in places like Abuja and Lagos, scammers take advantage of this by uploading appealing offers for property on social media. These listings frequently attribute gorgeous prices to entice potential clients.
The fraudsters request for deposit immediately once an interested tenant gets in touch before inspecting the property. These fraudsters have a strategy of telling potential buyers that other buyers are interested in getting the same property they are interested in getting, and making part payments will help them safeguard the rent. Gullible people will always fall for this trap as the agents have a way of creating a sense of urgency.
HOW TO AVOID IT1: Verify the listing’s legitimacy before proceeding
2: Request for a visible examination of the property!
2: Property Investment Scams:
Before financing, investigate the firm, seek citations, and discuss with a financial consultant. Those fraudulent guarantees you a high yield on real estate but provide nothing.
Be cautious of plans that warrant idealistic or stress you to quickly invest, they target novice shareholders with published catalogs. A valid asset permits enough time for detailed reflection and carefulness.
HOW TO AVOID IT1: Make sure the programmer has the required license and endorsement
2: Comprehend the conditions of the purchase contract before payment
3: Land Grabber Fraud(Omo onile):
This is common in Nigeria, especially in the southern part of Nigeria. It is a situation where regional groups or entities claim ownership of land and request settlement from prospective purchasers. Such allegations are false, and they lead to conflict and monetary losses.
To prevent this, ensure that the land has an appropriate record and confirm possession with the land record. Omo onile collects money from multiple purchasers, victims only discover that they have been scammed when they show up to start building, and they find out that the land has been sold to another buyer.
This scam regularly includes risk and physical harassment, and creates making aggressive atmosphere for authentic deals. Regional participation involves authorities and community leaders can help ascertain true ownership and preclude conflict. You must do everything within your power to avoid this situation.
HOW TO AVOID IT1: Evade making payment without proper documentation
2: Get a lawyer or try as much as possible to buy properties from trusted property agents.
4: Fake property Document Forgery:
Fraudsters frequently forge the property name and sell the same property to another purchaser. Fake asset certificates are a significant scam in Nigeria. Make sure you conduct a title search at the property record to verify verification of the asset files.
To make them emerge lawful, agents deceptively claim that the property has residential occupancy. Forge files can be highly persuasive and making it critical to supervise properties publicized by real estate organizations that lack legitimate Designation.
Verify the accessible documents and search for competent guidance to authenticate records. The main factor is that different purchasers get exploited for not know how to confirm land files in Nigeria
HOW TO AVOID IT1: Try to go through all the documents given to you. Check the land records or related official documents for possible omissions or fraudulent signs.
2: Beware of deals that look too good to be true; involve a qualified lawyer to verify the documents
5: Construction fraud:
Visit the site often and observe the development. Verify if the task is making progress. Try to do a background check before awarding contracts. The history of your engineer matters. Some specialize in steal materials and some inflate figures to scam their clients. Whichever case, you will run at a loss.
As an alternative, you can participate in the service of an esteemed Nigerian building company to guarantee the success of real estate investment or hire your most trusted friends and family.
Unprofessional estate agents sell properties that are under site preparation or construction. Incomplete structure and financial losses are left with the purchaser.
HOW TO AVOID IT 1: Emphasize seeing authentic documents. Perform a thorough inspection of the title at the appropriate land records.
2: A trustworthy legal practitioner should be used to assess all files before payment
Conclusion
Nigeria’s real estate business presents profitable opportunities; however, Nigeria’s real estate scams pose a significant challenge. Nevertheless, with knowledge, you can protect yourself from being exploited.
By recognizing the typical categories of Nigerian real estate scams and taking proactive steps to verify information and seek professional guidance, you can make informed investments and also protect yourself.