The dream of owning property in Nigeria is a powerful one, but the path to achieving it can be filled with potential pitfalls. Real estate scams are a painful reality, costing unsuspecting investors billions of Naira and turning their dreams into devastating nightmares.
Fortunately, most scams follow a predictable pattern. Fraudsters rely on urgency, a lack of information, and a buyer’s emotional desire to secure a good deal. By learning to recognize their tactics, you can protect yourself and invest with confidence.
This guide is your shield. Here are seven critical red flags that should immediately alert you to a potential real estate scam.
Red Flag 1: The Price is Too Good to Be True
You see a plot of land in a rapidly developing area advertised for a price that is 50% lower than all the surrounding properties. This is the most common bait used by scammers.
- The Tactic: Fraudsters lure you in with an impossibly low price to create a sense of urgency and make you feel like you’ll miss out on a once-in-a-lifetime deal.
- The Reality: The rock-bottom price is almost always a sign of a fatal problem. The property may be on government-acquired land, in a disputed area, have a fraudulent title, or it may simply not exist at all.
- Your Defence: Always conduct a comparative market analysis (CMA). Research the going rate for legitimate properties in that exact location. A deal that is significantly below market value is not a bargain; it’s a warning.
Red Flag 2: Extreme Urgency and Pressure to Pay
The agent or seller is constantly pushing you to make a deposit immediately. They might say things like, “Another buyer from the UK is ready to pay in full tomorrow,” or “The price is going up on Monday, so you must pay today.”
- The Tactic: This high-pressure sales tactic is designed to make you panic and skip the most important step: due diligence. They want your money before you have time to think or investigate.
- The Reality: A legitimate seller or agent with a good property knows its value and will allow a serious buyer the necessary time to conduct their checks.
- Your Defence: Never be rushed. State calmly and firmly that you will not make any payment until your lawyer and surveyor have completed their verifications. If they resist or try to pressure you further, walk away immediately.
Red Flag 3: Reluctance to Provide Documents for Verification
You ask for copies of the property’s title documents (like the C of O or Deed of Assignment) and the registered survey plan, and the seller gives you excuses. They might say, “The documents are with my lawyer,” or “You’ll get them after you make a deposit.”
- The Tactic: They are hiding something. The documents are likely fake, defective, or non-existent. They know that as soon as a real professional sees them, the scam will be exposed.
- The Reality: A genuine seller with a legitimate property will be proud to provide copies of their documents as proof of ownership, as this is a standard and necessary part of the sales process.
- Your Defence: Access to documents for verification is non-negotiable. If a seller refuses to provide them, the conversation is over. It is a 100% guarantee of a fraudulent or problematic property.
Red Flag 4: Insistence on Cash Payments
The seller or agent insists that the transaction, or at least a significant portion of it, must be done in cash or paid into a personal bank account rather than a corporate account.
- The Tactic: Cash transactions are difficult to trace. They want to avoid a clear digital trail that can be used as evidence against them.
- The Reality: Professional and legitimate real estate transactions are well-documented and typically flow through corporate or lawyer’s client accounts, which provide accountability.
- Your Defence: Insist on making payments via verifiable bank transfers to a corporate or a solicitor’s account. Always get a formal receipt for any payment made.
Red Flag 5: The Agent is Unregistered or Has No Physical Office
The “agent” you are dealing with has no verifiable office address. They only communicate via WhatsApp and are always “on the move.” They have no corporate identity or registration with any professional body.
- The Tactic: Scammers operate as ghosts. They have no physical footprint, making it impossible to track them down after they’ve taken your money.
- The Reality: Reputable real estate companies and consultants have established offices and a verifiable corporate presence. They are accountable for their business practices.
- Your Defence: Always verify the identity and legitimacy of the company or agent you are dealing with. A quick search on the CAC website and a visit to their office can save you from a huge mistake.
Red Flag 6: The Story Keeps Changing
When you ask questions, the details are always shifting. The name of the owner, the size of the plot, or the history of the property seems to change with each conversation.
- The Tactic: They are weaving a web of lies and can’t keep their story straight.
- The Reality: The facts about a legitimate property are consistent and verifiable.
- Your Defence: Document everything. Take notes during conversations and compare them. Any inconsistencies are a sign that you are being deceived.
Red Flag 7: No Access for a Proper Inspection
They are hesitant to allow you or your surveyor full access to the property for a proper inspection or charting exercise. They might claim the owner is “out of town” or the “gatekeeper is not around.”
- The Tactic: They are preventing you from discovering a physical problem with the land (e.g., it’s in a swamp) or from realizing that the coordinates on their fake survey plan do not match the actual location.
- The Reality: A genuine seller will be keen for you to inspect the property as it moves the sale forward.
- Your Defence: A full and unfettered inspection by you and your chosen professionals is a fundamental right of a buyer. If access is denied or repeatedly delayed, consider it a deal-breaker.
Your Ultimate Protection: Professional Due Diligence
Avoiding scams is not about being cynical; it’s about being diligent. The surest way to protect yourself is to partner with a reputable and registered real estate consultancy. At MiraEmma Properties, our entire business model is built on a foundation of rigorous, upfront verification to eliminate these risks for our clients.
Don’t let your dream of property ownership become a cautionary tale. Invest safely, invest with a verified partner.
