4 Simple Steps To Avoiding Fraud When Investing In Lagos Real Estate

March 14, 2021
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Anyone investing in real estate in Lagos or in any part of Nigeria should consider certain things to avoid fraud. This is especially pertinent with the real estate property campaigns springing up across the whole of Nigeria beyond Lagos. All the same, Lagos remains the real estate property investment hub in Nigeria and even in Africa. The need to avoid fraud can not be overemphasized. Recently premium news recently gave a story on real estate investments gone bad- SPECIAL REPORT: Years after paying millions to developers, Abuja residents stranded without homes

An investment in real estate property is so important and should be worry-free. Every effort must be made to follow due diligence and a trustworthy reputable real estate company. It is dangerous to fall into the hands of those who claim to sell your properties with very fanciful promises.

No matter your choice of an investment plan, it is highly advisable to research extensively and take calculated steps. Though, a lot of opportunities exist in the real estate market, investing in real estate property demands a high level of professionalism and trust. Whatever, your choosing path for real estate investment, such as rental properties, land flipping, property development, etc, to avoid fraud, make sure you:

  1. Buy properties with good titles.
  2. Always do your due diligence like conducting a proper search of the title documents.
  3. Do some inquiries on the property company you want to transact with
  4. Always deal with Professionals in real estate
  5. Ensure you take possession immediately after payment.

Avoid quacks

Once this step is missed, every other step is almost guaranteed to come to nothing. In any professional, quacks exist due to ignorance, the need for cheap services, people’s inclination to go around regulations, etc. Quacks increase in number when a sector is booming.

The real estate market in Lagos remains a top choice for many investments. Lagos with its status as the highest populated city in Africa has a huge need for real estate properties. These of course give rise to the number of quacks seeking to make quick cash. This is even more so in areas like Lekki as arguably the fastest developing area in Lagos. It is common sense to avoid quacks as a must-do for anyone investing in real estate property, but the subsequent points will throw more light.

Buy properties with good titles.

According to Wikipedia, “in property law, a title is a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest. It may also refer to a formal document, such as a deed, that serves as evidence of ownership. Conveyance of the document may be required in order to transfer ownership of the property to another person.”

In Nigeria, before the enactment of the Land-Use Act of 1978, some big traditional families had sole ownership of lands. They, therefore, reserved the right to allow people to use for different purposes, while still retaining ownership. Due to this traditional land monopoly and abuse of power and their associated rise in cost, the Land Use Act was established in 1978. This Act conferred the power of land ownership in any state to the State Governor who then reserves the right to allocate land to any individual or company backed by a Certificate of Occupancy.

In Lagos as in every part of Nigeria different land titles exist which may include:

  • Global/General Acquisition
  • Excision
  • Certificate of Occupancy
  • Gazette
  • Governor Consent.
  • Registered Deed of Assignment

These are the very important land property titles you must be aware of to avoid fraud. Consult real estate professionals as a guaranteed option to avoid fraud when investing in real estate properties.

Always do your due diligence

Knowing the importance of title documents is only the first step. Further inquiries from reliable sources are vital. As the real estate business in Nigeria, especially in Lagos is booming so there exists a lot of fraudulent individuals and companies waiting to bounce on ignorant citizens. To avoid falling into the hands of frauds, you must do your due diligence. Conducting effective due diligence should include:

  • A proper search of title documents
  • Investigating the real estate agents
  • Making sure to deal with reliable real estate firms
  • Making time for the property inspection

Take possession of the property immediately after payment.

After you have confirmed title documents and researched the real estate professionals to deal with, taking full possession after payment is the best to seal the deal. Unfortunately, many unsuspecting Nigerians especially those in Diaspora have been victims. Many have made payments for years only to come home to nothing. In this digital age, it has become easier to investigate people and get reliable representatives to stand in for you. Of course, it is much safer to visit home, complete transactions,s and take possession before moving to other things. Any investment in real estate is worth all the meticulous effort.

In conclusion

Take the above simple steps and you will definitely avoid fraud for your own peace of mind. As simple as they are, they are of vital importance and better done by a trusted and professional real estate company. Success is guaranteed if you buy properties with good titles, do your due diligence like conducting a proper search of the title documents and the property company you want to transact with, then make sure to take possession immediately after payment.

Investing in real estate, be it to discover a befitting home or as a long-term investment, is a journey. We’re here to help you. Our job in New Era Homes is real estate to help you discover refined living. We are committed to building relationships by helping you discover refined living. Our commitment to you continues even after the closing papers are signed.

Call us or send us an email for more trusted information.

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By Udo Davis

Udo is a seasoned and highly experienced Real Estate expert. He holds a Higher National Diploma in Estate Management from the Federal Polytechnic Nekede Owerri, Imo State in 2000 and a registered member of the Nigerian Institution of Estate Surveyors and Valuers (NIESV).

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