How to avoid Real Estate scams

Real estate is one of the most rewarding investments in Nigeria today. However, it’s also an industry riddled with fraudulent activities and scams targeting unsuspecting buyers, renters, and investors. At Orangewoods Limited, we believe in protecting and educating our clients with transparent, secure, and reliable property transactions.

This guide outlines practical steps you can take to avoid falling victim to real estate scams and make informed investment decisions.

1. Verify Property Ownership

Before paying for any property, always confirm who truly owns it.

• Ask for Original Documents: Request the original Certificate of Occupancy (C of O), Deed of Assignment, or Survey Plan.
• Conduct a Land Search: Visit the State Land Registry (e.g., Alausa for Lagos, Sapele Road for Edo State) to verify title documents and ensure there are no encumbrances, disputes, or government acquisitions.
• Beware of Agents Posing as Owners: Never rely solely on the word of an agent. Deal directly with the verified owner or authorized representative.

2. Be Wary of Offers That Sound Too Good to Be True

Scammers often use low prices and urgency to lure victims.

• Suspicious Pricing: If the land or house is far cheaper than similar properties in the area, be cautious.
• Fake Promises: Claims like “Buy now and get double plots” or “Government allocation guaranteed” should be independently verified.
• Urgency Tactics: Don’t fall for “last plot left” or “offer ends today” tricks without verifying the truth.

3. Avoid Cash Payments Without Proper Documentation

Scammers often insist on cash deals to avoid traceability.

• Use Traceable Payment Channels: Always pay into the company’s or owner’s official bank account.
• Collect Receipts: Insist on a payment receipt or acknowledgment letter showing the amount, purpose, and date.
• Use Escrow Services: For high-value transactions, consider using a trusted legal escrow service to hold the funds until verification is complete.

4. Engage a Trusted Lawyer

One of the most effective ways to stay safe is to involve a real estate lawyer.

• Legal Due Diligence: A lawyer can conduct background checks, review documents, and draft secure agreements.
• Representation: Your lawyer can represent your interests in all meetings and ensure you are not signing fraudulent documents.
• Conflict Prevention: They can help detect red flags early, especially in inherited, family, or disputed properties.

5. Insist on Proper Documentation

A verbal agreement is not legally binding. Insist on signing the following:

• Sales Agreement or Contract of Sale
• Deed of Assignment
• Survey Plan
• Receipt of Payment
• Allocation Letter (if applicable)

Ensure all documents are signed by the seller, witness, and include their full details and identification.

6. Visit the Property Physically

Never buy a property based solely on pictures or videos.

• Site Inspection: Go with your own surveyor or representative to assess the location, boundaries, and surroundings.
• Check for Occupation: Ensure the land is not encroached upon or occupied by squatters or previous owners.
• Ask Neighbors: Neighbors can give vital information about the land, including known disputes or previous owners.

7. Verify the Real Estate Company or Agent

If you’re buying from a company or agent, do a background check.

• Check CAC Registration: Use cac.gov.ng to confirm if the company is legally registered.
• Physical Office Visit: Visit the company’s office to confirm legitimacy.
• Online Presence: Search for reviews, social media pages, and their website.
• Track Record: Ask for past projects or references from satisfied clients.

8. Be Cautious of “Family Lands”

Many scam cases involve so-called “family lands” where multiple people claim ownership.

• Multiple Signatories: If it’s family land, ensure all principal family members sign the agreement.
• Witness from Community Head or CDA: Get a confirmation letter from the community leadership to avoid future disputes.
• Avoid Omo-Onile (land grabbers): These are often extortionists posing as community representatives.

9. Don’t Skip the Allocation Process

For estate lands, ensure you go through the proper allocation and documentation process.

• Instant Allocation: Choose companies like Orangewoods Limited that offer instant allocation with site inspection and documentation.
• Marked Plots: Your plot should be physically identified and marked.
• Keep Allocation Documents Safe: They form part of your proof of ownership.

10. Educate Yourself and Ask Questions

• Stay Informed: Read about common scams and legal procedures in real estate.
• Ask Professionals: Don’t be shy to ask your agent, lawyer, or the company any questions before paying.
• Don’t Rush: Take your time to verify every step.

Conclusion

Real estate scams in Nigeria can cost you millions and years of legal battles. Protect your investment by doing thorough due diligence, involving professionals, and working only with reputable companies like Orangewoods Limited. We are committed to transparency, integrity, and your peace of mind in every property transaction.

📞 Need help with a safe land purchase or property verification?
Contact Orangewoods Limited today:
📧 in**@************td.com
📞 09038896322
🌐 www.orangewoodsltd.com

Orangewoods Limited – Secure. Trusted. Professional.