Why Nigerians Get Scammed in Real Estate Deals

Real estate means buying land, houses, apartments, or buildings. When done well, it can give you stable income (rent) or profit when property value grows. But in Nigeria, many people are scammed in real estate deals. They lose money, own nothing, or lose property they thought was theirs.

Before going deeper, let us define some key words.

What is Real Estate Deal

• Buying or renting land, house, apartment, commercial building

• Could include paying developers, agents, brokers

What is a Scam

• A dishonest plan or trick to cheat someone out of money or property

• In real estate, scam means you pay money for a land/property but you are cheated: maybe property doesn’t exist, title is fake, agent disappears, etc.

What is a Title / Certificate of Occupancy

• Title or Certificate of Occupancy (C of O) is a legal proof you own the land/property under government recognized system

• It must be registered in land registry; survey plan must match; document must be authentic

Who are Agents, Developers, Omo‑Onile

• Estate agent / Realtor: helps buyers and sellers. Should have license or registration and good reputation

• Developer: a company or person that builds property

• Omo‑Onile: traditional landowning families or individuals (land owners by customary tenure) who claim land, often without formal titles but through traditional claims. Sometimes legitimate, sometimes used by scammers.

Why Nigerians Get Scammed: Root Causes

Here are the main reasons many Nigerians fall victim to real estate scams.

Reason 1: Weak / Corrupt Land Title Systems & Poor Record Keeping

• Many land registries (state land registry offices) have old or incomplete records, missing files, or manual record books

• Some documents are forged easily because verification is hard or officials collude with fraudsters

• Survey plans may not be properly registered, or boundaries not well marked so people claim overlapping parts

Because of weak systems, people can sell or claim land that they don’t truly own—or fake documents are seen as real.

Reason 2: Unclear Customary Land Rights and Omo‑Onile Claims

• Many lands in Nigeria are under customary rights, not formal government titles. Omo‑Onile families sometimes own or claim land by tradition

• Scammers exploit this: they pose as omo‑onile or get “familial” or “community” permission without proper documentation, then later other members of family or government intervene and challenge ownership

• Because many buyers do not understand customary vs formal land rights, they are vulnerable

Reason 3: Forged or Fake Documents and Certificates

• Fake Certificates of Occupancy, fake deeds of assignment, survey plans, even fake governor’s consent or fake excision, fake gazette notices.

• Sometimes scammers show scanned or photocopy documents that look real, but are not registered or verified

Reason 4: Selling Same Property to Multiple Buyers (“Double Sale”)

• A seller may accept deposits from several buyers for the same plot or house. Whichever buyer pushes for payment or releases later ends up being cheated.

• This is common in fast‑growing areas where demand is high.

Reason 5: Fake / Unregistered Agents, Ghost Agents and Misrepresentation

• Some “agents” have no license or legal registration. They use fake names or identities. They advertise properties that do not belong to them. Ghost listings.

• Sometimes agents show nice pictures, promising amenities or infrastructure that do not exist. When buyer tries to follow up, nothing is found.

Reason 6: Hidden Fees, Overpricing, Bait and Switch

• Promises of a good price, then after paying, unexpected charges appear: survey fee, development levy, gate fee, road fee, etc.

• Bait‑and‑switch: showing property that is nice and cheap, then when buyer arrives they show a worse one or change location.

Reason 7: Pressure, Urgency & Advance Payments

• Scammers often put pressure: “This plot will be gone if you don’t pay now”, “Many others are interested”, “Act today” etc. This makes people hurried and skip checks.

• Advance payment scam: require deposit or down payment, then vanish.

Reason 8: Lack of Awareness & Financial / Legal Education

• Many people do not know to check registry, title verification, what C of O means, what court consent or excision is

• They trust agents, brokers, developers without verifying credentials

• They do not engage lawyers or surveyors, sometimes because cost or because they believe trust is enough

Reason 9: Weak Enforcement of Laws & Regulatory Oversight

• Laws exist but enforcement is often weak

• Regulators may lack resources, staff, or political will to prosecute real estate fraud aggressively

• Some scammers escape legal consequences, which reduces deterrence

Reason 10: Greed, Desire for Quick Profits & Cultural / Social Pressures

• Property is seen as a good investment; people want to buy land quickly before prices rise

• Some buyers take shortcuts; some are persuaded by “hot deals” or rumors of good ROI

• Social pressure: family, peers telling you to own land or building; fear of missing out

Common Scams in Nigerian Real Estate: Detailed Examples

Let’s look at specific types of scams, with how they happen.

Scam Type A: Omo‑Onile / Land Family Fraud

• A person claiming to be a traditional landowner or family member (omo‑onile) sells land. Buyer pays. Later, another family member or group claims the land. Conflict occurs. Or a government authority says the land is not excised / within government plan.

Red flags:

• Seller cannot produce formal title or proof of excision

• No Gazette, no government records

• No family resolution or power of attorney

Scam Type B: Fake Title Documents

• Forging C of O, deeds, survey plans. Sometimes even using real documents from other plots, photocopying or scanning.

Red flags:

• Titles look too perfect, seals look printed or photo‑copied

• Documents not registered or not in the registry

• Survey plan doesn’t match the physical plot boundaries

Scam Type C: Double Sales / Multiple Buyers

• Same land sold to several people. Often in areas without strong land registry control. Each buyer thinks they are only one.

Red flags:

• Seller pushing for quick payment so that others won’t buy

• No proper receipt with coordinates, survey plan, witnesses

Scam Type D: Fake Agents, Ghost Listings & Misleading Ads

• Ads online, social media; Nice photos; promises of infrastructure (road, water, electricity) that aren’t in place

• Agent disappears after deposit

Red flags:

• Agent doesn’t have office or registration

• Photos are stock or from other location

• No site visit

Scam Type E: Hidden Charges, Overpricing & Bait‑and‑Switch

• Seller quotes price low, later charges for “gate,” “filling,” “excision,” “development levy,” “estate service charge,” etc.

Red flags:

• Terms in the contract are vague or ambiguous

• Many add‑ons not disclosed early

• Agent not willing to show full cost or contract until after payment

Scam Type F: Unapproved / Uncompleted Projects (Off‑Plan Woes)

• Selling property before it is built or before approvals are gotten

• Developer delays construction; maybe project never finishes; buyer loses money or struggles to get refund

Red flags:

• No approvals from government authorities

• No building permit, no planning permission

• Developer asks for large payment early

Why Many Nigerians Still Fall For These Scams

Knowing about scams doesn’t always protect people. There are reasons why scams are successful.

Emotional Pressure & Fear of Missing Out (FOMO)

• When people see land prices rising rapidly, they feel that if they don’t buy now, property will become unaffordable

• Many succumb to pressure from agents, developers saying “this is last chance,” “plot runs out” etc.

Lack of Access to Legal / Surveyor Services

• Lawyers, surveyors cost money, time. Some people avoid them thinking it will add extra cost.

• Many don’t know which lawyers or surveyors are reliable.

Trust & Reputation Issues

• People trust referrals from friends or family even when due diligence is poor.

• Some scammers build trust by pretending to be part of a big network, using flashy ads, building sample offices.

Poverty / Low Capital & Desire for Cheap Land

• Many people look for cheap land or bargains. Scammers exploit that: offer cheaper plots, promises of discount or payment plans.

Inadequate Regulation & Slow Justice

• Even when fraud is reported, resolving property disputes can take years in court

• Delay discourages small buyers from seeking legal redress

Information Asymmetry

• Scammers often know how to use insider knowledge, legal loopholes, corrupt connections

• Buyers sometimes lack same knowledge; do not know to check registry, approve documents, read the contract

How to Avoid Getting Scammed: Practical Steps

Here are step‑by‑step actions you can take to protect yourself.

Step 1: Do Deep Research Before You Pay Anything

• Visit the site in person: see physical plot, landmarks, boundaries

• Check registry: state land registry, verify document with ministry of lands

• Use verified/legal surveyor to confirm survey plan, beacons, property coordinates

Step 2: Always Check Titles & Authenticity of Documents

• Make sure the Certificate of Occupancy or title is real, registered, not expired

• Check for excision, Governor’s consent, Gazette notices if required

• Ask original copies (not just scans); verify with government offices

Step 3: Use Lawyers, Surveyors, Professionals

• Employ a lawyer familiar with real estate in your state

• Surveyor to confirm location, boundaries

• Ask for receipts, contracts in writing; ensure terms are clear

Step 4: Work Only with Registered Agents / Developers

• Agents should be registered with recognized real estate professional bodies (for example in Nigeria: NIESV or state authorities)

• Developers should have CAC registration, verify their past projects, reputation

Step 5: Don’t Pay Full Amounts Upfront; Use Escrow or Partial Payments

• Try to pay in installments or stages tied to milestones (survey, approval, handover)

• Use escrow where funds are held by a neutral third party until conditions are met

Step 6: Demand Clear Contract, Written Agreement

• Contract should state terms: what is promised (infrastructure, water, road, power), what happens if those are delayed or fail

• Include coordinates, site map, survey plan, title details in contract

Step 7: Avoid Deals That Sound Too Cheap or Too Good to Be True

• If price is much lower than similar plots or property in the area, suspect something is wrong

• If promises are overly generous (e.g. instant title, no approvals needed, immediate infrastructure) check carefully

Step 8: Use Community Feedback & References

• Ask other people who have bought in that estate or from that agent or developer

• Look for reviews online; ask for site tours and testimonies

Step 9: Know the Legal Laws, Rights & Local Regulations

• Understand your rights: property law, land registration laws, how excision and Government consent works in your state

• Know what forms are required, what government or local bodies to verify with

Step 10: Be Patient & Don’t Rush Decisions

• Great real estate deals come with time; don’t feel pressured just to “lock in” price

• Give yourself time to verify, consult people, think through, compare options

Comparisons: Nigeria vs Other Countries (Kenya, South Africa)

Putting this in wider context helps understand which problems are more severe and what solutions exist elsewhere.

Pros and Cons: Why Sometimes People Still Take Risk

Even with scams, some people take the risk. Here are reasons for and against.

Pros (Why People Risk It)

• Potential high profit: Land in developing areas can appreciate a lot

• Low initial price: sometimes plots in new areas are cheap

• Social prestige: owning land is status symbol

• Fear of missing out: property markets rising fast

Cons (Downsides of Risk)

• Loss of money or deposit, sometimes all

• Lengthy legal battles if dispute arises

• Emotional stress and time wasted

• No return if property is worthless or not built or if title is lost

• Uncertainty of infrastructure; may buy land far without roads or utilities

Real‑Life Stories & Examples

Here are a few true or realistic examples showing how people got scammed.

Example 1: Mr. A in Lagos Buys Land Then Others Claim It

Mr. A buys plot from omo‑onile, with verbal agreement. He pays. Later, another family member shows up, insists he is the rightful owner. Mr. A’s documents are verbal, no formal deed or court resolution. He loses claim or must pay again.

Example 2: Fake Certificate of Occupancy

Ms. B sees a C of O, pays for house. Later, when registering deed at land registry, she finds the C of O number is for another location, or doesn’t match survey plan. She can’t use the house legally.

Example 3: Ghost Listing or Agent Disappears

Mr. C sees a nice house listed with great photos online. Agent demands deposit. After payment, agent stops answering calls or messages. No site visit, no contract, no refund.

How Nigerian Government & Regulators Are Responding

Understanding what is being done helps you know what protections exist and what still needs improvement.

Existing Laws & Registration Bodies

• Government Certificate of Occupancy, Governor’s consent, excision, cadastral surveys, land registries, Ministry of Lands in states

• Professional estate agent bodies: NIESV (Nigerian Institution of Estate Surveyors and Valuers), etc.

Efforts to Improve Title Registries & Digital Records

• Some states digitizing land registries or putting records online

• Surveyors General’s offices working to issue verified survey plans

Consumer Awareness / Media Exposures

• Stories, blogs, social media warning people about omo‑onile scams, fake agents, double sales etc.

• Some state governments have LASRERA (Lagos State Real Estate Regulatory Authority) to regulate real estate practice in Lagos.

What More Needs to Be Done: Solutions & Best Practices

Here are ways Nigerians, regulators, and professionals can reduce scams.

1. Fully digitize land and title records so people can search online and verify instantly

2. Strong enforcement of existing laws: punish forged documents, unregistered agents, fraudulent sales etc.

3. Licensing and registration of agents / developers: compulsory registration with penalties for non‑compliance

4. Mandatory legal representation / lawyer review for large transactions

5. Use of escrow services or trust accounts for payments to protect buyers

6. Mandatory survey and mapping verification: ensure survey plans, beacons, measurements, geography all match government records

7. Public education campaigns: teach people what title documents to look for, what red flags are, how to verify

8. Transparent contracts with clear terms: infrastructure, promised services, timelines, payment schedule

9. Affordable legal access and dispute resolution: creating small claims courts or tribunals specifically for property disputes

10. Use of technology: GPS verification, blockchain, self‑sovereign identity to verify ownership and transfers

Summary Table Before Conclusion

Conclusion

Real estate in Nigeria offers opportunity for many: owning land, homes, building wealth. But because of many scams, people often end up cheated. Scams happen because of weak official systems, forged documents, fake agents, lack of legal knowledge, pressure, etc.

You can protect yourself by doing checks, verifying titles, using legal representation, working with registered agents, avoiding deals that feel rushed or too cheap. Also be patient, ask many questions, get receipts and contracts.

If you are a student or working class of modest means, you may have extra risk because you might not have large funds for lawyers, etc. But if you heed these red flags, you can avoid many traps. Real estate can be safe—but only if you are careful.

FAQs — Clear Answers to Common Questions

1. What is the “Omo‑Onile” scam?
   It’s when a person claiming to be a local land owner (family tradional owner) sells land. But often the seller doesn’t have formal title or multiple family members claim ownership later.

2. How can I verify that a Certificate of Occupancy (C of O) is real?
   Go to your state land registry. Ask to see the original document. Check number matches registry record. Use certified lawyer or surveyor to cross‑check.

3. What red flags should I watch for in deals?
   Some: demands for full payment immediately; agent with no registration; property price way cheaper than market; no site visit; uncleared title; no survey plan; conflicting info; hidden extra fees not disclosed.

4. Is paying deposit or advance risky? How much is safe?
   Yes it’s risky if you pay before verification. Always pay small deposit comparable to what is common locally, in writing, with receipt. Prefer payment in stages or escrow.

5. Do I need a lawyer or surveyor?
   Yes. Especially for land transactions. Lawyer checks documents; surveyor verifies map and physical land. They cost money but usually save you far more in risk.

6. How do I check if an agent or developer is registered?
   Ask for their registration number with relevant body (in your state or national real estate boards). Check registration with NIESV or state real estate regulatory authority or similar.

7. What is “double sale” and how can I avoid it?
   It is when same property is sold to more than one person. To avoid: check registry; demand survey plan; ensure title is clean; ask for proof seller has not sold before; ensure proper documentation and contract before payment.

8. Are all adverts online unsafe?
   Not all, but many fake listings are done online (social media, WhatsApp). Always demand to see site physically; verify address; ask for title documents; meet seller; check references.

9. If I bought property and later discovered issues (title fraud, overlapping claims), what can I do?
   You may take legal action through court; contact state land registry; hire lawyer; document all the evidence; sometimes negotiate with conflicting claimants; but be prepared that cases may be slow and cost money.

10. Is property cheaper in outskirts always risky?
    Not always, but risk is higher: less infrastructure, less formal registry, fewer services. If you buy in outskirts, ensure title is formal; know what infrastructure plans are; know risk of non‑development.

11. Do other countries (Kenya, South Africa) have fewer scams?
    Somewhat yes. In Kenya and South Africa, some systems are more formal, digital, laws stronger, record systems more accessible. But scams exist everywhere. The protections may be better, but risk still there.

12. How much should I spend on due diligence (lawyer, surveyor, etc.)?
    It depends on cost of property. Usually a small percentage (e.g. 1‑5%) of property value may go to these professional costs. It’s worth doing to avoid major losses.