How to Identify a Fraudulent Real Estate Company in Lagos

Real estate is a booming sector and Lagos is its centre. This is why it’s important to know how to identify fraudulent real estate companies in Lagos so that you won’t be a victim.

According to Statista, the real estate market in Lagos is experiencing a surge in demand for luxury apartments. Every day, new development rises, attracting investors and homebuyers from home and abroad. This has led to an increase in fraudulent real estate companies in this Centre of Excellence. 

They prey on unsuspecting individuals, offering them deals that are too good to be true. Many people have lost their life savings and wealth through these phony deals. Lagos real estate market can be risky. With so many shady agents and companies, it’s easy to fall victim. 

We don’t want you to be a victim. That’s why Affable Homes Ltd want to show you how to spot real estate in Lagos.

In this article, we’ll walk you through the common scams and how to identify fraudulent real estate companies in Lagos.

How to Identify a Fraudulent Real Estate Company in Lagos 

Spotting red flags early will save you from falling victim and losing your money. Here are 5 warning signs to watch out for:

1. Unregistered company 

One of the easiest ways to identify a fraudulent real estate company is by checking their registration status. A legitimate real estate company will be registered with the Corporate Affairs Commission (CAC). Any real estate company not registered is a red flag. They are operating outside the law and will be difficult to trace when things go wrong.

How to check if a real estate company is registered.

• Visit the CAC website
• Go to the “Public Search” 
• Enter the name of the real estate company 
• Check if the company is listed

If the name of the company doesn’t appear, there’s a high chance it’s a fraudulent company. Dealing with an unregistered company can lead to premium tears.

Also Read:

• Why You Should Invest in Ngor-Okpala
• Top 7 Investment Locations in Abuja for Real Estate Growth
• How Fractional Real Estate Investing Works in Nigeria

2. No traceable address

A legitimate real estate company should have a physical address. It shows the company is serious and accessible to clients. Other sectors may get away with operating solely online, but a real estate company can’t. A physical office boosts credibility and trustworthiness.

A real estate company with no physical office can disappear overnight. Once they’ve scammed enough people, they can delete their social media handles and stop taking calls. You can see how the company operates and meet the team members when you visit their office. 

Some fraudulent real estate companies go as far as using fake addresses or vague descriptions. You can see an address but it’s another company operating there. Or even descriptions like “Along Lekki Road.”

Most real estate companies list their address on their website or social media pages. Always verify the address of the company before making payments.

3. Incomplete or missing documentation 

In real estate, documents are everything. You need the complete and correct documents to make the land legally yours. Fraudulent real estate companies give out incomplete documents. A legitimate real estate company will have all the proper documents in order and will provide them when needed.

Every property in Lagos must have legal documents. They serve as proof of ownership. These documents show that the property is legitimate and protects the buyer from future disputes. Documents like the Certificate of Occupancy (C of O) show the land was officially allocated by the government. The Deed of Assignment shows the transfer of ownership from the seller to the buyer.

Some real estate companies may claim that the documents are “still in processing” to cover up. You may wait for years and those documents will still be pending. Make sure you ask for all the necessary documents and confirm them before making payments. 

You can also hire a qualified lawyer to help you review and verify the documents. They will be able to spot any forgery or inconsistency. 

4. Pressure to make payments 

Real estate transactions should be approached with care and patience. It’s something that usually involves millions of naira. Fraudulent real estate companies will rush you into making payments to hide their scam.

They don’t want you to ask the necessary questions or do your findings. Legitimate companies understand the need to give buyers enough time to make decisions. At Affable Homes Ltd, we don’t pressure clients to make payments.

We have estates in Badagry, Epe and Ofada Owode. You can save our phone number, +2349134056630 and contact us any time you need a property in Lagos if you have no intention of buying today.

Fraudsters know the longer it takes, the higher the chances of them being exposed. They’re always in a hurry and will pressure you to make payments. One of the tricks they use is telling you several people are interested in the land. They go as far as bombarding you with calls, messages, and emails to mount pressure on you.

No matter how convincing the seller is, take your time. Never let them pressure you into making a hasty decision. Do all the necessary findings before making payments. It’s so easy to identify a fraudulent real estate company in Lagos if you give it time.

5. Too good to be true offers 

Nigerians love awoof. These fraudulent real estate companies know this. They present offers that are too good to be true so you can fall prey. They offer properties at ridiculous prices that are way below market value. Any property that’s selling at this ridiculous rate is a huge red flag.

These fraudulent real estate companies know you want a good bargain. They know you want to save money. They capitalize on this by advertising lands at prices that are hard to resist. You can see land in a prime location valued at 10 million naira going for 1.5 million naira. Run away from such deals.

In most cases, these fraudsters don’t own the property. The property might not even exist. If a land’s price is way lower than similar land in the same area, it’s not time to rejoice. You should be asking WHY.

While you can’t rule out distress sales, fraudsters always exaggerate to make the deal appear more attractive. You can see promotions like 70% off or buy one plot, get one free, etc. Such offers are a plot to lure as many victims as possible. Don’t be a victim.

Also Read:

• How Safe is Ogbaku, Owerri for Real Estate Investment?
• Why Nigerians in the UK Are Buying Land in Droves in Asaba
• The Best Time to Invest in Ibusa Real Estate Market

Common Fraudulent Real Estate Practices in Lagos 

The real estate market in Lagos is full of opportunities as well as risks. Fraudulent practices are very common. Below are some of the common scams to take note of:

• Fake property listings: These fraudulent real estate companies advertise properties that don’t exist or belong to someone else. They showcase these fake properties online, waiting for someone to fall victim. They create irresistible offers of lands they don’t own. Once a buyer shows interest, they mount pressure to make a deposit or full payment. Then they disappear after receiving the money.
• Double sales: Real estate fraudsters may sell the same property to multiple buyers. They target properties that are valuable and in high demand, deceiving different buyers into paying for the same property. If the fraudster disappears, recovering your money becomes almost impossible.
• Omonile issues: One of the most common issues buyers face in Lagos real estate is Omonile. Omonile refers to individuals or groups who claim ancestral ownership of land. These individuals may sell land without proper authorization from the family or community. This may end up leading to financial loss.

In Lagos, opportunities and risks go hand in hand. Buying properties in Lagos requires patience, vigilance, and due findings. Scammers use different tactics to exploit people for their money. Take the time to do the right thing to secure your peace of mind and protect your money.