7 Tips to Spot and Avoid Real Estate Scams

The Nigerian real estate market has experienced significant growth and has attracted both local and foreign investors. Hence, successfully navigating the real estate market can be a rewarding experience. However, it’s also not without its pitfalls.

Despite its potential as a wealth-generating tool, the sector is unfortunately common with scams that can leave unsuspecting buyers and investors in a tough spot. Scammers often exploit legal loopholes and the lack of regulatory oversight to carry out their schemes. From fake property listings to title document forgery, we’ve seen firsthand how these scams operate, and hence, we would like to share some invaluable tips to help you spot and avoid them.

Top Tips to Spot and Avoid Real Estate Scams

How can you tell if you’re about to get scammed in a real estate deal? The bitter truth is that it’s often hard to see a scam coming until it’s too late. However, there are warning signs and tips you can keep in mind to help protect yourself from scammers and their tactics. Here are seven helpful tips to spot and avoid them:

1. Conduct Thorough Research

Before making any property investment, your first task is to do your homework. Research the area, the property’s history, and the seller’s background. Look for reviews or testimonials from previous buyers.

Also, do not take anyone you work with at face value. Be sure to do your homework on them. It’s important to dig a little deeper and really understand who you’re dealing with.

By so doing, you’ll be well informed to make a profitable investment decision. The more informed you are, the less likely you are to fall victim to scams.

2. Verify Documentation

The act of verifying property documents before parting with your money cannot be overstated. Ensure that you always verify the legitimacy of property documents.

Check and make sure that the title deed is authentic and that there are no encumbrances on the property. You can do this by visiting the land registry or engaging a qualified surveyor or real estate lawyer who can help confirm ownership and assess any potential risks.

3. Engage the Services of Professionals

When you work with trusted professionals, you can save yourself from a lot of headaches down the line. Make sure to use only registered real estate agents who are members of reputable organizations like the Nigerian Institution of Estate Surveyors and Valuers (NIESV). They have a duty to uphold ethical standards and can guide you through the buying process.

4. Avoid Cash Transactions

Make sure to always be cautious with cash payments, especially if they are requested upfront without proper documentation or contracts. Always use bank transfers or other traceable payment methods that provide a record of your transaction. This will protect you in case of disputes.

5. Insist on Physical Inspections

One major red flag in any real estate deal is if the landlord or agent tries to stop you from inspecting the property. If they’re hesitant or make excuses, that’s definitely a warning sign you shouldn’t ignore.

Never purchase a property without seeing it in person first. Scammers often use attractive online listings with misleading photos to lure victims. By visiting the property, you can verify its condition and ensure it matches what was advertised.

6. Use Legal Agreements

It is advisable to always insist on a formal contract that outlines all terms of the sale or rental agreement. This should include details about payment schedules, responsibilities, and any other contingencies.

When everything is documented, it legally protects both parties and provides recourse in case something goes wrong.

7. Trust Your Instincts

If something feels off about a deal, trust your instincts and take a step back. It could be an unusually low price or pressure to make quick decisions. It’s better to miss out on an opportunity than to rush into a potentially fraudulent transaction.

Conclusion

While investing in real estate in Nigeria can be incredibly rewarding, it’s essential to be aware of the scams that exist within the market. You can significantly reduce your risk of falling victim to fraud if you follow these tips. Have you experienced a real estate scam before? Kindly share your experience with us.