In Nigeria, not all real estate scams come from roadside agents. Some registered companies also engage in fraudulent practices such as selling fake lands or selling the same land to multiple buyers. This guide will help you identify fake companies and avoid falling victim.
- How to Identify Fake Real Estate Companies
- Too Good To Be True Prices: If the land price is far below market value in that area, be suspicious. Scammers use cheap offers to attract victims. Always compare with the average price of similar lands in the same location.
- No Genuine Land Title Documents: Fake companies often parade papers that look official but are not recognized by the government. Insist on seeing real titles like C of O, Governor’s Consent, or Registered Survey and verify them with the land registry.
- Selling One Land to Multiple Buyers: Fraudulent firms sometimes sell the same plot to several unsuspecting buyers. Always confirm with the registry that the land is not under dispute or already assigned.
- Unclear Ownership History: Some companies don’t actually own the land; they just front for questionable sellers. Verify that the company has a Deed of Assignment from the original owners (community, family, or government).
- No Physical Office or Shady Address: If they cannot confidently provide a verifiable office location, or the office disappears after payment, that’s a huge red flag.
- Pressure Tactics: Fake companies push buyers to pay quickly before it’s gone. A genuine firm allows due diligence before payment.
- No Verified Track Record: A real company should have past clients you can talk to and completed projects to show. Check online reviews, CAC registration details, and ask for referrals.
- Receipt & Agreement Issues: If they don’t issue proper receipts or avoid signing a Deed of Assignment, avoid them immediately.
- How clients can avoid falling victim
- Always conduct an independent verification with the Ministry of Lands / Land Registry.
- Work with a trusted lawyer or surveyor before committing.
- Join an Investors Club (like what Gata Homes offers) where members get access to already verified lands and group protection against fraud.
- Never pay in cash without official acknowledgment. Use traceable payment methods.