How to buy land in Nigeria without falling victim to fraud, by Michael Odunlami

Many Nigerians living abroad consider buying land back home to be more than an investment. It is often the realisation of a long-held dream. The Nigerian diaspora continues to invest in land, whether to build a family home, establish a business, prepare for retirement, or simply maintain a connection with their roots. 

Unfortunately, it is also one of the most vulnerable areas for fraud where many innocent buyers lose a lot of money every year.

The allure of owning property in Nigeria is understandable. In many parts of the country, particularly in rapidly growing urban and suburban areas, land values continue to climb. However, the very opportunities that attract genuine investors also appeal to fraudsters who take advantage of the distance, trust and limited access to information that often characterise diaspora transactions.

A constant challenge for Nigerians abroad is the inability to physically inspect properties before making payments. Many therefore depend heavily on relatives, friends, estate agents or developers, who say they have found suitable opportunities. These people may be acting in good faith but their involvement does not relieve the obligation to properly verify. Indeed, many fraudulent transactions have happened precisely because buyers have blindly trusted third parties, without carrying out the necessary due diligence.

One common example is when a potential buyer is shown photos and videos of a parcel of land through social media or messaging apps. Often the seller creates a sense of urgency about the offer, claiming there are several interested buyers for the property and that payment must be made immediately to secure the purchase. In the race to buy land and the fear of missing out, some buyers transfer huge amounts of money without even verifying ownership and authenticity of the documents shown to them. They later find that the seller had no legal right to sell the land, the property had been sold to someone else, or the land itself is subject to competing claims and disputes.

The fraud of land in Nigeria has many sides. Some people pretend to be owners when they are actually caretakers, family members, tenants or agents without the authority to transfer title. At other times forged title documents such as Certificates of Occupancy, survey plans and deeds of assignment are produced to look real. There have also been many cases where one piece of land has been sold to more than one purchaser, each receiving a deed purporting to establish ownership.

These risks underline the importance of thorough investigations before spending money on any property transaction. Prospective buyers should always try to confirm ownership and the legal status of the land, no matter how convincing a seller is or how tempting the offer. A title search will tell you if the seller owns the property, if there are any encumbrances on the property, if the land is subject to acquisition by the government, or if there are any ownership disputes already in the courts.

Physical inspection remains just as important. There have been cases where buyers have discovered after payment that the land they bought is in a government acquisition area for public infrastructure, in a swampy area not suitable for development or occupied by third parties claiming ownership rights. If you live abroad you may not always be able to visit the property yourself but you can employ independent professionals to visit the site, assess the property and report back to you with an objective opinion.

Legal practitioners play an indispensable role in property transactions. Unfortunately there are those buyers who view legal fees as unnecessary costs and choose to go it alone. It’s often a costly approach. A qualified and experienced property lawyer will be able to undertake searches, review title deeds, identify any potential risks and ensure the transaction documents are sufficient to protect the interests of the purchaser. The low cost of legal advice is frequently trivial when compared with the losses that may result from a fraudulent transaction.

Another issue that needs to be addressed is the tendency of fraudsters to create a false sense of urgency. Potential buyers should be wary of claims that immediate payment is required or that opportunities will be lost if funds are not transferred within a short time frame. Reasonable scrutiny and verification do not threaten legitimate property transactions. If a seller is resistant to independent checks or dissuades you from taking professional advice, be wary.

Not all is necessarily lost for victims of land fraud. Taking legal action quickly can improve the chances of getting the money back. It may also prevent further transactions in the property, preserve the evidence and enable both civil and criminal proceedings to be brought against those responsible. However, delays often complicate recovery efforts and can afford fraudulent parties time to dissipate assets or conceal evidence. And this is why early legal intervention is so important.

It’s perfectly understandable to want to own land in Nigeria and in many cases it is financially wise. But caution must never be replaced by enthusiasm. Purchasing and selling a property is a big financial commitment and should be approached with the same care as any other major investment. “Also, Nigerians in the diaspora should not be carried away by the assurances of relatives, friends and agents but should insist on proper verification at every stage of the process.

This article is meant for general understanding only and not a legal advice.

. Michael ‘Lekan Odunlami, a property law expert and Managing Parter at Claybrook Attorneys in Lagos, can be contacted via: [email protected] and 09028978494.