Would you like to know how to identify land scams in Lagos? If your answer is yes, we are here to guide you.
Buying property in Lagos is not for the faint-hearted. Ask any landowner in Lagos and they will regale you with tales on the happening in the Lagos real estate market.
While it’s not as if land scams are only peculiar to a certain location, the metropolitan nature of Lagos makes it an even more fertile ground for unscrupulous activities.
In Lagos, it is not uncommon to see people sell a piece of land to multiple buyers, or even worse, to sell land that they do not own.
In fact, a news source reported that over 500,000 land scams occur in Lagos and Ogun states on a yearly basis. This indicates that many land transactions in Lagos may often involve some form of scam or fraudulent activity.
As a real estate investor or an individual looking to buy land in Lagos, having knowledge of all the possible scams can save you from heartache and financial loss.
So in this article, we will explore different forms of land scams that are prevalent in Lagos and provide tips on how to avoid falling victim to them.
Different Forms of Land Scams That Happen in Lagos
Want to spot Lagos land scams with ease? Here are a few of them to keep in mind.
1. Selling with Fake Documents
For this scam, the sequence goes something like this; you’ve seen the land you want and met the supposed owner. And they’ve brought what appears to be complete and authentic land documents for the final handover.
The only problem is that these documents are fake. Either the title deed has been doctored, or the survey plan has been tampered with. These scams are particularly dangerous because the documents might look legitimate even to a trained eye.
Scammers often use advanced forgery techniques to produce fake Certificates of Occupancy, Deeds of Assignment, and Governor’s Consent, which are all critical documents in proving land ownership in Lagos.
Victims of these scams often find themselves in prolonged legal battles trying to reclaim their money or gain legitimate ownership of the land.
The sad part is that a staggering number of these cases end up unresolved, leaving buyers in a perpetual state of uncertainty.
Also Read: Basic Guide To Buying Land In Lagos And Nigeria
2. Selling the Same Piece of Land to Multiple Buyers
This scam is a classic in Lagos, and nobody does it better than the ‘Omoniles’ (local landowners). Apart from a few legitimate cases, many Omoniles sell the same piece of land to multiple unsuspecting buyers.
They might show you genuine documents and even take you to the site, but unknown to you, several other buyers have already purchased the same plot.
Usually, they give each buyer what seems to be valid documents, only for them to discover later that they have all been duped.
This form of scam is particularly prevalent in areas with high demand for land. Often, the original owners are complicit, using intermediaries to carry out the sales and then disappearing once the scam is uncovered.
In the end, legal battles ensue, but because multiple transactions have been conducted on the same piece of land, resolution becomes complex and drawn-out. This scam is one you should try to avoid as much as possible.
3. Selling Land without the Consent of All Owners
In Lagos, land ownership can be complicated, with many lands belonging to families or groups of people rather than a single individual.
Sometimes, scammers exploit this complexity by selling land without the consent of all rightful owners.
This scam often surfaces in situations where a family member decides to sell inherited land without informing or obtaining the agreement of other family members.
The unsuspecting buyer may only discover the fraud when other family members come forward to claim their stake in the property.
This leads to disputes that can take years to resolve, often resulting in financial losses and legal complications for the buyer.
Also Read: The Risk Of Investing In Real Estate In Nigeria And How To Minimize It
4. Land Encroachment and Boundary Disputes
In a major city like Lagos, where every inch of land is valuable, encroachment and boundary disputes are common.
Scammers take advantage of poorly demarcated boundaries to sell land that does not entirely belong to them.
They might sell a portion of land that overlaps with neighboring properties or encroach on government land.
These disputes can lead to demolition by government authorities or prolonged court cases with neighboring property owners.
Buyers are left with the financial burden of legal fees and potential loss of the land they thought they had legally purchased.
5. Reselling Repossessed or Acquired Land
The Lagos State Government frequently acquires land for public use, such as road expansion or public infrastructure projects.
Once land is acquired by the government, it is illegal to sell it without proper reallocation or compensation procedures.
Scammers, however, resell these acquired lands to unsuspecting buyers, often at lower prices to attract quick sales.
The new buyers often find themselves at odds with government authorities when development plans for the acquired land commence.
In most cases, they lose their investment without any compensation. To avoid this, always check the status of the land at the Land Registry to ensure it is free from government acquisition.
You can also employ the services of a surveyor to confirm that the land is not under any government reservation.
6. Land Speculation Scams
Land speculation involves buying land with the hope that its value will increase over time.
Scammers exploit this by selling non-existent plots in supposed ‘upcoming’ areas of Lagos. They create fake development plans and use persuasive marketing to lure investors.
Now when you go in and buy these lands, you’ll be in for a rude shock. You’ll find out that these lands in most cases do not exist.
Even if they do, they may be in an area that is far removed from the city. At that point, you’ve already made payment, getting a refund is out of the question. And waiting for the land to appreciate may take years on end.
To avoid this scam, we encourage you to always conduct thorough research and verify the authenticity of the development plans.
Engage with real estate professionals and seek recommendations from trusted sources before making any investment.
7. Land Sold with Outstanding Disputes
Some lands in Lagos come with pre-existing legal disputes or encumbrances.
Unscrupulous sellers – like omoniles hide these issues from potential buyers, who only discover them after the purchase. Usually, these disputes can range from inheritance issues to unresolved loans using the land as collateral.
Such scenarios lead to long legal battles and financial losses for the buyers, who might have to pay off the debts or settle the disputes to retain ownership of the land.
Mitigating Land Scams in Lagos
Given the prevalence of land scams in Lagos, here are some precautionary steps you need to take before purchasing land:
Engage Professionals
Understand that any money you pay to professionals is also a form of investment.
Therefore, make a budget to hire a reputable property lawyer and surveyor to assist with the land transaction.
At Charis Legal Practice, our comprehensive due diligence services entail working with a team of seasoned proeprty lawyers and surveyors to uncover any issues.
These professionals can help verify the authenticity of documents and ensure that the land is free from legal disputes.
Conduct Due Diligence
Thoroughly investigate the land’s history and ownership. This includes conducting the necessary searches, reviewing all legal documents, verifying all information, and verifying the location of the property.
Run From Too-Good-to-Be-True Deals
Be careful of land sold at prices significantly lower than the market rate. Such deals are often red flags for potential scams.
Secure Written Consent
If you’re buying family or group-owned land, ensure that all owners provide written consent to the sale. This helps avoid future disputes and legal complications.
Engaging a seasoned property lawyer will ensure all legal documents are drafted and guide in ensuring they are sign3d by all parties.
Avoid Cash Transactions
It’s advisable to always conduct transactions through traceable means such as bank transfers. This provides a paper trail that can be beneficial in case of disputes.
Research the Seller
This should actually be the first step; investigate the seller’s background and reputation. Verify their ownership claims and ensure they have the legal right to sell the land. This is an essential part of due diligence.
Also Read: 6 Costly Mistakes Real Estate Investors Make And How To Avoid Them
Spot Real Estate Scams with the Right Knowledge
While the vibrant city of Lagos offers numerous opportunities for real estate investment, it is also rife with land scams that can lead to significant financial losses.
Awareness and due diligence are essential to manage the land market in Lagos. If not for anything else, the capital involved in making these investments is enough to make you pay careful attention.
As you take the time to understand the various forms of land scams and take proactive measures to mitigate risks, you can successfully acquire genuine property and enjoy the benefits of owning land in one of Africa’s most popular metropolises.
Need a legal team of seasoned property lawyers to provide comprehensive legal support for your land purchase in Lagos, Ogun, Oyo, and Osun states. We offer our services for properties in Lagos, Ogun, Oyo and Osun states.worth a minimum of twenty million Naira and above. Click here to see all the various ways we help protect your interests and investments.
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