If you're buying or selling land in Nigeria, this article helps you understand how to spot fraud and protect your investment before you lose money.

This article breaks down a situation you may face — and shows you practical steps to verify legitimacy and avoid costly mistakes.

How to Avoid Land Scams in Nigeria and Spot Fake Property Sellers or Buyers

Published: July 17, 2025

Written by Abdulateef Muhammed

Author of A Nigerian Lawyer's Playbook 

NIGERIAN REAL ESTATE MARKET

Nigeria's real estate market presents incredible opportunities for you, but it's also riddled with fraud that can cost you millions of naira and years of legal battles.

Whether you're buying your first property or selling family land, understanding how to identify and avoid scams is crucial for protecting your investment and peace of mind.

THE REALITY OF PROPERTY FRAUD IN NIGERIA

If you've ever tried to buy or sell property in Nigeria, you've likely encountered the harsh realities of an unregulated market.

You've probably dealt with agents who inflate prices and disappear after collecting commission, listings that don't match the actual property, and transactions with no clear paperwork or formal authorization.

QUICK TIP: Never Pay Without Verification

Don't hand over money until you've verified the seller actually owns the property. Ask for original title documents and check them at the land registry yourself.

DEEPER ISSUES

The problem goes deeper than dishonest agents. Many property transactions you'll encounter suffer from lack of clear paperwork, no formal authorization from actual owners, and legal ambiguity that sometimes crosses into outright fraud.

These issues affect both buyers and sellers, creating a market where trust is scarce and verification is everything.

RED FLAGS EVERY PROPERTY BUYER SHOULD KNOW

Unverified Ownership Claims

One of the most common scams you'll face involves people selling property they don't actually own.

Always insist on seeing original title documents and verify the seller's identity against these documents.

When you're dealing with legitimate sellers, they'll have no problem providing:

✅ Original Certificate of Occupancy (C of O)

✅ Registered Deed of Assignment

✅ Survey plans

✅ Government-issued ID matching the name on title documents

CASE HIGHLIGHT: REAL LOSS

A buyer in lost Millions because the seller wasn't the real family head. The actual family emerged after payment and reclaimed the land through court action.

PRESSURE TO PAY IMMEDIATELY

Scammers often create artificial urgency to prevent you from conducting proper due diligence.

Be wary when you encounter sellers who:

🚩 Demand full payment upfront

🚩 Refuse to allow document verification

🚩 Claim "other buyers are waiting"

🚩 Won't provide time for legal review

SUSPICIOUSLY LOW PRICES

If you find a property priced significantly below market value without clear justification, investigate thoroughly.

This could indicate:

🚩  Disputed ownership

🚩  Pending legal issues

🚩  Fraudulent documentation

🚩  Hidden defects or restrictions

COMMON MISTAKE: Ignoring Excision Status

Many buyers ignore excision status — and pay for land the government has already acquired. Always verify that your land has been excised from government acquisition.

LACK OF PROFESSIONAL DOCUMENTATION

When you're evaluating a property transaction, legitimate deals involve formal paperwork.

Red flags you should watch for include:

🚩  No signed Letter of Authority from the property owner

🚩  Handwritten "agreements" instead of proper contracts

🚩  Reluctance to involve lawyers in the transaction

🚩  Missing or incomplete title documents

HOW YOU CAN PROTECT YOURSELF AS A SELLER

Verify Buyer Financial Capability

Before you enter negotiations, ensure potential buyers can actually afford your property. Request:

✅ Bank statements or proof of funds

✅ Pre-approval letters from financial institutions

✅ Verifiable employment or income documentation

LEGAL NOTE: Letter of Authority is Mandatory

Every legitimate property listing requires a signed Letter of Authority from the legal property owner. Don't work with any service that doesn't insist on this documentation.

USE PROFESSIONAL INTERMEDIARIES

When you're selling your property, working with legitimate property professionals provides crucial protection.

Look for services that:

✅ Operate under legal oversight

✅ Verify buyer credentials before introductions

✅ Use formal authorization processes

✅ Provide transparent fee structures

IMPLEMENT SECURE PAYMENT METHODS

Never accept cash payments or direct transfers without proper documentation.

Consider these options for your transaction:

✅ Escrow services with licensed financial partners

✅ Bank drafts or certified checks

✅ Staged payment schedules tied to documentation milestones

THE IMPORTANCE OF PROFESSIONAL VERIFICATION

One of the most effective ways for you to avoid property fraud is working with professionals who prioritize verification over quick sales.

Unlike traditional agents who may be motivated by commission regardless of legitimacy, professional property services focus on:

✅ Document Verification: Every listing should be based on verified title documents and signed authorization from the legal property owner.

✅ Legal Oversight: Services operating under legal firm oversight provide additional protection and accountability that typical real estate agencies cannot offer.

✅ Transparent Processes: Legitimate services clearly explain their fee structure, timeline, and what verification steps they take.

CASE HIGHLIGHT: Success Through Verification

A Lekki seller avoided fraud when their listing service discovered the "buyer" had no actual funds and was using fake bank statements. Proper verification saved months of wasted time.

MODERN SOLUTIONS TO TRADITIONAL PROBLEMS

The Nigerian real estate market is evolving, with new approaches addressing the long-standing fraud issues you face:

DEDICATED PROPERTY LISTING SERVICES

Unlike traditional agencies, professional listing services focus on verification rather than volume.

They typically:

✅ Verify title documents to the extent legally and professionally feasible

✅ Require signed Letters of Authority from property owners

✅ Create detailed property profiles with verified information

✅ Operate under legal oversight for added accountability

SUCCESS-BASED FEE STRUCTURES

Legitimate services often operate on success-based models, meaning:

✅ No upfront costs for you as a seller

✅ Fees only collected when transactions complete

✅ Transparent pricing without hidden charges

✅ No pressure to accept unsuitable offers

QUICK TIP: 4-5% Success Fee Standard

Professional listing services typically charge 4% finder's fees, payable only when your property sells. Avoid services demanding upfront payments.

ENHANCED BUYER PROTECTION

Modern property services may offer additional protections such as:

✅ Title insurance options

✅ Escrow services for secure fund holding

✅ Legal referrals for transaction completion

✅ Ongoing support throughout the process

ESSENTIAL DUE DILIGENCE STEPS

For You as a Buyer:

1️⃣   Verify Ownership: Confirm the seller actually owns the property through official title documents

2️⃣   Check Legal Status: Ensure there are no pending disputes or legal issues

3️⃣   Physical Inspection: Visit the property multiple times, preferably with a professional

4️⃣   Professional Review: Have a lawyer review all documents before signing

Payment Security: Use secure payment methods and consider escrow services where available

LEGAL NOTE: Governor's Consent May Be  Required

Governor's Consent is mandatory if the land changed hands after first allocation. Don't complete your purchase without verifying this requirement.

For You as a Seller:

1️⃣    Document Preparation: Ensure all your title documents are in order

2️⃣    Buyer Verification: Confirm potential buyers have genuine interest and financial capability

3️⃣   Professional Listing: Use services that verify your ownership and create professional listings

4️⃣   Secure Transactions: Implement proper payment and documentation processes

Legal Compliance: Ensure all aspects of your sale meet legal requirements

WARNING SIGNS OF FRAUDULENT SERVICES

Be cautious of property services that:

🚩 Demand large upfront payments from you

🚩 Refuse to provide written agreements

🚩 Cannot provide references or credentials

🚩 Operate without legal oversight

🚩 Make unrealistic promises about timing or prices

🚩 Pressure you to sign immediately

COMMON MISTAKE: Trusting Receipts Over Titles

Many people rely on receipts instead of actual title documents. Receipts prove payment, not ownership. Always insist on seeing and verifying the actual title.

BUILDING CONFIDENCE IN YOUR PROPERTY TRANSACTIONS

The key to avoiding property fraud lies in working with professionals who prioritize verification, transparency, and legal compliance.

Whether you're buying or selling, look for services that:

✅ Operate under legal oversight

✅ Provide clear, written agreements

✅ Verify all claims and documentation

✅ Use secure payment methods

✅ Maintain transparent fee structures

✅ Offer ongoing support throughout your process

 CASE HIGHLIGHT: Clean Process Success

"I was amazed at how clean and professional the process was. The property I bought had a dedicated page, verifiable title, and no hidden charges." — Tunde A., Abuja

CONCLUSION

Property fraud in Nigeria is a serious issue, but it's not insurmountable for you.

By understanding common scam tactics, implementing proper verification processes, and working with legitimate professionals, you can protect yourself whether you're buying or selling property.

Remember that legitimate property transactions take time for proper verification and legal compliance.

Be wary of anyone pressuring you to rush through important steps or skip verification processes.

The extra time and effort you invest in proper due diligence can save you from costly mistakes and legal battles.

The Nigerian real estate market has tremendous potential, and with the right approach and professional support, you can participate safely and successfully.

Focus on verification, work with reputable professionals, and never compromise on legal compliance — these principles will serve you well in any property transaction.