AVOIDING BEING SCAMMED IN REAL ESTATE.

The Real Estate industry in Nigeria is fraught with various issues or cases of people being duped either by estate agents, con artists and the so called omo-oniles. With the demand for accommodation more than supply, it’s no wonder that some people can be easy targets since they are in desperate need of the properties at the time.

Another reason people get scammed is when an opportunity is too good to pass up. With the high level of fraud committed within the industry, it is imperative that you protect yourself from being a victim. These various scams can be avoided by working with a reputable real estate agent, company or developer.

Some of the common real estate scams perpetuated by omo-oniles is the sale of lands inherited from their parents or grand-parents to more than one person. Since their only source of income is the sale of these inherited lands, their usual style is to prey on lands that have been sold but not yet developed to another buyer. Sometimes, they even sell lands that have been developed half-way to buyers just to keep the income flowing and these buyers find themselves in a continuous battle for possession of the land. A lot of land cases presently in court are in this category and unfortunately, the omo-oniles are nowhere to be found with the monies collected.

Another thing these omo-oniles do is to extort money from buyers who are developing their properties. In certain areas,they charge ridiculously high prices for bogus fees like foundation and roofing fees when they will not contribute anything at any time whatsoever to the building process of the property.  The money collected is simply to keep them from disturbing or harassing workers on your property and refusal to comply usually ends up with them applying force of arms until you concede. Individual and corporate developers alike are often faced with this situation, at the mercy of these omo-oniles turned touts.

Another prominent way people get defrauded is when they believe they have the original documents but don’t know they don’t. In this case, the buyer is totally unsuspecting when documents are presented stating the seller as the rightful owner of the property meanwhile, what is being presented to him/her is documents forged in the name of the seller. These fraudsters present themselves as the owner of a property and show you property for sale that really isn’t because he is somehow able to gain access to the said property. For this kind of scam, a red flag is when the property is cheaper than what is normally obtainable.

Real estate agents also perpetuate this kind of scam but in terms of rentals. They rent out an apartment that is currently lived in but the occupant is out of town for a few weeks or months out to unsuspecting tenement seekers. Usually, since the apartment can sometimes be well furnished, these agents tell you the story that the present occupant wants to travel out and needs to dispose of everything which is why the price is ridiculously cheap or they even present themselves as the one occupying the place and need to get out of town. The unsuspecting person who has seen an offer to good to pass up pays and finds out at the end of the day he’s been duped.

Another scam agents do is to rent houses that are for sale to people. It’s a fact that the demand for houses is greater than supply and people are constantly looking to change where they stay or find somewhere to start a family and these agents play on that. Since they network and know each other, it is not far-fetched for two or three agents to show the same house even though they are not the primary agent of the house. One agent can rent out a house that has been legitimately sold to someone else by another agent. At the end of the day, the legitimate owners arrive and the so called tenants are left out in the cold.

HOW NOT TO GET SCAMMED!

Scams in the real estate industry in Nigeria are real but it is not just a Nigerian problem, it is a global phenomenon and there are ways you can protect yourself against being a victim.

First and foremost, do your due diligence! Be thorough before you put your money down. Don’t be quick to pay; refuse to be rushed or harried. If they say it’s too good to pass up, check it and be sure otherwise, pass it up! There will always be great legitimate deals. They might not come often but they will come so take your time and do your homework well.

Secondly, don’t look for cheap dead property. If it is, it’s probably fraudulent. Property in Nigeria, especially in Lagos isn’t cheap. The areas determine how much a land or property is being sold for; so know the asking price for a property in the area you are considering. If it is too cheap, check again and be sure. Yes, it might be favour, but it’s safe to be sure.

Thirdly, avoid paying cash. If you are going to pay, do it through a means that can be traced. Insist on writing checks or any other type of payment that doesn’t leave you hanging in the loop if anything goes wrong. You want to be able to hold somebody responsible when all is not what they seem; so be wise and avoid payments you can’t trace.

Above all, use a respectable real estate company like GOT Formation Limited  to help you through the process. If you do, you can be sure you will get exactly what you are paying for.

Have you been scammed before or know someone who has? Please share your story with us. The scams are taking various forms and shapes as the days go. Let someone else learn from your story. Drop your comments below or send a mail to francis@gotformationlimited.com