The Nigerian real estate market is among the fastest-growing sectors in Africa. It’s also unfortunately a leading target for scammers posing as developers and brokers, most notably on social media. Millions of Naira are lost to fictitious firms or unregistered real estate scams annually, rendering countless unsuspecting investors penniless.
Before you invest in any estate business or pay for land, make sure you verify that the company you are dealing with is real. We, as property attorneys, have handled numerous cases where clients would have escaped loss of millions just because they failed to conduct adequate legal due diligence.
Below are some practical and legal steps you can take to verify whether a real estate firm in Nigeria is real before you part with your money.
Step 1: Research and Verification (Due Diligence)
The initial step in preventing property fraud is to research the company carefully prior to signing an agreement or making payment.
1. Verify CAC Registration
Any genuine company in Nigeria is required to be registered with the Corporate Affairs Commission (CAC).
- If possible, go to the CAC online portal (https://search.cac.gov.ng) and check the registration number, directors, and business address of the company.
- Ask them for a copy of the Certificate of Incorporation and Status Report and ensure the name is the same as on their receipts and advertisements.
Tip: Scam companies have almost identical names to well-known developers. Ensure spelling and registration number exactly.
2. Physical Office Verification
Request to be brought to their physical office.
- Ensure the address on their letterhead, receipts, or website exists.
- Verify whether the employees are on-site and whether the office illustrates genuine business activities.
A genuine real estate company cannot conduct business solely through WhatsApp, Telegram, or Instagram.
3. Online Research
Google, social media, and real estate review websites search for the company name.
- Check for Google Reviews, testimonials, or complaints from previous clients.
- Join real estate forums or Facebook groups where investors share their experiences.
If you are faced with a number of reports of excellent land allocations or price grievances, take this as a warning sign.
4. Professional Qualifications
Ensure the company or agents are registered professional association members, such as:
- The Nigerian Institution of Estate Surveyors and Valuers (NIESV), or
- The Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON).
Membership in such organizations means that the company is vetted by professional standards and codes of ethics.
Step 2: Licenses and Accreditations
In addition to registration, a genuine real estate firm should have relevant licenses, authorizations, and industry affiliations that verify its license and compliance.
1. REDAN Membership
The Real Estate Developers Association of Nigeria (REDAN) is the recognized umbrella body of developers in Nigeria.
- Ask the company to provide a REDAN Membership Certificate.
- Membership can also be verified on REDAN’s official website or by visiting their secretariat.
A non-REDAN member firm may not officially be acknowledged by regulatory authorities.
2. Approvals of the State Governments
Property firms must obtain layout approvals, titles of land, and development approvals from the concerned State Ministries of Lands or Urban Development Authorities.
- Never rely on verbal assurances that “the documents are being processed. “A reputable firm will always be transparent about its paperwork.
3. Industry Certifications
In addition to REDAN and NIESV, check for membership of recognized professional bodies such as:
• National Association of Estate Agents and Developers (NAEAD)
• Nigerian Real Estate Regulatory Council (once operational)
These memberships indicate compliance with evolving national real estate regulations.
Step 3: Documentation and Transparency
Transparency in paperwork and communication is the strongest proof of a trustworthy real estate firm.
1. Review of Company Profile
Request their corporate profile or brochure, which should detail:
• Completed and current projects,
• Directors’ qualifications and names,
• Past client referrals.
Review whether their portfolio contains completed projects with verifiable addresses.
2. Clear and Comprehensive Documentation
As a precautionary measure, have all the agreements written up and vetted by your lawyer before paying out anything.
You should expect to be given:
- A Contract of Sale or Deed of Assignment,
- A Receipt of Payment,
- A Survey Plan, and
- Any relevant Title Documents (e.g., C of O, Governor’s Consent, Deed of Sublease).
Closing Warning: Avoid dealing with companies that want you to remit “initial deposits” or “reservation payments” without documents to review.
Insist on having your lawyer verify each document before signing or sending money.
Protect Your Investment
Buying land or property in Nigeria can be lucrative, but only if done within the ambits of the law and wisely.
The majority of the fraudulent real estate developers target investors who invest in rushed transactions without proper checks.
At Olamide Oyetayo & Co., we help clients:
- Perform thorough due diligence on property companies,
- Research land ownership and title documents, and
- Draft and review property contracts to offer maximum legal protection.
Prior to paying any land funds or making a single investment, we regularly conduct due diligence and review documents on behalf of our clients — so you can invest with confidence.