What Are the Hidden Legal Risks of Buying Pre-Construction Properties in Lekki?
Introduction
Buying pre-construction properties in Lekki, Lagos, has become one of the most popular real estate investment trends among Nigerians at home and in the diaspora. The allure is simple: lower purchase prices, flexible payment plans, and the promise of high returns once the property is completed. However, behind these attractive offers often lie hidden legal risks that can cost investors millions of naira — and even lead to total loss of ownership.
Many developers in Lekki operate with little or no legal compliance, and unsuspecting buyers, eager to secure prime locations, sign agreements without due diligence. Some properties are built on government-acquired land, others have defective titles, while some developers fail to deliver as promised. Understanding these legal risks before committing your money can protect you from potential financial disaster.
This article explains the major hidden legal risks associated with buying pre-construction properties in Lekki, how to identify and avoid them, and how engaging a property lawyer can help ensure you are legally protected every step of the way.
Understanding Pre-Construction Property Purchases
A pre-construction property refers to a real estate development that is being sold before it is fully built — often at the design, foundation, or early construction stage. Buyers make progressive payments based on agreed milestones.
In Lekki, this model is common among real estate developers promoting off-plan sales for estates, duplexes, and apartment complexes. While it offers convenience and early-buyer advantages, it also exposes purchasers to numerous legal and practical risks if not properly documented or verified.
Key Legal Risks of Buying Pre-Construction Properties in Lekki
1. Lack of Proper Title and Land Ownership
One of the most common risks is defective or non-existent title documents. Many developers do not own the land they are building on; instead, they may be developing under a shaky agreement or unverified allocation.
Some lands are under government acquisition, meaning they belong to the Lagos State Government and are not available for private development. Others are family or communal lands sold without proper consent from all family heads.
If the developer does not have a valid and registered Certificate of Occupancy (C of O) or Governor’s Consent, the buyer risks losing the property — even after full payment.
Legal safeguard: Always conduct a land title search through a licensed property lawyer before paying for any pre-construction property in Lekki.
2. Unapproved Building Plans and Regulatory Violations
Developers are required to obtain Building Plan Approval and Development Permits from the Lagos State Physical Planning Permit Authority (LASPPPA) and the Building Control Agency (LASBCA).
Many pre-construction projects in Lekki proceed without approval, violating building regulations. As a result, such properties are at risk of demolition or sealing by government agencies.
Legal safeguard: Request evidence of building plan approval, survey plan, and environmental clearance before signing any purchase agreement.
3. Absence of a Registered Joint Venture or Development Agreement
In many cases, developers do not own the land outright. They may have entered into a Joint Venture (JV) with a landowner, which gives them permission to build and sell. However, if this JV Agreement is not properly registered or if disputes arise between the landowner and developer, buyers can lose their investments.
Legal safeguard: Ask your lawyer to confirm that the developer’s JV Agreement is valid, registered, and supported by Governor’s Consent.
4. Risk of Abandoned Projects
Another hidden risk is project abandonment. Developers sometimes fail to complete construction due to financial issues, regulatory breaches, or internal conflicts. Buyers who have paid substantial sums may be left stranded.
Legal safeguard:
- Investigate the developer’s financial capacity and project history.
- Ensure your Purchase or Subscription Agreement includes clear refund clauses and construction timelines.
- Avoid paying in full upfront — adopt a milestone-based payment structure monitored by your lawyer.
5. Misrepresentation and False Advertising
Some developers in Lekki promote exaggerated or misleading property advertisements, promising luxury amenities or government approvals they do not possess. Buyers only discover the deception after committing funds.
Legal safeguard:
- Request all claims to be backed by documentary proof.
- Ensure your Sales Agreement includes a clause holding the developer liable for misrepresentation or false claims under Nigerian contract law.
6. Fraudulent or Duplicate Sales
Because pre-construction properties are not yet completed, unscrupulous developers or agents sometimes sell the same unit to multiple buyers. This leads to ownership disputes, litigation, and loss of investment.
Legal safeguard:
- Engage your lawyer to verify allocation documents, project layout, and unit numbering before payment.
- Demand a Receipt of Purchase and Deed of Assignment registered in your name immediately after full payment.
7. Non-Compliance with Lagos State Land Laws
Lekki falls under the jurisdiction of the Lagos State Government, where land acquisition and development are strictly regulated. Developers who fail to obtain Governor’s Consent or regularization risk government intervention or revocation.
Legal safeguard:
Ensure all land transactions are consistent with:
- Land Use Act (1978)
- Lagos State Urban and Regional Planning Law
- Property and Conveyancing Law of Western Nigeria (1959)
- Land Registration Law of Lagos State
8. Incomplete Legal Documentation
Buyers often sign incomplete or poorly drafted documents such as Offer Letters, Payment Receipts, or Memoranda of Understanding (MoU) that lack legal enforceability. Without a registered Deed of Assignment or Sales Agreement, the buyer technically owns nothing in the eyes of the law.
Legal safeguard: Always insist on a professionally prepared and registered Deed of Assignment and Contract of Sale reviewed by your property lawyer.
9. Hidden Charges and Undisclosed Costs
Many developers initially advertise low purchase prices but later introduce hidden charges for infrastructure, documentation, and legal fees. These unexpected costs can inflate the overall price significantly.
Legal safeguard:
- Demand a written Breakdown of Total Cost before paying.
- Ensure all fees are included in the Sales Agreement to avoid later disputes.
10. Lack of Infrastructure and Utility Rights
Some pre-construction developments in Lekki are built on lands without proper road access, drainage, water supply, or power infrastructure. Buyers often take possession only to realize they must pay extra for basic utilities.
Legal safeguard: Verify that the developer has obtained development layout approval from the New Towns Development Authority (NTDA) and that infrastructure responsibilities are clearly stated in the contract.
Case Study: Pre-Construction Property Scam in Lekki Phase 2
Case: Mrs. Adesuwa vs. OceanView Homes Limited (Lekki Phase 2, 2022)
In 2020, Mrs. Adesuwa, a UK-based Nigerian, purchased a four-bedroom duplex in a pre-construction estate promoted by OceanView Homes. She paid ₦45 million in installments after being shown architectural designs and an impressive brochure.
Two years later, she discovered that the project was built on unapproved government-acquired land, and construction was halted by LASBCA. The developer disappeared, and several buyers filed petitions.
Upon consulting Chaman Law Firm, a legal action was initiated, and investigations revealed that the land lacked Governor’s Consent. The court ordered a refund to affected buyers, but only partial recovery was achieved as the company had become insolvent.
Lesson: Always verify the developer’s title and regulatory compliance before paying for a pre-construction property — especially in Lekki.
How to Protect Yourself Before Buying a Pre-Construction Property in Lekki
- Conduct independent title verification at the Lagos State Land Registry.
- Verify the developer’s CAC registration and project approvals.
- Hire a property lawyer to review all contracts.
- Visit the project site personally or through a verified agent.
- Ensure payment receipts are issued directly by the developer (not unregistered agents).
- Register your Deed of Assignment and obtain Governor’s Consent promptly.
Role of a Property Lawyer in Pre-Construction Purchases
A skilled property lawyer ensures:
- Due diligence on developer and title documents.
- Verification of building approvals.
- Drafting and negotiation of legally binding agreements.
- Registration of Deed of Assignment and Governor’s Consent.
- Legal representation in the event of disputes or fraud.
At every stage, the lawyer protects your investment from fraud, defective titles, and regulatory breaches.
Frequently Asked Questions (FAQ)
Q1: Is it safe to buy pre-construction properties in Lekki?
Yes, but only if the developer is reputable, and all legal due diligence is completed through a property lawyer.
Q2: How can I verify a developer’s legitimacy?
Check their CAC registration, completed projects, land documents, and government approvals through your lawyer.
Q3: Can I get my money back if the project fails?
Yes, if your agreement includes a refund clause and you can prove breach of contract.
Q4: What are the most important documents to collect?
Offer Letter, Payment Receipt, Sales Agreement, Deed of Assignment, and Governor’s Consent.
Q5: Who should register my Deed of Assignment?
Only a qualified property lawyer or licensed solicitor should handle registration at the Lands Registry.
Conclusion
Buying a pre-construction property in Lekki can be a smart investment — but only when you understand and manage the legal risks involved. The hidden dangers of unverified land titles, fake approvals, abandoned projects, and fraudulent developers make professional legal guidance indispensable.
Before committing to any pre-construction deal, conduct thorough legal due diligence, verify all documents, and ensure your interests are legally protected from start to finish.
Call to Action
At Chaman Law Firm, we specialize in real estate law, property verification, and developer partnership advisory across Lekki, Ikoyi, Victoria Island, and other high-value areas in Lagos. We help clients identify hidden risks, verify land titles, and secure their investments through expert legal documentation.
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