Property Developer Credibility in Lagos: What Every Investor Should Know

Introduction

The Lagos property market is vibrant, fast-moving, and full of promise — but it is also filled with risks, especially for unsuspecting investors dealing with unverified or fraudulent developers.
Every year, thousands of buyers lose millions of naira to fake developers, unapproved estates, and fraudulent schemes masquerading as legitimate real estate projects.

In an environment as dynamic as Lagos, developer credibility is the foundation of safe and profitable investment.
Whether you are buying land, subscribing to an off-plan project, or purchasing a completed house, verifying your developer’s authenticity is non-negotiable.

This comprehensive guide explains how to assess the credibility of property developers in Lagos, the laws that regulate them, the red flags to watch out for, and how to legally protect your investment through due diligence and professional oversight.

1. Understanding Who a Property Developer Is

A property developer is an individual or company that acquires land, designs, finances, constructs, and markets real estate projects — either residential, commercial, or industrial.

In Lagos, developers play a critical role in urban expansion, providing:

• Affordable housing,
• Serviced plots,
• Shortlet apartments,
• Industrial estates, and
• Mixed-use developments.

However, while many operate legitimately, some are unregistered speculators or impostors who sell land without approval or valid title.

2. The Legal Framework Regulating Developers in Lagos

Every genuine property developer in Lagos must operate under specific legal and regulatory frameworks designed to protect investors.

Key Legal Instruments:

1. Lagos State Real Estate Regulatory Authority (LASRERA) Law, 2020
   • Requires registration of all real estate developers and agents.
   • Mandates transparency in property sales and advertisements.
   • Empowers LASRERA to sanction unlicensed operators.
2. Land Use Act (Cap L5, LFN 2004)
   • Governs land ownership and consent to transfer.
3. Physical Planning and Urban Development Law of Lagos State
   • Controls land use and building approvals.
4. Lagos State Properties Protection Law (2016)
   • Criminalizes illegal sales and land grabbing.
5. Contract Law and Sale of Goods Act (applicable through property sales agreements).

Bottom line:
If a developer is not registered with LASRERA, lacks title, or operates without planning approval, your investment is at serious legal risk.

3. Why Developer Credibility Matters

The credibility of a developer directly affects:

• The legality of your title,
• The safety of your investment, and
• The profitability of your ROI.

A credible developer:

1. Holds valid title to the land.
2. Has regulatory and building approvals.
3. Delivers projects within stated timelines.
4. Provides transparent documentation.
5. Maintains strong after-sale and customer service systems.

4. Common Developer-Related Scams in Lagos

1. Fake Layouts and Non-Existent Estates: Selling land that does not exist physically.
2. Multiple Sales: Selling one plot to multiple buyers.
3. Unapproved Estates: Projects without layout or planning approval.
4. Title Misrepresentation: Claiming excision or C of O where none exists.
5. Off-Plan Default: Collecting funds but abandoning construction midway.
6. Document Substitution: Issuing false or unverifiable documents.

Such schemes have destroyed investor confidence and led to numerous court cases across Lagos.

5. How to Verify a Developer’s Credibility

Step 1: Confirm LASRERA Registration

Visit https://lasrera.lagosstate.gov.ng to verify that the developer is duly registered.
LASRERA maintains an official list of licensed developers and agents.

Step 2: Verify Land Title

Ask for:

• Certified True Copy (CTC) of title document,
• Deed of Assignment, or
• Certificate of Occupancy (C of O).
  Then, conduct a title search at the Lagos Lands Registry through your lawyer.

Step 3: Inspect Layout and Building Approval

Request for layout approval, survey plan, and development permit from the Ministry of Physical Planning and Urban Development (MPPUD).

Step 4: Visit the Project Site

Conduct physical inspection — confirm boundaries, infrastructure, and ongoing activity.

Step 5: Review Legal Documentation

Your lawyer should review:

• Contract of Sale or Subscription Form,
• Payment schedule,
• Allocation Letter,
• Deed of Assignment, and
• Estate Covenants.

Step 6: Check Developer’s Track Record

Review past projects, delivery timelines, and customer feedback.

6. Red Flags in Dealing with Property Developers

1. No LASRERA registration.
2. Vague or incomplete title documentation.
3. Pressure to “buy immediately.”
4. Promises of unrealistic appreciation (“500% ROI in one year”).
5. No physical office or traceable directors.
6. Refusal to involve lawyers or title verification.
7. Undue insistence on cash transactions.

Any of these red flags should trigger immediate caution.

7. Legal Documentation Checklist Before Investing

1. Certified Title Copy (C of O, Gazette, Governor’s Consent).
2. Survey Plan – verified with OSGL.
3. Approved Layout Plan – verified with MPPUD.
4. Deed of Assignment/Sub-Lease.
5. Receipts and Payment Records.
6. Estate Regulations or Service Agreements.

Without these, no property transaction should proceed.

8. Role of LASRERA in Protecting Investors

The Lagos State Real Estate Regulatory Authority (LASRERA) ensures:

• Registration of developers and realtors.
• Mediation in real estate disputes.
• Public awareness of fraudulent developers.
• Enforcement of real estate laws.

Investors can report any fraudulent developer to LASRERA for investigation and possible prosecution.

9. Importance of Title Verification

Developers often claim to have “C of O in process” or “Gazette under registration.”
Such statements must be verified legally.

At Chaman Law Firm, we conduct:

• Title searches at Lands Registry.
• Excision verification with Surveyor-General.
• Litigation and encumbrance checks at High Court.
• Government acquisition checks.

This prevents buying into contested or encumbered land.

10. Case Study: A Developer Scam in Sangotedo

A group of buyers paid ₦15 million each for plots in an “estate” advertised by a developer.
Upon investigation, the land was under government acquisition, and the developer had no approval.

The victims faced years of litigation to recover their funds.
This underscores why legal verification before payment is the only safeguard against developer fraud.

11. Developer Due Diligence Checklist

Before committing funds, confirm the following:

12. Off-Plan Projects: What You Must Know

Off-plan projects allow buyers to pay before completion — often at discounted rates.

While profitable, they require:

• Escrow or trust account for buyer protection.
• Clear completion timeline.
• Transparent building and title documents.

Legally, developers must deliver exactly what was sold and within agreed timelines.

13. Legal Safeguards in Off-Plan Investments

1. Execute a Contract of Sale before any payment.
2. Demand stage-by-stage documentation (allocation letter, receipt, deed).
3. Include refund clause for non-performance.
4. Register all documents with the Lands Registry.
5. Involve a lawyer from negotiation to handover.

14. Financial Transparency and Developer Accountability

A credible developer must:

• Maintain transparent pricing.
• Provide official receipts and documentation.
• Avoid hidden charges.
• Operate traceable bank accounts, not personal accounts.

Investors should insist on official correspondence and receipts bearing company name and RC number.

15. The Role of Lawyers in Developer Transactions

A property lawyer protects investors by:

• Reviewing all developer documents.
• Conducting due diligence on title and company records.
• Drafting legally binding contracts.
• Representing clients in LASRERA or court disputes.

Chaman Law Firm routinely performs this role for individuals and corporate investors in Lagos real estate.

16. The Role of Professional Realtors

Credible realtors partner with verified developers and:

• Provide transparent listings.
• Educate buyers.
• Liaise with lawyers for due diligence.

Avoid agents who cannot show official partnership documents or license numbers.

17. Corporate Governance in Real Estate Companies

A credible developer should have:

• Registered company with CAC (RC number).
• Professional team (surveyors, architects, lawyers).
• Audited accounts.
• Clear leadership and communication channels.

These factors indicate professionalism and accountability.

18. Common Developer Excuses — and What They Really Mean

Always insist on written proof.

19. How to Report a Fraudulent Developer

You can report to:

• LASRERA: lasrera.lagosstate.gov.ng
• Ministry of Justice: Directorate of Public Prosecutions.
• Economic and Financial Crimes Commission (EFCC).
• Police (Special Fraud Unit).

Attach your receipts, agreements, and correspondences for evidence.

20. Remedies Available to Victims

1. Civil Action: File suit for refund and damages.
2. Criminal Complaint: Through Ministry of Justice or Police.
3. LASRERA Mediation: For out-of-court resolution.
4. Court Injunctions: To restrain developer’s sale or possession.

At Chaman Law Firm, we pursue both civil and criminal remedies to recover clients’ investments.

21. Due Diligence Before Payment

Always perform the three golden checks:

1. Title verification
2. Regulatory verification (LASRERA, MPPUD, OSGL)
3. Corporate verification (CAC records)

These protect you from litigation and financial loss.

22. Diaspora Investment and Developer Credibility

Diaspora investors are often prime targets for fake developers.
To avoid loss:

• Engage local legal representatives.
• Conduct virtual site inspections.
• Use escrow or verified developer bank accounts.
• Request regular progress updates.

Chaman Law Firm and Chaman Properties provide full legal and property representation for diaspora clients.

23. How Chaman Law Firm Protects Investors

Our firm provides:

• Developer verification and background checks.
• Legal search reports and encumbrance clearance.
• Contract drafting and perfection.
• Representation before LASRERA and courts.

We ensure every transaction is legally enforceable and risk-free.

24. How Chaman Properties Ensures Transparency

Chaman Properties only partners with verified developers who meet:

• Title authenticity,
• Legal compliance,
• Construction quality, and
• Client accountability standards.

Our clients enjoy 100% document-backed property investments.

25. Case Example: Client Protection Through Verification

A client intended to buy into an estate in Ibeju-Lekki.
Upon verification, Chaman Law Firm discovered the developer’s title was forged.
The client withdrew, saving ₦12 million.
A few months later, the “estate” was demolished by government task force.

Legal due diligence prevented total financial loss.

26. Legal Tools for Protection

1. Deed of Assignment (Registered).
2. Contract of Sale (Stamped).
3. Governor’s Consent (Perfected).
4. Power of Attorney (if represented).
5. Receipt of Payment.

These are your legal proofs of ownership and enforceability.

27. How to Safely Invest in Off-Plan Developments

1. Pay only into verified company accounts.
2. Request evidence of title and approval before first installment.
3. Include refund and delay clauses in agreement.
4. Register your Deed immediately after payment completion.
5. Retain a lawyer throughout the project.

28. Lagos Agencies That Protect Real Estate Investors

• LASRERA – Developer registration and mediation.
• LASPPPA – Physical planning approvals.
• LASBCA – Building control and safety.
• OSGL – Survey verification.
• Ministry of Justice (Property Protection Unit).

Each plays a vital role in ensuring developer compliance and investor safety.

29. Chaman Law Firm’s Advisory to Property Buyers

1. Never rely on verbal promises or promotional materials.
2. Verify all documents with government agencies.
3. Always involve a lawyer before payment.
4. Avoid emotional or pressured decisions.
5. Ensure your documents are registered and traceable.

We provide tailored legal advisory for first-time, corporate, and diaspora investors.

30. Conclusion

Developer credibility is the foundation of safe and profitable real estate investment in Lagos.
No matter how attractive an offer appears, always verify before you buy.

The right developer ensures peace of mind, stable returns, and secure title.
The wrong one could cost you everything.

With professional legal oversight and due diligence, every investor can confidently navigate the Lagos property market without fear of fraud or loss.

Call to Action

Are you planning to invest in a Lagos property or buy into a new estate development?
Let our expert team handle all developer verification, legal due diligence, and transaction documentation on your behalf.

Contact Us

Chaman Law Firm
115, Obafemi Awolowo Way,Allen Junction, Beside Lagos Airport Hotel,  Ikeja, Lagos
📞 0806 555 3671, 08096888818,

📧 chamanlawfirm@gmail.com
🌐 www.chamanlawfirm.com