HOW TO AVOID TITLE FRAUDS IN NIGERIA’S REAL ESTATE SECTOR
Introduction
Nigeria’s real estate sector is a booming industry, offering vast opportunities for homebuyers, investors, and developers. However, as real estate transactions increase, so does the prevalence of title fraud, a major challenge affecting both individuals and corporate entities.
Title fraud occurs when a person or group falsifies property documents or misrepresents ownership to sell, lease, or mortgage a property unlawfully. Many unsuspecting buyers have lost millions due to fraudulent transactions, facing legal disputes, financial losses, and, in extreme cases, outright property loss.
At CHAMAN Law Firm, we understand the devastating effects of title fraud and are committed to protecting our clients from falling victim. Our team of experienced real estate lawyers provides comprehensive due diligence, legal verification, and documentation services to ensure that your property transactions are legally sound and fraud free.
In this article, we will explore various ways to identify, prevent, and protect yourself from title fraud in Nigeria’s real estate sector.
Understanding Title Fraud in Nigeria
Title fraud is one of the most sophisticated forms of real estate fraud in Nigeria, often carried out by land grabbers (“Omo-Onile”), fraudulent agents, and corrupt officials. Common types of title fraud include:
1. Forgery of Title Documents
Fraudsters forge essential property documents such as the Certificate of Occupancy (C of O), Deed of Assignment, and Survey Plan to sell properties they do not own. Many unsuspecting buyers only discover the fraud when attempting to resell or develop the land.
2. Multiple Sales of a Single Property
Some fraudsters sell the same property to multiple buyers, leading to ownership disputes. This is common in areas where land documentation is weak or unregistered.
3. Impersonation of Property Owners
Criminals often impersonate the rightful owners of a property, using fake IDs and forged signatures to execute fraudulent sales.
4. Fraudulent Inheritance Claims
Some fraudsters manipulate wills and probate documents to fraudulently claim ownership of inherited properties, particularly when the rightful owners are unaware or unavailable. The case of Awojugbagbe Light Industries LTD. v. Chinukwe (1885) 4NWLR (Pt. 390) 379. The appellant purchased a land and received a Certificate of Occupancy (C of O). The respondent challenged the validity of the C of O, claiming prior ownership. The supreme court held that a C of O is a prima facie evidence of title but can be challenged if obtained fraudulently or if it conflicts with existing rights.
5. Illegal Encroachment
Some individuals illegally occupy and claim ownership of government land or family-owned properties, leading to legal battles.
6. Fake Government Approvals
Scammers often create fake allocation letters and forged land titles, deceiving buyers into believing they are acquiring government-approved properties.
Understanding these schemes is the first step to safeguarding yourself against title fraud.
Legal Framework Governing Real Estate Titles in Nigeria
Nigeria has several laws that regulate real estate transactions and land ownership, including:
1. The Land Use Act (1978)
This is Nigeria’s primary land law, which vests all land within a state under the governor’s control, with individuals requiring government approval for land ownership.
2. The Registration of Titles Law
This law mandates the registration of property titles at the Lands Registry, ensuring legal recognition of ownership.
3. The Nigerian Conveyancing Act
This law governs property transfer processes, ensuring lawful ownership changes.
4. The Lagos State Property Protection Law (2016)
This law criminalizes land grabbing and fraudulent real estate transactions.
At CHAMAN Law Firm, we help our clients navigate these legal frameworks to prevent fraud and ensure compliance with all real estate regulations.
How to Avoid Title Fraud in Nigeria
1. Conduct Due Diligence Before Any Purchase
Before purchasing any property, conduct thorough due diligence, including:
• Title Search at the Land Registry – Verify if the land is legally owned and free from disputes or government acquisition.
• Survey Plan Verification – Ensure that the land is properly mapped and not within government acquisition zones.
• Physical Inspection – Visit the land, ask questions, and confirm ownership with neighbors, local chiefs, or family members.
At CHAMAN Law Firm, we offer professional land verification services to ensure your land documents are legitimate and legally binding.
2. Engage a Real Estate Lawyer
Do not rely solely on real estate agents or sellers. Always engage an experienced real estate lawyer to review documents, conduct legal searches, and handle the drafting and signing of contracts.
At CHAMAN Law Firm, we provide legal advisory and representation to help clients avoid scams and secure legitimate property deals.
3. Verify Seller’s Identity
To prevent impersonation fraud:
• Demand a valid National ID, International Passport, or Driver’s License from the seller.
• If it’s a corporate seller, verify their CAC (Corporate Affairs Commission) registration.
• Speak with local community leaders or estate management to confirm ownership(good root of title)
4. Obtain Original Title Documents.
Insist on the original versions of the following documents:
• Certificate of Occupancy (C of O) In the case of IDUNDUN V. Okumagba (1976) 9-10 SC 227. in this case, the appellant and respondent both claimed ownership of a piece of land. The appellant relied on traditional evidence, while the respondent presented documentary title. The court outlined five (5) ways to prove ownership; traditional evidence, production of documents of title, acts of ownership, acts of long possession, and possession of connected or adjacent land.
• Deed of Assignment (properly registered)
• Survey Plan
• Governor’s Consent (if required for transfer)
Our legal team at CHAMAN Law Firm helps clients verify and authenticate property documents before transactions.
5. Conduct a Court Judgment Search
Some properties are subject to ongoing legal disputes. A court judgment search can reveal pending litigations or court orders restricting property transactions.
We offer comprehensive property litigation searches to protect buyers from legal complications.
6. Use Escrow Services
Avoid making direct payments to sellers without proper documentation. Instead, use escrow services, where payments are held in trust until all legal conditions are met.
7. Obtain Proper Documentation After Purchase
Once the transaction is completed, ensure that you:
• Receive a Deed of Assignment, properly executed and notarized.
• Register the property at the Lands Registry.
• Obtain Governor’s Consent (for properties with previous ownership).
At CHAMAN Law Firm, we provide end-to-end legal support in real estate transactions to ensure smooth ownership transfer and legal protection.
Common Red Flags Indicating Title Fraud
• The seller is rushing the sale and discourages verification.
• The price is significantly lower than the market value.
• Ownership claims keep changing, or multiple parties claim the property.
• The land title has inconsistencies or alterations.
If you notice any of these signs, consult CHAMAN Law Firm for legal advice before proceeding with the purchase.
Conclusion
Title fraud remains a serious risk in Nigeria’s real estate sector, but proper legal guidance and due diligence can help you avoid falling victim. At CHAMAN Law Firm, we specialize in real estate law, land verification, and property transactions, ensuring that our clients invest safely and legally.
If you need assistance with land verification, title registration, or any real estate legal matters, contact CHAMAN Law Firm today.