How to Identify fake Real Estate Companies in Lagos (Tips to avoid them) Latest

80 percent of real estate companies are based in Lagos. As the real estate industry in Nigeria continues to boom, the number of fake real estate companies has greatly increased despite the strict laws that govern the sale and purchase of any property.

Identifying a fraudulent real estate agent can be difficult, especially when you are dealing with those ones who have been in the industry for a long time. They know the ins and outs of the industry and are able to come up with strategies to fool less savvy investors. However, there are things you should look out for when dealing with real estate companies in Nigeria.

Here are some ways you can detect a fake real estate company in Lagos:

Legal registration

Before using a real estate company for your real estate investment, you need to carry out thorough research on the company to find out if the company is duly registered with  Nigeria CAC (Corporate Affairs Commission).  One of the ways to do this is by asking the company for its registration number; all genuine real estate companies are proud and happy to provide their registration number to you on request.

If the company refuses to present its registration number to you, this is a sign that the company may be a fake real estate company.

If the company presents its CAC(corporate affairs commission) registration number to you but you are still not fully convinced about the registration number, you can verify the company’s registration number by visiting the CAC office in Abuja. Alternatively, you can hire a lawyer to do this for you.

credit: Redanonline

No License To Operate

The registration of the company is important to determine if a company is genuine or not. But when it comes to the real estate industry, it is very important that every realtor has a license to operate as a real estate company in Nigeria. So as a real estate investor, before purchasing a property through a real estate agent, ask for its license.

Every genuine real estate company in Nigeria must be registered and recognized by at least one of the Nigerian estate boards – Real Estate Developers Association of Nigeria (REDAN), Estate Surveyors, and Valuers Registration Board of Nigeria (ESVARBON), among others.

If the company’s name is not registered or recognized by any of these boards, it is a red flag and I will advise you to find a different company.

Document verification and authentication

The moment you resolve to buy a property, the first thing to do is get a reliable lawyer to oversee the property documentation and verification. The lawyer should do the verification to ascertain the legitimacy and authenticity of the real estate agency. There are also a lot of required documents to be ascertained and verified before you proceed to make payment.

How to Identify a Fake Agent?

There are some warning signs which can help you identify property scammers:

• Often the rental scammers show that they are out of town. They claim that they have a property that you are looking for but can’t meet you personally.
• Most of the fake agents pretend to be military soldiers, UN workers,s or a missionary. If your agent is one of these, chances are he is making you a fool.
• He/she will call you at odd hours which is an indication the scammer is working from overseas.
• If the property owner is asking for your financial information right from the start, be careful and don’t do that.

How to Avoid Scams and Fraudulent Listings?

If the listing looks genuine to you, there is still a chance of fraud and you would never want to lose your life saving to a scammer. Take the following steps to be on the safer side:

• Visit the Property in Person
• Ask to speak to current renters
• Only contact reliable Real Estate Companies
• Ask for Real Estate License from your agent
• Never pay with Cash or Wire Transfer
• Double-check prices and rent before signing the lease

Things you need to know

1. An experienced and authentic real estate agent generally sells a minimum of one property per year.
2. With the name and address of an agent, you can Google the PR of the broker.
3. Don’t go blind on online reputation as many scammers use marketing tips to establish a good reputation on Google.
4. If an agent says that his/her commissions are non-negotiable, step away from that agent.
5. Before you chose an agent, ask for his/her license.
6. Look for the track record of the agent. Don’t rely on the testimonials placed on their blogs, instead ask for the phone number of previous clients and have their feedback about the agent.
7. Fake agents will never answer your questions enthusiastically and will focus on their personal achievements.
8. Without talking about the property, they will keep asking for money.