10 Common Mistakes to Avoid in Real Estate in Nigeria
- Zikan Realtors
- Oct 13
- 4 min read
10 Common Mistakes to Avoid in Real Estate in Nigeria
A Nigerian property lawyer once recounted a shocking story: a house in Lekki, Lagos owned by a woman living abroad was sold behind her back for ₦175 million. She had retained the gateman to look after the property and even paid him for maintenance. What she did not know was that the gateman made photocopies of her title documents, conspired with a fake developer, cloned the Governor’s Consent, forged documents, and resold her property. When she returned and discovered someone else was occupying her house, it became a legal nightmare. (Legit.ng - Nigeria news.)
That story exemplifies many of the pitfalls facing property buyers in Nigeria. In this post, you’ll learn 10 Common Mistakes to Avoid in real estate in Nigeria, so you can protect your capital, avoid fraud, and invest with confidence.
1. Failing to Verify Title & Ownership
One of the biggest mistakes you can make. Whether it’s forged documents, missing Governor’s Consent, or titles that don’t legally belong to the seller, the risks are large. The Lekki house sale story is a vivid example: the gateman sold the owner’s house using forged documents.
How to avoid:
Always request the original Certificate of Occupancy, Deed of Assignment, Survey Plan, and Governor’s Consent.
Hire a reliable property lawyer to search through the State Lands Registry and obtain certified true copies.
Be wary of sellers who provide only photocopies or uncertified documents.
2. Skipping Proper Due Diligence
Many buyers focus only on price or aesthetics and neglect essentials like encumbrances, pending litigation, or government acquisition plans.
How to avoid:
Conduct land searches at relevant government offices.
Investigate whether the land or building is under dispute.
Check for government plans (road expansion, zoning changes, etc.) that could affect your property.
3. Ignoring Location Dynamics & Infrastructure
A great-looking property in a poorly served or declining neighbourhood will lose value—or never appreciate as expected. Infrastructure (roads, electricity, water, waste disposal, schools, hospitals) makes a huge difference.
How to avoid:
Visit locations at different times of day to assess amenities, traffic, noise, safety.
Research future infrastructure plans and government investments.
Compare other properties in the area for value.
4. Overstretching Your Budget & Ignoring Hidden Costs
The purchase price is just part of the cost. Many buyers underestimate legal fees, registration, stamp duty, maintenance, service charges, and potential renovation costs.
How to avoid:
Develop a complete financial model including all fees.
Add a buffer for unexpected expenses.
Don’t commit unless cash flow (if renting) or appreciation can cover all costs.
5. Rushing Without Physical or Structural Inspection
Buying a plot or property “on paper” or from photos alone can expose you to risks like flood-zones, bad soil, hidden defects, or that the property doesn’t even exist as claimed.
How to avoid:
Always inspect the property in person, or send someone you trust.
Use structural/soil surveys if building or renovating.
Use modern tools (satellite imagery, drone video) if remote and/or diaspora.
6. Working with Unverified Agents or Middlemen
Some agents or middlemen may lack credentials, overpromise, misrepresent documents, or disappear after getting your deposit. The story from Lekki involved a “fake developer” working with the gateman.
How to avoid:
Confirm licences/registration of agents via estate surveyors councils or relevant regulatory bodies.
Ask for references or past clients.
Insist on written agreements that define roles, fees, and obligations.
7. Ignoring Zoning, Land Use, & Government Regulations
If the land is zoned for agricultural use, or if government acquisition is planned, or if there are regulations you’re unaware of, you could lose your investment, face demolition, or get into legal trouble. (Nigeria Real Estate Blog)
How to avoid:
Check the local town planning office for use zoning.
Check whether the property is under any acquisition notice.
Understand whether you need planning permission, consent, or other regulatory approvals.
8. Not Registering Transactions Promptly & Poor Documentation
Even after purchase, people sometimes delay registering titles or fail to perfect documentation. That can leave them vulnerable to fraud, ownership challenges, or claims from others.
How to avoid:
Complete registration at land registry/state lands bureau as soon as possible.
Secure all documents: contracts, receipts, title deeds.
Keep certified copies and send digital scans to trusted persons or storage.
9. Underestimating Risk of Scams & Forgery
Fraudulent transactions, fake documents, forged title deeds, fake or “clone” developers: these are not rare. The Lekki incident involved forgery of Governor’s Consent, fake developer involvement, and sale without owner’s consent.
How to avoid:
Be alert to red flags: documents that look generic, too many intermediaries, payment demands without clear proof.
Use legal professionals to verify authenticity.
Ask for title history and chain of ownership, verify through registry.
10. Failing to Plan for Exit Strategy, Market Timing, & Long-Term Value
Sometimes buyers purchase without thinking ahead: Will you resell? Rent? How long will you need to hold? How will changes in market affect your property? Without an exit plan, you may be stuck. Also, market cycles in Nigerian real estate can swing fast. (Real Estate in Nigeria)
How to avoid:
Define your investment horizon and exit before purchasing.
Monitor market trends (price movements, demand, supply, infrastructure).
Consider resale potential, tenant demand, services, and durability.
Final Thoughts
These 10 Common Mistakes to Avoid in real estate in Nigeria can cost you dearly — financially, emotionally, in time, or even loss of ownership. But with careful preparation, professional support, and an attitude of vigilance, you can avoid these traps.
If you want to invest with confidence in Nigeria’s property market, get expert help. Contact Zikan Prop Solutions today to review starter listings, perform title verification, or receive a tailored property risk assessment so you never fall prey to such mistakes.
🏢 Zikan Prop Solutions
🥇 Certified Real Estate Consultant | Multi Award-Winning Realtor
Helping you make the best real estate purchase & investment decisions.
📱 +234 703 000 3514
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