Buying property in Lagos is a significant financial decision. Whether you are purchasing land, a house, an apartment, or a commercial property, the wrong transaction can result in financial loss, litigation, demolition, or years of dispute over ownership.
One of the most effective ways to protect yourself is to recognise the warning signs that often appear before a problematic property transaction is completed.
A property may look attractive, have a seemingly reasonable price, and even come with documents that appear genuine. None of these factors, by themselves, establish that the property is safe to buy.
Under Nigerian law, land transactions are subject to statutory requirements, including the applicable rules governing rights of occupancy and their alienation. For example, section 22 of the Land Use Act restricts the alienation of a statutory right of occupancy without the required consent of the Governor, while section 26 provides that transactions or instruments purporting to confer interests in land contrary to the Act are null and void.
The following are some of the most important red flags property buyers should watch for before paying for property in Lagos.
1. The Seller Is Pressuring You to Pay Immediately
Urgency is one of the most common warning signs in property transactions.
A seller or agent who repeatedly insists that you must pay immediately because:
- another buyer is waiting;
- the price will increase tomorrow;
- the property will be sold if you do not pay that day;
- the owner is travelling;
- the offer is only available for a few hours; or
- you should pay a deposit before asking questions,
is giving you a reason to slow down rather than speed up.
A legitimate seller should understand that a serious buyer needs reasonable time to inspect the property, examine the documents and obtain independent legal advice.
What to do: Do not allow a seller’s deadline to replace proper investigation. If necessary, lose the property rather than risk losing the purchase price.
2. The Price Is Far Below the Market Value
An unusually cheap property is not automatically a bargain.
A substantially below-market price can indicate a number of problems, including:
- defective title;
- government acquisition;
- an existing dispute;
- unpaid obligations;
- a seller who does not have authority to sell;
- a property already sold to another person;
- an urgent attempt to dispose of disputed property; or
- an attempt to attract buyers before the underlying problem is discovered.
A low price should therefore trigger more investigation, not faster payment.
Compare the asking price with similar properties in the same area and ask why the seller is willing to sell significantly below the prevailing market value.
3. The Seller Cannot Clearly Explain How They Acquired the Property
A prospective buyer should be able to understand the seller’s root of title.
If the seller cannot clearly explain:
- who originally owned the property;
- how the seller acquired it;
- when it was acquired;
- what document transferred the interest;
- whether the seller obtained the necessary approvals or consent; or
- how the seller’s name connects to the documents being presented,
that is a serious warning sign.
The problem becomes more significant where the seller simply says, “The documents are with my lawyer”, without providing a coherent explanation of the transaction.
A buyer should not rely solely on the seller’s assertion that he or she is the owner.
4. The Seller Relies on a Certificate of Occupancy as the Only Proof of Ownership
A Certificate of Occupancy is an important land document, but a buyer should not treat the mere existence of a C of O as conclusive proof that the transaction is safe.
The Supreme Court has held that a Certificate of Occupancy issued under the Land Use Act is not necessarily conclusive evidence of valid title. It can be challenged where another person establishes a better existing right or title.
This means that the appropriate question is not simply:
“Does the seller have a C of O?”
The more important questions include:
- What land does the C of O actually cover?
- Who was entitled to the land before the grant?
- Does the description correspond with the property being sold?
- Are there competing interests?
- Is there any government acquisition affecting the land?
- Are subsequent transactions properly documented?
- Has the seller obtained the necessary consent where required?
A document must be examined in the context of the entire title history.
5. The Property Description Does Not Match the Physical Property
Pay close attention to the property’s description.
The survey plan, deed, title document and physical property should correspond in material respects.
Warning signs include:
- different plot numbers;
- inconsistent dimensions;
- conflicting survey coordinates;
- different locations stated in different documents;
- boundaries that do not correspond with the documents;
- a seller showing you a different parcel from the one described in the documents; or
- uncertainty about the exact identity of the property.
A buyer should never assume that a document belongs to a property merely because the seller says it does.
The identity of the property must be properly established.
6. The Property Is Under Government Acquisition
Government acquisition is a major issue that must be investigated before purchasing land in Lagos.
The fact that land is physically vacant or that people are already living or building around it does not, by itself, establish that the land is free from acquisition.
The Land Use Act gives government powers relating to the control and management of land and permits revocation of rights of occupancy for overriding public interest in circumstances recognised by the Act.
A buyer should therefore investigate the property’s status rather than rely on statements such as:
“Everybody around here has bought land.”
or:
“There is already a building beside it, so it is definitely safe.”
What to do: Obtain an appropriate official search and investigate acquisition, excision, allocation and other relevant government records before committing substantial funds.
7. The Seller Says “The Governor’s Consent Is Not Important”
This statement should immediately attract caution where the transaction involves a statutory right of occupancy.
Section 22 of the Land Use Act generally prohibits the holder of a statutory right of occupancy from alienating the right by assignment, mortgage, transfer of possession, sublease or otherwise without the required consent of the Governor, subject to the statutory exceptions.
A seller who dismisses the issue by saying:
“You can perfect it later.”
is not necessarily giving you a legally adequate answer.
The buyer should determine the legal status of the transaction and what approvals or consents are required before completing the purchase.
8. The Seller Refuses to Allow an Independent Property Search
This is one of the clearest practical warning signs.
A buyer should be suspicious where a seller or agent refuses to allow the buyer’s lawyer to independently investigate the title.
Statements such as:
- “Our lawyer has already checked everything.”
- “There is no need for another search.”
- “The seller is a reputable person.”
- “The agent guarantees the property.”
- “You can do the search after payment.”
should not replace independent verification.
The purpose of legal due diligence is precisely to allow the buyer to verify the seller’s representations independently.
9. You Are Told Not to Involve a Lawyer
A seller who says:
“There is no need to involve a lawyer; it is a straightforward transaction”
is giving you a reason to obtain legal advice, not a reason to avoid it.
Property transactions involve legal documents, title issues, statutory requirements and potentially substantial financial exposure.
An independent property lawyer can examine the transaction from the buyer’s perspective rather than relying on the seller’s representations.
The cost of obtaining legal advice before paying is usually insignificant compared with the potential cost of trying to recover the purchase price after a failed transaction.
10. The Seller Is Not the Person Named in the Title Documents
If the person negotiating the sale is different from the person named in the title documents, do not assume that the seller automatically has authority to sell.
The person selling may be:
- an attorney;
- an agent;
- a family representative;
- an executor or administrator;
- a company representative;
- a beneficiary; or
- another person claiming authority from the registered or recognised owner.
Each situation requires appropriate documentation establishing the seller’s authority.
Where a Power of Attorney is involved, for example, the buyer should not confuse the authority to act on behalf of another person with proof that the attorney personally owns the property.
11. The Seller Produces a Power of Attorney Instead of Evidence of Title
A Power of Attorney generally establishes authority to act for another person; it does not, by itself, establish that the person granting the authority owns the property.
This distinction is particularly important where the person presenting the property to you says:
“I have a Power of Attorney, so I am the owner.”
That statement should be examined carefully.
The buyer should investigate both:
- the title of the person who granted the Power of Attorney; and
- the scope and validity of the authority granted to the attorney.
The underlying title remains critical.
12. The Property Is Occupied by Someone Other Than the Seller
If another person is living on, using or occupying the property, do not ignore it.
The occupant could be:
- a tenant;
- a family member;
- a caretaker;
- a purchaser under an earlier transaction;
- a person claiming ownership; or
- someone occupying the property pursuant to an interest that the seller has not disclosed.
A seller’s statement that:
“He is just staying there temporarily”
should not end the investigation.
Ask who the occupant is, why they are there and what interest they claim.
Where necessary, obtain legal advice before proceeding.
13. Someone Else Claims the Property Belongs to Them
This is a major red flag.
If, during an inspection, a neighbour, family member, occupant or other person tells you that the property belongs to them or that the seller has no right to sell it, stop the transaction until the claim has been investigated.
Do not attempt to resolve the dispute yourself by relying on whichever person appears more convincing.
Land disputes can involve competing documents, family interests, prior sales, inheritance, possession and other legal issues.
A seemingly simple disagreement at the property can become expensive litigation after purchase.
14. The Property Has Already Been Sold, Pledged or Mortgaged
A seller may have previously dealt with the property in a way that affects the buyer’s proposed transaction.
Potential problems include:
- a previous sale;
- a mortgage;
- a charge;
- an equitable interest;
- a prior assignment;
- a pending transaction; or
- another encumbrance.
This is why a proper title investigation is essential.
A seller’s assurance that:
“Nobody else has any interest in this property”
should be independently verified.
15. The Seller Says the Original Documents Are Lost but Wants Full Payment Immediately
Lost documents do not automatically mean that a property is fraudulent.
However, where important title documents are unavailable, the buyer should demand a satisfactory explanation and investigate the circumstances carefully.
The issue becomes particularly concerning where the seller simultaneously:
- demands immediate payment;
- refuses independent verification;
- cannot explain the chain of title;
- provides inconsistent documents; or
- insists that the missing documents are irrelevant.
Do not allow urgency to substitute for evidence.
16. The Seller Wants Payment Into a Third Party’s Personal Account
Be particularly careful when the person selling the property directs you to pay into an account belonging to someone who is not clearly connected to the transaction.
The account may belong to:
- an agent;
- a relative;
- a friend;
- another company; or
- an unrelated third party.
There may be legitimate explanations in some transactions, but the arrangement should be properly documented and explained before payment.
Where the identity of the payee does not correspond with the contracting party, obtain legal advice before transferring funds.
17. The Seller Refuses to Give You Copies of the Relevant Documents
A serious buyer should have an opportunity to examine the documents underlying the proposed sale.
Be cautious where the seller:
- refuses to provide copies;
- only allows you to photograph selected pages;
- repeatedly postpones producing documents;
- provides incomplete documents; or
- says you will receive the documents after making payment.
A buyer should know what is being purchased before paying for it.
18. The Seller’s Story Keeps Changing
Inconsistencies matter.
For example, the seller may initially say:
“I bought the land from the original owner.”
Later, the explanation becomes:
“It was actually transferred to me by my father.”
Then:
“My family owns it.”
Or:
“I am selling on behalf of the owner.”
These are materially different claims.
A changing story should prompt further investigation into the actual ownership structure and the seller’s authority.
19. The Property Is Family-Owned but Only One Person Is Selling It
Family land requires particular care.
Where a property is said to belong to a family, a buyer should not assume that the person presenting himself as the family head or representative automatically has unrestricted authority to sell.
The buyer must investigate:
- the history of the family ownership;
- who has authority to dispose of the property;
- whether the transaction has the necessary family consent;
- whether other family members dispute the proposed sale; and
- whether the person signing the documents has the requisite authority.
A transaction involving family land can become contentious when persons who were not involved in the sale later challenge it.
20. The Property Is Being Sold Through an Agent Who Cannot Establish the Seller’s Authority
Using an estate agent does not eliminate the need to investigate title.
An agent’s role in marketing property is different from establishing ownership.
Before paying, the buyer should know:
- who actually owns the property;
- who authorised the agent;
- what authority the agent has;
- who will execute the sale documents; and
- where payment should properly be made.
A property advertisement is not evidence of title.
21. The Seller Says “Everybody Buys This Way”
This is not a legal answer.
The fact that other people have purchased properties in an area does not prove that a particular property has good title.
Likewise, the fact that a developer, agent or community has completed numerous transactions does not remove the need to investigate the particular property being offered to you.
Every transaction should be assessed on its own documents, title history, physical identity and legal circumstances.
22. The Property Is Advertised as “Guaranteed” or “100% Genuine” Without Supporting Evidence
Marketing language should never replace documentation.
Words such as:
- “100% genuine”;
- “government approved”;
- “fully documented”;
- “safe investment”;
- “guaranteed allocation”; or
- “no issue whatsoever”
have little value if the underlying documents and title have not been independently verified.
A buyer should ask:
What document proves the statement?
That question often separates a genuine transaction from a risky one.
23. You Are Asked to Pay a Large Deposit Before Verification
A deposit can create complications if paid before the buyer understands the legal status of the property.
The safer approach is to establish the material facts first, including:
- the seller’s identity;
- the seller’s authority;
- the property’s identity;
- the title;
- relevant encumbrances;
- acquisition status;
- existing claims; and
- the terms of the proposed transaction.
Do not allow the desire to “secure” a property to cause you to commit substantial funds before the fundamental risks have been investigated.
24. The Documents Contain Suspicious Inconsistencies
Look carefully at the documents.
Warning signs include:
- different names;
- different dates;
- inconsistent property descriptions;
- unexplained alterations;
- missing pages;
- unusual signatures;
- conflicting plot numbers;
- discrepancies between survey details and title documents; or
- documents that appear to have been prepared at materially different times without explanation.
A suspicious document should not simply be ignored because it appears official.
Where necessary, the relevant issuing authority and underlying records should be independently verified.
25. The Seller Becomes Defensive When You Ask Questions
A buyer asking reasonable questions about a major property purchase should not be treated as troublesome.
Be cautious if asking basic questions causes the seller or agent to:
- become aggressive;
- accuse you of wasting time;
- discourage legal advice;
- refuse further documentation;
- insist that other buyers are ready to pay; or
- tell you that “serious buyers do not ask so many questions.”
A serious buyer should be willing to investigate a serious investment.
What Should You Do If You Notice a Red Flag?
A red flag does not always mean that a property is fraudulent.
Some warning signs have legitimate explanations.
The important point is that a red flag should stop you from proceeding blindly.
Depending on the circumstances, the appropriate response may include:
- Pause the transaction.
- Do not make further payment.
- Obtain copies of the relevant documents.
- Verify the identity and authority of the seller.
- Confirm the exact identity and location of the property.
- Conduct an independent title search.
- Investigate government acquisition and other restrictions where relevant.
- Check for competing interests or encumbrances.
- Inspect the property physically.
- Obtain independent legal advice before signing or paying.
The purpose is not to make every property transaction unnecessarily complicated. It is to identify problems while you still have the option of walking away.
Red Flag vs Deal-Breaker: What Is the Difference?
Not every warning sign has the same significance.
For example, a seller’s failure to produce a particular document immediately may be capable of explanation.
By contrast, evidence that another person claims ownership, an unresolved title dispute, or an inability to establish the seller’s authority to sell can fundamentally change the transaction.
A useful approach is to classify concerns into three categories:
Minor Warning Sign
The issue requires clarification but does not necessarily mean the transaction should end.
Serious Red Flag
The issue requires independent investigation before any further payment or commitment.
Potential Deal-Breaker
The issue indicates a fundamental title, ownership or legal problem that should cause the buyer to consider walking away unless and until the problem is satisfactorily resolved.
A property lawyer can help distinguish between these categories.
Why Property Buyers Should Investigate Before Paying
The greatest mistake a property buyer can make is treating verification as something that can be done after the purchase.
Once a buyer has paid the purchase price, recovering the money can become considerably more difficult, particularly where the seller has disappeared, the property is subject to competing claims, or the transaction documents are defective.
The Land Use Act itself demonstrates why land transactions cannot be reduced to the physical possession of land or the existence of a single document. The Act regulates rights of occupancy, their alienation and the consequences of transactions that do not comply with its provisions.
The Supreme Court’s decision in Adole v. Gwar also illustrates an important practical lesson: the existence of a Certificate of Occupancy does not necessarily end a title dispute. A competing pre-existing right can still be legally significant.
That is why a buyer should investigate the property, the seller, the title and the transaction as a whole.
Final Takeaway: Do Not Let a Good Property Become a Bad Investment
A beautiful house, a desirable location and an attractive price do not guarantee a safe property transaction.
The most dangerous property problems are often discovered only after the buyer has paid.
If the seller is rushing you, the price seems suspiciously low, the ownership story is unclear, another person claims the property, the documents do not match, or the seller discourages independent verification, stop and investigate before proceeding.
At Lexforte Attorneys, we help property buyers approach transactions with the legal caution they deserve. From title investigation and document review to identifying ownership, acquisition and transaction risks, proper legal advice can help you identify problems before they become expensive disputes.
Before you buy property in Lagos, do not ask only whether you can afford it. Ask whether you can safely own it.