Mistakes diaspora make when buying Lagos property

Authored by the expert who managed and guided the team behind the Nigeria Property Pack

Yes, the analysis of Lagos' property market is included in our pack

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Lagos. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The AfricanVestor, we explore the Nigerian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Lagos, Abuja, and Port Harcourt. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Did you verify the seller actually owns the Lagos property through the Lagos State Land Registry?

Most diaspora investors lose their entire investment because they trust sellers' word without verifying ownership through official channels.

The Lagos State Land Registry holds the definitive record of property ownership in Lagos State. You must request a certified true copy of the land title, such as Certificate of Occupancy (C of O), Deed of Assignment, or registered Gazette from the seller. Then cross-check these documents with the registry for authenticity and any encumbrances or pending legal issues.

Never accept photocopies or documents that cannot be verified. Fraudsters often use fake or altered certificates to deceive overseas buyers. The registry search will reveal the true owner, any existing mortgages, liens, or legal disputes attached to the property. This verification step alone prevents 70% of property fraud cases targeting diaspora investors.

As of September 2025, the Lagos State government has digitized much of the registry system, making verification faster but still requiring professional assistance. Always work with a licensed property lawyer who can navigate the registry system and interpret legal documents correctly.

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Have you checked if the property is free from existing debts, mortgages, or family disputes?

Property encumbrances can transfer to new owners, making you responsible for previous owners' debts or family inheritance disputes.

A comprehensive land title search through the Lagos State Land Registry will reveal any existing loans, mortgages, liens, or family disputes attached to the property. The registry shows if the title is pending litigation, subject to a mortgage, or if there's a legal "caveat" lodged against it by family members or creditors.

Family land disputes are particularly common in Lagos, where multiple relatives may claim ownership of inherited property. Some properties remain in court for decades while unsuspecting buyers lose their investments. Bank mortgages and developer loans can also transfer to new owners if not properly discharged before sale.

Never pay any money until all debts and encumbrances have been fully discharged and you have written proof from the registry or your lawyer. Require the seller to provide debt clearance certificates from all financial institutions and resolve any family disputes through proper legal channels before completing the transaction.

Are you using an independent property lawyer in Lagos instead of relying on the seller's recommendations?

Using the seller's recommended lawyer creates a conflict of interest that often results in inadequate due diligence and fraudulent transactions.

You must hire your own independent, reputable property lawyer in Lagos who specializes in real estate transactions. This lawyer should be licensed by the Nigerian Bar Association and have extensive experience with Lagos property law. They will perform all legal checks, handle registry searches, verify documentation, and protect your interests throughout the transaction.

Your independent lawyer will review all contracts, verify the seller's legal capacity to sell, ensure proper stamp duty payments, and handle the registration process with government agencies. They also coordinate with banks for mortgage arrangements if needed and ensure all payments follow legal procedures.

The cost of hiring an independent lawyer (typically 5% of the purchase price) is minimal compared to losing your entire investment to fraud. Many diaspora investors try to save money by using the seller's lawyer or handling transactions themselves, which consistently leads to financial losses and legal complications.

Did you verify all government approvals, survey plans, and building permits are valid?

Properties without proper government approvals face demolition risk and cannot be legally occupied or resold.

Request and verify all required documents including planning permits, building approvals, survey plans signed by licensed surveyors, and layout approvals from the Lagos State Ministry of Physical Planning and Urban Development. Don't accept copies provided by the seller—verify these documents directly with the issuing government agencies.

Building permits ensure the structure meets safety standards and zoning requirements. Survey plans must be prepared by licensed surveyors and approved by the Surveyor-General's office. Development permits confirm the property complies with the Lagos State Regional Plan and neighborhood building codes.

Properties built without proper approvals often face demolition orders from the Lagos State government. As of September 2025, the state has demolished thousands of illegal structures, including expensive residential developments that lacked proper permits. Verification with government agencies prevents investing in properties that may be seized or demolished.

Document Type	Issuing Authority	Verification Method
Certificate of Occupancy	Lagos State Land Registry	Registry search and authentication
Survey Plan	Surveyor-General's Office	Official verification with seal
Building Permit	Ministry of Physical Planning	Direct agency confirmation
Development Permit	Lagos State Planning Authority	Planning office verification
Environmental Impact Assessment	Lagos State EPA	Environmental agency confirmation

Have you physically inspected the property location instead of relying on photos?

Thousands of diaspora investors have paid for non-existent properties or discovered their "luxury developments" are empty plots of land.

Always physically visit and inspect the property site with your lawyer or trusted surveyor. Photos can be manipulated or taken at different locations. Video calls can show existing buildings that the seller doesn't actually own. Physical inspection allows you to verify the exact location, confirm property boundaries, assess the neighborhood, and ensure the property actually exists.

During your site visit, bring the survey plan and use GPS coordinates to confirm you're viewing the correct plot. Check that the property matches the description in sales documents. Examine the neighborhood for infrastructure development, accessibility, and security. Take your own photos and videos for future reference.

Many scammers target diaspora investors specifically because they assume overseas buyers won't visit Nigeria for property inspections. Some fraudsters sell the same property to multiple buyers, while others sell government land or properties they don't own. Physical inspection combined with proper documentation review prevents these common scams.

If you cannot personally visit Lagos, hire a trusted representative such as your lawyer or a licensed property professional to conduct the inspection on your behalf and provide detailed reports with verified photos and videos.

Did you check if the area has flood or demolition risks with the Lagos State Planning Authority?

Lagos properties in flood-prone areas or planned demolition zones lose value completely during government enforcement actions.

Contact the Lagos State Planning Authority and Lagos State Environmental Protection Agency to verify if the property location has flooding history or faces demolition risk under urban renewal plans. Lagos experiences annual flooding that affects specific neighborhoods, and the government regularly demolishes structures in flood-prone areas or those violating planning regulations.

Areas like Lekki, Victoria Island, and parts of Ikoyi face recurring flood risks during rainy seasons. Some neighborhoods have been designated for government acquisition or redevelopment, making private ownership uncertain. The Lagoon areas and properties near drainage channels are particularly vulnerable to flooding and government intervention.

Request flood maps and planning documents from relevant agencies. Check if the property is within designated flood plains or scheduled for infrastructure projects that require land acquisition. Properties in these areas may be unsuitable for residential development or face mandatory evacuation during emergencies.

Climate change has increased flooding frequency in Lagos, making this verification more critical. As of September 2025, the Lagos State government has implemented stricter building codes for flood-prone areas and regularly updates risk assessments for different neighborhoods.

Do you know the actual market value to avoid overpaying for the Lagos property?

Diaspora investors typically overpay by 30-50% because they lack local market knowledge and rely on inflated pricing from sellers and agents.

Research comparable sales and current market prices for similar properties in the specific neighborhood using independent sources, local agents, and property databases. Lagos property prices vary significantly by location, with prime areas like Victoria Island, Ikoyi, and Lekki commanding premium prices while emerging areas offer better value.

Consult multiple licensed real estate agents for market valuations. Review recent sales data from the Lagos State Land Registry and property websites. Consider hiring a certified property valuer to provide an independent assessment. Factor in the property's condition, age, location, infrastructure access, and neighborhood development trends.

As of September 2025, luxury apartments in Victoria Island sell for ₦150-300 million, while similar properties in Lekki range from ₦80-200 million. Mainland areas like Ikeja and Surulere offer residential properties from ₦30-100 million. These prices fluctuate based on exact location, property size, and market conditions.

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Are you clear on all additional costs beyond the property purchase price?

Hidden costs can add 15-25% to your total investment, surprising many diaspora buyers who budget only for the property price.

Calculate all additional expenses including legal fees (typically 5% of purchase price), real estate agent commissions (5-10%), Governor's Consent fees (1.5-2% of property value), registration fees, stamp duties (0.5-1%), survey costs, and property valuation fees. These costs are mandatory and cannot be avoided in legitimate transactions.

Governor's Consent is required for all property transfers in Lagos State and costs approximately ₦2-5 million depending on property value. Stamp duty payments to the Federal Inland Revenue Service are calculated based on purchase price. Bank charges for international money transfers and currency conversion also add to total costs.

Property insurance, security deposits, and immediate maintenance costs should be included in your budget. If purchasing off-plan properties, factor in potential cost escalations during construction and completion delays that may require additional payments.

Request a detailed cost breakdown from your lawyer before making any payments. Ensure all fees are clearly documented and receipts are provided for every payment made to government agencies, lawyers, and service providers.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nigeria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Did you confirm your agent or developer is licensed with LASRERA?

Unlicensed agents and developers are responsible for most property fraud cases targeting diaspora investors in Lagos.

Verify that your real estate agent or property developer is properly licensed and registered with the Lagos State Real Estate Regulatory Authority (LASRERA). Request their license number and verify through the official LASRERA register, which is available online and regularly updated.

LASRERA licensing ensures agents meet professional standards, maintain proper insurance, and follow ethical business practices. Licensed agents are accountable for their actions and face regulatory penalties for misconduct. Unlicensed operators often disappear with client funds and provide no legal recourse for fraud victims.

Check the agent's business registration with the Corporate Affairs Commission (CAC) and verify their physical office address in Lagos. Legitimate agencies maintain proper offices and provide clear contact information. Be wary of agents who only communicate through social media or refuse to meet at their registered business address.

As of September 2025, LASRERA has strengthened enforcement against unlicensed operators and maintains a public database of licensed professionals. Always work with licensed agents and report any suspicious activities to LASRERA for investigation.

Have you structured payments to protect yourself from fraud?

Poor payment structures allow scammers to access funds before completing proper documentation and property transfer.

Structure all payments so funds are only released after documents are properly signed, verified, and registered with relevant government agencies. Use escrow accounts or legal stakeholder accounts managed by your independent lawyer to hold funds until all conditions are met.

Never make direct payments to sellers, agents, or developers without proper legal documentation. All payments should be traceable through bank transfers with clear payment purposes. Avoid cash transactions or payments to personal accounts that cannot be verified or traced.

For off-plan purchases, payments should be tied to construction milestones and verified completion of each development phase. Require bank guarantees or insurance for uncompleted projects. Large down payments without adequate security expose you to developer default risk.

Your lawyer should hold payment instructions and release funds only after confirming title transfer, government consent approval, and proper registration at the Lagos State Land Registry. This payment structure protects against fraud while ensuring sellers receive payment upon legitimate completion of all requirements.

Did you verify if the land is government-acquired or subject to acquisition?

Government acquisition of private land is common in Lagos, and buyers can lose their entire investment if they purchase land that the government has already acquired or designated for acquisition.

Check with the Lagos State Land Registry and Ministry of Lands and Housing to verify if the land is government-acquired, under acquisition, or gazetted for public use. Government acquisition means the state has legal rights to the land for public projects, making private ownership invalid regardless of previous titles or payments made.

Some areas in Lagos have been designated for infrastructure projects, airport expansion, or public housing developments. Land in these areas cannot be legally sold to private buyers, even if previous owners held valid certificates of occupancy. The government publishes gazette notices for land acquisition, but many sellers conceal this information from buyers.

Unregistered or "excised" lands are particularly risky as they may lack proper government recognition. Some communities claim ownership of land that was never formally allocated or may have been acquired by government in the past. These ownership disputes can continue for decades while buyers lose their investments.

Your lawyer should verify the land's status through multiple government agencies and review all historical records. Any doubt about government acquisition should prevent you from proceeding with the purchase until the matter is clearly resolved through official channels.

Do you have a written and registered contract that complies with Lagos State property law?

Verbal agreements and unregistered contracts provide no legal protection and cannot be enforced in Nigerian courts.

A written contract of sale is mandatory under Lagos State law and must clearly state all terms, conditions, payment schedules, and responsibilities of both parties. The contract should specify the exact property description, purchase price, payment terms, completion deadlines, and remedies for breach of contract.

All contracts must be registered at the Lagos State Land Registry and stamped by the Federal Inland Revenue Service to be legally valid. Registration provides official record of the transaction and legal proof of your rights and obligations. Unregistered contracts cannot be used as evidence in legal disputes.

The contract should include warranties from the seller regarding clear title, freedom from encumbrances, and legal capacity to sell. Include clauses for title insurance, property inspection rights, and remedies if the seller cannot deliver clear title. Specify exactly what happens if either party defaults on their obligations.

Your independent lawyer should draft or review all contracts to ensure compliance with Lagos State property law and protection of your interests. Never sign contracts prepared solely by the seller's representatives without independent legal review and advice.

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Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Lagos State Real Estate Regulatory Authority (LASRERA)
2. Lagos State Ministry of Physical Planning and Urban Development
3. Lagos State Land Registry Portal
4. Lagos State Environmental Protection Agency
5. Federal Inland Revenue Service Nigeria
6. Corporate Affairs Commission Nigeria
7. Lagos State Surveyor-General's Office
8. Lagos State Ministry of Lands and Housing