Acquiring a Property in Nigeria: How to Identify a Fraudulent Set-up (i)

MAYOWA’S MUSINGS

Mayowa Akinsola

( Estate Management Graduate & Chartered Accountant)

The choice of an estate agent has a serious part to play in what you finally come up with as a house. Ordinarily, if you have a bad teacher you shouldn’t really expect to pass with distinctions; in the same way if you have chosen a bad agent you end up with a disaster most times.

The worst part of this situation is falling into the hands of obvious frauds, parading themselves as estate agents. In many cases, the interested purchaser is unable to see it before it happens. There are some tell tale signs all around fraudulent estate agents that you would almost always spot the difference. Sometimes it is not outright fraud but a problem that borders on professional misconduct or mistake. If you are dealing with the wrong sort of agent you cannot get any remedy but with some other estate firms you get prompt solutions. It is therefore necessary to straighten the records regarding the various classes of estate agents, firms and companies. This would help a lot of people who act out of ignorance to make an informed choice. At this level, if you choose the right representative in your property transaction, it is likely that your overall experience and choice of a house or property would be good and balanced.

Choosing the wrong agent could have a ripple effect on everything else you do whether inspecting the house or negotiating price or finding out facts that guide your decision. Note that estate agents are salesmen and some may be skillful at talking and persuasion.

Over the years fraud has become an albatross in Nigeria. Although, fraudsters exist in virtually every country the world over, perhaps their activities are less brazen than in Nigeria due to effective law enforcement and technology. The relative ineffectiveness of these in Nigeria allows fraudsters to have a field day in virtually every area of economic activities. It is therefore left to each individual or organization to remain on guard as much as possible. Watch these general traits of Nigerian fraudsters:

-They usually belong to a syndicate.

-The average fraudster will hinge his activities on an attractive industry for example, mining, export,           contracts or real estate.

-His goal is to talk you into a business deal/transaction that will goad you into parting with part of the funds or the whole or an advance fee for linking you with the benefits(s) of that business.

-He will approach you unsolicited through a telephone call or email or fax or other means of data transmission. He will usually refer to an occasion or ceremony or conference where you both had met in the past (which of course you won’t remember because you never met!!

-The fraudster would have attempted to find out some information about you which he will try and present unobtrusively.

-One clear feeling you get is this “who is this stranger?”

-The fraudster knows this and so makes every effort to put you at ease by being overly friendly.

-Then he betrays his desperation to getting your interest by pressing to get a commitment.

-He acts on your greed/ and or desperation. Either one will suffice.

-If he can get you on account of promised huge profits, you will part with money.

-If he can capitalize on your desperation to get something (profits), then he has you.

In property, the fraudster will count on showing you an attractive house or piece of land which of course is not for sale. Since the intending buyer does not know this he agrees a price which is attractive and below actual market worth and finds a convincing way to present false documents and receive payment. Once this is consummated he disappears.

Proper documentation is at its lowest in the current Nigerian property market and this allows fraudsters a lot of latitude.

It is good to insist on your checks, title, the professional competence of those involved, ensuring that that they are registered with at least one professional body(most professional bodies in Nigeria have government registration and fiat establishing them and keep a register in their various offices open to public enquiries. Apart from this, certificates are issued for membership and they can easily be checked where necessary.) etc. before parting with money, even at the risk of “losing” the property to someone else who is said to want to pay tomorrow. Most times it is an attempt to introduce pressure and abort the normal checks. These things are particularly easy to perpetrate with land belonging to native families who have no registered documentation and who use fraudsters to sell the same land to many as six to ten buyers.