Buying property in Nigeria is a significant financial decision. Your savings, family legacy, or long-term investment may be at risk. Each year, buyers lose millions of naira by neglecting essential property due diligence. Avoiding this mistake is crucial.
In a market where documents may be forged, ownership may be disputed, and agents may prioritise commissions, due diligence is essential. It distinguishes legitimate ownership from potential legal complications.
This article outlines seven costly mistakes buyers make when purchasing property in Nigeria and explains how timely, professional due diligence can help you avoid them.
Buying From Someone Who Isn’t the Legal Owner
A common issue in Nigerian real estate is purchasing property from someone without the legal authority to sell it.
This could be:
- A family member is selling communal land without the community’s consent.
- An agent posing as a representative
- A developer without perfected ownership documents
Without verifying ownership, buyers often discover issues only when disputes arise.
How Due Diligence Helps:
HIDD verifies property ownership through land registry records and supporting documents, confirming the seller’s legal right to transfer ownership and protecting you from fraudulent sales and financial loss.
HIDD verifies property ownership through land registry records and supporting documents, confirming the seller’s legal right to transfer ownership and protecting you from fraudulent sales and financial loss.
Trusting Documents Because They “Look Official”
A stamped document does not guarantee validity. Forged Certificates of Occupancy, fake survey plans, and altered deeds are standard. Many buyers mistakenly believe that documents with seals, signatures, or letterheads are genuine. However, appearance does not guarantee authenticity.
How Due Diligence Helps:
Professional due diligence confirms document authenticity and enforceability through registry cross-checks, legal reviews, and authentication, providing buyers with peace of mind and legal protection.
Professional due diligence confirms document authenticity and enforceability through registry cross-checks, legal reviews, and authentication, providing buyers with peace of mind and legal protection.
Ignoring Government Acquisition and Zoning Issues
Some properties are located on government-acquired land or are designated for non-residential use. Buyers often discover this only after payment, when approvals are denied, or demolition notices are issued. This frequently occurs in rapidly growing areas of Lagos and other cities.
How Due Diligence Helps:
HIDD reviews zoning status, acquisition history, and land-use approvals before you commit, helping you avoid restricted or government-acquired properties and preventing future disputes or penalties.
HIDD reviews zoning status, acquisition history, and land-use approvals before you commit, helping you avoid restricted or government-acquired properties and preventing future disputes or penalties.
Buying Land With Hidden Disputes
Hidden disputes can affect property ownership long after purchase. Resolving disputes after purchase can lead to prolonged stress and significant legal expenses.
How Due Diligence Helps:
Independent checks reveal existing claims, litigation history, and third-party interests that could threaten your ownership, helping you avoid disputed properties and legal complications.
Independent checks reveal existing claims, litigation history, and third-party interests that could threaten your ownership, helping you avoid disputed properties and legal complications.
Overpaying Due to Inflated Prices
In Nigeria, the asking price is often influenced by:
- Emotional pricing
- Agent commissions
- Assumed future value
Without timely market verification, buyers often overpay, sometimes by millions. Delaying verification increases this risk.
How Due Diligence Helps:
Due diligence, combined with property valuation, ensures the price reflects market conditions, protecting you from overpaying and supporting financial decisions.
Due diligence, combined with property valuation, ensures the price reflects market conditions, protecting you from overpaying and supporting financial decisions.
Relying Solely on Agents
Many agents are diligent, but their primary objective is to close deals quickly. Relying solely on agents exposes buyers to unnecessary risk without independent verification. HIDD operates independently. Our role is to protect your interests by providing unbiased verification and safeguarding your investment beyond what agents can offer.
Skipping Due Diligence Due to Urgency
“Someone else is interested.”
“The price will increase tomorrow.”
“This offer won’t last.”
“The price will increase tomorrow.”
“This offer won’t last.”
Pressure tactics like these can lead buyers to make rushed, risky decisions. Do not let urgency cloud your judgment.
How Due Diligence Helps:
Due diligence provides clarity and control, enabling you to act confidently rather than emotionally.
Due diligence provides clarity and control, enabling you to act confidently rather than emotionally.
Why Due Diligence Is Non-Negotiable
Property due diligence is not about mistrust. It involves comprehensive verification to safeguard your investment, protect your rights, and ensure peace of mind throughout the purchase process.
It protects:
- First-time buyers
- Diaspora investors
- Developers
- Institutional investors
