land banking scams: 5 ways to avoid scheme in Nigeria

September 9, 2022by REDOC

Acquiring land for sale is a significant decision that must be carefully considered. Because there are plenty of things to consider in order to avoid land banking scams.

Land banking is one of the best investment strategies with little risk. But you need to be careful of falling victim to the wrong people personifying land companies. Just to scam them of their hard-earned money.

In this article, I list 5 ways to avoid land banking scams

Seek registered land companies to avoid Land scams

In purchasing land and in order to avoid land banking scams, it is advisable you look for an expert who has the expertise and rich experience in the land banking sector. There are different land companies in Lagos and across Nigeria. Make sure you carry out your own personal research to affirm the credibility of the company you are purchasing from.

Confirm the necessary documents of the land to avoid scams

It is very important you scan every document necessary before going ahead to make payment, in order to avoid land banking scams. There are different ways fake land scammers adopt to scam potential buyers of their money: for example, buying and telling the buyer that excision is coming out next month. This is a lie because every Excision that has come out is at the mercy of the Governor.

So, it is advisable to know about the entire required document before going ahead to making payment for the land. You can read more on land documents in Nigeria here.

Read also: Improve your finance through land banking

Avoid paying with cash

To avoid land banking scams, you should be careful through the process of land purchase if the land owner or agent demands cash. As opposed to paying at a bank, you should insist on writing a check or paying at the bank. Because doing so won’t leave you high and dry if something goes wrong with the transaction. This  is because when paying in cash, the money is not traceable

Neglect unwanted offers

Some offers are just too sweet to be true. You need to be wary of unsolicited offers that often sound too enticing to pass up. Consider the offer carefully, in order to avoid land banking scams.

A typical land banking scams involve the scammer buying a field on the edge of a village and subdividing it into “building plots” which are sold off at prices way below that market rate for genuine building plots, typically just a few hundred thousand. The lure is that they say the land is likely to be zoned for development and that, when this happens, there will be a huge increase in value. The practice has been around for many years but, despite widespread publicity and media exposure, it hasn’t died out and innocent people still fall victim to them.

Investigate and go for land inspection

You need to do your personal investigation and make sure to go for the land inspection. One of the big taboos of land banking is not going for land inspection. You need to survey the land property to know the environment and if there is a likely possibility for development in the area in the coming future.

How do you spot land banking scams?

Many of them don’t advertise, but rely on phone calls and high-pressure sales tactics; often emphasizing the need for quick action.

Many people caught by property scammers have no intention of building a house but are simply attracted by the prospect of easy money. But would-be self-builders are also at risk, with some being driven to buy land bank projects.

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