Paying a deposit without proper verification remains one of the costliest mistakes buyers continue to make in Nigeria’s real estate market in 2026. Many lose millions — sometimes their entire life savings — due to title fraud, developer defaults, or poorly structured agreements.
Here is the updated 7-step checklist used by experienced investors and top real estate lawyers in Lagos, Abuja, Ogun, and other major cities before any money changes hands.
1. Verify the Title Document Thoroughly
- Demand the original Certificate of Occupancy (C of O), Governor’s Consent, or registered Deed of Assignment.
- Conduct a proper search at the Lands Registry (Lagos, Ogun, or FCTA).
- Current cost: ₦15,000 – ₦35,000 per search (depending on state and depth).
- Red Flag: Seller only has a “receipt” or “allocation letter” with no registered title.
2. Confirm Developer or Seller Credibility
- Check company registration (CAC search) and track record of previous projects.
- Speak with buyers from at least 2–3 completed projects by the same developer.
- Verify if the company has any pending court cases related to land or property.
- Red Flag: Developer has multiple stalled projects or frequent name changes.
3. Review the Payment Structure and Agreement
- Never pay more than 10–20% as initial deposit without full agreement.
- Ensure the agreement clearly states milestones, completion timeline, and penalties for delay.
- All payments should be tied to verifiable stages (foundation, roofing, finishing, etc.).
- Red Flag: Vague timelines or “trust us” verbal promises.
4. Insist on Escrow or Trusted Third-Party Account
- Use a reputable escrow service or a lawyer’s client account for the deposit.
- Never pay directly into the developer’s personal or company account for large sums.
- Current escrow fee: Usually 1–2% of the transaction value (shared or paid by buyer).
- Red Flag: Seller insists on direct bank transfer with no escrow protection.
5. Conduct Physical Inspection and Site Verification
- Visit the site multiple times (different days and times).
- Confirm the land is not under litigation or encroached.
- Check access roads, drainage, and proximity to promised infrastructure.
- Take dated photos and videos.
- Red Flag: Site looks abandoned or different from marketing materials.
6. Engage a Qualified Real Estate Lawyer
- Never rely only on the developer’s lawyer.
- Hire your own independent lawyer to review all documents.
- Current legal due diligence fee: ₦150,000 – ₦450,000 (depending on property value and complexity).
- Red Flag: Developer discourages you from using your own lawyer.
7. Review Exit Clauses and Refund Terms
- The agreement must clearly state conditions for refund if the project is delayed or cancelled.
- Include force majeure clauses and realistic penalty provisions.
- Confirm what happens in case of title defects discovered later.
- Red Flag: Agreement has no exit clause or “no refund under any circumstance” wording.
Bonus 2026 Tip: Always request a blockchain title verification (now mandatory in some Lagos transactions) and confirm the property is not listed on any government defaulter or blacklist database.
Final Thoughts
In 2026, with rising fraud cases and economic pressures, paying a deposit is no longer a simple transaction — it is a high-stakes decision. Following this 7-step checklist dramatically reduces your risk and protects your hard-earned money.
Remember: A few extra days of verification can save you years of court cases and financial loss.
Never rush into paying a deposit because of “limited units” pressure or “price will increase tomorrow” tactics.
Have you ever lost money due to skipping any of these checks? Or do you have additional tips that have worked for you in 2026? Share your experience in the comments — it could help another buyer.
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