Paying a deposit without proper due diligence remains one of the most expensive mistakes buyers make in 2026.
Many lose millions because they rush to “secure” a property with a deposit before verifying critical details.
Here is the updated 6-checklist used by top real estate lawyers and experienced investors to protect clients before any money changes hands.
1. Comprehensive Title Search & Verification
- Conduct an official search at the state Land Registry (not just the seller’s word).
- In Lagos (from March 2026): Mandatory blockchain title verification certificate.
- Cost: ₦7,500 – ₦25,000 (Lagos blockchain) + ₦5,000 – ₦15,000 (standard search).
- Red flag: Seller refuses or delays providing a recent search report, or the report shows encumbrances, multiple claims, or pending litigation.
2. Physical Site Verification & Boundary Confirmation
- Visit the land/property at least twice (different times of day).
- Hire an independent surveyor to confirm boundaries match the survey plan.
- Cost: ₦150,000 – ₦400,000 for professional survey.
- Red flag: Boundaries don’t match the plan, flooding risk during rain, or access road is poor/unmaintained.
3. Developer / Seller Credibility Check
- Ask for names and contacts of previous completed projects.
- Verify track record through past buyers or online reviews.
- Check if the company is registered with CAC and has no major court cases.
- Red flag: No verifiable past projects or reluctance to share buyer references.
4. Clear Payment Structure & Milestone Agreement
- Get a detailed payment schedule in the agreement (deposit, stage payments, final payment).
- Tie payments to verifiable milestones (title search, consent, foundation, roofing, etc.).
- Red flag: Vague payment plan or pressure to pay large sums upfront before milestones are met.
5. Full Disclosure of All Hidden Fees & Future Charges
- Ask for a complete breakdown: development levy, estate management fees, LUC, ground rent, infrastructure charges, etc.
- Get written confirmation that no additional unexpected fees will be introduced.
- Red flag: “We’ll sort it later” or sudden extra charges after deposit is paid.
6. Clear Exit Clauses & Refund Conditions
- Especially critical for off-plan purchases.
- Include specific completion dates with penalties for delays and clear refund terms if the project is cancelled or significantly delayed.
- Red flag: No exit clause or refund only “after reasonable time” with no interest or penalty on the developer.
Pro Tips for 2026
- Never pay any deposit without your own independent lawyer reviewing the agreement.
- Use escrow for all payments until key milestones are completed.
- Budget extra 15–25% for due diligence and legal fees — it is money well spent.
- For off-plan: Include performance bonds or bank guarantees where possible.
Final Thoughts
In 2026, the property market still offers good opportunities, but due diligence is non-negotiable.
Spending a few extra days and ₦300k–₦800k on proper checks can save you tens of millions and years of legal battles.
Treat every deposit as a serious commitment — verify first, pay later.
Which of these 6 checks do you consider most important, or have you learned a hard lesson from skipping one? Share your experience below!
Disclaimer: This information is for general purposes only and not legal advice. Consult a qualified real estate lawyer for guidance.
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