OPINION: How To Avoid Falling Victim To Fake Real Estate Agents In Lagos

With an estimated population of 23 million and more than 500,000 people migrating into Lagos annually, the state’s housing shortfall remains a major challenge. Of Nigeria’s estimated 28 million housing deficit as of 2023, Lagos alone accounts for about 17 million.

The deficit could worsen without aggressive efforts by both the government and private sector to deliver more affordable housing for the growing population. According to the Global Cities Institute at the University of Toronto, Lagos is projected to hit a population of 32.6 million by 2050, making it the world’s sixth-largest city.

This widening housing gap has created room for unscrupulous real estate agents to exploit desperate accommodation seekers.

On Wednesday, the Lagos State Real Estate Regulatory Authority (LASRERA) sealed the office of an unregistered agent in the Ikorodu area of the state.

The operation, carried out in collaboration with officers of the Lagos State Task Force, led to the closure of the office of an agent operating under the name Demeny Ventures, who allegedly posed as a registered LASRERA agent using a fake registration number.

Speaking on the exercise in a statement, the Special Adviser to the Governor on Housing, Barakat Odunuga-Bakare, said the clampdown was part of the state government’s ongoing efforts to sanitise the real estate sector, protect residents from fraudulent practices, and restore public confidence in property transactions.

She stressed that only practitioners duly registered and certified by LASRERA are permitted to operate in the state, warning that individuals and organisations involved in unlicensed real estate activities would continue to face strict enforcement actions.

The enforcement drive comes amid growing complaints from residents who have fallen victim to fake real estate agents and dubious property developers.

“Reports indicate that fraudulent practitioners often collect money from multiple tenants for the same property or sell non-existent plots of land to unsuspecting buyers,” Odunuga-Bakare was quoted in the statement.

To avoid falling victim to fake real estate agents in Lagos, here are some things we suggest you should know before engaging in any property transaction:

1. All real estate agents are required to register with the Lagos State Real Estate Regulatory Authority (LASRERA).
2. It is an offence to operate as a real estate agent in Lagos without registration with LASRERA.
3. Before engaging in any real estate transaction, verify the status of the agent you intend to deal with. Doing so will help you confirm whether the person is genuine or not.
4. Patronise only agents who are officially registered with LASRERA.
5. Report any suspicious agent to LASRERA’s dedicated hotlines to help curb fraudulent practices and promote transparency in the real estate sector.

In 2021, Lagos State enacted the Lagos State Real Estate Regulatory Authority Law, 2021, to regulate real estate transactions, oversee the activities of registered real estate professionals, and provide a framework for resolving disputes within the sector.

Signed into law on February 7, 2022, the legislation established LASRERA, which is responsible for administering the law, regulating real estate transactions, and settling disputes arising from such dealings.

The law also sets out the requirements for obtaining and operating real estate licences.