Buying off-plan property in Nigeria: how it works and how to protect yourself
The 3D renders look like Dubai. The price is lower than finished homes nearby. And you can pay in instalments. That is the off-plan pitch, and it is everywhere in Lagos, Abuja and fast growing cities. Buying off-plan property in Nigeria can be a smart move. It can also be the start of a long story you tell with pain. Here is how it works, why projects fail, and what to put in place before you pay.
How off-plan buying works
Off-plan means you buy a home before it is built, or while it is still being built. The developer sells early to raise money for construction, and in return, early buyers usually get a lower price than buyers who come at completion.
You sign a contract of sale, pay an initial deposit, then pay the rest in instalments over the build period. At completion, you get the keys and, later, your title documents, often a deed of assignment under the developer's title, followed by consent or a sectional title depending on the project and state.
Why some developers fail
Most failures are not dramatic scams. They are slow money problems. The developer sells units, uses buyer money to build, prices of cement and iron rods jump, and suddenly the money is not enough. Work slows. Then it stops. Buyers wait.
Other causes: no proper building approval, so the government stops the site. Title problems with the land itself. Poor contractors. Developers who start a new project with money from the old one. And yes, sometimes the developer was never planning to finish.
Check the developer before the renders
Ask for the developer's company registration with the Corporate Affairs Commission and confirm it on the CAC portal. Ask what they have finished before, and go and see those projects with your own eyes. Talk to people living there. Did they get their keys on time? Did they get their documents?
In Lagos, you can also check if the developer is registered with the state real estate regulator, LASRERA. Other states are setting up similar bodies. A developer with nothing completed and nothing registered is asking you to fund their first experiment.
Check the land and the approvals
Ask who owns the land the project sits on. Is it the developer, or a landowner in a joint venture with the developer? Ask for the title document, then let your own lawyer run a search. Ask for the building approval for this specific project, not a different one. Visit the site. If it is still bush and the renders show twelve floors, ask how and when.
Put protection into the contract
Your contract is your armour. Have your own lawyer review it, not the developer's lawyer. Look for these things.
A clear description of your unit, its size and its specifications, including finishing. A completion date, and what happens if it is missed: compensation, a right to a refund, or a right to exit. A payment schedule tied to construction milestones, not just to calendar dates, so your money follows real progress. What happens to your money if the project is cancelled. When and how you will receive title documents. Any extra fees at handover, such as infrastructure or service charges, stated upfront.
Watch out for clauses that let the developer change the price, the size or the design without your consent. And watch out for 'price review' clauses that keep the door open for surprise increases.
Pay carefully, and keep watching
Pay only into the developer's company account, never a staff member's personal account, and confirm that the account name matches the company you checked. Collect receipts for every payment. Visit the site regularly or have someone visit for you, and ask for progress updates with dated photos.
If progress slows, ask questions early, in writing. Buyers who organise together get answers faster than buyers who wait alone. No be small thing to watch your money turn into blocks, but it is far better than watching it turn into excuses.
Off-plan is not good or bad on its own. A strong developer with clean land and a fair contract can deliver a great home at a good price. A weak one cannot, no matter how pretty the renders.
If you would rather buy finished or nearly finished homes with checked documents, you can browse listings on Xavorian, where every lister passes identity, bank-name and document checks before going live.