I must confess that there are no hard-and-fast rules on how to identify a fake real estate agent; neither will a fake agent put it on his signboard that he is fake. But, watch out for the following common signs that will warn you if the person you are dealing with is probably fake or a dupe:
8 Signs of a Fake Real Estate Agent
- No fixed address: A fake estate agent will probably not have a fixed address to easily escape in times of trouble. Confirm if he indeed has an office or is “just managing” with another person in an office. Confirm if he is well-known in that office. When he least expects and without advance notice, please visit his office and ask of him.
- If he has an office, check out the facilities and equipment in the office and whether they are worth the amount you want to pay as rent. Be sure it is not the type of office that can be readily abandoned or evacuated easily. If what he has in his office is just a chair and table, be cautious. Try to confirm also if he has just rented the office, or if he has been using it before, and for how long?
- Be careful where the agent has no receipt, letterhead, business card, or any other official document indicating that he indeed is an estate agent or which does not link him with his office address. This is an indication to you that he is either fake, a dupe or he just came into the practice of agency by chance and can dump it at any time. And, without these documents, you cannot pin anything on him as evidence.
- Where you get to his office or house and find strangers making noise, fomenting trouble, and demanding a refund of their money, be careful or you too will be the next victim to make such noise.
- If he is putting unnecessary pressure on you to “pay quickly because somebody else wants to pay tomorrow”, watch it. Aside from the fact that he wants to patronize you, be careful when all his focus and strategy is how to quickly obtain money from you. The rule here is DO NOT BE RUSHED INTO PAYMENT.
- If you ask him simple questions as regards the property and he is not able to give you straight or satisfactory answers, or asks you to wait for some other person to come, then watch it.
- If he cannot take you for an unrestrained and full inspection of the apartment, then he probably does not have any authority on the property. Some of these agents will take you to the property and ask you to look at it from the street or through the windows or keyholes, or tell you the landlord does not want unnecessary publicity. Watch out.
- If you ask him for the keys to the apartment and he keeps giving you various flimsy excuses like, ‘somebody took it out; ‘it is with my secretary’, ‘renovation or repair works are being carried out and the key is with the workers’, etc., then you have to be careful as he probably does not have the keys.
These are only a few indicators that can put you on the alert when dealing with an unknown agent who may probably be fake or a dupe. When you apply all these criteria and he cannot score 60% and above, then you need to watch your steps.
READ MORE: Know Your Rights as a Tenant in Nigeria
Government Agencies That Helps Vet Real Estate Agents
Furthermore, some governments have in recent times been taking some proactive steps to reduce, if not eliminate, the activities of fake agents. For example, in November 2012, the Lagos State government established a body whose sole responsibility was to regulate agency practice. This body is known as the Lagos State Real Estate Transaction Agency Department (LASRETRAD), and its obligated to restore sanity to the sector, given the numerous atrocities committed by many individuals. The Agency is in the Ministry of Housing, under the superintendence of the Special Adviser on Housing, and it keeps a register of estate agents in Lagos.
To become a registered agent, the individual must comply with all the rules about identification, professionalism, and regulations before he can be registered, just in form of accreditation. So, when next you need an accredited estate agent in Lagos, you may visit their office and obtain the information. Their contact address is:
LASTRETRAD
2A, Adekunle Banjo Avenue,
Magodo Estate, Magodo Shangisha,
Lagos.
Telephone numbers: 01-8448145, 08033067946.
You may obtain more information about this organization on their website, www.lastretrad.com.
Some individuals have also come together to register some associations for estate agents. Their purpose is to also regulate the activities of their members and to reduce fraud and quackery. If you need an estate agent, you may check out some of them for information about their members. Check the Association of Estate Agents in Nigeria; or Estate Rent And Commission Agents Association of Nigeria. However, the bottom line is for you to make discreet and detailed investigations about any agent you wish to transact with before committing your hard-earned money to him.
READ MORE: Know Your Rights as a Tenant in Nigeria