To eliminate fraud in the real estate sector, experts have urged government at all levels to mandate the use of a legal arrangement, otherwise known as escrow services, in closing real estate transactions.

Speaking at the inaugural Trustcrow Deals Summit in Lagos, Director of Trustcrow, Joe Orji, stressed that if government could mandate the involvement of escrow for deals, 80 to 90 per cent fraud in the industry would be eliminated.

Orji, who said this was the practice in many parts of the world, explained that in closing real estate transactions, one must use an intermediary.

He said: “Over the years, property fraud and substandard escrow services have plagued the market, hindering foreign investment buyers of millions annually. The current structure for real estate transactions is disorganised and confusing. There is a lack of clarity and fraud in the system.

“Our platform brings organisation and efficiency while facilitating transactions between buyers, brokers and sellers in the sector in a transparent, efficient and secure manner. Our role is to eliminate fraud by providing a secure environment for closing real estate deals.

“We have built the needed infrastructure to conduct real estate transactions seamlessly.

Ours is a platform that connects developers with ready-to-purchase property buyers. It also expands its network of brokers and investors. We operate a modern escrow process driven by technology. It is faster and more convenient.

“Brokers gain access to viable properties from seasoned developers and build networks with industry leaders to enhance portfolios. Investors discover lucrative property investment opportunities and connect with key players to grow their assets under management. Lawyers network and meet potential clients, facilitating smooth transactions for qualified buyers and sellers.

“Brokers benefit from prompt and secure fee disbursements. Trustcrow bridges the trust deficit, shielding all involved parties in property dealings and instilling unwavering confidence. With this process, real estate transactions will become synonymous with safety and certainty.”

Orji also noted that the real estate industry accounts for six per cent of the Nigerian Gross Domestic Product, saying it generates about 25 billion dollars annually.

He said: “It is important that we improve the real estate landscape, and foster trust. We should be aware of how large Nigerians in the diaspora are and the role they play investing in properties. So, if we can create a better real estate environment, it will foster more trust and investment in property both locally and internationally, which will boost the Nigerian economy.”

Also speaking on partnership with Trustcrow, Director of Sales at Fountain Havens, Ruona Oghuvbu, said: “The partnership has been very impactful, especially for Nigerians in the diaspora, who have had ugly experiences trying to buy or build in the country.

“With these partnerships, we have had more clients in the diaspora because now they can trust us. Not because we tell them to trust us, but because there is an intermediary that ensures that whatever funds that they bring in is safe. If we don’t do what we say we will do, the funds don’t come to us, it goes back to them. Now, we are having an increased interest from Nigerians in the diaspora, especially those that are not here to come to site.”

Highlighting some of the challenges in the sector, Oghuvbu said: “Why the cost of construction has skyrocketed due to inflation and monetary policy, the source of income for our purchasers has remained; hence the price of houses has remained constant. If increased, you won’t get people to buy. The other challenge we have is land and title, it is a tough environment.

“However, we are leveraging several technologies. We use social media for marketing purposes, and we use CRM for customer data and information. We are making our building more sustainable with renewable energy. To make our building efficient and reduce energy consumption, we are introducing solar systems and energy-saving appliances.”

Meanwhile, Temitope Orji a buyer, said: “In Nigeria, you hear a lot of negative reviews about transacting within the real estate industry and not getting the documentation that you need right after you have paid your money.

“Because the real estate sector in Nigeria is so massive, anything that can be done to help streamline the industry, bring transparency to transactions within the sector is a welcome development.”

REAL ESTATE: Experts proffer solution to tackling industry fraud

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