Experts have urged the government to establish a technologically enabled platform where a neutral third party warehouses funds until certain conditions are met in property transactions.
The Chief Executive Officer, Trustcrow, Mr Joe Orji, who gave the charge at a forum entitled: ‘Deal Summit’ in Lagos, argued that if federal and state governments could mandate the involvement of escrow for deals, more than 80 to 90 per cent of fraud cases in the real estate sector would be solved.
He noted that the real estate industry is vibrant and accounts for six per cent of the Nigerian Gross Domestic Product, as well as generates about $25 billion yearly.
According to him, property fraud has plagued the market, hindering foreign investment buyers of millions yearly. He lamented that the current structure for real estate transactions is disorganised and confusing with a lack of clarity and fraud in the system.
He explained that such a platform would bring organisation and efficiency, and facilitate transactions between buyers, brokers and sellers in the sector, as well as improve transparency, and efficiency by eliminating fraud and providing a secure environment for closing real estate deals.
“We should be aware of how large the numbers of Nigerians in the diaspora are and the role they play in investing in property.
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,” Orji said.
On his part, Director of Sales, Fountain Havens, Ruona Oghuvbu, expressed concerns that while the cost of construction has skyrocketed due to inflation and monetary policy, the source of income of purchasers has been static, thus affecting the purchasing power of buyers.
He believes that partnership has been impactful, especially with anti-fraud platforms that guard Nigerians in the diaspora, who have had ugly experiences trying to buy or build in the country.
