Lagos State to Enforce 10% Fees for Real Estate Agents, Urges Landlords to Consider Quarterly Rents

• After Enugu state, another state government has finally taken action on the indiscriminate fees charged by real estate agents
• Lagos state government stressed that it will no longer tolerate real estate agents charging more than what the law states
• The government has also unveiled plans to accelerate the implementation of a monthly and quarterly rent payment system

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

As part of moves to regulate real estate in Lagos state, the state government has announced that it will enforce a cap compliance to the law among players in the real estate sector.

There have been repeated complaints on social media about unfair practices among real estate agents and property owners in Lagos State.

Some of the issues raised in such complaints include ridiculously high agent fees, demand for more than one-year rent, indiscriminate increase of house rent, among others.

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The Lagos state government has thus stated its commitment to resolve the issues, starting with the implementation of monthly, quarterly and yearly payment or not more than one year's rent.

The Commissioner for Housing in Lagos State, Hon. Moruf Akinderu-Fatai and the Special Adviser to the Governor of Lagos State on Housing, Barrister Barakat Odunuga-Bakare, made this announcement on Wednesday during an exploratory meeting with executives of Estate, Rent and Commission Agents Association of Nigeria (ERCAN).

The commissioner stated that the government has been concerned with the reports of unwholesome practices among real estate agents in the state.

They urged the group to propagate the adoption of monthly and quarterly rent, noting that the law does not permit more than one year's rent payment.

The Commissioner added that the government is willing to partner with the stakeholders and guarantee the continuity of regular payment of rents, if they adopt the monthly and quarterly option.

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Lagos state government condemns indiscriminate rental fees

Honorable Akinderu-Fatai noted that the meeting was part of the ongoing strategic stakeholders’ engagement on rent and indiscriminate fees as charged by agents in Lagos State.

He called on the real estate agents and other players in the sector to be sensitive to the public outcry over indiscriminate rent increments, and abide by the laws.

Akinderu-Fatai added that adding unnecessary fees during rental, or increasing the rents arbitrarily, are contrary to the real estate laws of Lagos state.

Lagos State Government has reiterated its commitment to the implementation of monthly, quarterly and yearly rent of not more than a year's payment and has been engaging all relevant stakeholders for the smooth take off of the system for the benefit of rent seekers.

Lagos state government to enforce 10% real estate fees

Speaking on the matter of fees attached to rentals, Akinderu-Fatai noted that the real estate agents are only entitled to 10% fees.

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He said;

“The existing law recognizes your role and specified percentage of chargeable fees of not more than 10% on real estate transactions’’.

Recall that the Enugu State House of Assembly similarly took action to enforce the 10% fees attached to real estate transactions.

He also cautioned against other players in the sector arbitrarily creating fees and increasing rent as they pleased.

The ERCAN President, Mr. Godwin Aleke, stated in his remarks that the group is ready to work with the state government to sanitise the real estate sector in Lagos.

Enugu State caps agent fees at 10%

In related news, the Enugu State House of Assembly has finally provided legal framework for real estate dealings in the state.

The bill titled ‘Bill for a Law to Amend the Landlord and Tenant Law Cap 101 of Enugu State 2024’ has scaled through the first reading, and was sponsored by Honorable Okey Mbah, the representative of Nkanu East constituency.

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Among other things, the bill recommends stiff penalties of up to six months imprisonment or heavy monetary fines for landlords and property developers who default.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng