Lagos Advocates Rent Reduction, Declares Caution Fee, Inspection Fee Illegal

Lagos Advocates Rent Reduction, Declares Caution Fee, Inspection Fee Illegal

The Lagos State Government has charged the leadership of the Nigerian Institution of Estate Surveyors and Valuers, Real Estate Developers Association of Nigeria, and Association of Estate Agents in Nigeria to support the drive to reduce the rent burden on Lagosians and shun the prevalent illegal fees in the real estate business.

In a statement by the deputy director, Public Affairs, Ganiu Lawal, the professional bodies were also urged to stem the rate at which agents across the real estate value chain engaged in competition of fees in real estate transactions.

It stated that, “the introduction of illegal fees such as caution fee, inspection fee, finder’s fee, and others represents a professionally harmful practice which affects tenants and puts the integrity of the practitioners and property owners at stake.

“The Nigerian Institution of Estate Surveyors and Valuers, Real Estate Developers Association of Nigeria, and Association of Estate Agents in Nigeria, were invited to a stakeholders meeting jointly chaired by the Commissioner for Housing, Moruf Akinderu-Fatai, and the Special Adviser to the Governor of Lagos State on Housing, Barakat Odunuga-Bakare.

“The session is a continuation of the strategic engagement to curb arbitrary rent charges, demand for high agent fees, and promotion of sanity in the real estate business in Lagos state.

The meeting was held at the Conference Room of the Ministry of Housing, Alausa – Ikeja.”

The state government, through the commissioner and the special adviser, challenged the association to protect the integrity of the real estate business with support for a joint effort of all stakeholders for full enforcement and compliance with the real estate transaction laws of Lagos State.

Akinderu-Fatai said, “the aim of engaging all stakeholders is to strengthen the working relationship between the State Government and the professional bodies for the benefit of Lagosians.

“Lagos State Government is concerned about the challenges faced by families in securing and retaining rental accommodation in the state, with unpleasant rent increments and illegal estate transaction charges.”

The commissioner reiterated the plan of the Lagos State government to encourage and promote monthly and quarterly rent payments in the state in line with the tenancy law.

He said, “the state government is aware of the increase in demand as greater than supply, but the government would no longer tolerate and allow the extortion of accommodation seekers with unwholesome practices.

“I want to assure you that the state government under the leadership of Mr Babajide Sanwo-Olu is compassionate and will leave no stone unturned to ensure sanity in the real estate business in the state.”

The special adviser to the Governor on Housing, Barakat Odunuga-Bakare, stated that there “were existing state laws, such as the 2015 Tenancy Law and the Lagos State Real Estate Regulatory Authority Law, which specify a percentage of chargeable fees of not more than 10 per cent on real estate transactions.’’

Odunuga-Bakare also urged the stakeholders to cooperate with the state government to ease the conditions under which Lagosians secure accommodation.

Speaking at the meeting, the representative of the Nigerian Institution of Estate Surveyors and Valuers, Lagos Branch, Gbenga Ismail; a member of the Real Estate Developers Association of Nigeria, Dr. Kolawole Tony; and a member of the Association of Estate Agent in Nigeria, Dr. Adeniyi Tinubu, jointly expressed their readiness to forge a workable alliance with the state government to solve high rent cost and excessive charges.

They added that , “the professional bodies will also join the state government in promoting advocacy, public enlightenment as well as sensitisation programmes on the best practices in real estate transactions.”

The meeting further resolved to convene another stakeholders’ forum to be attended by representatives of all practitioners in the real estate business, including the Nigerian Bar Association, for a holistic buy-in of every sector for the benefit of Lagosian.