Lagos reads riot act to estate agents over illegal fees

The Lagos State Government has read a riot act to the real estate agents over the arbitrary charges on housing property in the state.

This is coming after the state government reaffirmed its commitment to implementing monthly, quarterly, and yearly rent payments, limited to a maximum of one year.

State's Commissioner for Housing, Moruf Akinderu-Fatai, who issued the warning during a recent exploratory meeting with executives of the Estate, Rent and Commission Agents Association of Nigeria, described the unauthorised charges and fees as illegal.

Akinderu-Fatai explained that the state government is worried about the public concerns regarding the persistent and alarming increases in rent, as well as the imposition of unwarranted fees.

The commissioner added that the unethical practices among estate agents, which had led to a rise in rent defaults in violation of the Lagos State Real Estate Transaction Law.

According to him, the existing law recognised the roles of the estate agents and specified a percentage of chargeable fees of not more than 10 per cent on real estate transactions

"The State government was actively engaging with stakeholders to ensure a smooth transition for the benefit of those seeking accommodation.

"We had advised professionals and trade groups within the real estate sector to address these sharp practices and efforts qre currently being carried out to ensure that the practitioners adhere to the provisions of the law.

Akinderu-Fatai, however, asked the estate agents and related bodies to actively denounce unqualified individuals who advise property owners to inflate rents arbitrarily and introduce fees not recognised by the state’s real estate transaction law.

The commissioner affirmed the government’s readiness to collaborate with all stakeholders to advance the rent payment structure.

According to him, this structure will halt the indiscriminate practices, make rent affordable, guarantee the interest of property owners, and ensure consistent rent payments by tenants.