*Warns Agents Against Unethical Practices And Excessive Fees
The Lagos State Government has reaffirmed its commitment to implementing monthly, quarterly, and yearly rent payments, limited to a maximum of one year.
Mr. Moruf Akinderu-Fatai, Commissioner for Housing, revealed this in a statement he jointly signed with Mr. Barakat Odunuga-Bakare, Special Adviser to the Governor on Housing, on Wednesday.
Akinderu-Fatai spoke during a recent exploratory meeting with executives of the Estate, Rent and Commission Agents Association of Nigeria (ERCAN).
He said that the government was actively engaging with stakeholders to ensure a smooth transition for the benefit of those seeking accommodation.
He noted that the government had advised professionals and trade groups within the real estate sector to address public concerns regarding the persistent and alarming increases in rent, as well as the imposition of unwarranted fees.
These practices, he said, were currently being carried out in violation of the Lagos State Real Estate Transaction Law.
He expressed the government’s apprehension over unethical practices among estate agents, which had led to a rise in rent defaults.
He reminded practitioners to adhere to the provisions of the law.
Akinderu-Fatai stated that the existing law recognized their roles and specified a percentage of chargeable fees of not more than 10 percent on real estate transactions.
He encouraged estate agents and related bodies to actively denounce unqualified individuals who advise property owners to inflate rents arbitrarily and introduce fees not recognized by the state’s real estate transaction law.
He also urged ERCAN members to promote the monthly, quarterly, and yearly rent system among their members.
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.
Responding, the President of ERCAN, Mr. Godwin Aleke, pledged the support of his members to promoting the state government’s monthly, quarterly, and yearly rent system. He also pledged to work collaboratively with other professional bodies and stakeholders to sanitise real estate practices in the state moving forward.
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