Real Estate Consultant Hails Sanwo-Olu For Opening Reporting Channels, Shares Enforcement Strategy

• The Lagos state government has received commendation for capping agent fees at 10% and opening reporting channels to enforce the law
• A real estate consultant who spoke to Legit.ng insisted that it had been done in the past, and can be done successfully again
• Meanwhile, Housing agents in Lagos state have denied exploiting house-seekers and insist that impostors are carrying out the unlawful acts

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

As part of the steps to restore sanity to the housing sector in Lagos State, the government recently launched online and offline reporting channels.

The government urged the residents to report, among other things, housing agents who charge above 10% for agent fees, property owners who impose arbitrary charges, and other forms of exploitation.

The initiative has received wide acclaim from Lagos residents, although few have expressed concerns over the effectiveness and implementation.

Some Lagosians have shared their feedback via Legit.ng Facebook platform, urging the government to engage the police force and other law enforcement bodies in the plan.

Real estate consultant throws weight behind LASG

A Lagos-based real estate consultant, Mr. Adewole Delalu, has commended the Lagos state government’s decision to open reporting channels to track defaulters.

He disclosed that the decision to cap agency fees at 10% was first initiated and implemented during the administration of former Governor Babatunde Fashola, but fizzled out when the tenure ended.

“I still stick to the 10%. During Fashola, the 10% was really effective. When he left the position, everything changed and all turned upside down,” Delalu told Legit.ng.

Adewole, of Adewole Estate Manager, told Legit.ng that the policy can work again if enforcement mechanisms are strengthened, and stakeholders collaborate.

He said;

“If we have strong reporting channels who can come together as one and fight this along with clients trying to get apartments, one day, it will be sorted out.

“Landlords/landladies should also try as much as possible to check on their tenants to know their well-being, and if the house rent wasn’t increased as fixed.”

Recall that a tenant recently dragged her landlord online for increasing the annual rent from N750,000 to N1.4 million without due notice.

Delalu also revealed that on several occasions, these acts are often perpetrated by unqualified individuals posing as housing agents.

He urged the registered agents group to take steps to prevent the miscreants from soiling the name of their profession.

Agents deny exploiting house seekers

Legit.ng earlier reported that the housing agents denied exploiting house seekers, attributing the unlawful acts to impostors posing as agents.

The SA to the Governor on Housing, Barrister Barakat, Odunuga-Bakare, disclosed that the government had already engaged the real estate agents' association.

The group insisted that its registered members are not involved in such practices. It said that this was the handwork of unregistered individuals parading themselves as agents without properly identifying with the professional body or acquainting themselves with the laws.

Lagos state caps agent fees at 10%

Legit.ng reported that the Lagos state government stressed that it will no longer tolerate real estate agents charging more than the 10% legally permitted under the LASRERA law.

This follows a similar move from the Enugu state government to cap agent fees at 10%, and penalise defaulters with up to 6 months imprisonment.

The government has also unveiled plans to accelerate the implementation of a monthly and quarterly rent payment system in Lagos State.

Lagosians react as government opens reporting channels

In related news, Lagosians have welcomed the government's decision to launch online and offline reporting channels.

They lamented the outrageous fees charged by housing agents in Lagos State and suggested that the policy be extended beyond residential to include commercial properties.

As part of the reactions, one landlord also urged the government to roll out a policy that will also protect the landlords from wicked tenants.

Source: Legit.ng