A New Era for Lagos Real Estate: What You Need to Know

Big changes are coming to the real estate market in Lagos. The Lagos State Government recently announced a major new regulation: It is now illegal to practice real estate in the state without being registered with the Lagos State Real Estate Regulatory Authority (LASRERA). This applies to everyone, from individual agents to large real estate firms.

The announcement was made by Barrister Barakat Odunuga-Bakare, the Special Adviser to the Governor on Housing and the head of LASRERA. She emphasized that a valid LASRERA certificate is now a requirement for anyone conducting real estate transactions in Lagos.

This move is all about bringing transparency and order to the property sector. The government’s goal is to protect residents from fraud, ensure fair practices, and build confidence in the market. LASRERA’s role is to register practitioners, monitor transactions, and investigate any complaints, making it a key player in keeping the industry accountable.

Key Regulations and What They Mean for You

Beyond the new registration requirement, LASRERA is also cracking down on several common industry violations. Here are the key points you need to be aware of:

• Agency Fees are Capped: The legal limit for agency fees is 0 to 10% of the transaction value. LASRERA warns that any agent demanding more than this is breaking the law.

• No Excessive Rent Demands: It is now unlawful for real estate practitioners to demand more than one year’s rent in advance. This is a crucial step to protect tenants who have often faced pressure to pay for multiple years upfront.

• Services Must Be Delivered: Agents cannot collect payments without fulfilling the agreed-upon services. This helps prevent situations where clients pay for a service they never receive.

These new rules are part of the Babajide Sanwo-Olu administration’s commitment to cleaning up the real estate sector and protecting everyone involved, from home seekers to property owners.

What’s Your Next Step?

If you’re a resident of Lagos looking to engage in any property transaction, the government has a clear piece of advice: verify, verify, verify. Before you sign a contract or hand over any money, always confirm that the agent or firm you are dealing with has a valid LASRERA registration. This simple step can save you from potential fraud and ensure a smoother, more secure transaction.

What are your thoughts on this new regulation? Do you think it will help curb fraudulent activities in Lagos’s real estate market?