Lagos targets agency fees in regulatory crackdown

In a significant effort to curb the escalating costs of housing transactions and foster transparency within the real estate sector, the Lagos State Real Estate Regulatory Authority (LASRERA) has partnered with the chairmen of all 57 Local Government Areas (LGAs) and Local Council Development Areas (LCDAs) in Lagos State.

The strategic partnership aims to regulate and ultimately reduce the agency and legal fees levied by real estate practitioners, offering much-needed relief to residents.

Maruf Akinderu Fatai, commissioner for Housing, while speaking at a recent meeting with the council chairmen, emphasised the core objective of this collaboration.

“The aim of this collaboration is not only to reduce the exorbitant fees being charged by some property agents, but to bring sanity to the built sector and make life easier for the average Lagosian,” he stated.

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“Housing is a basic necessity, and we are committed to ensuring it is accessible and affordable.”

Barakat Odunuga-Bakare, the special adviser to the Governor on Housing, clearly outlined the new fee structure during the meeting.

“Agency fees must be between zero and ten percent, not more. Anything beyond that is unacceptable and exploitative,” she asserted.

Odunuga-Bakare also reiterated the state government’s long-term vision, stating that Lagos’s ultimate goal is to achieve a monthly payment of house rent.

The special adviser noted that the state is working tirelessly toward making the monthly rent payment a reality.

She urged Lagos residents to prioritise their safety and financial security by only engaging with real estate agents and developers officially registered with LASRERA.

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“We want members of the public to understand that doing business with unregistered agents poses serious risks,” she warned.

“LASRERA exists to protect both tenants and landlords, and we will not relent in our effort to restore sanity to the built sector.”

This collaboration with LGA and LCDA Chairmen represents a pivotal step in extending LASRERA’s regulatory reach directly to the grassroots level, where the majority of property transactions occur.

It underscores the government’s unwavering commitment to promoting fair and affordable housing practices throughout the state.