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Key Provisions of the law:

The law established the Lagos State Real Estate Regulatory Authority (referred to in this Law as “the Authority”). which shall—

(a) be a body corporate with perpetual succession and a common seal;

(b) have power to sue and be stied in its corporate name: and

(c) be capable of acquiring. holding, and disposing of any property or interest for the purpose of carrying out any of its functions under this Law.

 

There is established for the Authority, the Lagos State Real Estate Regulatory Authority Governing Board (referred to in this Law as “The Board”).

Composition of the 4. (1) The Board shall consist of –

(a) a Chairman

(b) a Legal Practitioner;

(c) a registered Architect:

(d) a registered Engineer;

(e) a registered Town planner;

(1) a registered Estate Surveyor;

(g) a registered Estate Valuer;

(h) a registered Builder;

(i) a recognized member of the real estate sector in the State;

(j) the General Manager of the Authority; and

(k) any other person from the civil society who in the opinion of the Governor is of good character and integrity

 

The duty of the Board amongst others is to set up a monitoring team to investigate any breach of the Lagos Tenancy Law in land transactions (e.g. Landlords charging more than one year rent in advance); protect residents of Lagos from illegal real estate transactions; register leases of 5 years & above, receive & investigate complaints/petitions from members of the public against any real estate agent, among other things.

 

Any individual or organization dealing in real estate business in Lagos who fails to register in accordance with the Authority commits an offence and risks a jail term or payment of fine. An individual/organization in real estate is to be issued a permit by the Authority. The permit is valid for 1 year and renewable upon satisfactory performance of conditions for renewal under the law. The Authority also has the power to revoke this permit.

An individual applicant who proposes to deal in real estate in the State shall —

(a) be a Nigerian;

(b) possess a valid work permit if a non-Nigerian:

(c) be at least eighteen (18) years of age:

(d) possess Lagos State Residents Registration Agency (LASRRA) number;

(e) have an ascertained business premises or office within the State:

(1) possess a minimum educational qualification of WASC. GCE or NECO;

(g) have proper records of transactions and operate a separate client account:

(h) have three (3) years Tax Clearance Certificate preceding the date of registration; and

(i) register at least a business name with the Corporate Affairs Commission.

A corporate applicant shall —

(a) be registered with the Corporate Affairs Commission (C.A.C)

(b) have proper records of transactions and operate a separate client account;

(c) have one of the Directors in the company who possess the conditions stated in subsection (2) of this section:

(d) ensure that all non-Nigerian Directors have valid work permit and comply with alt laws in respect of foreigners; and

(e) have three (3) years Tax Clearance Certificate preceding the date of registration.

A stakeholder dealing in the real estate sector as a —

(a) property developer;

(b) facility manager; or

(c) property management company;

whether as an individual or an organization. shall register with the Authority. specifying any project it is undertaking as at the time of registration, before it can be issued the necessary permits to engage in real estate transactions in the State.

 

A foreigner or foreign company who wishes to invest in real estate shall seek and obtain the permission of the Governor through the Authority, subject to the provisions of Acquisition of Land by Aliens Law and all relevant laws in respect of real estate in the State, investment in land by a foreigner(s) shall not exceed twenty-five (25) years including any option to renew.

 

An estate agent is not to collect money from more than 1 prospective tenant in respect of d same property. Upon collection of money from a prospective tenant, the real estate agent is to remit the money collected to the landlord within 7 working days, except the landlord directs otherwise in writing and such money collected must be receipted.

 

A real estate agent must ensure that a prospective tenant takes possession of the property paid for within 7 working days after payment. Failure to deliver possession of the property paid for by prospective tenant within 7 working days’ means refunding of the money paid. Failure to pay within stipulated time shall attract interest at the CBN prevailing rate. For tenancy/lease- not more than 10% of the rent collected.

 

The law establishes the Committee of Inquiry to hear & determine reports of misconduct, complaints or petition s from the public against individuals or organizations involved in real estate business in Lagos State. The decision of the Committee is appealable at a court of competent jurisdiction.

 

Where after the expiration of the period stated in the final notice the owner or occupier of an abandoned or uncompleted building or structure fails to comply with the notice, or is unable to convince the Authority of the ability to complete the building or structure, shall issue recommendations to the appropriate authority that the subsisting right of occupancy in the abandoned or uncompleted building or structure be revoked in accordance with the provisions of the Land Use Act, 1978. “Abandoned Building or Structure” includes an existing unoccupied building in a state of disrepair which is Left in such condition for a period of up to five (5) years or building which is under construction but on which work has ceased for up to five (5) years; building/structure may be considered abandoned if it —

(a) hasn’t been developed due to lack of funds;

(b) constitutes a nuisance;

(c) is a safety risk;

(d) contributes to environmental degradation; and

(e) is used as a ground for perpetration of criminal activities.

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