23/07/2025
The Lagos State Government has recently taken significant steps to regulate the real estate sector, aiming to create a fairer, more transparent, and safer market for everyone involved. In a decisive move, the government, through the Lagos State Real Estate Regulatory Authority (LASRERA), has declared it illegal to practice real estate in Lagos without a valid LASRERA certificate. This development comes as a response to a growing number of complaints about unethical practices within the industry.
"The Lagos State Government just dropped the hammer:" This powerful statement, as seen in recent informational materials, underscores the seriousness with which the state is tackling this issue. The new regulations signify a strong commitment to sanitizing the real estate landscape and protecting both consumers and legitimate professionals.
What Does the New Law Say?
The updated regulations introduce several key changes that will impact real estate agents and the general public:
* Mandatory LASRERA Registration: All individuals and entities involved in real estate practice – including agents, realtors, brokers, and property managers – must now be registered with LASRERA to operate legally in Lagos State.
* Capped Commission: To curb exorbitant charges, the new law stipulates that agency commission must not exceed 10%.
* Restriction on Advance Rent: Landlords and their agents are now prohibited from collecting more than one year's rent in advance. This aims to alleviate the financial burden on tenants.
* Penalties for Unregistered Agents: Stern penalties will be imposed on unregistered individuals or agencies found practicing real estate in Lagos State.
Why the Crackdown?
These regulations are a direct consequence of a surge in complaints from the public regarding various malpractices, including:
* Overpriced Agency Fees: Unjustifiably high charges levied by some agents.
* Disappearing Agents: Cases where agents collect money from prospective buyers or tenants and then become unreachable.
* Excessive Upfront Rent Demands: Agents and landlords demanding two to three years' rent in advance, creating significant financial strain.
* Fake Property Listings: Instances of fraudulent property advertisements designed to deceive potential clients.
The government, under the administration of Governor Sanwo-Olu, is determined to address these issues and foster a real estate market characterized by fairness, transparency, and safety for buyers, renters, and legitimate professionals alike.
Mrs. Barakat Odunuga-Bakare, Special Adviser to the Governor on Housing and Head of LASRERA, has clearly stated: "If you're not registered with LASRERA, you're not allowed to operate." This unambiguous declaration emphasizes the government's firm stance on compliance.
What This Means for YOU (Buyers, Renters, and Investors):
These new regulations offer greater protection for individuals seeking to rent or buy property in Lagos. Here's what you should do:
* Always Ask for the LASRERA Certificate: Before engaging with any real estate agent, make it a priority to ask for their valid LASRERA certificate. Do not proceed with any transaction if they cannot provide one.
* Conduct Thorough Due Diligence: Don't rely solely on the agent's word. Verify property details and ownership independently.
* Be Wary of Unsubstantiated Claims: Don't be swayed by persuasive talk without concrete evidence or documentation.
* Exercise Caution with Deals That Seem Too Good to Be True: Such offers often hide underlying issues or fraudulent intentions.
* Take Your Time in Decision-Making: Avoid being pressured into making hasty commitments.
* Report Suspicious Activities: If you encounter any unethical or potentially illegal behavior from a real estate agent or landlord, report it to the appropriate authorities.
How to Verify an Agent's License:
LASRERA has made it easy for the public to verify the legitimacy of real estate practitioners. You can do so by following these simple steps:
* Visit the official LASRERA website: www.lasrera.lagosstate.gov.ng
* Navigate to the "Practitioner search" section.
* Enter the name of the agent or their permit number.
* Click "search" to check their registration status.
This online verification system empowers the public to make informed decisions and avoid dealing with unregistered and potentially fraudulent agents.
In Conclusion:
The Lagos State Government's commitment to regulating the real estate sector through LASRERA is a welcome development that promises to bring much-needed order and accountability to the industry. By understanding the new regulations and taking proactive steps to verify the credentials of real estate practitioners, the public can protect themselves from fraudulent activities and contribute to a more ethical and reliable real estate market in Lagos State. Remember to always insist on seeing a valid LASRERA certificate before engaging in any real estate transaction.
