The Lagos state real estate market is the biggest and fastest-growing opportunity in the country. Lagos real estate agents were immensely favored by the laws of demand. Despite abrupt economic challenges due to covid-19, the sector had a positive growth of 2.81% y/y in Q4 2020.
The Lagos state government under its licensed agency LAGOS STATE REAL ESTATE REGULATORY AUTHORITY: LASRERA as now made it compulsory for every professional in the sector to register to facilitate checks and balances.
This, we also help curb incessant numbers of fraudulent activities in by Lagos real estate agents.
Under the Lagos State Estate Agency Regulatory Law, Cap L28, Laws of Lagos State, 2015 (“Law”) established the Lagos State Real Estate Regulatory Authority (LASRERA), to look into real estate transactions in Lagos State by identifying persons eligible to be licensed as Real Estate Practitioners.
Here are the document required to get licensed and the portal for registration
- Evidence of CAC registration and means of identification e.g National Identification Number (NIM)
- Address to agent operational office.
- A minimum qualification of Senior School Certificate Examination (SSCE).
Lagos State Regulation on Real Estate Agent Transactions includes:
- All real estate practitioners are licensed by the agency and it can also sanction unlicensed real estate practitioners in the State.
- A real estate practitioner must keep records of business transactions and shall open a separate client’s account.
- A practitioner is also expected to ensure that his client performs all his obligations to the Government under the existing laws, such as the deduction and remittance of Withholding Tax, Valued Added Tax or other charges payable on the property he handles.
- A practitioner must not collect money from more than one prospective tenant or purchaser in respect of the same premises.
- Such a transaction must be remitted to the landlord within fourteen (14) days of receipt unless otherwise directed in writing by the landlord. Money collected from clients shall also be received.
- A real estate practitioner shall not charge more than 10% of the total rent collected on any transaction and where the transaction involves sale or purchase of an interest in lands or building and two or more agents are retained by the owner/vendor for the sale, the fee shall not be more than 15% of the total proceeds of the sale.
- A real estate practitioner shall not prepare any legal document pertaining to any transaction handled by him but such a document must be prepared by a legal practitioner and the fees shall not be more than 12.5% of the total consideration.
- A licensed estate practitioner shall not act for two (2) principals (clients) on a transaction and shall only be paid by his principal.
LASRERA is solely in charge of issuance and renewal of annual permits, as well as collating and registering real estate transactions in the state.