JUST IN: Lagos State Stamps 10% Agent Fee for Property Transactions

DDM News

(DDM) – The Lagos State Government has officially standardized the agency fee for property transactions across the state by approving a 10% commission benchmark.

The move, which has sparked debates among landlords, tenants, and real estate agents, is aimed at bringing order and fairness to Lagos’ bustling and often unregulated real estate sector.

Diasporal digital media (DDM) reports that the policy was confirmed in a recent circular issued by the Lagos State Real Estate Regulatory Authority (LASRERA), an agency under the Ministry of Housing, which disclosed that the 10% benchmark is now the officially recognized agent commission rate for real estate transactions, split equally between the buyer/tenant and the seller/landlord, at 5% each.

The Lagos Real Estate Chaos

For years, real estate dealings in Lagos have been a mixture of formal and informal arrangements.

Due to high demand for land and housing, Lagos, Nigeria’s commercial capital, has witnessed a chaotic boom in its property sector, attracting countless agents, developers, and speculators.

In most parts of the state, especially in high-demand areas like Lekki, Ajah, Ikeja, Surulere, and Yaba, agents have often imposed arbitrary charges, ranging from 10% to even 20% of annual rent, in addition to other unexplained “agency” and “consultancy” fees.

This lack of regulation has led to widespread abuse, multiple claims on single properties, and rising complaints from the public.

To restore sanity, the Lagos State Government in 2020 launched LASRERA, mandating the registration of real estate practitioners and firms.

However, implementation had remained inconsistent until this latest directive.

Details of the New Directive

The new regulation stipulates that:

• The total agency fee shall not exceed 10% of the total transaction amount.
• The fee shall be split 5% each between the party selling/leasing and the party buying/renting.
• All real estate agents must be registered with LASRERA to operate legally in the state.
• Non-compliance may lead to suspension, blacklisting, or prosecution, according to LASRERA’s legal framework.

LASRERA’s spokesperson, Mrs. Bukola Olasanoye, told press correspondents that the state is determined to sanitize the industry.

“Real estate fraud and exploitation have cost Lagosians billions.

“This new policy ensures clarity, fairness, and accountability. Agents must act within the law,” she said.

Mixed Reactions from Stakeholders

While many tenants welcomed the announcement as a way to curb exploitation, some estate agents and landlords expressed displeasure, arguing that the 5% limit on each party undercuts their business margins.

Mr. James Okafor, an agent in Ikeja, stated, “We often pay marketers, logistics, and legal fees. Capping us at 5% might affect small players.”

Conversely, Mrs. Tinu Adegoke, a tenant in Surulere, commended the government. “I once paid 15% agency fee plus agreement fee.

“This is long overdue,” she noted.

Enforcement and Outlook

The Lagos State Government emphasized that enforcement mechanisms are already in motion.

LASRERA’s digital platform now allows the public to verify licensed agents and report fraudulent ones.

Legal experts have also weighed in, supporting the regulation as a way to standardize contracts and reduce litigation between parties in property transactions.

As the state continues to urbanize and housing demand soars, many see the 10% benchmark as a step toward a more professional and transparent real estate sector.

However, stakeholders agree that successful implementation will depend on strict enforcement and public awareness.

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