Lagos State Cracks Down on Illegal Agency & Finder Fees: Everything Renters Should Know

Posted on July 1, 2025, 5:20 p.m.

🏛️ What the Law Says

The Lagos State Tenancy Law (2011) caps agency and legal fees at 10% of the annual rent each. Landlords or tenants must not pay more, and if both agency and legal fees apply, the combined cap is 20% of annual rent

LASRERA Law similarly regulates estate practitioners, barring additional charges outside that 10% commission
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🗓️ Timeline & Official Actions

April–June 2025:
The Housing Commissioner, Moruf Akinderu-Fatai, and Special Adviser Barakat Odunuga‑Bakare hosted stakeholder meetings with professional bodies (NIESV, REDAN, AEAN, ERCAN) urging them to cease illegal fees and enforce the 10% cap

LASG banned extras like “caution,” “inspection,” and “finder’s” fees—labeling them unprofessional and exploitative

A press briefing on May 15 reiterated: any charge above 10% is illegal; residents were urged to report offenders

June 15–26, 2025:
Governor Sanwo-Olu’s administration, through LASRERA, strongly warned unregistered individuals posing as agents; urging enforcement and public reporting.

🔧 Enforcement Mechanisms

LASRERA oversight:
Agents must be registered; violators risk delisting, fines, and prosecution.

The public is encouraged to report landlords or agents violating fee limits.
Stakeholder collaboration:
Estate associations pledged to educate members and lobby for compliance; the Nigerian Bar Association may be involved in follow-up forums.

New payment systems:
Promoted monthly and quarterly rent payments, instead of lump-yearly sums, to ease financial burde.

📌 Why It Matters

Consumer protection: Shields tenants from hidden/extortionate rents.
Transparency: Forces estate agents to limit costs to 10%, avoid surprise fees.
Professional accountability: Unregistered “quacks” are being eliminated, improving sector credibility.

🗣️ Public & Tenant Voices

Reddit users highlighted widespread illegal charges and real estate chaos:

“The fees are crazy (documentation fee, lawyer fee 5% of the property price, realtor fee …).

“My major concern is the agency fees. It’s just too much.”

These sentiments show how excessive fees fuel public outrage and pressure for reform.