IS THERE A LAW GOVERNING REAL ESTATE AGENTS IN ENUGU STATE NIGERIA?

IS THERE A LAW GOVERNING REAL ESTATE AGENTS IN ENUGU STATE NIGERIA?

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Well, there isn’t a specific, standalone Law exclusively governing Real Estate Agents in Enugu State, their activities are subject to a combination of existing laws and recent legislative efforts aimed at regulating the Real Estate sector. Here’s a breakdown of the relevant legal landscape:

1. THE LANDLORD AND TENANT LAW, CAP. 101, LAWS OF ENUGU STATE, 2024 (AS AMENDED BY THE PROPOSED 2025 BILL):-

• Regulation of Agency Fees: A recent bill, “Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024,” has passed its first reading in the Enugu State House of Assembly in February 2025. A key provision of this bill aims to regulate fees payable to rent agents, capping them at a maximum of 10% of the annual rent. This seeks to address complaints of outrageous and multiple fees demanded from prospective tenants.

• Certification of Agents: The proposed amendment also intends to ensure that anyone operating as a land agent or property manager is properly certified by the relevant government agency. This suggests a move towards formalizing and regulating who can practice as a real estate agent in the state.

• Penalties for Violations: The bill proposes penalties for violations, including a significant fine (N500,000) or a prison term (six months), or both. This indicates a serious intent to enforce the regulations.

2. THE REAL ESTATE PRACTITIONERS (REGISTRATION) ACT (FEDERAL LAW):-

• While the Enugu State Assembly is taking steps, there is a federal law that governs the practice of estate surveying and valuation across Nigeria: the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) Act of 1975.

• This act establishes the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON), which is the body responsible for regulating estate agents (referred to as Estate Surveyors and Valuers).

• To be a registered and recognized real estate agent under this federal law, individuals typically need a minimum of a Bachelor’s degree in Estate Management, Urban and Regional Planning, or a related field, and must pass a licensing examination conducted by ESVARBON.

• ESVARBON also sets ethical standards and guidelines for its members.

3. THE LAND USE ACT OF 1978:-

• This fundamental law vests all land in the state (in this case, Enugu State) in the Governor, who holds it in trust for the people. While it doesn’t directly regulate real estate agents, it governs land ownership, rights of occupancy, and transactions, which are the context in which real estate agents operate. Agents need to understand the implications of this Act for property transactions.

4. THE PROPERTY LAW:-

• The Property Law governs the acquisition, ownership, and disposal of real estate in Enugu State. It outlines the rights and obligations of property owners and the procedures for property transfer and registration. Real estate agents must be familiar with this law to guide their clients properly.

5. OTHER RELEVANT LAWS AND REGULATIONS:-

• Contract Law: Real estate agents are involved in facilitating contracts between buyers and sellers or landlords and tenants. General principles of Nigerian contract law apply to these transactions.

• Agency Law: The relationship between a real estate agent and their client is governed by the principles of agency law. Agents have a duty of care, loyalty, and disclosure to their clients.

• Consumer Protection Laws: These laws aim to protect consumers from unfair practices. Real estate agents must act honestly and transparently in their dealings.

KEY TAKEAWAYS AND CONSIDERATIONS:-

• Ongoing Development: The legal framework for real estate agents in Enugu State is evolving, with the proposed amendment to the Landlord and Tenant Law signaling a stronger focus on regulation at the state level.

• Federal Oversight: The federal ESVARBON Act provides a national framework for the registration and regulation of Estate Surveyors and Valuers, which includes real estate agents.

• Importance of Due Diligence: Both the Agents and their Clients in Enugu State need to conduct thorough due diligence to ensure compliance with all relevant laws and regulations.

• Professionalism and Ethics: Regardless of specific state laws, Real Estate Agents are expected to adhere to high standards of professionalism and ethical conduct.

It is advisable for Real Estate Agents operating in Enugu State to stay informed about the ongoing legislative developments and to comply with both federal and state laws and regulations to ensure they operate legally and ethically. Seeking legal counsel can also be beneficial for understanding the full scope of their obligations.

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