Experts push for national real estate regulator as Lagos tightens oversight

Nigeria’s booming real estate industry risks being undermined by quack agents, fraudulent transactions, and endless litigations, unless reforms in property law and regulation are strengthened, legal practitioner Akinboyo Ayorinde has warned.

Ayorinde raised these concerns in a paper he presented at a seminar organised by the Association of Estate Agents in Nigeria (AEAN) in partnership with the National Association of Realtors in Lagos recently.

The seminar, themed ‘Property Law and Regulation Affecting Real Estate Agency and Consultancy in Nigeria,’ also featured Barakat Odunuga-Bakare, special adviser to Lagos governor on housing, as speaker.

According to AEAN, the event is part of efforts to deepen professionalism and sanitize agency practice across the country.

“Real estate agency and consultancy is not fully regulated by a unified, single, nationwide statute yet,” Ayorinde told participants, adding, “historically, it has been loosely regulated, thereby giving rise to the operation of many quacks in the industry.”

The lawyer explained that Nigeria’s property framework rests on the 1999 Constitution and the Land Use Act of 1978, which vests all land in state governors.

“By implication, land is ultimately owned by the state while private parties hold renewable leases,” he said, adding that this makes government consent central to every transaction.

According to him, compliance requirements such as Governor’s consent, stamp duty, capital gains tax, and registration fees are critical to validating property rights.

“The requirement of Governor’s Consent for any sale means that even if two parties agree privately, the deal lacks finality until the state intervenes,” he stressed.

The lawyer cited Lagos as the most proactive state in regulating real estate practice through the Lagos State Real Estate Regulatory Authority (LASRERA) Law, which requires agents and developers to be licensed, sets ethical standards, and imposes penalties on violators.

“For many years, agency and consultancy practice was an ‘all-comers affair’ with no formal licensing,” Ayorinde observed, pointing out that “the LASRERA Law is a step forward in achieving fair practice within the real estate industry.”

He also referenced other Lagos frameworks such as the Land Registration Law 2015, Land Use Charge Law 2018, and Tenancy Law 2011, which regulate property rights, taxation, and landlord–tenant relations in the state.

At the national level, Ayorinde noted that while the Nigerian Institution of Estate Surveyors and Valuers (NIESV) and the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) regulate professionals, estate agency practice remains weakly policed.

He pointed to the proposed Real Estate Regulatory Council Bill in the Senate as a potential game-changer. “Although yet to be passed, this bill would curb fraudulent practices among real estate practitioners, set minimum standards for developers, and require registration of real estate businesses nationwide,” he said.

Akinbola Adenike, a senior official at LASRERA, who represented Odunuga-Bakare, said many practitioners have yet to embrace the benefits of registration.

“The fact that you are reviewing is less than 75 percent. Part of the benefits of registering with LASRERA is that you yourself are seen as a professional,” she said.

She explained that registration comes with protection, credibility, and access to official platforms. “You can actually advertise your products on the LASRERA website. And then, you protect yourself from the cops because we do not register fraudsters,” Adenike told participants.

She stressed that LASRERA engages lawyers and dispute resolution mechanisms to address grievances, urging industry players to work with regulators for a more transparent market. “We need to work together to make this negotiation happen,” she added.