By Hassanat Adebowale
The Enugu State House of Assembly has moved forward with a bill aimed at regulating house agency and legal fees, passing its first reading on Tuesday. The bill, titled “Bill for a Law to Amend the Landlord and Tenant Law Cap 101 of Enugu State 2024,” was introduced by Mr. Okey Mbah, the representative for Nkanu East constituency.
Mbah explained that the bill was introduced in response to numerous complaints from residents about exploitation by landlords. He highlighted that Section 3 (4) of the bill stipulates that tenants should not be required to pay any additional premium for acquiring accommodation, except for legal fees payable to a qualified legal practitioner. These fees, intended for preparing the landlord and tenant agreement, should not exceed 10 percent of the rent.
The proposed legislation includes penalties for violations, with offenders facing a fine of N500,000 or a six-month prison term, or both. Mbah emphasized that the bill aims to address injustices faced by tenants, including forced, irregular, and fraudulent evictions, by establishing a legally defined duration for eviction and other relevant notices.
The bill also seeks to ensure that anyone wishing to act as a land agent or manager must be certified by the government. Mbah noted that while there is a 10 percent ceiling for both agency and legal fees, the percentage can be negotiated to a lower rate but cannot exceed 10 percent. Additionally, the bill proposes prohibiting the tradition of caution fees.
The legislator mentioned that the government ministry or agency would have the authority to make further regulations on housing issues in Enugu State.
In his remarks, the Speaker of the Assembly, Chief Uche Ugwu, praised the bill’s initiator, describing it as timely and relevant. Ugwu encouraged members to study the bill thoroughly in preparation for deliberations during the second reading.
GI’s Legal Corner
In Nigeria, the relationship between landlords and tenants is primarily governed by state tenancy laws, which can vary from state to state. In Enugu, the proposed amendment aligns with the Tenancy Law of 2011, which aims to regulate the interactions between landlords and tenants. By introducing caps on agency and legal fees, the bill aims to prevent the exploitation of tenants while ensuring that property owners can still earn a fair income.
The requirement for mandatory government certification of agents is in line with global best practices, where real estate transactions are closely regulated to prevent fraud and misconduct. The bill’s alignment with Section 43 of the Nigerian Constitution, which guarantees citizens the right to acquire and own property, suggests that it strikes a balance between protecting property rights and promoting fair access to housing.
If passed, the law could serve as a model for other states dealing with similar issues, emphasizing the importance of fair housing practices and stronger tenant protections across Nigeria.
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