Introduction
On 7th February 2022, the Executive Governor of Lagos State, Mr. Babajide Sanwo-Olu, signed the Lagos State Real Estate Regulatory Authority Bill into Law.[1] The Law introduces significant changes to the real estate landscape in Lagos State.
The Real Estate Regulatory Authority Law 2022 (“the Law” or “RERAL”) was enacted to protect and prevent Lagos State residents from falling prey to fraudulent real estate practitioners and to create some important obligations for stakeholders in the real estate sector.
This article examines some relevant provisions of the Law, and their likely implications on real estate transactions in Lagos state.
Background
Fraudulent activities of fake real estate agents and seemingly licensed developers against accommodation seekers is a rife menace in Lagos State. In June 2019 alone, five (5) suspected fake real estate agents were reported to have defrauded at least 200 prospective tenants.[2] These fake real estate actors deploy various designs ranging from fake or false advertisement of properties upon which they have no title or authority to deal, to disappearing into elusive air after receiving rental and allied funds. This ugly trend led to widespread outcry which were mostly heard by security agencies. Unfortunately, a solution seemed elusive until this recent legislative intervention by the state government.
To apparently curtail this menace, the Law was enacted and the Lagos State Real Estate Regulatory Authority (“LASRERA” or “the Authority”) was established to eliminate the activities of impostors, fraudsters, supposed accredited real estate agents who adopt sharp practices.Please click here for more information.