The Executive Arm of the Estate Rent and Commission Agents Association of Nigeria, Surulere Branch, has called for regulation to curb illegal agency fees.
In a statement, the association also issued a strong rebuttal to recent allegations circulating in both mainstream and social media that blame estate agents for the rising cost of rent in Lagos State.
It stated, “ERCAAN describes these claims as false, misleading, and unfair, emphasising that its members, as responsible and licensed realtors, do not determine rental rates, nor collect or receive rent payments on behalf of landlords. According to the association, rent collection in Lagos is largely handled by property owners, their relatives, lawyers, surveyors, or personal representatives, who now also collect agreement fees, caution deposits, commissions, and service charges, typically into a single private account.
“ERCAAN warns that many of these individuals act as unauthorised agents, charging arbitrary fees and often failing to remit the proper agency fee to the licensed professionals who secure tenants. In some cases, tenants are forced to pay agency fees twice, once to the landlord’s representative and again to the actual agent who facilitated the transaction.
These actors sometimes even charge more than the standard 10 per cent agency fee, worsening the rental burden on Lagosians.”
Meanwhile, the Association called on the Lagos State Estate Regulatory Authority to partner with the Association to design and enforce a standardised Agency Fee Receipt System.
It added, “This system would include official receipts bearing the ERCAAN seal and LASERA logo for all concluded transactions, a fixed 10 per cent agency fee to be paid into the account of the licensed agent or agency, a 1.5 per cent regulatory fee to be remitted to LASERA per transaction, and legal provisions to criminalise unregistered collection of agency fees by unauthorised parties.
“The Association is also proposing that this initiative be presented to the Lagos State House of Assembly for the enactment of a legal edict. Under the proposed law, landlords or their proxies who collect agency fees unlawfully would face a six-month prison term. ERCAAN believes that such enforcement will act as a deterrent to fraudulent practices and protect the integrity of the estate agency profession in Lagos.
“This statement also comes partly in response to comments by Lagos State Commissioner for Housing, Moruf Akinderu-Fatai, as reported in Punch Newspapers on April 9, 2025. The Commissioner had called on stakeholders in the real estate sector to address the public’s growing concerns over rising rents and exploitative charges. ERCAAN acknowledges this directive and is using this opportunity to set the record straight, clarify the role of professional agents, and advocate for reforms to sanitise the estate agency space.”
