Enugu moves to regulate fees payable to rent agents, lawyers

A bill that seeks to regulate fees payable to rent agents and lawyers in Enugu State scaled the first reading at the State House Assembly on Tuesday.

Join the Premium Times WhatsApp Community For Quick Access To News and Happenings Around You.

Open in WhatsApp

Titled “The Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024,” the proposed legislation was sponsored by the member representing Nkanu East State Constituency, Okey Mbah.

The proposed legislation, if passed, will alter certain provisions of the existing “Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024.”

Key Provisions

PREMIUM TIMES obtained a copy of the bill on Tuesday.

The bill, among other things, seeks to regulate fees payable to rent agents and lawyers by setting both fees at a maximum of 10 per cent.

The bill also seeks to abolish the age-long practice of “caution fees” often demanded from tenants by landlords but never refunded at the end of their tenancy.

Section 3 (3) of the proposed legislation provides: “With effect from the commencement of this law and notwithstanding any provisions in other enactments, agent fee chargeable for procuring any accommodation in the State shall not exceed 10 per cent of rent by the prospective.”

Stay Ahead with Premium Times

Add as a preferred source on Google

Also, Section 3 (4) provides that “no tenant shall be caused to pay any further premium in acquiring any accommodation except legal fee payable to a qualified legal practitioner for the purpose of preparing the landlord and tenant agreement and such fee shall not exceed 10 per cent of the rent.”

The bill proposes a N500,000 fine or a prison term of six months or both for offenders.

It equally seeks to checkmate the injustice suffered by tenants through forced, irregular, and fraudulent evictions by establishing a legally defined duration for eviction and other relevant notices.

More provisions

Apart from the agent and legal fees, the bill aims to ensure that a relevant agency properly certifies anyone who wishes to operate as a property agent or manager.

It also empowers a designated government ministry or agency to make further regulations on housing and tenancy matters in Enugu State.

Lawmaker speaks

Speaking with reporters after the bill’s first reading, Mr Mbah explained that the move aligned with the “earnest desires of the people and residents of Enugu State.”

The lawmaker said he did not doubt that the bill would get the support of an overwhelming majority of the members of the assembly