The Lagos State government, through its Real Estate Regulatory Authority (LASRERA), has initiated a collaborative effort with community development associations (CDAs) and community development committees (CDCs) across its 57 local government and local council development areas to address the escalating costs associated with housing transactions. This strategic partnership follows a prior meeting between LASRERA and local government chairmen, underscoring the government’s commitment to regulating and curbing excessive agency and legal fees levied by real estate practitioners within the state. The initiative aims to bring transparency and affordability to the housing sector, ensuring that housing, a fundamental necessity, remains accessible to the average Lagosian.
The core objective of this collaboration is to enforce reasonable agency and legal fees, thereby protecting residents from exploitative practices. The government has explicitly stipulated that agency fees should not exceed 10% of the transaction value, emphasizing that any charges beyond this limit are deemed unacceptable and exploitative. This measure is a critical step towards ensuring fair and affordable housing practices, aligning with the government’s overarching goal of making housing more accessible to the general populace. By engaging with CDAs and CDCs, LASRERA seeks to extend its regulatory reach to the grassroots level, where a significant portion of housing transactions occurs.
The involvement of CDAs and CDCs is pivotal to the success of this initiative. These community-based organizations possess intricate knowledge of local housing dynamics, including prevailing rental and sales practices, and are often the first point of contact for individuals seeking housing. Their collaboration with LASRERA will facilitate effective monitoring of real estate activities within their respective communities, enabling them to identify and report instances of overcharging or other unfair practices. This grassroots approach ensures that the government’s regulatory efforts are deeply embedded within local communities, maximizing their impact and fostering a culture of compliance.
The Commissioner for Housing, Maruf Fatai, emphasized the importance of this initiative, stating that it goes beyond merely reducing exorbitant fees. It represents a broader effort to instill sanity and transparency within the built environment, ultimately improving the quality of life for residents. This commitment to regulatory oversight underscores the government’s recognition of housing as a fundamental right and its determination to ensure that access to housing remains equitable and affordable for all.
The Special Adviser to the Governor on Housing, Barakat Odunuga-Bakare, further reinforced the government’s stance, stressing that engaging with unregistered real estate agents carries significant risks. LASRERA serves as a protective body for both tenants and landlords, and its collaboration with community organizations reinforces its commitment to restoring order and fairness within the housing sector. This partnership is essential in educating the public about the importance of transacting with registered agents and the potential pitfalls of dealing with unregistered entities.
In conclusion, the Lagos State government’s collaborative approach with CDAs and CDCs represents a significant stride towards regulating the real estate sector and ensuring affordable housing for its residents. By engaging with these community organizations, LASRERA aims to extend its regulatory reach to the grassroots level, fostering transparency and accountability within the housing market. This initiative not only addresses the issue of exorbitant fees but also contributes to a broader effort to create a more equitable and accessible housing landscape for all Lagosians. The partnership between LASRERA, local governments, and community organizations signifies a unified front against exploitative practices and a shared commitment to making housing a fundamental reality for everyone.
