The Estate, Rent, and Commission Agents Association of Nigeria (ERCAAN), Surulere Branch, has renewed its call for the urgent regulation of real estate agency fees in Lagos State. This follows mounting public concern over rising rent costs and exploitative charges in the housing sector.
At a recent stakeholders’ meeting, ERCAAN issued a formal statement addressing what it described as misleading allegations circulating in both traditional and digital media. The association strongly refuted claims that licensed estate agents are responsible for surging rent prices, stating that professional agents neither determine rental rates nor collect payments on behalf of landlords.
“These narratives are not only false but dangerous. They distract from the real problem — unregulated actors posing as landlords’ representatives,” the association stated.
According to ERCAAN, many landlords now employ unlicensed proxies—ranging from relatives and lawyers to surveyors—to collect not only rent but also agency commissions, caution fees, and legal charges. These unregulated middlemen often inflate standard fees, impose multiple charges on tenants, and fail to remit appropriate payments to the licensed agents who actually secure the tenants.
A significant concern raised is the double charging of tenants. In numerous cases, renters are forced to pay the standard 10% agency fee to a landlord’s proxy and again to the registered agent. The lack of transparency has led to confusion, elevated housing costs, and eroded trust in the real estate industry.
In response, ERCAAN is proposing an end-to-end framework that will standardize agency transactions and bring clarity to all parties involved. The association is calling on the Lagos State Estate Regulatory Authority (LASERA) to collaborate on introducing a Standardised Agency Fee Receipt System.
Key Proposals from ERCAAN
Official Transaction Receipts – All real estate deals must be documented with receipts bearing the ERCAAN seal and LASERA logo.
Fixed 10% Agency Fee – Only licensed agents should receive this fee directly into verifiable bank accounts.
Regulatory Levy – A 1.5% fee from each transaction should be remitted to LASERA for oversight and enforcement.
Criminal Penalties – Landlords and proxies found collecting agency fees without registration should face up to six months in prison under a proposed law.
ERCAAN also announced plans to push for a legislative bill at the Lagos State House of Assembly to enforce these changes and criminalize illegal collections.
This advocacy follows comments by the Lagos State Commissioner for Housing, Moruf Akinderu-Fatai, who in April 2025 urged real estate stakeholders to address growing public dissatisfaction. ERCAAN acknowledged the commissioner’s concerns and is taking a proactive stance to clarify the role of licensed professionals and push for urgent reforms.
In a city where over 60% of residents live in rented accommodations, according to Nigeria’s National Bureau of Statistics, these practices have disproportionately affected low- and middle-income families. By ensuring transparency in agency transactions and removing illegal fees, ERCAAN believes that Lagos State can begin to stabilise the housing market and reduce unnecessary cost burdens on tenants.
The association emphasized the need for broader cooperation across all stakeholders, including LASERA, law enforcement, and the legal community. ERCAAN also hinted at launching a public education campaign to help tenants identify licensed agents and report illegal fee practices.
“This isn’t just about protecting our profession,” ERCAAN noted. “It’s about restoring confidence in the rental market and ensuring every Lagosian gets fair, affordable access to housing.”
With housing affordability becoming a central issue in urban Nigeria, especially Lagos, this move may mark a turning point in how real estate operations are conducted — shifting from opaque dealings to standardized and accountable practices.