Real estate business is one of the trending and lucrative ventures to delve into in Nigeria. But, it has been dented by the presence of hungry agents who serve as middlemen with selfish interest. All over Lagos, there are unreliable and fraudulent agents. Many people have fallen victim and some, who won’t stay open to information like you’re doing now, would still fall victim of such agents.
Agency fees are not illegal as some people think it to be, it is a reward for the service rendered to both the landlord and prospective tenant or a buyer looking for a house or a piece of land. In fact, if middlemen in manufacturing and trading businesses get rewarded with the additional price added to the producer’s price, house agents should not be exceptions.
Estate Agency in Nigeria
It is advisable for buyers and tenants to always ensure they deal with estate agents that are registered with the Nigerian Institution of Estate Surveyors and Valuers (NIESV). There is also the Association of Estate Agents in Nigeria (AEAN) which is a body meant to regulate the activities of Estate agents that are not members of the NIESV. The AEAN aims to checkmate misconduct in Estate agency practice in Nigeria.
It is advisable for buyers and tenants to patronize registered estate agents only, as a property buyer or tenant can report any issues or disagreement with a registered agent to the professional body that can mediate to reach an amicable resolve.
Agency Fees in Nigeria
Generally, Agency Fees for tenancy agreements is 10% of the tenancy rates. For instance, if the property is going for N500,000 per annum, the agency fee will be 10% of N500,000 which amounts to N50,000 for one year and if the agent is collecting 2 years rent, that’s N50,000 x 2 years which is N100,000. For property sales, it is usually 5% of the total price paid for the property (negotiable in some instances if you have a skilled lawyer in pointing out the reasons it should be less than 5%). In addition, all agency fees are usually borne by the buyer or tenant and not the landlord or seller.
Is it possible to find a house for rent or sale in Nigeria without paying agency fees?
I’ve discovered that many home seekers have this question on their minds because they seek a means of boycotting agency fees in order to save some money.
While it is understandable, it is also expedient to note that except you find an apartment to rent directly from a landlord, it is rare to find a house without agent fees involved.
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