Stakeholders discuss monthly rental scheme, Real Estate Law in Lagos

Stakeholders in the real estate sector have converged in Lagos to dissect the key provisions of the Lagos State Real Estate Regulatory Authority Law (LASRERA Law) as well as look at the potential impact of the new legislation on the Industry.

The forum also highlights the issues of monthly rental scheme and how residents can key into the noble initiative.

Speaking at the maiden edition of the forum which was organised in collaboration with the Construction projects and Infrastructure Committee of the section on Business Law, Nigerian Bar Association, the Special Adviser to the Lagos State Governor on Housing, Mrs. Toke Benson-Awoyinka said that Lawyers are essential in the real estate transactions and must be engaged at all time.

Benson-Awoyinka who decried the level of frauds perpetrated by unscrupulous individuals, mentioned that most fraudulent real estate transactions do not have Lawyers engaged as an integral part of every transactions from conception to closing.

She stressed that the LASRERA law was reviewed in order to regulate and bring sanity to the Real Estate Sector, as well as all transactions therein.

Role of lawyer
She stressed that the role of property Lawyers is to protect the interest of all parties in any Real Estate Transaction, as Legal professionals.

“Real Estate transactions have relevant processes with necessary documents required for the preparation of specific property business transaction in the sector.

“In Real Estate transactions, Lawyers and Real Estate Agents offer completely different services. Real Estate Agent is involved in the process of buying/selling properties or rental services while all paper works are handled by a Lawyer as prescribed by the Law.

“To this end, our perspectives and experiences as learned professionals will make these deliberations and recommendations impactful while meeting international best practices in the Real Estate Market of the Lagos State Government.

“It has become imperative for Lawyers to be well guided by the provisions of the law so as to enable them give professional advice to their clients in the area of property and real estate business.” she said

Monthly rental scheme

The Special Adviser noted that the scheme is a social investment program of Lagos State government to alleviate suffering of the residents seeking comfortable shelters and that the State Government would not compel any Landlord to subscribe to this initiative.

She added that such idea of payment which have insurance and legal coverages would guarantee consistent pattern of payment by the tenant, while the tenant would also heave a sigh of relief with the burden of unbundling huge amount on a yearly basis.

She said: “On the monthly rental scheme, we will not legislate on it, but we will continue to work towards the scheme being generally accepted by the residents”

“What we are proposing is a scheme whereby we are going to bring in group of financiers they would finance this scheme by paying up the landlord on a yearly basis and the tenant gets the opportunity to repay on the monthly basis. It’s a scheme with a single digit of payment that is going to be managed by the private sector and supported by the government.”

Ensuring sanity

In his key note address, the Attorney general and Commissioner for Justice in Lagos, Mr. Moyosore Onigbanjo, SAN expressed optimism about the new law which he said was designed to bring sanity into the sector as well as weed out touts that have made a lot of gains fraudulently from the sector.

Combing through the law, Onigbanjo talked about the functions of the agency which involves policy formulations, training the stakeholders in the real estate transactions, collection of data of players in the industry, issuing of permit and possibly revocation of the same, as well as receive and investigate complaints from the public regarding transactions, amongst others.

He assured that the law would change the landscape of real estate development and management in general.

Onigbanjo who was represented by the Director Legal Drafting, Mrs. Aderinsola Olanrewaju of the Ministry of Justice explained that law and regulations are very critical to the real estate, as the forum would avail participants the opportunity to understand the intricacies of the legislation.

Panel of discussion

Discussants delved into the issues around key provisions of the law which emphasised on the need to incorporate well educated and professionals in the real estate, compared to the provision of the law which put entry qualifications to holders of WAEC or NECO certificates.

They also emphasised on the multiplicity of agencies which according to them affect operations of the real estate sector while cohesive operation was suggested.

They all adjudged that the law is a path towards ensuring normalcy in the real estate industry, but want government to ensure implemention of most of the policies, particularly that which affects the real estate market in the State.

Housing deficit in Lagos, problem of land ownership, affordable land, influx of low income earners into the state, accessibility to single digit loan among others were also identified.

 

 

 

 

Emmanuel Ukoh