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Enugu State House of Assembly
The Enugu State House of Assembly has introduced a bill to curb alleged excesses in agency and legal fees for tenancy agreements.
The House explained that the bill was in response to growing complaints from residents about the rising exploitation of tenants and prospective tenants by landlords.
Titled The Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024, the proposed legislation, sponsored by the member representing Nkanu East State Constituency, Hon. Okey Mbah, underwent its first reading on Tuesday.
Among other provisions, the bill seeks to regulate agency and legal fees by capping them at a maximum of 10 per cent. It also aims to abolish the long-standing practice of caution fees—charges imposed on tenants by landlords that are rarely refunded at the end of tenancy.
Section 3(3) of the proposed law states: “With effect from the commencement of this law and notwithstanding any provisions in other enactments, agent fees chargeable for procuring any accommodation in the state shall not exceed 10 per cent of the rent payable by the prospective tenant.”
Similarly, Section 3(4) provides: “No tenant shall be required to pay any further premium in acquiring accommodation except for a legal fee payable to a qualified legal practitioner for the preparation of the landlord and tenant agreement, which shall not exceed 10 per cent of the rent.”
Once enacted, violations of the law will attract a fine of N500,000, a six-month prison term, or both.
The bill also aims to protect tenants from forced, irregular, and fraudulent evictions by establishing legally defined eviction timelines and notice periods.
Additionally, it proposes that individuals wishing to operate as land agents or property managers must be properly certified by the relevant authorities. It also seeks to empower a designated government ministry or agency to issue further regulations on housing and tenancy matters in Enugu State.
Speaking to journalists after the bill’s first reading, Mbah described the initiative as aligning with “the earnest desires of the people and residents of Enugu State.” He expressed confidence that the bill would receive overwhelming support from House members, as it seeks to address widespread concerns affecting their constituents.
