+234-704-009-2801, +234-704-009-2804
Mon - Fri 09:00-17:00
Contact Us Today




Mr. Osajie Milito and Mr. Efe Adamu who recently returned home from abroad sought good lands to invest in. Mr. Osajie invested in company A but they made a way with his money while Mr. Efe got a far cry of what he paid for. These events left them frustrated. This act discouraged their friends from investing in land. Before we proceed into the content of this article, we recommend that you read our article on LEGAL TIPS FOR LAND INVESTMENT THAT GUARANTEE OWNERSHIP.


It refers to the process of transfer of interest in property from one person to another. The subject of this transaction in this discourse is land or anything permanently attached to the land.

The Lagos state government in 2022 passed a law called REAL ESTATE TRANSACTION LAW OF LAGOS STATE. We shall be taking a quick look at how this law applies and to whom it applies.

The Real Estate Transaction Law of Lagos state applies to everyone who deal in real estate i.e the property owners or companies as the case maybe, estate brokers, buyers of such properties or tenants as the case maybe, lawyers, surveyors, architects, builders, registered engineers, registered estates surveyors, registered accountants or economists and others in property transactions.


  1. Section 2 of the Law established the regulatory authority known as Lagos State Real Estate Regulatory Authority (we shall simply refer to it as The Authority). This Authority is a body corporate, that is it has capacity to sue and be sued in its own name, capacity to enter into contracts, own property in its own name. The Authority is run by a Governing Body known as The Board.


The Board is run by 10 members. The Board is made up of the following:

  1. a Chairman; a Legal Practitioner; a registered Architect; a registered Engineer; a registered Town Planner; a registered Estate Surveyor; a registered Estate Valuer; a registered Builder; a recognised member of the real estate sector in the state ( who shall have at least 10 years experience in real estate transactions in the state);

  2. the General Manager of the Authority (the Chief Executive and Accounting Officer of the Authority, subject to the general control of the Board; (b) a person of proven ability and integrity with cognate experience in real estate; and (c) responsible for the execution of policies and the day to day administration of the affairs of the Authority in accordance with the provisions of this Law).

  3. any  other person from the civil society who in the opinion of the governor is of good character and integrity.


The Board has the power to advise the Governor of policies relating to real estate transactions and such other areas the Governor may require their advice; to formulate policies for the Authority, to ensure realtors are in compliance with this law, review existing policies of the Authority, to assess and fix the regulatory fees.


The functions are enormous. However, we shall be highlighting a few of them:

  1. formulate policies for proper dealings in real estate transactions in the State in line with global best practices; 

  2. recommend policies to the State Government that will enhance real estate transactions in the State;

  3. maintain a comprehensive and updated register of permits of real estate service professionals;

  4. set up monitoring teams and conduct inspections in order to ensure compliance with the Lagos State Tenancy Law. the    

  5.  liaise and collaborate with Ministries. Departments and Agencies. (MDA5) of government including but not limited to the Ministry of Physical Planning and Urban Development and its agencies. Ministry of Finance, Ministry of Science and Technology, Lands Bureau, New Towns Development Authority, and the Office of the Surveyor General for the purpose of collecting and collating data on newly approved development schemes;


The authority has power to do the following; 

  1. mediate the disputes reported to the Authority in respect of: agent and prospective tenant; agent and property owner; developer and land owner;  developer and prospective tenants; and any other matter(s) in relation to a real estate transaction. 

  2. assist disputing parties who voluntarily agree to mediation to appear before the Authority for possible resolution of their disputes;

  3. resolve disputes under mediation timeously. 


Section 25: The Authority shall maintain a register which contains the details of all realtors in the state. Such a register shall be available to the public for inspection and update the list of all realtors and transactions forwarded to it by a person or organization dealing in the real estate sector. You can also conduct a search here to be sure the person or company you are dealing with is duly registered.

  1. ELIGIBILITY FOR REGISTRATION Section :26. (I) A person or an organization dealing in real estate business shall be eligible for registration upon meeting the Registration conditions prescribed by the Authority. 


  1. For individuals: 

(a) be a Nigerian; (b) possess a valid work permit if a non-Nigerian: (c) be at least eighteen (I8) years of age: (d) possess Lagos State Residents Registration Agency (LASRRA) number; (e) have an ascertained business premises or office within the State: (1) possess a minimum educational qualification of WASC. GCE or NECO; (g) have proper records of transactions and operate a separate client account: (h) have three (3) years Tax Clearance Certificate preceding the date of registration; and (i) register at least a business name with the Corporate Affairs Commission. 

  1. For an organization: 

(a) be registered with the Corporate Affairs Commission (C.A.C); (b) have proper records of transactions and operate a separate client account; (c) have one of the Directors in the company who possess the conditions stated in subsection (2) of this section: (d) ensure that all non-Nigerian Directors have valid work permit and comply with alt laws in respect of foreigners; and Ce) have three (3) years Tax Clearance Certificate preceding the date of registration.  

  1. A stakeholder dealing in the real estate sector as a — (a) property developer; (b) facility manager; or (c) property management company; whether as an individual or an organisation. shall register with the Authority specifying any project it is undertaking as at the time of registration, before it can be issued the necessary permits to engage in real estate transactions in the State.  

  1. FOREIGNE PARTICIPATION: Foreigners who intend to participate in real estate investment in Lagos state are now required under this law to apply through the Authority to the Governor for approval. Note that foreigners are not permitted to own lands in Lagos state for a period longer than 25 years including renewal.


Upon meeting the above listed requirement, applicants are expected to pay a certain fee which will be prescribed by the Authority. This permit is valid for one year subject to renewal. Application for renewal should be made not later than two weeks before the expiration of the current license. The same items in the first grant still apply while paying the renewal fees.  The permit shall continue to be valid until:

  1. (a) permit is revoked by the Authority (b) permit lapses: (c) holder voluntarily surrenders the permit: or (d) permit is declared invalid or revoked by a Court of competent jurisdiction.

  2. (2) A permit lapses where the holder of the permit — (a) dies or becomes incapable of performing the permit's functions; (b) is declared bankrupt; or (c) goes into liquidation in the case of a company. 


There is a 5 man Committee of inquiry set up by the law. This committee is constituted by The Board. A Board member heads the committee with at least two legal practitioners and two others. The committee is charged with the duty of hearing and determining reports of misconduct, complaints or petitions from the public against persons or organizations dealing in real estate in the State.

The committee shall invite the realtors involved in writing not later than two weeks of the receipt of the complaints. At the conclusion of the hearing, it shall make recommendation to the Authority to either suspend or revoke the permit of the realtors if found wanting. The Authority shall notify the affected persons or organization of its decision in writing not later than one month of its conclusion of the hearing.


Where the affected individual or organization is not satisfied with the decision of the Authority, it can appeal to the court which I believe in this case is the High of Lagos state.


Section 32. The law provides for the standard that must  be maintained at all. In case of an organization: register the broker working under the organization with the Authority; (b) ensure the building or structure is fit for habitation and register the Certificate of Completion issued by Lagos State Building Control Agency; in the case of Property Developer: not to represent two (2) principals on the same transaction in the case of an agency; (d) not to collect money from more than one prospective client in respect of the same premises or building and shall remit money collected to the landlord in the case of a tenancy, within seven (7) working days, unless otherwise directed in writing by the landlord and such money collected shall be receipted; ensure that the prospective client takes physical possession of the property paid for within seven (7) working days after payment…


The law made provision for mediation for disputing parties. An aggrieved party can forward to the Authority a petition of grievances who in turn causes an investigation into the matter. During this period, letters of invitation are sent to parties to attend mediation. Upon reaching amicable settlement, a Memorandum of Understanding will be drawn up stating the terms of settlement between the parties. The MoU shall not be invalidated by reason of death of any of the parties upon execution of the MoU. further, it should be endorsed by either a Magistrate or a Judge as the case may be. 

Note that the MoU is enforceable in court.

However, if the petition is criminal in nature, it shall be forwarded to the Police or other appropriate authorities for proper investigation. If the Police have any reason to charge the petitioned individual/organization, it shall be forwarded to the Director of Public Prosecution.


Section 38. The Law considers a building to be abandoned where there has been no developmental activities for a period of 5 year for any or the followings reasons:

  1. Where the property is not developed due to lack of funds; or

  2. Constitutes nuisance

  3. Is a safety risk

  4. Is causing environment degradation

  5. It is used to perpetrate criminal activities.

Where any of the above situations is the case, the authority writes to the property owner/occupier to complete the development of the property or make some tangible improvement within a period of three months. They shall give the final three months period where the owner or the occupier fails to meet up with the first three months period.

The owner or occupier of the property is expected to make a representation to the Authority as to the reasons for the delays in complying with the notice given to him or the steps he has taken to comply with this notice. This will enable the The Authority to make appropriate recommendations to the authority where there is need to revoke the Certificate of Occupancy. If it appears inequitable to recommend revocation, the Authority will collaborate with the owner or occupier to make good the property.

NOTE: The Authority has power to acquire the power to acquire the property that is subject of discussion where the owner or occupier is unable to satisfy the authority on steps taken to comply with the notices issued. This will be done through revocation in accordance with the Land Use Act.

The owners of acquired property are to be compensated within reasonable time where applicable. The reasonable  time is not defined in the law. However, it should mean as soon as possible.

The Authority could also recommend relevant authorities uncompleted buildings for demolitions where it constitutes danger to health and safety risk to members of the public.


Section 48 Failure to register with The Authority as a Real Practitioner is an offence. An individual or a body corporate who fails to register with the Authority commits an offence. The punishment include:

  1. Upon conviction is liable to pay the sum of N250,000.00 in the case of an individual while an organization shall be liable to pay the sum of N1,000,000.00

  2. Where the person or the organisation is registered but is in breach of any of the provisions of the law, it shall be liable to revocation of its permit or  pay the sum of N100,000.00 and N10,000.00 for each day the default continues in the case of an individual; revocation of permit or a pay N100,000.00 and N25,000.00  for each day the default continues in the case of an organization; and a fine of N400,000.00 and N50,000.000  for each day the default continues in the case of an unregistered individual.


Section 44: 

Where you intend to institute an action against the Authority, you are required to give at least One Month Notice of your intention to file an action against in court.The following must be present in the Notice of Intention to institute an action:

  1. Cause of action

  2. Particulars of claims

  3. Names and abode of the claimant/plaintiff

  4. Claims and relief sought against The Authority.

It then of course means failure to give notice to them invalidates your action in court. Such notice should be served on the General Manager, The Adviser or any principal member personally or by a registered post to the persons already listed.


The Real Estate Transaction Law of Lagos state is geared towards regulating the activities of realtors in the state with a view to ensure that hard earned money is not swindled by some fraudulent individuals or organizations. Realtors (individuals and organizations) are expected to obtain Permit to operate within the state. Failure to obtain such licensee is a punishable offence. Upon obtaining such a license, ensure you are compliant at all times.