ERCAAN Calls for Regulatory Clampdown on Illegal Agency Charges

The Estate Rent and Commission Agents Association of Nigeria (ERCAAN) has made a strong appeal to the federal government to implement effective regulations that would curb the widespread imposition of unlawful agency fees in property transactions across the country. According to the association, illegal charges have become rampant, especially in urban centres, leaving tenants and property seekers vulnerable to exploitation by unregistered or unscrupulous agents.

In a statement issued over the weekend, ERCAAN’s National President, Dr. Emmanuel Okoro, decried the increasing reports of multiple and arbitrary agency charges being demanded from unsuspecting Nigerians, particularly in Lagos, Abuja, and Port Harcourt. He described the trend as a major impediment to fair and affordable access to housing in the country, urging authorities to act swiftly to sanitize the sector.

Dr. Okoro stated that the absence of clear regulatory frameworks and enforcement mechanisms has allowed rogue individuals and quack agents to thrive. He noted that while ERCAAN and other recognised bodies attempt to self-regulate, their efforts are being undermined by a growing number of informal practitioners who operate outside the law. He stressed that many of these agents charge tenants and property seekers up to 20 percent of annual rent as commission, in clear violation of established professional practice.

According to him, these excessive fees are often charged without the knowledge or consent of property owners, with some agents demanding payments upfront before even disclosing property details. This, he said, not only distorts market pricing but also breeds mistrust in the real estate industry. He maintained that ERCAAN members are bound by a strict code of conduct that stipulates fair and transparent dealings, including limiting commission to a maximum of 10 percent as endorsed by relevant authorities.

The association urged the Federal Ministry of Housing and Urban Development, as well as state governments, to collaborate in drafting and enforcing legislation that would regulate the activities of estate agents and introduce penalties for unlawful charges. It also called for the registration and licensing of all estate agents operating in Nigeria, along with the establishment of a regulatory board to oversee compliance and handle complaints from the public.

Dr. Okoro added that ERCAAN is willing to partner with relevant government agencies to provide training and certification for agents, as a way to professionalize the industry and ensure ethical practices. He noted that beyond imposing fines on defaulters, the proposed regulation should also introduce a centralized database of certified agents that the public can access when seeking real estate services.

The association also emphasized the importance of public enlightenment. According to ERCAAN, many Nigerians fall victim to unlawful fees because they are unaware of their rights or do not know the difference between certified agents and impostors. Dr. Okoro advised property seekers to demand identification from agents and confirm their membership with recognized bodies before engaging their services. He further urged media organisations, civil society, and consumer rights groups to help raise awareness on the issue.

Reactions to the call for regulation have been mixed. Some members of the public expressed support for ERCAAN’s position, stating that they had been victims of arbitrary charges in the past. One Lagos-based tenant recounted how he was asked to pay N150,000 in agency and legal fees on a property with an annual rent of N500,000, in addition to a separate “inspection fee” that was non-refundable. Others however cautioned that the implementation of such regulation must be carefully managed to avoid stifling genuine practitioners who are trying to earn a living.

Meanwhile, some landlords and property owners welcomed the proposal, stating that it would help restore trust and discipline within the sector. They noted that in many cases, agents make decisions without consulting property owners, thereby creating unnecessary tension and damaging client relationships.

Legal experts have also weighed in, with some noting that the absence of a harmonised regulatory framework across Nigeria’s states has led to loopholes in enforcement. They noted that while Lagos and a few other states have rent control laws and agency guidelines, enforcement is often lax and limited in scope. They advised the federal government to work towards a unified national law that sets standards for agency fees, service delivery, and dispute resolution.

In concluding their statement, ERCAAN reaffirmed its commitment to promoting professionalism in the real estate industry. The association pledged to intensify its internal monitoring mechanisms to weed out erring members and protect the integrity of the association. It also reiterated its call for urgent government action, warning that the continued proliferation of unregulated agents could further erode public trust and worsen housing affordability in Nigeria.

The association believes that with proper legislation and public awareness, Nigeria’s real estate sector can evolve into a more transparent and investor-friendly environment where clients are treated fairly and practitioners are held to account.