Lagos unveils Code of Conduct for estate agency practice

L-R: DSP Nnamdi, Dr. Patunola Ajayi, Lagos State Commissioner of Housing, Hon. Bosun Jeje, former Governor of Lagos State, Alhaji Lateef Jakande and the Special Adviser to the Governor on Housing, Hon. Jimoh Ajao at the stakeholders workshop held at Adeyemi Bero Auditorium, Secretariat, Alausa on November 29,2013.

Standing left: Lagos State Attorney General and Commissioner of Justice, Mr. Ade Ipaye speaking during the stakeholders workshop held in Lagos recently. Pix: Akinsanya Kayode

By Olumide T. Agunbiade

 As part of the commitment of the present administration to sanitize the Estate Agency practice and regulate the activities of the Property Service Providers in Lagos State, the state government has introduced a code of conduct for practitioners, which specifies the rule of practice, and punishment for defaulters.
  The document mandates that a registered agent transacting business must have operational business premises or office within the state that will be verified ; maintain a record of his or her business transactions and shall open a separate bank account for that purpose; ensure that a prospective tenant or purchaser takes physical possession of the property paid for within 14 days except otherwise stated in writing and that his principal performs all necessary obligations due to the government under applicable legislation and regulation.

Also, the code prescribes a standard of professional conduct befitting an estate agent, which is that a registered agent must comply with the fiduciary obligations to his or her client arising as a registered agent.

Other provisions of the code of conduct are that a registered agent must act in good faith and deal fairly with all parties engaged in a transaction; must not mislead a customer or client, nor provide false information, or withhold information that by law or fairness be provided to a principal/prospect and that a registered agent is required to discover hidden or underlying in property and must disclose known defects to the principal.

  The  document “Titled “Code of Conduct of Estate Agency Practice in Lagos State” was drafted by the Lagos State Real Estate Transaction Department (LASRETRAD), a department under the Ministry of Housing, in conjunction with the Ministry of Justice.

      The state’s Attorney General and Commissioner for Justice, Mr. Ade Ipaye who unveiled the document at a stakeholders’ seminar that took place at the Adeyemi Bero Auditorium, Alausa Secretariat on Friday, 29^th November, 2013, called for maximum cooperation of the practitioners. Ipaye urged them to deal faithfully with their clients, saying that Lagos government frowns at any untoward behaviors, as far as land matter or rent is concerned

  He also informed the gathering that Lagos has amended it criminal code, adding that “land stealing” is no longer a civil matter, but now a criminal offence. “Besides, we are no longer tolerant of fraud, either outside government or within the system. Indeed, we would be happy to deal with any government official who engages in criminal deals, be it in land, housing, even, in kidnapping. We have zero tolerance to all these criminal activities”, he said.

Second Vice President, Nigerian Institution of Estate Surveyors and Valuers (NIESV), Dr. Bolarinde Ajayi Patunola, said the setting up of LASRETRAD has significantly improved the activities of the estate agents in Lagos State.

Ajayi, who represented NIESVs’ President, Mr. Emeka Eleh, gave kudo to the state on its stance on estate agency, however, added that much still need to be done.

      However, he said, with the coming on board of the Association of Estate Agents of Nigeria (AEAN), which intended to incorporate all associations and groups within the industry, greater improvement would be witnessed.

“Estate Surveyors are not there to drive anybody away from business, but rather to encourage the practitioners from different groups on the best international practice. And this can be done through training and retraining of the would-be practitioners. Because estate agency is first a profession before it becomes a business. So practitioners must uphold the ethics of the profession and bring such ethics to the business of the profession’, said Patunola.

  Earlier, Special Adviser to Governor Babatunde Fashola on Housing, Mr. Jimoh Ajao, noted that the challenges of real estate transactions in Lagos were very complex, urged all stakeholders to collaborate with the government to bring the desired sanity.

Dignitaries that attended the memorable workshop includes; former governor of Lagos State, Alhaji Lateef Jakande, Hon. Commissioner, Ministry of Housing, Bosun Jeje, DSP Nnamdi, The Chairman, Association of Estate Agents in Nigeria (AEAN), Mrs. Oluwayinka Adedeji a representative of the MD, Lagos State Signage and Advertisement Agency (LASAA), The Chairman, Lagos State chapter of the Estate Rent & Commission Agents Association of Nigeria (ERCAAN), Hon. Godwin Alenkhe.