ENUGU, Nigeria (NAN) - A proposed bill aimed at regulating agency and legal fees for housing has passed its first reading in the Enugu House of Assembly.
Titled ‘Bill for a Law to Amend the Landlord and Tenant Law Cap 101 of Enugu State 2024’, the bill was put forward by Okey Mbah, who represents the Nkanu East constituency.
Mbah indicated that the initiative arises from the increasing complaints from residents of Enugu State regarding the exploitation by landlords.
He highlighted that Section 3 (4) states that no tenant should be required to pay any additional premium for obtaining accommodation, aside from the legal fee owed to a licensed legal practitioner.
The lawmaker specified that this fee should be exclusively for the purpose of drafting the landlord and tenant agreement and should not exceed 10 percent of the rent.
Mbah clarified that violating this regulation, once enacted, would incur a fine of N500,000 or a six-month prison term, or both.
Additionally, he stated that the bill aims to address the injustices faced by tenants due to forced, irregular, and fraudulent evictions by instituting a legally defined timeframe for evictions and other pertinent notices.
Mbah further noted that the revised bill seeks to mandate that anyone desiring to work as a land agent or manager must be certified by the government.
He explained that there is a limit of 10 percent for both agency and legal fees, though this percentage can be negotiated to a lower rate but never above 10 percent.
Furthermore, he stated that the practice of charging caution fees should be outlawed.
However, the legislator mentioned that a government ministry or agency would be authorized to establish additional regulations regarding housing matters in Enugu.