AMID discordant tunes over the introduction of a new tenancy law, Lagos government has come to the defence of it decision, saying the enactment of the law would guide contractual obligations and relationship between the parties.
Lagos State Governor, Mr. Babatunde Raji Fashola, last month signed the Tenancy and Lagos Parks and Gardens Bill into Law, which is aimed at regulating the relationship between landlords and tenants.
The new law specified that any landlord that collects more than a year’s rent from new tenants would be liable to three months imprisonment with the option of a N100, 000 fine if convicted. Also, landlords, who impose and collect more than six months rents from their “sitting tenants” will, if convicted, go to jail for six moths.
Furthermore, any landlord, who forcibly or illegally ejects tenants from his abode will go to jail for six months when convicted, or pay a fine of N250, 000.
Speaking at a Business Luncheon organised by the Lagos branch of the Nigeria Institution of Estate Surveyors and Values (NIESV) last week, the Attorney General and Commissioner for Justice, Lagos State, Ade Ipaye, the Lagos State government came up with the law based on the outcome of landlord-tenant mediation centre findings about the unbalance nature of the contractual terms of agreement between both parties in the property market.
His words, the reality of the landlord and tenant relationship is that when it comes to contractual terms, the parties are not always so evenly matched. However such arguments rests upon assumption that all parties to the tenancy contract have equal bargaining power and are free to agree the terms without any coercion. The reality of the landlord and tenant relationship is that when it comes to contractual terms, the parties are not always so evenly matched. Ordinarily we will allow the tenancy law to operate for some time and if we see any serious problem with it, we will come back to it.”
He also allayed concerns that the law would dissuade investment in housing, disagreeing that the law would not limit the amount payable as rent and that it rather would address the amount payable as advance rent.
“If a builder invests N30 million in a building, it is not the two-year rent he gets in advance that will make him regain his investment,” Ipaye stressed.
He also said that building of low-cost houses by the government would not solve housing problem in the state, adding that the debt incurred by the past governments on housing was huge and had not been fully repaid.
According to him, the only solution is to get people empowered by way of mortgage, review the land use charge (which the government is already doing) and reduce the cost of building, materials in the state.
However, Ipaye explained last week that, “the law protects the landlords from troublesome sit tight tenants. It also protects the tenants from the unreasonable demands of some landlords. The essence of the law is to ensure that all citizens are protected by the state. This is in consonance with provisions of constitution that mandate the House of Assembly of a state to make laws for the peace, order and good governance of the state.”
“It must be noted that the law is not a rent control legislation. The law however controls indiscriminate rent increase. A sitting tenant may apply to the court for an order declaring that the increase in rent payable under his tenancy agreement is unreasonable.
“However, in coming to a determination as to what is reasonable, the court will consider, among other things, the general level of rent for comparable premises in the locality. The provision, therefore, protects the interest of both the landlord and the tenant. This is the aspect of the law that has arguably generated the most commentary. To start with, it must be made clear that the law is not a rent control legislation. Unlike its predecessors, its does not stipulate what should be the rent to respect of transaction. That is subject to the agreement of the parties.
“What the law does is to prohibit the demand of more than six months rents from monthly tenant and one year rent from a sitting yearly tenant. In respect of new tenancy, one-year rent is the maximum allowed to be demanded or received under the law.
“Upon payment, receipt which must contain date on which the rent was paid, names and address of lanlord, the tenant and property, the amount of rent paid and the period to which the payment relates must be issued by the landlord.”
Earlier, NIESV President, Mr. Bode Adediji, explained that the newly enacted law of Lagos State government is one document that would have tremendous impact on housing landscape in the state in particularly and perhaps even in Nigeria as a whole.
“It is my candid belief that if the government of this country (all levels) can summon the political and will to address and trash out all the impediments militating against housing delivery system in the country, recourse of legislation of tenancy control law would be necessary.
“Since the bulk of the professional estate surveyors and valuers earn their livelihood in Lagos, since Lagos remain the numero uno in the- built environment matters and also by virtue of Governor Raji Fashola’s position as patron of our institution, we shall continue to dialogue, advise, cooperate and contribute as much as we can regarding the housing matter un Lagos State in all its ramifications.”
Also Chairman, Lagos State branch, Mr. Solomon Fatoki said the performance of the Lagos State government in provision of social housing for low-income earners is abysmally low. This law may further worsen the situation for the low-income earners, which the law wanted to protect
Lagos State Governor, Mr. Babatunde Raji Fashola, last month signed the Tenancy and Lagos Parks and Gardens Bill into Law, which is aimed at regulating the relationship between landlords and tenants.
The new law specified that any landlord that collects more than a year’s rent from new tenants would be liable to three months imprisonment with the option of a N100, 000 fine if convicted. Also, landlords, who impose and collect more than six months rents from their “sitting tenants” will, if convicted, go to jail for six moths.
Furthermore, any landlord, who forcibly or illegally ejects tenants from his abode will go to jail for six months when convicted, or pay a fine of N250, 000.
Speaking at a Business Luncheon organised by the Lagos branch of the Nigeria Institution of Estate Surveyors and Values (NIESV) last week, the Attorney General and Commissioner for Justice, Lagos State, Ade Ipaye, the Lagos State government came up with the law based on the outcome of landlord-tenant mediation centre findings about the unbalance nature of the contractual terms of agreement between both parties in the property market.
His words, the reality of the landlord and tenant relationship is that when it comes to contractual terms, the parties are not always so evenly matched. However such arguments rests upon assumption that all parties to the tenancy contract have equal bargaining power and are free to agree the terms without any coercion. The reality of the landlord and tenant relationship is that when it comes to contractual terms, the parties are not always so evenly matched. Ordinarily we will allow the tenancy law to operate for some time and if we see any serious problem with it, we will come back to it.”
He also allayed concerns that the law would dissuade investment in housing, disagreeing that the law would not limit the amount payable as rent and that it rather would address the amount payable as advance rent.
“If a builder invests N30 million in a building, it is not the two-year rent he gets in advance that will make him regain his investment,” Ipaye stressed.
He also said that building of low-cost houses by the government would not solve housing problem in the state, adding that the debt incurred by the past governments on housing was huge and had not been fully repaid.
According to him, the only solution is to get people empowered by way of mortgage, review the land use charge (which the government is already doing) and reduce the cost of building, materials in the state.
However, Ipaye explained last week that, “the law protects the landlords from troublesome sit tight tenants. It also protects the tenants from the unreasonable demands of some landlords. The essence of the law is to ensure that all citizens are protected by the state. This is in consonance with provisions of constitution that mandate the House of Assembly of a state to make laws for the peace, order and good governance of the state.”
“It must be noted that the law is not a rent control legislation. The law however controls indiscriminate rent increase. A sitting tenant may apply to the court for an order declaring that the increase in rent payable under his tenancy agreement is unreasonable.
“However, in coming to a determination as to what is reasonable, the court will consider, among other things, the general level of rent for comparable premises in the locality. The provision, therefore, protects the interest of both the landlord and the tenant. This is the aspect of the law that has arguably generated the most commentary. To start with, it must be made clear that the law is not a rent control legislation. Unlike its predecessors, its does not stipulate what should be the rent to respect of transaction. That is subject to the agreement of the parties.
“What the law does is to prohibit the demand of more than six months rents from monthly tenant and one year rent from a sitting yearly tenant. In respect of new tenancy, one-year rent is the maximum allowed to be demanded or received under the law.
“Upon payment, receipt which must contain date on which the rent was paid, names and address of lanlord, the tenant and property, the amount of rent paid and the period to which the payment relates must be issued by the landlord.”
Earlier, NIESV President, Mr. Bode Adediji, explained that the newly enacted law of Lagos State government is one document that would have tremendous impact on housing landscape in the state in particularly and perhaps even in Nigeria as a whole.
“It is my candid belief that if the government of this country (all levels) can summon the political and will to address and trash out all the impediments militating against housing delivery system in the country, recourse of legislation of tenancy control law would be necessary.
“Since the bulk of the professional estate surveyors and valuers earn their livelihood in Lagos, since Lagos remain the numero uno in the- built environment matters and also by virtue of Governor Raji Fashola’s position as patron of our institution, we shall continue to dialogue, advise, cooperate and contribute as much as we can regarding the housing matter un Lagos State in all its ramifications.”
Also Chairman, Lagos State branch, Mr. Solomon Fatoki said the performance of the Lagos State government in provision of social housing for low-income earners is abysmally low. This law may further worsen the situation for the low-income earners, which the law wanted to protect
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