Having a real estate license in Lagos State is a crucial step for professionals in the industry as it demonstrates their competency and commitment to ethical business practices.
It also provides assurance to clients that they are working with a qualified and authorized individual.
Real estate licensing in Lagos State refers to the process of obtaining a legal permit to engage in the practice of buying, selling, and managing properties within the state. This process is governed by the Lagos State Real Estate Regulatory Authority (LASRERA).
Real Estate License Agency
According to the law, all real estate professionals must hold a license and the authority can punish unregistered real estate professionals who work in the Lagos State real estate market.
The practice of an estate agency in Lagos, Nigeria, typically involves buying, selling, and renting properties such as houses, lands, and commercial buildings. Real estate agencies often have a team of licensed estate agents who are familiar with the local property market and can assist clients in finding the right property to suit their needs.
They also help clients with the legal and financial aspects of the transaction and can offer advice on market trends and prices. Some of the services offered by real estate agencies in Lagos include property valuations, property management, and investment advice.
Within Lagos State, the state government has implemented measures to regulate and streamline the real estate sector such as the Lagos State Property Protection Law and the creation of the Lagos State Property Development Authority.
The prerequisites for a practitioner’s registration are listed below.
- Meet the eligibility requirements: You must be at least 18 years old, have a clean criminal record, and possess a minimum of a secondary school certificate to be a real estate agent.
- Complete a real estate training program: To become a real estate practitioner, you will need to complete a training program approved by the Lagos State Ministry of Physical Planning and Urban Development.
- Register with the appropriate authority: Once you have passed the exam organized for real estate practitioners, you can then register with the Lagos State Real Estate Regulatory Authority (LASRERA).
- Obtain insurance: You are required to obtain professional indemnity insurance to protect your clients, this is quite important for real estate agents.
- Renew your license annually: Your license must be renewed annually by paying the renewal fee and meeting the continuing education requirements.
Documents Required for Real Estate Licencing in Lagos State
The required documents for obtaining a real estate license in Lagos State, Nigeria, may vary, but typically include:
- A completed application form
- A copy of your National ID card or passport
- Proof of business incorporation
- Passport-sized photographs
- Payment of the required fees
It’s advisable to confirm the specific requirements with the relevant regulatory agency in Lagos State, as they may change from time to time.
Bills Signed by Governor Sanwo-Olu Regarding Real Estate Licencing and Real estate Transactions
Governor Sanwo Olu of Lagos State, Nigeria signed a bill into law regarding the licensing of real estate professionals in the state. This law requires real estate agents, brokers, property managers, and other related professionals to obtain a license before practicing in Lagos.
The purpose of the law is to regulate the real estate industry, protect consumers, and promote ethical standards in the sector.
Mr. Babajide Olusola Sanwo-Olu, the governor of Lagos State, Nigeria has also signed bills related to real estate transactions in the state. These bills aim to regulate and standardize real estate transactions, protect the rights of buyers and sellers, and ensure transparency and fairness in the real estate market.
The laws address issues such as property transfer procedures, dispute resolution, and the responsibilities of real estate agents and brokers. Implementing these laws is expected to improve the ease of doing business in the real estate sector and boost investor confidence in the state’s property market.
The Lagos State Regulation on Real Estate Agent Transactions
- Stipulates that the Lagos State Real Estate Regulatory Agency ( LASRERA ) licenses all real estate agents and can discipline unauthorized real estate agents in the state.
- A real estate agent must keep records of all business transactions and open a separate account for each customer.
- A practitioner is also responsible for ensuring that his client complies with all of his legal obligations to the government, such as deducting and remitting Withholding Tax, Value-Added Tax, and any other applicable fees on the property he manages.
- A practitioner may not accept money from many prospective tenants or buyers for the same property.
- This transaction must be reimbursed to the landlord within fourteen (14) days of receipt, unless the landlord specifies differently in writing. Additionally, clients’ payments will be received.
- A real estate practitioner may not charge more than 10% of the total rent received on any transaction, and where two or more agents are hired by the owner/vendor for the sale, the fee may not exceed 15% of the entire selling revenues.
- A real estate practitioner is prohibited from preparing legal documents relevant to transactions he handles. Instead, a legal practitioner must prepare these documents, and the fees cannot exceed 12.5% of the entire consideration.
- A licensed real estate agent can only represent one principal in a transaction and can only receive compensation from that principal. Representing two principals in a single transaction constitutes a conflict of interest and is not allowed.
LASRERA is responsible for the coordination of activities such as issuance of permits, renewal of annual permits, collection and report of state real estate transactions. This means that they are part of the functions and duties performed by the agency to regulate the real estate appraisal profession in the state.
Challenges of Real Estate Marketing
- Competition: With so many real estate agents and brokers competing for clients, it can be challenging to stand out in a crowded market.
- Limited Budgets: Estate marketing can be expensive, and many small businesses have limited budgets for advertising and promotions.
- Technological Advancements: Keeping up with the latest technology and marketing trends can be a challenge for some estate marketing companies.
- Diverse Market Segments: Real estate markets are highly diverse and require a deep understanding of different buyer segments, such as first-time buyers, luxury buyers, and investors.
- Changing Regulations: Estate marketing must adhere to various regulations, such as fair housing laws, and it can be challenging to stay up-to-date with the latest changes.
- Generating Leads: Generating leads and converting them into clients is a key challenge in estate marketing, and requires a combination of creativity, persistence, and effective communication.
Tips to Becoming a Successful Real Estate Agent after Licence
There are so many real estate brokers in Nigeria that your skills to persuade clients and negotiate may not be sufficient. There are certain things you must understand to distinguish yourself in this industry.
Be Reliable
Listen to your customers and help them locate the properties they desire. Some clients may want everything they desire, regardless of the price. However, knowing that they can afford it does not justify an agent inflating the price, which can make them unreliable. The same holds true for their preferences regarding location and construction. As a real estate agent, your reputation is entirely up to you.
Recognize Your Aims
Why are you interested in becoming a real estate agent? You should be able to respond truthfully to this question and assess if the career is a good fit for you. You should have an interest in buildings and their architectural aspects, in addition to locating and facilitating property transactions.
Rapidly Respond to Leads
Responding promptly to leads increases your credibility. Be it via phone calls, emails, text messages, or social media. This will also increase your access to further opportunities. Therefore, when contacted, answer as quickly as feasible.
Technology
In this day of extraordinary technical advancement, you will not benefit from not using the offered instruments. There are numerous options available. If necessary, create YouTube videos, pay for commercials, and maintain active social media accounts. Do everything possible to put yourself out there. Create advertisements that target the individuals who require your services. These actions demonstrate to clients that you take your work seriously.
Professionalism
Have a business card so that you may provide it to potential clients with ease. As an independent agent, you should also have a place of business where you may meet with clients. It’s all part of branding, and it will help people take you more seriously and refer you to others.
Stay Informed
Always be aware of what is occurring in your community. Not only should you know the names of the streets, but also the best schools, restaurants, hospitals, the type of people that reside there, and the greatest shopping areas. Your clients will have many questions when they contact you to rent or purchase an apartment or property, and you will want to be prepared.
In addition, as a professional real estate agent, you must be knowledgeable about the local property market and pricing strategy. Creating a specialty for yourself on the local real estate market that allows you to stand out from the competitors will also be advantageous. This will help you maintain concentration.
Get Educated
You may choose to join up for training with renowned real estate companies. Thus, you will gain knowledge in a structured setting among other real estate professionals. You can also be hired as an agent by that company. However, if you desire to be an independent agent, you can still receive training from real estate businesses or institutions. Some of these courses are offered in Lagos. It will enhance your communication skills and teach you how to develop a solid network with brokers, sellers, buyers, and real estate firms. In addition, you will have additional information about the real estate industry.
Show Some Genuine Care
People can sense when someone genuinely cares about them. The relationship you have with your clients is professional, but you should also demonstrate concern for their well-being by small gestures and actions. If a client informs you that they are ill, you should at least call them or give them a message.
Be Observant as You Move Around
Move about and see the world. Visit properties and take note of their distinguishing features. Is it the setting? The splendor? The composition of the building? You should be mobile and able to communicate with others.
Frequently Asked Questions (FAQs)
How much does it cost to register with Lasrera?
The cost of registering with LASRERA varies from the kind of real estate business you are running. The cost of registration for realtor is different from that real estate brokers and real estate developers.
How much does a real estate agent make in Nigeria?
The amount of money a real estate agent can make in Nigeria will vary depending on their experience, the local market, and their individual business strategies. Generally speaking, real estate agents in Nigeria can expect to make between ₦2,000,000 – ₦10,000,000 per month and and above.
How do I become an estate agent with no experience?
The best way to become an estate agent with no experience is by taking courses and getting certified. There are plenty of real estate training courses available that provide the necessary skills and knowledge needed to be successful in this field. Additionally, you can gain valuable on-the-job experience through internships or volunteering opportunities.
How do I become a certified real estate agent in Nigeria?
You are not required to take any training to become certified real estate agent in Nigeria. Although, in Lagos the regulatory agency LASRERA requires real estate practitioners to register with them.
How do I qualify as an estate agent?
In Lagos, you don’t need any special skill or certificate to qualify as an estate agent. Your marketing and sales skills is sufficient if you have and if not you can learn it. However, it is not a requirement to qualify.
Conclusion
The real estate business in Lagos State has been taken over by impostors and fraudsters claiming to be accredited building or housing sector practitioners. Meanwhile, their primary intention is to scam unwary members of the public who hire their services in renting, leasing, purchasing, selling, and property development.
But with this new LASRERA yardstick, we assure you that sanity is fast returning to the real estate sector. For instance, the governing board has the authority to prosecute any real estate agent who violates the guidelines. Therefore, there’s no cause for alarm. All the obstacles on your path to becoming a licensed real estate agent have been dealt with.
