Can The Lagos State Real Estate Regulatory Authority (LASRERA) Be The Game-Changer In Resolving Real Estate Disputes In Lagos State?

INTRODUCTION

Disputes arising from real estate transactions are quite common in Lagos State, as real estate is regarded as one of the major forms of investment. Most of these disputes involve developers who have failed to deliver properties to subscribers within the agreed-upon timeline, vendors who sell properties to multiple buyers, agents who defraud potential tenants, property ownership disputes, and disputes between landlords and tenants. Usually, aggrieved parties resort to traditional litigation, but this route is becoming increasingly tedious due to the lengthy time it takes to resolve a lawsuit involving a property dispute.

However, the establishment of the Lagos State Real Estate Regulatory Authority (LASRERA) through the Lagos State Real Estate Regulatory Authority Law, 2022, might act as a game-changer for disputing parties. This potential lies in its statutory design and the Agency's ability to exercise its full mandate as provided by its establishment law. LASRERA has emerged as a formidable mediator, recovering millions, curbing fraud, and, most importantly, restoring peace in the Lagos State real estate sector.

LEGAL FRAMEWORK: THE STATUTORY BIRTH OF LASRERA

LASRERA was established by the Lagos State Real Estate Regulatory Authority Law 2022 ("the Law"), to bring law and order into the real estate sector in Lagos State. At face value, the Law licenses and regulates real estate practitioners, curbing fraudulent practices and enforcing transparency. Yet, beneath the regulatory provisions lies an even more potent mandate: dispute resolution.

Sections 6 and 7 of the Law expressly empower LASRERA to investigate complaints, mediate disputes arising from property transactions between agents and prospective tenants, agents and property owners, developers and landowners, developers and prospective tenants and any other matter in relation to a real estate transaction. It should, however, be noted that based on the provisions of section 35 (4) of the Law, LASRERA does not have the jurisdiction to investigate or handle matters involving fraud or obtaining by false pretense, as such matters shall be forwarded to the Police for investigation.

Under sections 6, 7, 35 and 36, the Authority has the power to mediate on matters involving landed properties, primarily focusing on contractual breaches, tenancy issues, and agent-related fraud. Instructively, the outcome of the mediation can be reduced into a Memorandum of Understanding (MOU) between the parties, which shall be binding once it is endorsed by a Magistrate or Judge appointed by the Chief Judge. This is critical because the MOU shall be enforceable in a Court of Law.

This fusion of regulatory oversight and enforceable mediation has positioned LASRERA as a formidable dispute-resolution body, providing an alternative that is faster, less confrontational, and far more cost-effective than traditional litigation.

A REVIEW OF LASRERA'S ACTIVITIES:

Speaking at a ministerial press briefing by the Ministry of Housing on Tuesday, 13 May 2025, in Alausa, Ikeja, the Commissioner for Housing, Moruf Akinderu-Fatai, while describing the Agency as a critical tool in upholding professional standards and protecting buyers and tenants from fraudulent actors, outlined LASRERA's achievements and activities as follows:

"LASRERA has successfully mediated in 1,580 out of 1,899 cases brought before it, resolving 1,243 disputes amicably through its Alternative Dispute Resolution (ADR) mechanism. It has also helped recover N295,471,800 on behalf of aggrieved parties and secured the return of 20 properties to rightful owners."

These figures represent families who got their deposits back, tenants spared unlawful eviction, and buyers who finally obtained their dream properties. Compared to court cases, which often last between two and five years at the trial stage, LASRERA resolves disputes in months, aligning with the growing adoption of Alternative Dispute Resolution (ADR) under Nigeria's Arbitration and Mediation Act 2023.

HOLDING PROPERTY DEVELOPERS AND ESTATE AGENTS ACCOUNTABLE:

One of LASRERA's most significant interventions lies in regulating the activities of developers. This is evident in section 27 of the law, which provides that property developers must be registered with LASRERA before they can engage in real estate transactions in Lagos State.

Section 26 of the law highlights the factors to be considered before individuals or companies dealing in the real estate business shall be eligible for registration, while section 32 highlights the operational standards to be maintained by holders of permits in the course of real estate transactions in Lagos State. These operational standards, which apply to both real estate agents and property developers, include:

1. Register the broker working under the organization with the Authority.
2. Ensure the building or structure is fit for habitation and register the Certificate of Completion issued by the Lagos State Building Control Agency, in the case of a Property Developer.
3. Not to represent two (2) principals on the same transaction in the case of an agency.
4. Not to collect money from more than one prospective client in respect of the same premises or building and shall remit money collected to the landlord in the case of a tenancy, within seven (7) working days, unless otherwise directed in writing by the landlord and such money collected shall be receipted.
5. Ensure that the prospective client takes physical possession of the property paid for within seven (7) working days after payment.
6. Ensure that the prospective client takes physical possession of the property paid for immediately after conditions relating to possession in the agreement or terms of contract are met in the case of a property developer.

In addition, section 33 of the Lagos State Real Estate Regulatory Authority Law, 2022 provides that any individual or organisation dealing in real estate transaction, who fails to apply for registration with LASRERA commits an offence and is liable on conviction to a fine of not less than N250,000.00 (Two hundred and fifty thousand naira) only in the case of an individual and not less than N1,000,000.00 (One million naira) only in the case of a company.

These provisions help protect the interests of every person in Lagos State who engages in various forms of real estate transactions. The establishment of LASRERA confirms that the Lagos State Government is committed to its mandate to protect the state's residents from unscrupulous developers and agents.

CONCLUSION:

Real estate and tenancy disputes in Lagos extend beyond being mere legal issues, as they have a significant impact on the livelihoods of families, businesses, and the stability of the state's economy. Traditionally, such conflicts have been synonymous with endless litigation, mounting costs, and prolonged uncertainty. However, with the enactment of the Lagos State Real Estate Regulatory Authority Law, 2022, parties involved in real estate disputes can now submit their disputes to LASRERA for resolution through mediation, as LASRERA has the statutory authority and mandate to resolve disputes involving developers, landlords and tenants. Indeed, LASRERA has proven to be effective and responsive in many cases. If its current efforts are sustained, it might indeed serve as a game-changer in resolving property disputes in Lagos State.

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