The real estate industry in Lagos State, Nigeria, is a thriving sector that offers numerous opportunities for individuals interested in pursuing a career as a licensed real estate agent. Being a licensed real estate agent not only provides financial rewards but also allows individuals to be actively involved in property transactions, property management, and investment opportunities.
In this guide, we will outline the steps required to become a licensed real estate agent in Lagos State, Nigeria.
Understand the Requirements
To become a licensed real estate agent in Lagos State, it is essential to familiarize yourself with the specific requirements set forth by the relevant authorities. The Lagos State Real Estate Regulatory Authority(LASRERA) oversees real estate activities in the state and regulates the licensing process.
The Lagos State Estate Agency Regulatory Law, Cap L28, Laws of Lagos State, 2015 ("Law") presently in operation in the State, provides for the establishment of the Lagos State Real Estate Regulatory Authority.
The essence of this Law is to regulate real estate transactions in Lagos State by identifying persons eligible to be licensed as Real Estate Practitioners and provides for the issuance or renewal of annual permits, as well as collating and registering Real Estate transactions in the State.Specifically, the Authority has the responsibility for maintaining a register of Licensed Real Estate Practitioners and sanctioning of unlicensed Estate Agents in the State.
In its bid to sanitize and promote transparency, the State must keep a database of persons dealing in Real Estate transactions, regulate and monitor the activities of all Practitioners. Thus, the State must ensure strict compliance and adherence to the law in its efforts to protect its citizens and rid the State of unethical practices in the Sector.
Aspiring agents must meet the following requirements
a. Educational Qualification: Applicants must possess a minimum of a high school diploma or its equivalent. However, having a bachelor's degree in a related field such as estate management or business administration can provide a competitive advantage.
b. Training: Completion of a recognized real estate training program or course is mandatory. These courses provide aspiring agents with the necessary knowledge and skills required for the profession. Many institutions and professional bodies in Nigeria offer real estate training programs that are approved by Lagos State Real Estate Regulatory Authority(LASRERA).
c. Age Requirement: Applicants must be at least twenty-one (21) years old.
d. Character Assessment: A character assessment is conducted to ensure that applicants possess good moral character and are suitable for the real estate profession. This may involve obtaining references from reputable individuals or providing testimonials.
Enroll in a Recognized Real Estate Training Program
To fulfill the training requirement, aspiring real estate agents must enroll in a recognized training program. These programs cover various aspects of the real estate industry, including property valuation, sales and marketing, property management, legal and ethical considerations, and real estate finance. The duration of the training program can range from a few weeks to several months, depending on the institution and the depth of the curriculum.
It is essential to choose a reputable training institution or professional body that is accredited by LASRERA. Some notable institutions offering real estate training in Lagos State include the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Real Estate Developers Association of Nigeria (REDAN), and the Real Estate Academy Nigeria (REAN).
Obtain the Required Documents
After completing the training program, aspiring real estate agents must gather the necessary documents for their license application. These documents typically include:
a. Application Form: Obtain the application form from LASRERA or the approved training institution.
b. Educational Certificates: Provide copies of educational certificates, such as a high school diploma or a bachelor's degree.
c. Training Certificate: Submit a copy of the training certificate obtained from the recognized training institution.
d. Proof of Identification: Provide a copy of a valid identification document, such as a national identity card or passport.
e. Passport Photographs: Include recent passport-sized photographs as per the specified requirements.
f. Application Fee: Pay the required application fee as stipulated by LASRETRAD.
Submit Application and Undergo Assessment
Once all the required documents are gathered, aspiring agents must submit their application to LASRERA along with the relevant fees. The application will be reviewed by the department, and if deemed satisfactory, the applicant will proceed to the next stage.
LASRERA may conduct an assessment, which can involve written exams or interviews to evaluate the applicant's knowledge and understanding of the real estate industry, ethics, and professionalism.
The following LASRERA practice guildlines is set for real estate agents in Lagos state
1. A Licensed Estate Agent / Property Developer shall not carry on Business of Real Estate in the State unless licensed by the Lagos State Real Estate and Regulatory Authority.
2. A Licensed Real Estate Practitioner shall have an ascertained business premises/office within the State.
3. A Licensed Real Estate Practitioner shall register the business with the Corporate Affairs Commission (CAC).
4. A Licensed Real Estate Practitioner shall have records of business transactions, and shall open a separate client account.
5. A Licensed Estate Practitioner shall not act for two (2) principal (Clients) on a transaction.
6. A Licensed Real Estate Practitioner shall be paid fees by his principal only.
7. A Licensed Estate Practitioner shall not collect money from more than one prospective tenant or purchaser in respect of the same premises and shall remit money collected to the landlord within fourteen (14) days, unless otherwise directed in writing by the landlord and such money collected shall be receipted for.
8. A Licensed Real Estate Practitioner shall ensure that his client performs all his obligations to the Government under the existing laws, such as the deduction and remittance of Withholding Tax, Valued Added Tax or other charges payable on the property he handles.
9. Agency fee(s) shall be as follows:
Letting: Not more than 10 percent of the total rent collected on any transaction.
Sale or Purchase of interests in Land and Buildings where two or more agents are retained by the owner/vendor for the sale, the fee shall not be more than 15 percent of the total proceeds of sale.
10. A Licensed Real Estate Practitioner shall not prepare any legal document pertaining to any transaction handled by him but must be prepared by a Legal Practitioner and the fees shall not be more than 12.5 percent of the total consideration.
Attend Mandatory Continuing Professional Development (CPD) Programs
After obtaining a real estate license, it is mandatory for licensed agents to participate in Continuing Professional Development (CPD) programs.CPD programs are designed to ensure that licensed real estate agents stay updated with industry trends, laws, regulations, and best practices. These programs may include workshops, seminars, conferences, or online courses. Licensed agents must fulfill the CPD requirements set by LASRETRAD to maintain their license validity.
Join Professional Associations
Joining professional associations in the real estate industry can provide numerous benefits, including networking opportunities, access to industry resources, and professional development. Some prominent professional associations in Lagos State include the Nigerian Institution of Estate Surveyors and Valuers (NIESV), the Real Estate Developers Association of Nigeria (REDAN), and the Lagos State Real Estate Association (LASREA).
Membership in these associations demonstrates a commitment to professionalism and can enhance credibility within the industry.
In conclusion, becoming a licensed real estate agent in Lagos State, Nigeria, requires fulfilling specific requirements set by LASRETRAD. By understanding these requirements, enrolling in a recognized training program, and completing the necessary documentation, aspiring agents can embark on a rewarding career in the real estate industry.
Ongoing professional development and active involvement in professional associations will contribute to success and growth in this dynamic field. With dedication, continuous learning, and a commitment to ethical practices, individuals can thrive as licensed real estate agents in Lagos State.
