Nigeria’s government will announce plans Thursday to develop a
mortgage finance company along the lines of the U.S.’s Fannie Mae that
will help broaden access to home loans in Africa’s most populous
country.
The Nigeria Mortgage Refinance Co. will sell bonds on
capital markets and provide long-term financing to lenders that will
help them extend more home loans, according to an e-mailed statement
from the Mercury PR company, acting for the government. It will also
have an “oversight function to standardize mortgage lending practices,”
it said.
The
company will help extend maturities for Nigerian home-buyers to as much
as 20 years, encouraging the building of 75,000 new homes a year and
creating at least 300,000 jobs, according to the statement.
“It
will help establish a long-term yield curve for pricing financial
assets, which has been lacking,” Bismarck Rewane, chief executive
officer at Financial Derivatives Co., said by phone from Lagos today.
The new company will create “initial market efficiency followed by
market sophistication,” he said.
Nigeria has been seeking to
expand financing to help address a housing deficit in the continent’s
second-biggest economy. The Federal Mortgage Bank of Nigeria said last
month it was in talks with two Chinese lenders for credit of as much as
$6 billion. In November, the government accepted a $300 million loan
from the World Bank’s housing unit.
Showing posts with label REAL ESTATE TIPS. Show all posts
Showing posts with label REAL ESTATE TIPS. Show all posts
Wednesday, January 29, 2014
Saturday, January 25, 2014
Before Buying Land in Nigeria, Read this!
Here are some things to consider before you buy any piece of land in Nigeria.
The property should be investigated. It is important to conduct a search and be sure that the property is free from all sorts of encumbrances. This is crucial as one may actually be entitled to sell but be unaware that the property in question is subject of litigation in court, has been used as collateral to secure a loan, a charge or mortgaged or as the case may also be, be committed (site for a government scheme or project).
The combined effect of this is that in case of adverse claimants, the "first in time" rule applies. Simply, where there are contesting claims to same property, the court awards ownership to whoever registered first in the lands registry. Again a non-registered document could be rendered inadmissible in court as evidence of a transaction.
So count your costs before buying that land.If you haven't got the funds to secure your investments, then DO NOT PURCHASE THAT LAND.
1. Due Diligence /Investigation
It is crucial to engage the services of a legal professional to carry out investigation at the land registry and surveyor-general's office to verify if the co-ordinates have not been flown (falsifying the survey plan by doctoring co-ordinates to read as free from all encumbrance whilst property falls within a government committed land) or if you're buying from the natives (Omoniles) make sure you are dealing with the principal/accredited members of the family.The property should be investigated. It is important to conduct a search and be sure that the property is free from all sorts of encumbrances. This is crucial as one may actually be entitled to sell but be unaware that the property in question is subject of litigation in court, has been used as collateral to secure a loan, a charge or mortgaged or as the case may also be, be committed (site for a government scheme or project).
2. Documentations
Ensure that the transaction is captured by way of deed of assignment or grant or contract of sale. Do not drop documents to pick up later when dealing with the natives as you cannot tell if they were duly signed/executed by the accredited members of the family, or if they were actually carried along through out the transaction. A registered surveyor must also perform a survey exercise on the said parcel and duly lodge a record copy at the surveyor general's office.3. Title Perfection
In securing your purchased property, perfecting the transaction is essential and should entail applying for the governor's consent or Certificate of Occupancy at the relevant authority. And when the governor's consent is obtained, it is advisable to register your title documents at the lands registry.The combined effect of this is that in case of adverse claimants, the "first in time" rule applies. Simply, where there are contesting claims to same property, the court awards ownership to whoever registered first in the lands registry. Again a non-registered document could be rendered inadmissible in court as evidence of a transaction.
4. Take Possession
Most importantly, take possession of your property. Possession in law is nine-tenth of ownership. You must exercise acts of ownership to ward off trespassers. Acts such as cultivating, building, fences etc. are not enough. Possession must be physical. I always advise that you build a little boy's quarters and keep a tenant on the property if you lack the funds to develop your bare land. If you have dealt with the natives (Omoniles) and you are not in physical possession, then prepare to be relocated or to be re-allocated another plot that is either far off from the major road or also belongs to another person.So count your costs before buying that land.If you haven't got the funds to secure your investments, then DO NOT PURCHASE THAT LAND.
Hints (Do’s and Don’ts) of Renting an Apartment/Office Space in Nigeria
Searching for and renting an apartment in Nigeria is undoubtedly an arduous task. The Nigerian Public Space is awash with acerbic and nasty tales associated with renting. A lot of people have fallen and continue to fall prey to the caprices, schemes of some unscrupulous so-called "Estate Agents" and landlords hence the need to bring this to the front burner. A while ago, a family friend "lost" a substantial amount to a so-called "estate developer" that absconded with his money and that of five others.
Right now I am sharing six nuggets of information you need to know prior to or during your renting expedition.
Now to the nitty-gritty:
Please ensure you are issued a receipt when you pay for an apartment even if the apartment belongs to a family friend. Don’t leave anything to chance because people can be funny over here. The same applies when you renew your rent; ensure your payment is receipted. It follows that if your payment is not receipted, there is no prove of your payment should things metamorphose into a legal issue. Never assume because you lived there amicably the first year therefore it will continue to be like that. Many of these so-called landlords/landladies will be nice to you the first year but will like to frustrate you subsequently so they can rent the apartment/shop to a new tenant that will pay them another round of ‘agreement’, ‘commission’ ‘deposit’, ‘NEPA’ etc.
Ensure there is good access road and probably proximity to a bus stop. There are areas you live in and you have to be changing your car tyres often, not forgetting the time you spend on traffic to and fro. Proximity to a bus stop is also important especially if you don’t drive otherwise you need to take a bike to the nearest bus stop before you then board a bus to your destination. By the time you add your rent and what you spend on ‘Okada’ (bike) to and fro your nearest bus stop, it will be substantial.
It is highly recommended that you have a pre-paid electricity meter in your apartment. I guess this applies mainly to those living in flats etc not in a typical ‘face me, I slap you’ where occupants share a single electricity meter. A lot of houses in Nigeria lack an electricity meter so they are at the mercy of the PHCN that unilaterally estimate and allocate amounts to be paid as electricity bill. It is highly probable to see a three-storey rented apartment in Nigeria that has just a single electricity meter. Many of the landlords, especially those ones that live in the same premises with their tenants, seldom show tenants the electricity bill. They will tell you the amount to be paid each month and God bless you; you want to argue with them. Also ensure that you do not inherit outstanding enormous bills (PHCN, LAWMA, Water) etc from the previous tenants.
Avoid very notorious and crime/crises-prone areas. Security and safety of lives and properties cannot be guaranteed anywhere in Nigeria but there are areas that have a semblance or iota of Security and Safety. Yes everybody cannot live in Lekki, VGC, and Banana Island etc. Beware of notorious hot-spots that have a history of high crime rate and are riot-prone. This hot spot issue is not just a Nigerian thing, it exists everywhere. For instance in England, Moss Side in Manchester is noted for drive-by shootings, drug dealing etc. In Lagos, Mushin is synonymous with high rates of thuggery and criminality. Apart from the inherent danger, kids risk imbibing some of the negative tendencies in their environment.
If you are using the services of the so-called ‘Agents’, never, I repeat, never give them the total amount for rent until you satisfy yourself that the apartment is truly vacant and have not been paid for by another prospective tenant. During negotiations with the ‘Agent’, subtly suggest you will like to speak with the landlord. His countenance will tell you whether there is something fishy. It’s preferable if you can rent directly from the landlord, some of them, especially the enlightened ones will not insist you pay them ‘commission’, ‘agreement’ etc. I unwittingly invoked the wrath of a particular landlord when I suggested to him that I was not expecting to pay ‘commission’ and ‘agreement’ since I got the apartment directly from him and not through an Agent. It’s safer for you to remit the rent fee to the landlord’s bank account at least your teller serves as prove of payment.
Tenancy agreements and Quit notice angle. I have come across a lot of them; most of them are skewed in favour of the landlord and meant to intimidate the tenant. I came across a particular tenancy agreement which reads: "…you must not come back or knock at the gate after 10pm; you must not use a gas cooker or electric cooker, ‘the tenant hereby agrees to be served a one month quit notice if the landlord wishes to take possession of the house". I also came across another tenancy agreement where the landlord said he can enter the tenant’s apartment ANYTIME he wishes to check the condition of the house. This is a bit too far. It’s trespassing. I am not a legal expert but I am pretty sure that the Tenancy act/law and the Constitution supersede all these hogwash some landlords bandy as ‘tenancy agreement’ or quit notice.
Popular Places to Rent in Lagos, Nigeria
Mitnids Real estate , the best website to get updated about properties news and tips in
Nigeria, today released popular places to rent a 3-bedroom apartment
within Lagos state, Nigeria based on the extensive data and information
found and listed on their website.
Lekki was revealed to be the most popular place for renting 3-bedroom apartments due to the large volume of properties listed in this local government area with Magodo and Ikeja coming in second and third place respectively. Kosofe and Isheri North were revealed to both having the lowest number of properties listed in 2013.
The most expensive 3 bedroom apartment listed in 2013 was found in Ikoyi going for N45 million naira (forty five million naira only), a slight drop from 2012 when a N55 million naira (fifty five million naira only) apartment was listed. Badagry had the cheapest 3-bedroom property that went for N180,000 (one hundred and eighty thousand naira only) this year, which is also consistent with the property value in the same region for last year.
Lekki was revealed to be the most popular place for renting 3-bedroom apartments due to the large volume of properties listed in this local government area with Magodo and Ikeja coming in second and third place respectively. Kosofe and Isheri North were revealed to both having the lowest number of properties listed in 2013.
The most expensive 3 bedroom apartment listed in 2013 was found in Ikoyi going for N45 million naira (forty five million naira only), a slight drop from 2012 when a N55 million naira (fifty five million naira only) apartment was listed. Badagry had the cheapest 3-bedroom property that went for N180,000 (one hundred and eighty thousand naira only) this year, which is also consistent with the property value in the same region for last year.
PPP Will Boost Nigeria's Real Estate Sector
I am sure you are wondering what 'PPP' stands for and how it is the panacea to Nigeria's Housing problems. PPP stands for "Private-Public-Partnership".
It is a type of business relationship between a government agency and a
private-sector establishment geared towards conceptualizing and
completing projects that will benefit the public such as Low Cost
Housing Estates, public transportation networks amongst others.
This concept is quite popular in most Western Countries. In many developed countries, government has no business directly building houses or estates. The role of government is to create a conducive investment atmosphere such as putting in place mortgage insurance through banks and building societies and also provision of their necessary infrastructure. A typical example of a Private-Public-Partnership in the United States is the National Association of Home Builders (NAHB) which partners with mortgage institutions.
Experts believe that this holds the key to revolutionizing Nigeria's moribund real estate industry and Nigeria's struggling economy. It appears Nigeria's Minister of Finance, Dr. Ngozi Okonjo-Iweala is thinking in this direction as she is tinkering with the prospect of fashioning an encouraging mortgage regime especially for low income earners in Nigeria. It is high time the aforementioned concept was integrated into Nigeria's National Housing Policy.
The housing or real estate sector in Nigeria if well harnessed, will have a multiplier-effect on other aspects of the economy such as churning out sustainable employment opportunities for Nigeria's teeming unemployed youths.
Now let us envision the ripple-effect of a booming real estate sector in Nigeria. This will translate into more jobs for building engineers, architect's, bricklayers, electricians, plumbers, carpenters, private security guard's and other interconnected business opportunities. If the aforementioned folks are economically empowered, they will in turn be galvanized to spend on their basic needs which will eventually rub off on the larger economy. Of course not forgetting the fact that a booming real estate industry will also accrue taxes, revenues to the government.
This concept is quite popular in most Western Countries. In many developed countries, government has no business directly building houses or estates. The role of government is to create a conducive investment atmosphere such as putting in place mortgage insurance through banks and building societies and also provision of their necessary infrastructure. A typical example of a Private-Public-Partnership in the United States is the National Association of Home Builders (NAHB) which partners with mortgage institutions.
Experts believe that this holds the key to revolutionizing Nigeria's moribund real estate industry and Nigeria's struggling economy. It appears Nigeria's Minister of Finance, Dr. Ngozi Okonjo-Iweala is thinking in this direction as she is tinkering with the prospect of fashioning an encouraging mortgage regime especially for low income earners in Nigeria. It is high time the aforementioned concept was integrated into Nigeria's National Housing Policy.
The housing or real estate sector in Nigeria if well harnessed, will have a multiplier-effect on other aspects of the economy such as churning out sustainable employment opportunities for Nigeria's teeming unemployed youths.
Now let us envision the ripple-effect of a booming real estate sector in Nigeria. This will translate into more jobs for building engineers, architect's, bricklayers, electricians, plumbers, carpenters, private security guard's and other interconnected business opportunities. If the aforementioned folks are economically empowered, they will in turn be galvanized to spend on their basic needs which will eventually rub off on the larger economy. Of course not forgetting the fact that a booming real estate industry will also accrue taxes, revenues to the government.
Wednesday, July 17, 2013
6 Key Steps to Take When Buying a House or Land Property
There are a great number of things to look out for and keep in mind when buying a new home or land property especially in a place like Lagos Nigeria. The following 6 steps are crucial and will serve as guideline while you make that investment in property.
1. Understand the Nature of the Property
Investors want to get the best value for their money. And this often translates to the best return on their investment. With this in mind, you want to evaluate the potential growth in investment in a particular area before you throw your hard earned money at it. Growth range is between 5%-30%. Why get less when you can get more? Choose your investment location wisely.
2. Research Who is Selling
Always keep the following questions in mind: "Who is the owner of the property?" "Who is selling the property? Is it the owner, the owner's wife, son, daughter, or someone else?" "Who's name appears in the documents? Is it the current owner or the previous owner?" "What liabilities currently exist on the property?"
3. Verify the True Owner
Before you buy a plot of land or a completed building, be sure to conduct what is called a "search" on the property. This is the process of verifying from the state government if the property in question is within government acquired properties or not and whether there are any pending litigation or other issues on the property. The bureau of lands of Lagos state is responsible for all land related matters in Lagos state. It also has office in Government secretariat Alausa Ikeja Lagos Nigeria.
4. Make Payment and Collate the Right Documentation
Pay the property amount to the property owner, then collect the (a) purchase receipt (b) the contract of sales (c) the building plan (d) originals of other relevant documents in possession of the previous owner
5. File the Documentation for Your New Purchase With the State Government
It's important to do this step because it legally makes you the new owner in the eyes of the law. If the property already has a C of O(certificate of occupancy) you’ve got Governor's consent for it which is great. If it does not, then you start processing your C of O as soon as possible.
6. Appoint An Estate Agent to Help Manage the Property
You safeguard your investment when you do this especially if you live outside Lagos Nigeria or overseas. Folks who have invested big time in Lagos Nigeria real estate have found that it has been one of the wisest decisions they made in their lifetime.
Think we missed anything out? Drop a comment below.
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Real Estate tips: Getting a Certificate of Occupancy (C of O) in Lagos – Step by Step Procedure
The procedure for obtaining a Certificate of Occupancy (C of O) in Lagos, Nigeria shown in this article is the official process as described by the Lagos State Government.
- The Applicant should purchase and submit the application pack to the Land Use Allocation Commission (LUAC) and collect an acknowledgement slip.
- Day Applicants collect letter of offer of allocation
- The Applicant should pay for the allocated land within 90 days.
- A letter of confirmation is issued to the Applicant with a plot and block number.
- The Scheme Officer processes the application for the C of O, signs off on the file and forwards the files to ES LUAC - 5 Days
- The Surveyor General provides Scheme Officer with digitized survey - 2 Days
- ES LUAC approves processing and signs letter of allocation. ES LUAC signs off on the file and sends the file to the Senior Special Assistant to His Excellency, Lands (SSA Lands) - 2 Days
- The SSA, Lands vets the entire file and sends it with a covering memo to the Permanent Secretary Lands Bureau (PS Lands) - 2 Days
- Should the file have a query, the message is relayed back by notification
- The PS, Lands signs off on the memo and sends the file to His Excellency - 2 Days
- His Excellency approves file and electronically signs the C of O - 2 Days
- Should the file has a query, message is relayed back by notification
- Upon approval and signing of the C of O by His Excellency, He signs off and sends it to the Deputy Registrar for further processing - 2 Days
- The Deputy Registrar processes the file further, signs off and sends it to Registrar of Titles for final registration - 2 Days
- The Registrar of Titles registers the C of O, signs off and request for printing of C of O - 1 Day
This process adds up to a total of 21 days.
DOCUMENTS REQUIRED
- Formal Letter addressed to the Executive Secretary – Land Use and Allocation Committee, Block 13, Room 4, Lands Bureau, The Secretariat, Alausa, Ikeja.
- Standard Allocation Form with Receipt. Lekki Pennisula Schemes, Abijo Commercial and Industrial (Form for Prime Land); other areas (Form for General).
- Four Passport Photographs with white background.
- Evidence of payment of Income Tax.
- Current Development Levy (In case of company, Evidence of payment of Income Tax of Two Directors and Development Levy).
- Survey Plan
- All payment receipts of Land Charges
- Vital Information Form
This information was obtained from the Lagos State official website on june, 20 2013and is subject to change by the Lagos State Government at any time without notification. You may wish to check for changes, if any, at the lands bureau in Alausa Ikeja Lagos Nigeria.
Real Estate Tips: The New Lagos Tenancy Law in Details
General Application
1. Application of Law
(1) This Law shall apply to all premises within Lagos State, including business and residential premises unless otherwise specified
(2) This Law shall not apply to :
(a) residential premises owned or operated by an educational institution for its staff and students;
(b) residential premises provided for emergency shelter;
(c ) Residential premises
(i) in a care or hospice facility;
(ii) in a public or private hospital or ta mental health facility; and
(d) that is made available in the course of providing rehabilitative or therapeutic treatment.
2. Jurisdiction of the Courts
(1) A Court shall have jurisdiction on application made to it by a landlord or tenant or any interested person to determine matters in respect of the tenancy of any premises let before or after the commencement of this Law.
(2) The jurisdiction of a Court shall not be ousted by the defendant or respondent setting up the title of any other party.
(3) Proceedings may be brought under this Law at the High Court or at the Magistrates’ Court in the division or the Magisterial District in which the subject matter giving rise to the proceedings is located.
(4) Subject to the provision of this Law, a Court shall be bound by the practice and procedure in civil matters in the Magistrates’ Court or the High Court of Lagos State.
3. Tenancy Agreement
For the purposes of this Law, a tenancy agreement shall be deemed to exist where premises are granted by the landlord to a person for value whether or not it is
(a) express or implied;
(b) oral or in writing or partly oral or partly written; or
(c) for a fixed period.
4. Advance Rent
(1) It shall be unlawful for a landlord or his agent to demand or receive from a sitting tenant rent in excess of three (3) months in respect of any premises.
(2) It shall be unlawful for a sitting tenant to offer or pay rent in excess of three (3) months in respect of any premises.
(3) Any person who receives or pay rent in excess of what is prescribed in this section shall be guilty of an offence and shall be liable to a fine of one hundred thousand naira (N100,000.00) or to three (3) months imprisonment or any other non-custodial disposition.
5. Rent payment receipt
(1) As from the commencement of this Law, all landlords of premises shall upon payment of rent by the tenants, be obliged to issue a rent payment receipt to their tenants in respect of such payments.
(2) The receipt shall state the
(a) Date of which rent was received;
(b) Name of the landlord and the tenant;
(c) Location of premises in respect of which the rent is paid
(d) Amount of rent paid; and
(e) Period to which the payment relates.
(4) Any landlord who fails to issue a rent payment receipt to his tenant as prescribed under this Section, shall be liable to a fine of ten thousand Naira (N10,000.00) payable to the Court.
RIGHTS AND OBLICATIONS OF LANDLORD AND TENANT
6. Rights of the parties
(1) The tenant’s entitlement to quiet and peaceable enjoyment includes the right to:
(a) reasonable privacy;
(b) freedom from unreasonable disturbance;
(c) Exclusive possession of the premises, subject to the landlord’s restricted right of inspection and
(d) the use of common areas for reasonable and lawful purposes.
(2) Where a tenant with the previous consent in writing of the landlord, effects improvements on the premises and the landlord determines the tenancy, such a tenancy shall be entitled to claim compensation for the effect improvements on quitting the premises.
6. Obligations of the Tenant
Subject to any provision to the contrary in the agreement between the parties, the tenant shall be obliged to do the following:
(1) Pay the rents at the times and in the manner stated.
(2) Pay all existing and future rates and charges not applicable to the landlord by law.
(3) Keep the premises in good and tenantable repair, reasonable wear and tear excepted.
(4) Permit the landlord and his agents during the tenancy at all reasonable hours in the day time by written notice, to view the condition of the premises and to effect repairs in necessary parts of the building.
(5) Not to make any alterations or additions to the premises without the written consent of the landlord.
(6) Not to assign or sublet any part of the premises without the written consent of the landlord.
(7) Notify the landlord where structural or substantial damage has occurred to any part of the premises as soon as practicable.
7. Obligations of the Landlord
8. Subject to any provision to the contrary in the agreement between the parties, the landlord shall be obliged to do the following:
(1) Not to disturb the tenant’s quiet and peaceable enjoyment of the premises.
(2) Pay all rates and charges as stipulated by law.
(3) Keep the premises insured against loss or damage.
(4) Not to terminate or restrict a common facility or service for the use of the premises.
(5) Not to seize or interfere with the tenant’s access to his personal property.
(6) Effect repairs and maintain the external and common parts of the premises.
9. Obligations of landlord regarding business premises only
Subject to any provision to the contrary in the agreement between the parties, a business premises agreement shall be taken to provide that where the landlord
(a) inhibits the access of the tenant to the premises in any substantial manner;
(b) takes any action that would substantially alter or inhibit the flow of the customers, clients or other persons using the tenant’s business premises;
(c) causes or fails to make reasonable efforts to prevent or remove any disruption to trading or use within the business premises which results in loss of profits to the tenant;
(d) fails to have rectify as soon as practicable, any breakdown of plant or equipment under his care and maintenance which results in loss of profits to the tenant; or
(e) fails to maintain or repaint the exterior or the common parts of the building or buildings of which the premises is comprised and after being given notice in writing by the tenant requiring him to rectify the matter, does not do so within such time as is reasonably practicable, the landlord, is liable to pay to the tenant such reasonable compensation as shall be determined by the Court, where the tenant effects the repairs or maintenance.
10. Service Charge, Facilities and Security Deposits
In any case where the landlord or his agent may in addition to rent require the tenant or licensee to pay:
(a) a security deposit to cover damage and repairs to the premises;
(b) for services and facilities for the premises; or
(c) service charges in flats or units that retain common parts on the premises, the landlord or his agent shall issue a separate receipt to the tenant for payments received the such tenant shall be entitled to a written account at least every six (6) months from the landlord of how moneys paid were disbursed.
11. Provision for re-entry
Subject to
(a) any provision to the contrary in the agreement between the parties; and
(b) the service of process in accordance with the relevant provisions of the Law, upon the breach or non-observance of any of the conditions or covenants in respect of the premises, the landlord shall have the right to institute proceedings for an order to re-enter and determine the tenancy.
12. Length of Notice
(1) Where there is no stipulation as to the notice to be given by either party to determine the tenancy, the following shall apply
(a) a week’s notice for a tenant at will;
(b) one (1) month’s notice for a monthly tenant;
(c) three (3) month’s notice for a quarterly tenant;
(d) three (3) month’s notice for a half-yearly tenant; and
(e) six (6) months notice for a yearly tenant.
(2) In the case of monthly tenant, where he is in arrears of rent for three (3) months, the tenancy shall be determined and the Court shall make an order for possession and arrears of rent upon proof of the arrears by the landlord.
(3) In the case of a quarterly or half-yearly tenant, where he is in arrears of rent for six (6) months, the tenancy shall be determined and the Court shall make an order for possession and arrears of rent upon proof of the arrears by the landlord.
(4) Notice of tenants under subsection (1) ( ), (d) and (e) of this Section need not terminate on the anniversary of the tenancy but may terminate on or after the date of expiration of the tenancy.
(5) In the case of a tenancy for a fixed term, no notice to quit shall be required once the tenancy has been determined by effluxion of time and where the landlord intends to proceed to Court to recover possession, he shall serve a seven (7) days written notice of his intention to apply to recover possession as in Form “TL4” in the Schedule of this Law.
(6) The nature of a tenancy shall, in the absence of any evidence to the contrary, be determined by reference to the time when the rent is paid or demanded.
13. Notice to Licensee
Where a person is a licensee and upon the expiration or withdrawal of his licence, he refuses or neglects to give up possession he shall be entitled to service of a seven (7) days notice of the owner’s intention to apply to recover possession as in Form “TL4” in the Schedule to this Law.
14. Notice required for abandoned premises
(1) A premises will be deemed to be abandoned where the
(a) tenancy has expired; and
(b) tenant has not occupied the premises since the tenancy expired and has not given up lawful possession of the premises.
(2) Following subsection (1) above, the landlord shall
(a) issue a seven (7) days notice of the landlord’s intention to recover possession as prescribed in Form “TL4”, which shall be served by pasting the notice on the abandoned premises; and
(b) apply to the court for an order for possession and an order to force open the premises.
15. Tenant refusing or neglecting to give up possession
As soon as the term or interest of any premises has been determined by a written notice to quit as in Form “TL2” or “TL3”, in the Schedule this his Law and the tenant neglects or refuses to quit and deliver up possession of the premises or any part of it, the Landlord or his agent may cause the tenant to be served with written notice as in Form “TL4”, signed by the Landlord or his agent, of the landlord’s intention to proceed to recover possession, stating the grounds and particulars of the claim, on a date not less than seven (7) days from the date of the notice.
16. Service of Notices
(1) Notices referred to under Sections 12-15 of this Law shall be by proper service as prescribed under Section 17 and 18.
(2) Proper service shall be service in such a manner that it can be established to the satisfaction of the court that the person to be served will have knowledge of any of the notices.
17. Service of Notices for Residential Premises
Proper service on a tenant of residential premises shall be personal service, which includes but is not limited to the following
(a) service on the tenant in person
(b) delivery to any adult residing at the premises to be recovered
(c) by courier where the tenant cannot be found, by delivering same at the premises sought to be recovered and the courier shall provide proof of delivery; or
(d) affixing the notice on a prominent part of the premises to be recovered and providing corroborative proof of service.
18. Service of Notices for Business Premises
Proper service on a tenant of a business premises shall be by
(a) delivery to a person at the business premises sought to be recovered; or
(b) affixing the notice on a prominent part of the premises to be recovered and providing corroborative proof of service.
19. Duty to notify other persons in occupation
Where the tenant is a person other than an individual (including a corporate entity), the landlord shall ensure proper service of all notices required under this Law on the tenant:
Provided that the failure of the tenant to notify any other person in occupation shall not affect the proceedings to recover possession.
20. Persons in unlawful occupation
Where a person claims possession of premises which he alleges is occupied solely by a person in unlawful occupation, the proceedings for recovery of the premises shall be by the summary procedure contained in the Civil Procedure Rules of the relevant court.
21. Service of process
Service of any summons, warrant or other process shall be effected in accordance with the provisions of the law for the time being in force relating to the service of the civil process of Magistrates’ Court or the High Court of Lagos State.
22. Use of Forms
Subject to the provisions of this Law, the forms contained in the Schedule to this Law, may be used in the cases to which they apply and when so used, shall be sufficient in Law.
23. Institution of proceedings to recover possession
Upon the expiration of the time stated in the notice as in Form “TL4”, if the tenant neglects or refuses to quit and deliver up possession, the landlord may file a claim by way of summons as in Form “TL6” for recovery of possession, either against the tenant or against such person so neglecting or refusing, in the Magisterial District or High Court Division where the premises is situated.
24. Grounds for Possession
(1) Unless the agreement expressly stipulates otherwise, the Court shall have power to make an order for possession upon proof of any of the following grounds -
(a) arrears of rent;
(b) breach of any covenant or agreement;
(c) where the premises is reasonably required by the landlord for personal use; and
(d) where the premises requires substantial repair.
(2) Notwithstanding any agreement between the parties, the Court shall have power to make an order for possession upon proof of any of the following grounds:
(a) the premises is being used for immoral or illegal purposes;
(b) the premises has been abandoned;
(c) the premises is unsafe and unsound as to constitute a danger to human life or property; or
(d) the tenant or any person residing or lodging with him or being his sub-tenant constitutes by conduct, an act of intolerable nuisance or induces a breach of a tenancy agreement.
25. Recovery of possession for a fixed term certain
Where –
(a) a tenancy is proved to be for a fixed term certain;
(b) the period of the tenancy has expired by effluxion of time; and
(c) Form “TL4” has been served in accordance with Section 12(5) of this Law, the landlord shall be entitled to recovery of the premises.
26. Trial
(1) In any matter under this Law, relating to any fact required to be proved at the trial of any action, evidence may be by written deposition or oral examination of witnesses in open court.
(2) All agreed documents or other exhibits shall be tendered from the bar or by the party where he is not represented by a legal practitioner.
(3) The oral examination of a witness during his evidence-in-chief may belimited to confirming his written deposition and tendering in evidence all disputed documents or other exhibits.
(4) Where the tenant does not enter any defence and the landlord can prove-
(a) that the defendant is still neglecting or refusing to deliver up the premises;
(b) the annual rental value of the premises;
(c) the nature of the tenancy or holding;
(d) the expiration or other determination of the tenancy within the time and manner stipulated by law;
(e) the title of the landlord, if such has accrued since the letting of the premises; and
(f) the service of the summons or writ if the defendant does not appear,
the court may make an order as in Form “TL7” for possession of the premises mentioned either immediately or on or before such time as the Court may direct, subject however, to a limit of six (6) months after the date the order is made.
(5) Subject to the provisions of Section 12 (2) and (3), the court shall, in making an order for possession of premises, have regard to all circumstances of the case including where appropriate, the question as to whether other premises are available for the landlord or the tenant.
(6) If the claimant named in the summons or writ fails to obtain an order under subsection (1) of this Section, the defendant may be awarded such costs as the Court may direct.
27. Payment of arrears of rent
(1) Where there is any matter for determination before a Court under this Law, and the tenant admits the arrears of rent or a portion of the rent, the Court may order the tenant to pay such arrears of rent before the Court proceeds with the matter.
(2) Where arrears of rent are claimed for the use and occupation of the premises, the claim shall show the rate at which such sum is claimed, and where it is proved, judgment shall be entered for the amount so proved.
28. Court as Receiver of refused rent
(1) In any proceedings under this law, where a landlord refuses to accept the current rent from a tenant, the tenant may, upon application, to the satisfaction of the Court, pay such rent to the Court’s Registry.
(2) The Landlord in such a case shall, upon application to the satisfaction of the Court, be entitled to collect the refused rent from the Court, subject to the deduction of a sum equal to ten percent (10%) of the refused rent to be retained by the Court.
29. Arbitration
(1) A valid agreement to arbitrate shall be upheld and shall be enforceable in the Court and an arbitration clause or agreement in a tenancy or lease agreement shall not be construed as an ouster of the court’s jurisdiction.
(2) In the absence of any agreement to the contrary or where the parties cannot agree on the appointment of an arbitrator or tribunal, the Court on receipt of a written application by any of the parties, shall act as the appointing authority, upon payment of the prescribed fees.
(3) An arbitration award shall be enforceable as a judgement or order of the Court upon registration.
(4) Application to enforce awards shall be made to the Court.
(5) An arbitration award in any matter covered by this Law must be registered within one (1) month of the date of the award.
30. Landlord may claim for mesne profits or for use and occupation of premises
Where mesne profits or a sum for the use and occupation of the premises are claimed the claim shall show the rate at which such sum is claimed, and where it is proved, judgment shall be entered for the amount so proved.
FAST TRACK PROVISIONS FOR THE MAGISTRATES’ COURT
The provision in Section 31 to 38 shall apply to proceedings in the Magisterates’ Court.
31. Mediation
(1) In proceedings under this Law, the Court shall promote reconciliation, mediation and amicable settlement between the parties.
(2) A Magistrate may refer proceedings in relation to any action, part of or any matter arising out of the action to mediation at a Citizens’ Mediation Centre established under the Citizens’ Mediation Centre Law to be dealth with in accordance with the Rules of Court.
(3) Referrals to mediation under the provisions of subsection (2) of this Section shall not to require the consent of the parties to the proceedings.
(4) The mediator shall submit the mediation agreement to the Court for endorsement for performance and enforcement within three (3) days after execution by the parties.
32. Claims against person in unlawful occupation
Where, in a possession claim against persons in unlawful occupation, the claimant does not know the name of the person in occupation of the premises, the claim shall be brought against “persons unknown” in addition to any other description available.
33. Claims supported by written depositions
Where in accordance with Section 26 of this Law, the claimant intends to rely
on a written deposition, he may at the time of filing the claim but not later than five (5) days thereafter, file witness statements, exhibits and other relevant documents.
34. Defence supported by written depositions
Where in accordance with Section 26 of this Law, the defendant intends to rely on a written deposition, he may at the time of filiing the defence but not later than (5) days thereafter, file witness statements exhibits and other relevant documents.
35. Service on persons in unlawful occupation
(1) Where in a possession claim against trespassers, the claim has been issued against “persons unknown”, the claim, particulars of claim, any witness statements, exhibits and any other relevant document shall be deemed seved on those persons by –
(a) attaching copies of the claim form, particulars of claim and any other relevant document to the main door or some other part of the land so that they are clearly visible;
(b) if practicable, inserting copies of those documents in a sealed transparent envelope addressed to “the occupiers” through the door or gate of the premises or letter box if there is one; or
(c) placing stakes in the land in places where they are clearly visible and attaching to each stake copies of the claim form, particulars of claim and any other relevant document in a sealed transparent envelope addressed to “the occupiers”
36. Defendant not defending claim
Where the claim is based on documentary evidence and the defendant does
not file a defence or appear at the trial and does not defend the claim, the Magistrate shall be entitled to adjudicate upon the claim in chambers but shall give judgment in open Court.
37. Unreasonable increase of Rent
(1) Subject to any agreement to the contrary, an existing tenant may apply to the Court for an order declaring that the increase in rent payable under a tenancy agreement is unreasonable.
(2) In determining whether an increase in the rent is unreasonable, the Court shall consider –
(a) the general level of rents for comparable premises in the locality or a similar locality;
(b) evidence of witnesses of the parties; and
(c) any special circumstances relating to the premises in question or any other relevant matter.
38. Application to set aside or vary judgement of Court
Any judgement by default under this Law shall be final and remain valid and may only be set aside upon application to the Magistrate on ground of fraud, non-service or lack of jurisdiction upon such terms as the court may deem fit.
WARRANT FOR POSSESSION
39. Warrant for possession may be issued at any time
Where a landlord is entitled to possession of any premises, the Court may issue a warrant for possession, notwithstanding that the counterclaim is undetermined or unsatisfied.
40. Form and purpose of warrant for possession
A warrant for possession shall entitle the landlord to be put in possession of the premises to which the warrant relates and the certificate of execution shall be as in Form “TL10”.
41. Duration of Warrant
Notwithstanding any provision in any other Law, every warrant for possession shall bear the date after the day mentioned in the order for possession of the premises in question and shall be in force for three (3) months from such date:
Provided that a warrant may be renewed every three (3) months but shall not exceed three (3) renewals.
42. Warrant for possession justifies entry on premises
Any warranty to give possession of the premises to the person named in the warrant or to whom it may be directed, shall justify entry to him such assistance as he shall deem necessary and be given possession accordingly:
Provided that no entry upon such warrant shall be made on a Sunday or public holiday.
43. Enforcement of order of Court
At the expiration of the time ordered by the Court, if an order of possession of the Court is not obeyed, the Court at the instance of the landlord shall, where such order can be proved to have been served on the tenant, issue a warrant for possession, and if the order is that possession of the premises be given up by the tenant to the landlord, the Court shall immediately at the instance and at the cost of the landlord, issue a warrant for possession of the landlord.
OFFENCES AND PENALTIES
44. Offences and penalties
(1) Subject to the provisions of any Law –
(a) any person who demolishes, alters or modifies a building to which this law applies with a view to ejecting a tenant and without the approval of the Court; or
(b) any person who in respect of any premises –
(i) attempts to forcibly eject or forcibly ejects a tenant;
(ii) threatens or molests a tenant by action or words, with a view to ejecting such tenant; or
(iii) wilfully damages any premises,
shall be guilty of an offence and is liable to a fine of up to two hundred and fifty thousand Naira (N250,000:00) or up to six (6) months imprisonment and any other non-custodial disposition.
(2) A Court shall have power to punish forcontempt in the face of the couert but may in other cases order the arrest and bring before it, any person suspected of having committed contempt of court and such a person shall as soon as practicable be brought to trial before a Court of law.
(3) Following subsection (2) of this Section, any person who –
(a) resists, molests, assaults, or in any way obstructs any officer of the Court or any other person from carrying out an order of the Court to serve any process or execute a warrant for possession; or
(b) has been put out of possession, by virtue of a warrant for possession, and unlawfully retakes possession of the premises after possession has been given to the landlord,
shall be charged with contempt and is liable to a fine of up to two hundred and fifty thousand Naira (N250,000:00) or up to six (6) months imprisonment and any other non-custodial disposition.
(4) (a) Any landlord who obtains an order for possession of any
premises under this Law by intentionally providing false
information shall be guilty of an offence and liable under
Criminal Law.
(b) Any tenant who deprives the landlord of any premises under this Law by intentionally providing false information shall be guilty of offence and liable under the Criminal Law.
(c) Without prejudice to any criminal proceedings, where -
(i) any landlord has obtained an order of possession of premises under this Law and upon an application made by summons by the tenant, the court is satisfied that such order was obtained by intentionally providing false information; the court shall order the landlord to pay reasonable compensation to such tenant; and
(ii) the tenant has deprived the landlord of premises under this Law and upon an application made by summons by the landlord, the court is satisfied that the landlord was so deprived by the tenant intentionally providing false information; the court shall order the tenant to pay reasonable compensation to such landlord.
45. Appeals
(1) A party to any proceedings in the Magistrrates’s Court may appeal from the decisions of the Magistrates’ Court to the High Court in accordance with the provisions of the Magistrates’ Court Law.
(2) A party to any proceedings in the High Court may appeal in accordance with the provisions of the Constitution.
MISCELLANEOUS PROVISIONS
46. Regulations and procedure
The Governor may, as required, make regulations for the procedure through which matters relating to the conduct of proceedings shall be carried out.
47. Interpretation
In this Law, unless the context otherwise requires
“agents” means any person usually employed by the landlord in the letting or leasing of the premises or in the collecting of the rents, or a person specially authroised to act in a particular manner by writing under the hand of the landlord;
“business premises” except where it is expressly stated otherwise by this Law, includes premises used wholly or I part for non-residential purposes, such as, places let out for business, shops, offices, shopping malls, sporting facilities, events centres, lodgings, gaming houses, clubs and club houses, religious worship, institutions and voluntary services structures amongst others;
“Commissioner” means Commissioner for Justice, Lagos State;
“common area” means any part of the premises the use of which is jointly shared by tenants or by a landlord and one or more tenants;
“Court” means the High Court and Magistrates’ Court of Lagos State but specifically excludes the Customary Court;
“current rent” means the subsisting rent;
“functions” includes powers and duties;
“Governor” means the Governor of Lagos State;
“interested person” includes any person claiming through the landlord or the tenant or who ahs an interest in the proceedings;
“landlord” in relation to any premises means the person entitled to the immediate reversion of the premises or if the property is held I joint tenancy or tenancy in common, any of the persons entitled to the immediate reversion and includes:
(a) the attorney, solicitor, agent or caretaker of any such landlord;
(b) any person receiving (whether in his own right or as an attorney or agent) any rent from any person for the occupation of any premises in respect of which he claims a right to receive the same; or
(c ) a former landlord where the context so requires;
“licensee” means a person who comes into occupation by mere permission, without the creation of a landlord and tenant relationship and has no estate or legal interest in the premises;
“mesne profits” means the rents and profits which a tenant who holds over or a trespasser might have received during his occupation of the premises and which he is liable to pay as compensation to the person entitled to possession;
“persons in unlawful occupation” means any person or corporate body who:
(a) enters into occupation through the tenant or remains in any residential or business premises without the consent of the landlord; or
(b) enters into or remains in occupation of the premises after an order for possession against a tenant without the consent of the landlord;
“premises” except where it is expressly stated otherwise by this Law, includes premises used for business, residential and non-residential purposes;
“prescribed” means prescribed by this Law or schedule or rules or regulations or orders;
“proceedings” includes any proceedings instituted in court in respect of this law;
“rents” includes any consideration or money paid or agreed to be paid or value or a right given or agreed to be given or part of any crop rendered or any equivalent given in kind or in labour, in consideration of which a landlord has permitted any person to use and occupy any land, premises, or other corporeal hereditament, and the use of common areas but does not include any charge for serves or facilities provided in addition for the occupation of the premises;
“rules” means the rules for the time being in force relating to the practice and procedure of the courts in the exercise of their respective civil jurisdiction made under the law by which such courts were established or any law amending same;
“services or facilities” include any of the following that are provided or agreed to be provided by the landlord to the tenant of premises; appliances and furnishings, cleaning and maintenance services, parking spaces, cable, television and dish services, laundry services, storage facilities, elevator, common recreational facilities, intercom systems and security surveillance, housekeeping facilities, security services and waste removal services;
“sitting tenant” mean a tenant in lawful occupation in accordance with this Law;
“state” means Lagos state;
“substantial repair” means any work required to remedy anything which threatens the structure or renders the premises inhabitable, creates an intolerable nuisance or could be construed as a brech of the landlord’s covenant in the headlease;
“sub-tenant” means a person who occupies premises or a portion of the premises previously occupied by a tenant which has been sublet to the sub-tenant by virtue of the written constant of the landlord;
“tenant” includes a sub-tenant or any person occupying any premises whether by payment of rent howsoever or by operation of law and not persons unlawfully occupying any premises under a bonafide claim to be the owner;
“tenancy” means holding or interest in land or property by a tenant under a tenancy agreement;
“tenancy agreement” means an agreement whether written or oral, express or implied between a landlord and a tenant regarding possession of premises and use of common areas and includes leases and sub-leases.
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Source: PM News Nigeria
Content from Nigeria Property Centre
Read more at: http://www.nigeriapropertycentre.com/blog/renting-letting/the-lagos-tenancy-law-in-detail
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