Abia Assembly Enacts Property Law, Fixes Agency Fees at 5%, Slams ₦10m Fine on Unlicensed Agents
The Abia State House of Assembly has passed the Abia Property and Tenancy Regulatory Authority Bill into law, introducing sweeping reforms aimed at regulating property transactions, protecting tenants and landlords, and sanitising the activities of property agents across the state.
The bill, H.A.B. 34, was passed during plenary presided over by the Speaker of the House, Emmanuel Emeruwa, following its consideration by the Committee of the Whole. The legislation was sponsored by the Deputy Speaker, Augustine Okezie, alongside lawmaker Mandela Obasi.
Once assented to by Governor Alex Otti, the law will establish the Abia State Property and Tenancy Regulatory Authority to oversee tenancy matters, regulate property agents, and promote fairness, transparency and accountability in landlord-tenant relationships.
The legislation was introduced in response to persistent complaints from residents, particularly in Umuahia and Aba, over rising house rents, excessive agency charges, and alleged collusion between landlords and property agents to inflate rents for residential and commercial properties.
Under the new law, all property agents operating in Abia State must register with the regulatory authority before conducting business. It also fixes agency fees at five per cent of the total rent payable, a measure intended to curb excessive charges imposed on prospective tenants.
The law provides for the inauguration of a governing board after the governor’s assent. The board will oversee the regulation of property agents, enforce compliance with the law, uphold professional standards, and investigate complaints arising from property transactions across the state.
The legislation prescribes stringent penalties for offenders. Anyone operating as a property agent without a valid licence will be liable to a fine of between ₦1 million and ₦10 million.
It also stipulates that any licensed or unlicensed property agent found guilty of defrauding a client, whether a prospective tenant or landlord, will, upon conviction, face a prison term of between six and seven years.
According to the Assembly, the law is designed to shield tenants from arbitrary rent increases and exploitative practices by landlords and property agents while also protecting landlords against tenants who violate tenancy agreements or act unlawfully.
Announcing the passage of the bill, Speaker Emeruwa congratulated members of the House and expressed confidence that the legislation would strengthen property administration and promote order within Abia State’s real estate sector.
In a related development, the Assembly also passed a law aimed at improving the administration of criminal justice in the state to ensure the speedy dispensation of criminal cases and guarantee fair hearing for all parties.
Lawmakers further approved a restorative justice law intended to ensure that individuals who cause harm to victims take responsibility for their actions.
The passage of the property and tenancy law is expected to address long-standing concerns over arbitrary rent increases, unregistered property agents, excessive agency fees, and tenancy-related disputes, while fostering a more transparent and regulated property market in Abia State.
