The Abia State House of Assembly has passed the Abia Property and Tenancy Bill, introducing strict regulations for property agents, capping agency fees and prescribing up to seven years’ imprisonment for fraudulent practices in the state’s real estate sector.
The bill, passed during Tuesday’s plenary after consideration by the Committee of the Whole, will take effect upon receiving the assent of Governor Alex Otti.
Property Agents Must Register
A major provision of the legislation makes it mandatory for all property agents operating in Abia State to register with the proposed Abia State Property and Tenancy Regulatory Authority.
The authority will regulate property transactions, monitor compliance with the law and enforce professional standards across the state’s real estate sector.
Agency Fees Capped at Five Per Cent
The new law fixes agency fees at five per cent of the total rent payable, a move aimed at ending excessive charges imposed on prospective tenants.
Lawmakers said the measure is expected to improve transparency and protect tenants from exploitative practices.
Seven-Year Jail Term for Fraud
The legislation prescribes stiff penalties for violations.
Anyone found operating as a property agent without a valid licence will be liable to a fine ranging from ₦1 million to ₦10 million.
In addition, any licensed or unlicensed property agent convicted of defrauding a landlord or tenant will face a prison term of between six and seven years.
Regulatory Board to Oversee Implementation
The bill also provides for the establishment of a governing board after the governor’s assent.
The board will supervise the activities of property agents, enforce compliance with the law, investigate complaints and promote professionalism within Abia’s property market.
Assembly Seeks to Reform Property Market
Speaker of the Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa, announced the passage of the bill and expressed confidence that it would strengthen property administration, improve transparency and promote fairness in landlord-tenant relationships.
The legislation, sponsored by Deputy Speaker Rt. Hon. Augustine Okezie, is expected to address longstanding concerns over unregistered property agents, arbitrary agency fees and tenancy disputes across the state.
