The Oyo State Government has commenced consultations aimed at regulating the activities of estate agents in the state to curb rent and commission extortion and protect tenants from exploitation.
The move was disclosed during a stakeholder engagement between officials of the Ministry of Lands, Housing and Urban Development and the leadership of the Oyo State Estate Rent and Commission Agents Association, held in Ibadan.
Speaking while receiving the delegation, the Commissioner for Lands, Housing and Urban Development, Mr Akin-Funmilayo Williams, said the engagement signalled the government’s determination to bring sanity to the real estate sector and address growing public complaints over excessive charges by property agents.
Williams noted that although government lacks the authority to determine the rent charged by property owners, it can regulate the activities of estate agents, particularly in relation to commissions and other fees, through legislation.
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According to him, the meeting was convened to exchange ideas and develop a practical and sustainable framework that would respond to public outcry over alleged exploitation in the housing sector.
He disclosed that the ministry had been inundated with complaints over exorbitant rents and charges, prompting calls for government intervention.
The commissioner also revealed that the Oyo State House of Assembly, during its sitting on Monday, deliberated on the issue and expressed readiness to enact a law to regulate estate agents operating across the state.
Williams explained that engaging stakeholders before drafting any bill was essential to effective regulation, adding that inclusive dialogue would provide lawmakers with insights into the operational realities of the sector.
“Our intention is not to impose regulations without consultation but to develop proposals that reflect industry realities.
“The outcome of this engagement will serve as a working document to be forwarded to the House of Assembly,” he said.
He urged the association to harmonise its position on rent charges and commission practices, noting that a clear submission from practitioners would help guide future legislative engagement.
Williams stressed that the ministry was not in a position to unilaterally fix commission rates, adding that such benchmarks should come from professionals familiar with the business.
“I felt it was necessary to sit with practitioners and develop a position that can be presented to the House of Assembly.
“That way, any law that eventually comes out will reflect the realities of the sector,” he added.
He further explained that the government’s role was to review stakeholders’ inputs, refine them where necessary and recommend policies that could be codified into law.
“Some of these recommendations may eventually be adopted and incorporated into a law that will be binding on everyone,” Williams stated.
The commissioner noted that effective regulation and sanctions could only be enforced through legislation, stressing that regulatory agencies are limited in the absence of a legal framework.
In his response, the Chairman of the Oyo State Estate Rent and Commission Agents Association, Mr Okekunle Mutahir, commended the state government for adopting an inclusive approach to policy formulation.
He said improved security in the state had attracted more residents, increased population inflow and heightened demand for housing, leading to expanded activities in the real estate sector.
Mutahir acknowledged public dissatisfaction over rent-related charges, disclosing that the association had been addressing the issue internally for over a year.
He identified property inspection fees as one of the major channels of exploitation, noting that the association scrapped such charges in early January last year.
According to him, the association remains committed to sanitising the profession and enforcing ethical standards among its members.
He appealed to the state government for stronger collaboration in identifying and sanctioning erring practitioners, saying such partnership would protect residents and further professionalise the real estate industry.