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Enugu State Assembly proposes bill to regulate tenancy fees

The Enugu State House of Assembly has introduced a bill aimed at curbing excessive agency and legal fees for tenancy agreements. The proposed legislation, titled “The Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024,” seeks to protect tenants from exploitation by landlords.

Sponsored by Okey Mbah, the bill passed its first reading on Tuesday. It proposes capping agency and legal fees at a maximum of 10% of the rent. The bill also aims to abolish the practice of caution fees, which are often charged to tenants but rarely refunded.

Specifically, the bill states that agent fees for procuring accommodation should not exceed 10% of the rent. It also stipulates that no tenant should pay any additional premium except for a legal fee for the tenancy agreement, also capped at 10% of the rent.

Violations of the proposed law would be punishable by a ₦500,000 fine, a six-month prison term, or both.

The bill also seeks to protect tenants from unlawful evictions by establishing clear eviction timelines and notice periods. Furthermore, it proposes that land agents and property managers be certified by relevant authorities and empowers a designated government body to issue further regulations on housing and tenancy matters.

Mr. Mbah told journalists that the bill reflects the needs of Enugu State residents and expressed confidence it would receive strong support from his colleagues.

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