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DUTY TO REPORT MISCONDUCT OR UNSATISFACTORY CONDUCT

A Registered Agent who has reasonable grounds to suspect that another Agent is guilty of unsatisfactory conduct may make a report to the office.

For example, houses built within a particular period of time, and of particular materials, are or may be at risk of weather tightness.  A Registered Agent could reasonably be expected to know of this risk (whether or not a seller directly discloses any weather tightness problems).  While a customer is expected to inquire into risks regarding a property and to undertake the necessary inspections and seek advice, the Agent must not simply rely on caveat emptor.

This example is provided by way of guide only and does not limit the range of issues to be taken into account under rule 3.iv .

A Registered Agent must not be use, or threaten to use, the complaints or disciplinary process for an improper purpose.

DUTIES AND OBLIGATIONS OF AGENTS TO CREATE AWARENESS OF LAW, REGULATIONS AND RULES

A Registered Agent who is operating as a business entity must display these rules prominently in the public area of each office of branch, and provide access to it on every website maintained by the agent for the purposes of the business.

A Registered Agent must make these rules available to any person on request.

A Registered Agent who is operating as a business must ensure that Agents engaged or employed are familiar with the applicable law and other legislation relevant to real estate agency work, associated regulations, and any rules made by the office, including these rules.

CLIENT CARE AND DEALINGS WITH CUSTOMERS GENERAL

A Registered Agent must act in the best interest of his principal and act in accordance with the principal’s instructions unless doing so would be contrary to law.

A Registered Agent must not engage in any conduct that would put a principal or prospective principal under undue or unfair pressure.

A Registered Agent must not take advantage of a principal’s or prospective principal’s inability to understand relevant documents, where such inability is reasonable apparent.

A Registered Agent must communicate regularly and in a timely manner and keep the principal well informed of matters relevant to the principal’s interest.

An appraisal of land or a business must be provided in writing to a principal by a Registered Agent; must realistically reflect current market conditions; and must be supported by comparable information on sales of properties in similar locations or businesses.

An Advertised price must clearly reflect the pricing expectations agreed with the principal.

A Registered Agent must not mislead customers as to the price expectations of the principal.

AGENCY AGREEMENTS AND CONTRACTUAL DOCUMENTS

When inviting signature of an agency agreement a Registered Agent must explain to a prospective principal in writing-

The conditions under which commission must be paid and how commission, is calculated, including an estimated cost (actual Naira amount) of commission payable by the principal, based on the appraised price of the property or business.

 How the property or business will be marketed and advertised, including any additional expenses that such advertising and marketing will incur;

 That he or she is not obliged to such additional expenses; and

 That further information on agency agreements and contractual documents is available from the office and how to access this information.

When inviting signature of an agency agreement or sale and purchase agreement, or other contractual document, a Registered Agent must ensure that a prospective principal is aware that he or she can, and may need to seek legal, technical, or other advice and information, and allow the prospective principal a reasonable opportunity to do so.

A Registered Agent must not submit an agency agreement or a sale and purchase agreement or other contractual document to any person for signature unless all material particulars have been inserted into or attached to the document.

A Registered Agent must not invite a prospective principal to sign a sole agency agreement without informing him or her that if he or she enters into or has already entered into other agency agreements, he or she could be liable to pay full commission to more than one Agent in the event that a transaction is concluded.

A Registered Agent must not impose conditions on a principal through an agency agreement that are not reasonably necessary to protect the interest of the Agent.

A Registered Agent must submit to the principal all offers concerning the sale, purchase, or other disposal of any property or business, provided that such offers are in writing.

A Registered Agent must retain copies of all offers (whether such offers resulted in transaction or not) for a period of 12 months.

ADVERTISING AND MARKETING

Unless authorised by a principal, through an agency agreement, a Registered Agent must not offer or market any property or business, including putting details on any website or by placing a sign on the property.

A Registered Agent must not advertise any property or business on terms that are different from those authorised by the principal.

When authorised by a principal to incur expenses, a Registered Agent must seek to obtain the best value for the principal.

A Registered Agent must take due care to ensure the security of the property or business and avoid risks of damage that may arise from any access to the property or business.

CONFLICTS OF INTEREST

A Registered Agent must not act in capacity that would attract a commission from parties on more than one side of the same transaction.

A Registered Agent must not engage in business or professional activity other than the agency works where the business or activity could reasonably be expected to; compromise the discharge of the Registered Agent’s obligations.

CONFIDENTIALITY

A Registered Agent must not disclose confidential personal information relating to a principal, unless-

            The principal consents in writing; or

            The Registered Agent is required by law to disclose the information; or

            The disclosure is necessary to answer or defend any complaint, claim, allegation, or

             proceedings against the Agent by the principal. 

            Where a Registered Agent discloses information under i. (b) or (c), it may be only to the

             appropriate person or entity and only the extent necessary for the permitted purpose.

            A Registered Agent must not use information that is confidential to a principal, for the

             benefit of any other person.

 

LICENSED ESTATE AGENT CODE OF CONDUCT

 

ARTICLE 1

 

INTERPRETATION

Informed of Essential Facts

A Licensed Estate Agent should have pre-knowledge of essential fact which affect current  real estate market condition

(i)                 Licensed Estate Agent shall be aware of current legislation and whenever reasonably possible he must be aware of pending legislation/law (which could affect trading condition in the market place.

(ii)               Licensed Estate Agent should attend educational programmes and courses which will assist them in remaining update and be aware of matter that would affect any aspect of real estate

(iii)             Licensed Estate Agent shall be aware of appropriate public financing  procedure’s mortgaging requirement  etc. in order to properly discuss financial obligation on any transaction

(iv)              Licensed Estate Agent shall be familiar with the content of the most current forms commonly used in real estate transaction    

ARTICLE  2

INTERPRETATION

 

Disclosure of role (agency)

Licensed Estate Agent shall fully disclose in writing to, and he is advise to seek written acknowledgement from his/her client

 

ARTICLE  3

INTERPRETATION

 

Primary Duty to Client

The primary duty of Licensed Estate

 Agent  shall be to protect and promote interest of his/her client and be fair to all parties to the real estate transaction

(i)                 Licensed Estate Agent    shall disclose all information relation to  the transaction at the earliest possible time

(ii)               Licensed Estate Agent  shall not misled anyone as to any matter pertaining to the property

(iii)             Licensed Estate Agent  shall not reveal confidential information of his client to any one and shall not use such to his client’s disadvantage

(iv)              In a competiting offer situation, a Licensed Estate Agent acting as a dual agent shall not use the information contained in another offer to put either client at a competitive advantage

(v)                Licensed Estate Agent  shall render proper accounts of all his client money and property entrusted in his care

(vi)              A  Licensed Estate Agent shall supply professional expertise needed to ensure successful completion of any contract enter between buyer and seller

(vii)            A  Licensed Estate Agent who is representing more than one buyer on the same property must disclose the fact to each buyer

(viii)          A  Licensed Estate Agent shall be fair in discharging his duty and obligation in line with the client’s lawful instruction

ARTICLE  4

INTERPRETATION

 

Discovery of Facts

A  Licensed Estate Agent shall be

prudent and investigate all matters relating to every transaction on his client property

(i)                 Article 4 apply to Licensed Estate Agent representing both buyer and seller

(ii)               Article 4  is not intended to increase the disclosure obligation of  Licensed Estate Agent beyond those required by related laws and legislations

(iii)             A Licensed Estate Agent shall not be party to any agreement in any way to conceal any facts pertaining to a property   

ARTICLE  5

INTERPRETATION

 

Written Service Agreements

A Licensed Estate Agent shall ensure that all service agreement with regard to facility (ies) management are in writing and in clear and understandable language stating the term, condition, obligation and commitment of all parties

 

ARTICLE 6

INTERPRETATION

 

Written Transaction Agreement

A Licensed Estate Agent shall ensure that agreement regarding real estate transaction are in written and in clear understanding language specifying the terms and conditions, obligation and commitment of the parties to the agreement.  A copy of the final agreement shall be furnished to each party upon signing or initially and shall be dealt with in accordance with the instructions of the parties involved

A Licensed Estate Agent shall attach a copy of Valuation Report from a Chartered Estate Surveyor and Valuer for all sales transaction

ARTICLE  7

INTERPRETATION

 

Expenses Related to the Transaction

A Licensed Estate Agent shall be fully aware of the type of expenses that a seller and/or buyer may incur

ARTICLE 8 

INTERPRETATION

 

Disclosure of Benefits to Clients

A Licensed Estate Agent shall:

(a)  obtain the consent of their clients before

(i) accepting compensation from more than one party to a transaction, or

(ii) accepting any discount or profit on expenditures made for a client

(b)  disclose to their clients any financial or other benefits the Licensed Estate Agent or his/her firm may receive as a result of recommending real estate products/services to that party

 

ARTICLE 9

INTERPRETATION

 

Disclosure of benefits to customers  The Licensed Estate Agent shall disclose to customers

(a)  any financial or other benefits he/she or his/her firm may receive as result of rendering services to that party

The Licensed Estate Agent should not recommend or suggest to any party the use of services or products of any other organisation/business in which he has a direct or indirect interest without disclosing such interest in writing at the time of the recommendation or suggestion 

ARTICLE  10

INTERPRETATION

 

Outside Professional Advice

The Licensed Estate

Agent shall encourage parties to a transaction to seek the advice of outside professionals where such advice is outside the scope of his expertise

Outside professional advice would include but not limited to Estate Surveyors and Valuers, estate agents or Insurance Brokers, Mortgage consultants, Environmental consultants, Quantity surveyors 

ARTICLE  11

INTERPRETATION

 

Personal Interest in property

A  Licensed Estate Agent shall not buy or sell or attempt to buy or sell an interest in property either directly or indirectly for himself or herself , any member of his or her immediate family or any entity in which he or she has a financial interest, without making his or her position known to the buyer or seller in writing

 

ARTICLE  12

INTERPRETATION

 

Skilled and Conscientious Service

A   Licensed Estate Agent shall undertake services which he can competently discharge with or without any aid in conformity with the standard of real estate discipline

(i)                 A  Licensed Estate Agent shall not provide an opinion of value outside his field of experienced

(ii)               A  Licensed Estate Agent shall not appraise or place opinion of value on a property which he has a present or contemplated interest in without first disclosing this fact to his client    

ARTICLE  13

INTERPRETATION

 

Advertising Content/Accuracy

All advertising and promotion of properties shall accurately reflect property and other details and prominently display the names of the Agent and any additional information required in line with all other regulation 

(i)                  The internal website of LASRETRAD is an advertising vehicle.  In the event of multiple page website of all properties displayed and all representation made on website must comply with  LASRETRAD rules as well as relevant legislations

(ii)               The advertised or offered price shall not be more than that which was agreed upon in writing with  the seller 

ARTICLE  14

INTERPRETATION

 

Advertising Listing of other Licensed Estate Agent

Licensed Estate Agent shall only advertise properties authorised by the owners in accordance with relevant regulations  

(i)                  The advertisement shall contain the address, name, phone number, email and website of the licensed estate agent   

ARTICLE  15

INTERPRETATION

 

Advertising Claims

Claims or offerings in advertising must be accurate, clear and understandable 

LASRETRAD shall not be liable to any claim(s) regarding advertisement by an Agent

ARTICLE  16

INTERPRETATION

 

Discrimination

Licensed Estate Agent shall not deny professional services to or be party to any plan to discriminate against any person for reason of race, national or ethnic origin religion, colour, sex, family status age or sexual orientation, marital status or disability

Agents must comply with all statutory requirements Government needs to acknowledge this, deliver support and do more to protect the public

ARTICLE  17

INTERPRETATION

 

Compliance with rules/regulations and policies of LASRETRAD

  A  Licensed Estate Agent shall abide by the rules and regulations and policies of LASRETRAD

Steps should be taken to make the necessary improvement, also better information is to be provided for standard

ARTICLE  18

INTERPRETATION

 

Compliance with statutory requirement

LASRETRAD may charge and prosecute any licence estate agent found to have violated any statute, tenancy law, criminal laws and statutory and other legislation on real estate transaction

Prosecution is not optimal except directed otherwise by Honourable Attorney General and Commissioner for Justice of Lagos State  

ARTICLE  19

INTERPRETATION

 

Discrediting Another Registrant

A  Licensed Estate Agent shall never publicly discredit any other registrant if the Licensed Estate Agent opinion is sought, it should be rendered with strict professional integrity and courtesy

A  Licensed Estate Agent shall not comment in a derogatory manner as to the capacity, integrity and competence of another registered estate agent

ARTICLE  20

INTERPRETATION

 

Respecting Contractual Relationship

The agency agreement and other contractual relationship of a  Licensed Estate Agent shall be respected by all licensed estate agents

A  Licensed Estate Agent shall not suggest or advice a party to a contract to breach the contract

ARTICLE  21

INTERPRETATION

 

Principal  (Broker) Responsibility  

 A  Licensed Estate Agent is required to supervise and control the activities of all the personnel for whom he/she is responsible         

 

ARTICLE  22

INTERPRETATION

 

Cooperation with Association/Institution

Should  a  Licensed Estate Agent be ask to cooperate in any way in connection with a disciplinary investigation or proceeding, the  Licensed Estate Agent shall place all pertinent facts, before the proper committee of the Real Estate Association/Institution to which he belong

A floor in terms of standards, below  which a complex competitive market cannot slip without regulatory consequences must be established

ARTICLE  23

INTERPRETATION

 

Arbitration

In the event of  a dispute between Licensed Estate Agent associated with different bodies/associations/institution regarding the commission earned or be earned in connection with a real estate transaction, the dispute shall be submitted for arbitration in accordance with the laws, rules and regulations of the Body/Association/Institution

It is important to demonstrate good Government and customer care and the process adopted must be efficient and sustainable

ARTICLE  24

INTERPRETATION

 

Intellectual Property right of Professional Bodies/Association/Institution

Licensed Estate Agent shall respect intellectual/property right of other Agent/Professional Bodies and Association

(i)                 A Licensed Estate Agent shall only access and use the website and other data base of Professional Bodies/Association/Institution in accordance with the policies for use established by owner

(ii)               A Licensed Estate Agent should not infringe the copyright or ownership interest of another agent in his/her listing

(iii)             A Licensed Estate Agent should not use the trade name or trade mark or confusingly similar trade mark or trade mark of any firm or other organisation other than those with which the agent is affiliated or otherwise authorised in writing to use.  The restriction include but is not limited to unauthorised internet use such as dominion, names  email addresses etc.

ARTICLE 25

INTERPRETATION

Licensed Estate Agent acting as Principal Licensed Estate Agent when acting as a principal in a real estate transaction, remains obligated by duties impose by the bye law, rules, and regulations of the professional Bodies Association/Institution 

A Licensed Estate Agent is acting as a principal when he/she is buying or selling or attempting to buy or sell an interest in real property either directly, on his/her own behalf or through any entity which the agent holds any direct or indirect interest

 

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