PART I — PARTIES & OBLIGATIONS
1. Interpretation
In this Law, unless the context otherwise requires —
"Agent" means any person engaged in the letting, leasing, collection of rents or management of a property or a person specially authorised to act in a particular manner in writing under the hand of a landlord or tenant;
"Appellate Court" means the High Court of Lagos State or Court of Appeal;
"Business Premises" except where it is expressly stated otherwise by this Law, includes premises used wholly or in part for non-residential purposes, such as places let out for business, shops, offices, shopping malls, sporting facilities, events' centres, lodgings, gaming houses, clubs and club houses, religious worship, institutions and voluntary services structures amongst others;
"Commissioner" means Commissioner for Justice, Lagos State;
"Common area" means any part of the premises the use of which is jointly shared by tenants or by the landlord and one or more tenants;
"Court" means the High Court and Magistrates' Court of Lagos State;
"Governor" means the Governor of Lagos State;
"Landlord" in relation to any premises means the person entitled to the immediate reversion of the premises or if the property is held in joint tenancy or tenancy in common, any of the persons entitled to the immediate reversion and includes -
(a) the attorney, solicitor, agent or caretaker of any such landlord;
(b) any person receiving (whether in his own right or as an attorney or agent) any rent from any person for the occupation of any premises in respect of which he claims a right to receive the same; or
(c) a former landlord where the context so requires;
"Licensee" means a person who comes into occupation by mere permission, without the creation of a landlord and tenant relationship and has no estate or legal interest in the premises;
"Mesne profits" means the sum of money and profits which a tenant whose tenancy has come to an end holds over during his occupation of the premises and which he is liable to pay as compensation to the person entitled to possession;
"Persons in unlawful occupation" means any person or corporate body who -
(a) enters into occupation through the tenant or remains in any residential or business premises without the consent of the landlord; or
(b) enters into or remains in occupation of the premises after an order for possession against a tenant without the consent of the landlord;
"Premises" except where it is expressly stated otherwise in this Law, includes premises used for business, residential and non-residential purposes;
"Proceedings" includes any action instituted in Court in respect of premises under this law;
"Rents" include any money paid or agreed to be paid in consideration of which a landlord has permitted any person to use and occupy any land, premises, or other corporeal hereditament, and the use of common areas but does not include any charge for services or facilities provided in addition for the occupation of the premises;
"Rules" mean the rules for the time being in force relating to the practice and procedure of a Court in the exercise of its civil jurisdiction made under the law by which such court was established or any law amending same;
"Services or facilities" include any of the following that are provided or agreed to be provided by the landlord to the tenant in the premises: appliances and furnishings, cleaning and maintenance services, parking spaces, cable, television and dish services, laundry services, storage facilities, elevator services, common recreational facilities, intercom systems and security surveillance, housekeeping facilities, security services and waste removal services;
"Sitting Tenant" means a tenant in lawful occupation after the expiration of the first tenancy term according to the provisions of this Law and includes a tenant renewing a tenancy following an expired term of years;
"State" means Lagos State;
"Substantial Repair" means any work required to remedy anything which threatens the structure or renders the premises uninhabitable, creates an intolerable nuisance or could be construed as a breach of the landlord's covenant;
"Sub-tenant" means a person who occupies a premises or a portion of the premises with the consent of the tenant with or without the written consent of the landlord;
"Tenancy" means possession of land, premises or property by a tenant under a tenancy agreement;
"Tenancy agreement" means an agreement whether written, oral, express or implied between a landlord and a tenant regarding possession of premises and use of common areas other than leases and sub-leases;
"Tenant" includes a sub-tenant or any person occupying any premises whether by payment of rent or by operation of law and not persons unlawfully occupying any premises under a bona fide claim to be the owner.
2. Application of the Law
(1) This Law shall apply to all premises within Lagos State, including business and residential premises unless otherwise specified.
(2) Except where such premises are let out commercially, this Law shall not apply to—
- (a) residential premises owned or operated by an employer for its staff;
- (b) residential premises of educational institution for its staff and students;
- (c) residential premises provided for emergency shelter; and
- (d) residential premises in a care or hospice facility, in a public or private hospital or a mental health facility that is made available in the course of providing rehabilitative or therapeutic treatment.
3. Engagement of an Agent
(1) Any person to be engaged as an agent, either by the landlord or the tenant must be duly registered under the Lagos State Real Estate Regulatory Authority Law 2021.
(2) An agent who collects money as rent from a prospective tenant in respect of a premise or building shall not while holding on to the rent collect money from any other person as rent for the same premises or building.
(3) An agent who collects money as rent from a tenant shall remit same within seven (7) working days, unless otherwise directed in writing by the landlord and such money collected shall be receipted.
(4) A commission or agency fee in respect of any tenancy shall be agreed upon by the Agent and the Landlord or Tenant who engaged the agent and the amount shall not exceed 5% of the amount paid as one year rent.
(5) Any person who acts as an agent in contravention of subsection (1) and any agent who acts in contravention of subsections (2), (3) or (4) of this Section commits an offence and is liable on conviction to the repayment of the sums collected and imprisonment for a maximum term of two (2) years or a fine of One Million Naira (N1,000,000:00) or both.
4. Tenancy Agreement
A tenancy agreement shall for the purpose of this Law, be deemed to exist where premises is given by the landlord to a person for value whether or not the agreement is—
- (a) oral or written or partly oral or partly written; or
- (b) for a fixed period.
5. Advance Rent
(1) It shall be unlawful for a landlord or his agent to demand or receive from a sitting tenant, rent in excess of three (3) months in the case of a monthly tenant and one (1) year in the case of a yearly tenant in respect of any premises without prejudice to the nature of tenancy held at the commencement of the tenancy.
(2) It shall be unlawful for a sitting tenant to offer or pay rent in excess of three (3) months for a monthly tenancy and one (1) year for a yearly tenancy in respect of the premises.
(3) It shall be unlawful for a landlord or his agent to demand or receive from a new or would be tenant, rent in excess of one (1) year in respect of any premises.
(4) It shall be unlawful for a new or would be tenant to offer or pay rent in excess of one (1) year in respect of any premises.
(5) Any person who receives or pays rent in excess of what is prescribed in this Section commits an offence and shall be liable on conviction to a fine of One Million Naira (N1,000,000.00) or to three (3) months’ imprisonment.
6. Rent Payment Receipt
(1) A landlord shall, on receipt of rent from the tenant in cash, by bank teller, electronic transfer or any other automated means, issue a payment receipt.
(2) The receipt shall state the —
- (a) date on which rent was received;
- (b) names and addresses of the landlord and the tenant;
- (c) description and location of premises in respect of which the rent is paid;
- (d) amount of rent paid; and
- (e) period to which the payment relates.
7. Rights of a Tenant
(1) A tenant has a right to quiet and peaceable enjoyment of the premises which includes the right to —
- (a) privacy;
- (b) freedom from unreasonable disturbance;
- (c) exclusive possession of the premises, subject to the landlord’s restricted right of inspection; and
- (d) the use of common areas for reasonable and lawful purposes.
(2) Where a tenant with the previous consent in writing of the landlord, effects improvements on the premises and the landlord determines the tenancy, such a tenant shall be entitled to claim compensation for the unexhausted improvements on being evicted or ejected from the premises.
8. Obligations of the Tenant
The tenant shall —
- pay the rent at the time and in the manner agreed by the parties;
- with the exception of accumulated bills by the previous occupant, on the premises, pay all existing and future rates and charges payable by the tenant;
- keep the premises in good and tenantable repair, reasonable wear and tear excepted;
- permit the landlord and his agents during the tenancy at all reasonable hours in the daytime after previous written notice, to view the condition of the premises and to effect repairs in necessary parts of the building;
- not make any alterations or additions to the premises without the written consent of the landlord;
- not assign or sub-let any part of the premises without the written consent of the landlord;
- notify the landlord where structural or substantial damage has occurred to any part of the premises as soon as practicable; and
- at the expiration of the tenancy, before or on vacating the premises to put the premises back into a tenantable condition or be responsible for the cost.
9. Rights of the Landlord
The landlord has a right to –
- (a) conduct inspection of the premises during the tenancy upon giving prior notice to the tenant;
- (b) insist and ensure that the premises is used for lawful purpose only; and
- (c) demand and collect service charge on the premises where required.
10. Obligations of the Landlord
- (a) not disturb the tenant’s quiet and peaceable enjoyment of the premises, including not to remove the roof, cut off electricity, water supply or do anything that will interfere with peaceful enjoyment of the demised premises;
- (b) pay all rates and charges required of him by law;
- (c) not terminate or restrict the use of a common facility or service for the use of the tenants;
- (d) not seize any item or property of the tenant or interfere with the tenant’s access to his personal property;
- (e) effect repairs and maintain the external and common parts of the premises; and
- (f) issue receipt to the tenant after payment of rent.
11. Tax obligation on rental income
The provisions of the Withholding Tax Regulations shall apply under this law in respect of tax payable on rental income.
12. Service charge, facility and security deposits
(1) In any case where the landlord or his agent, in addition to rent, requires a tenant or licensee to pay for –
- (a) services and facilities in the premises; or
- (b) service charges in flats or units that retain common parts on the premises,
the landlord or his agent shall issue a separate receipt to the tenant for payments received and such tenant shall be entitled to a written account at least every six (6) months from the landlord or his agent of how monies paid were expended.
(2) In any case where a landlord or his agent collects a security deposit from a tenant to cover damages and repairs to the premises, the tenant shall be entitled to a refund of the security deposit at the determination of the tenancy, subject to the deduction of cost of repairs for any damage to the fixtures or fittings of the premises.
(3) Where any of the charges stated in this Section is demanded, it must be clearly stated in the tenancy agreement.
13. Payment of professional fees
In respect of any tenancy, it shall be the duty of the party who engages the services of a professional in respect of the tenancy agreement to pay the fees for such professional services.
14. Length of Notice
(1) Where there is no stipulation in the agreement of the parties as to the length of notice to be given by either party to determine the tenancy, the following shall apply—
- (a) a week’s notice for a tenant at will;
- (b) one month’s notice for a monthly tenant;
- (c) three months’ notice for a quarterly tenant;
- (d) three months’ notice for a half-yearly tenant; and
- (e) six months’ notice for a yearly tenant.
(2) In the case of a monthly tenant, where the tenant is in arrears of two (2) month’s rent, the tenancy shall lapse and only seven (7) days’ written notice of the Landlord’s intention to recover possession shall be served.
(3) In the case of a quarterly tenant, where the tenant is in arrears of three (3) month’s rent, the tenancy shall lapse and only seven (7) days’ written notice of the Landlord’s intention to recover possession will be served.
(4) In the case of a half-yearly tenant, where the tenant is in arrears of three (3) month’s rent, the tenancy shall lapse and only seven (7) days’ written notice of the Landlord’s intention to recover possession will be served.
(5) In the case of a yearly tenant, where the tenant is in default of payment of rent after three (3) months of the expiration of the lapsed tenancy, only seven (7) days’ written notice of the Landlord’s intention to recover possession will be served.
(6) In the case of a tenancy for a fixed term certain, no notice to quit shall be required at the expiration of the term and unless the tenancy is renewed, the tenant shall vacate the premises.
(7) Where the tenant holds over and the landlord intends to proceed to court to recover possession, he shall serve a seven (7) days’ written notice of his intention to apply to recover possession.
(8) The nature of a tenancy shall, in the absence of any evidence to the contrary, be determined by reference to the time when the rent is paid or demanded.
15. Service of Notices
Notices referred to under this Law shall be by proper service and must be within the hours of 8.00am and 5.00pm.
16. Service of Notices for Residential Premises
Service on a tenant of a residential premise shall be personal service, which includes but not limited to the following:
- (a) service on the tenant in person;
- (b) delivery to any adult residing at the premises to be recovered;
- (c) where the tenant cannot be found or avoiding service, by delivering same at the premises sought to be recovered by a courier service; or
- (d) affixing the notice on a conspicuous part of the premises to be recovered.
Provided that service shall be deemed to be proper if the person to be served has knowledge of the notices.
17. Service of Notices for Business Premises
Subject to any statutory provision regulating service on a registered company, corporation or body corporate, proper service on a tenant of a business premises shall be by –
- (a) personal service as in Section 16 above for an individual person;
- (b) delivery to a Director, Secretary, Trustee or other senior, principal or responsible officer of a corporate body or organisation; or
- (c) leaving it at the registered, principal or advertised office or place of business of the organisation within the jurisdiction.
18. Notices to Licensee
Where a person is a licensee and on the expiration or withdrawal of his licence, he refuses or neglects to give up possession, he shall be entitled to service of a seven (7) days’ notice of the owner’s intention to apply to recover possession.
19. Tenant refusing or neglecting to give up possession
As soon as the term or tenancy on any premises has been determined either by a written notice to quit or at the end of a term certain and the tenant neglects or refuses to quit and deliver up possession of the premises or any part of it, the Landlord or his agent may serve the tenant with a written notice, signed by the Landlord or his agent, of the landlord’s intention to proceed to recover possession, on a date not less than seven (7) days from the date of the notice.