Robust regulatory framework has been identified as essential ingredient for promoting transparency in the real estate sector.
For this reason, the Chief Executive Officer and founder, Eximia Realty Company Limited, Mr Hakeem Ogunniran, has urged governments and regulatory bodies to enforce strict guidelines and standards for real estate transactions.
Besides, he called on the authorities to ensure compliance with ethical practices and legal requirements to enhance transparency in the industry
According to him, there is a strong nexus between fostering real estate transparency and strengthening regulatory frameworks.
He explained that transparent and enforceable regulations would create a level playing field and foster trust among all stakeholders.
Stating the importance of regulation in real estate, he said it would create the framework for aligning the interests of the primary and secondary participants in the real estate value chain; setting the standards for compliance and instituting the penal regime for infractions and breaches.
He added that regulation is important in establishing the institutional framework for the implementation of extant laws and regulations and subsequent reviews and amendments.
Besides, he said that regulation would prevent sharp practices, fraudulent schemes and all acts inimical to the interests of stakeholders.
“Regulation will ensure compliance with ethical, professional and other industry standards and elimination of sharp practices and misconduct; preserve the rights of the parties in the real estate ecosystem — government, developers, land owners, buyers, contractors, agents, etc.
“It will help in dispute resolution mechanisms –including specialized and alternative dispute resolution models; provide the platform for the growth and development of the sector; help in liquidity and value creation; transparency and consumer protection against fraud,” Ogunniran said.
Speaking on the theme ‘How Advocacy Can Drive Growth in Real Estate Sector’ at a forum organised by the Property and Environment Writers of Nigeria in Lagos, Ogunniran, said advocacy has helped in streamlining things such as laws, regulations and transparency, leading to growth in the industry
He noted that advocacy in real estate came from concerned individuals, professional institutions, non-governmental organisations and other groups who, through seminars, conferences and other forms of communication, faulted or outrightly condemned unfavourable laws or practices in the sector.
Oguniran,who is presently the Chairman, Lagos Building Investment Company (LBIC) mentioned areas advocacy has played a role in bringing change to the sector.
Oguniran explained that the implementation of Lagos State Real Estate Regulatory Authority (LASRERA) is as a result of advocacy in the sector, adding that the authority has helped to reduce quackery, fraud and double standard in estate agency practice in the state
He pointed out cases where fraudulent estate agents and fake developers rented out or sold 12 units of housing to over 100 home seekers and disappeared with the money collected from the victims.
Oguniran also highlighted reforms that have taken place in the real estate sector and are directly related to advocacy.
These reforms, he said included Finance Act of 2019, which settled the issue of double taxation in real estate investment trusts (REITs).
Others are the Retirement Savings Account (RSA) withdrawal, which allows pension contributors to withdraw 25 percent of their savings and use same as equity contribution for mortgage for purposes of buying, building or renovating a property.
He noted that approval order and urban planning review, rates reduction in land use charge in terms of permitting and approval fees; establishment of mortgage foreclosure law which encourages mortgage lenders to give out loans in the expectation of recovering the loan in the event of default, and prohibition of land grabbing, among others were products of advocacy.
Citing example of two African nations, he said that South Africa has registered moderate improvements with a mandatory implementation of the Property Practitioners Act, Digitisation of land registry, adding that new beneficial ownership regulations have boosted Kenya’s position in the Property Transparency Index.
Ogunniran decried steps taken by the government in correcting the infractions in the industry.
He expressed disdain to a situation where government will allow people to build only for the house to be demolished few years later on the basis of not having permit.
Every demolition, he said, amounts to economic leakage and loss to the society.
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