Abia Assembly Passes Law to Protect Tenants From Exploitative Landlords, Agents

Abia Assembly Passes Law to Protect Tenants From Exploitative Landlords, Agents

The Abia State House of Assembly has passed the Abia Property and Tenancy Bill into law, introducing far-reaching reforms aimed at regulating property transactions, protecting landlords and tenants, and sanitising the activities of property agents across the state. The bill was passed during Tuesday’s plenary after consideration by the Committee of the Whole. The law provides for the establishment of the Abia State Property and Tenancy Regulatory Authority, which will oversee the implementation of the new law once it receives the assent of Governor Alex Otti. Speaker of the Abia State House of Assembly, Rt. Hon. Emmanuel Emeruwa, announced the passage of the bill during plenary, stating that the law would take effect upon receiving the governor’s assent. He congratulated members of the House on the successful passage of the legislation, expressing confidence that it would strengthen the state’s property administration framework and promote transparency, accountability, and fairness in landlord-tenant relationships. The Property and Tenancy Bill was jointly sponsored by the Deputy Speaker, Rt. Hon. Augustine Okezie, and Hon. Mandela Obasi, representing Ohafia North State Constituency, as part of the Assembly’s efforts to provide a legal framework that protects the interests of landlords, tenants, and genuine property agents while promoting order and professionalism within the real estate sector. It is one of four major bills passed by the Assembly in a single plenary session, alongside the Abia State Criminal Law Bill, the Abia State Administration of Criminal Justice Bill, and the Abia State Restorative Justice Bill. The law became necessary following widespread outcry from tenants in Umuahia and Aba over high house rents for residential and commercial buildings. Residents of the two major cities accused house agents of conspiring with landlords to arbitrarily jack up rents. According to lawmakers, over 90% of Abians are tenants, with many living under the global poverty level, making housing a major challenge.

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The new law establishes a comprehensive regulatory framework for Abia’s housing sector, introducing several protections for tenants and agents, as well as landlords. A key provision of the legislation makes it mandatory for all property agents operating in Abia State to be registered with the regulatory authority. Collecting rent from multiple tenants for the same property has been made a criminal offence punishable by law. Anyone found operating as a property agent without a valid licence will be liable to a fine ranging from N1 million to N10 million. The law fixes the maximum agent’s fee at 5% of the annual rent, curbing the excessive charges that have long burdened tenants in the state. Any licensed or unlicensed agent who defrauds a client, whether a prospective tenant or a landlord, will, upon conviction, face between six and seven years’ imprisonment. Landlords are prohibited from demanding, and tenants from paying, rent exceeding six months in advance. Violations attract fines or potential jail time. The bill also seeks to control unreasonable rent increases, a pressing challenge where landlords have historically raised rents at arbitrary rates. Tenants can now challenge such increases in court and cannot be evicted while the case is pending. The law streamlines the process of property recovery for landlords dealing with non-compliant or defaulting tenants, providing faster eviction procedures. Tenants must present proof of rent and utility bills payment when filing or appealing tenancy-related cases, ensuring transparency in dispute resolution. 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.

The bill provides for the inauguration of a governing board immediately after the governor assents to the law. The board will be responsible for regulating the activities of property agents, ensuring compliance with the law, enforcing professional standards, and addressing issues relating to property transactions in the state. Professional fees will be paid by the party who engages the services of a professional in respect of the tenancy agreement.

The legislation followed years of complaints from residents about exploitative practices in the housing sector. Lawmakers noted that the existing laws created a “lacuna for abuse of tenancy agreements and unreasonable increment of rents” which put many into undue suffering. Hon. Barr. Anderson Akaliro, representing Umuahia North State Constituency, described the bill as “a necessary step toward protecting both landlords and tenants,” adding that effective legal safeguards are essential for promoting harmony within communities. The bill has received broad support from lawmakers across the state, including Chief Whip Hon. Emeka Tommy Obioma. Many residents who have long faced arbitrary rent hikes and exploitative agent fees have welcomed the development as a major relief, while property owners have expressed appreciation for the streamlined processes for property recovery.

The law will become effective immediately upon receiving the Governor’s assent. Once operational, the Abia State Property and Tenancy Regulatory Authority will be established to oversee property transactions, monitor the activities of property agents, and safeguard the interests of both landlords and tenants across the state. The passage of the bill is expected to address longstanding concerns over arbitrary agency charges, unregistered property agents, and disputes arising from tenancy agreements, while creating a more transparent and regulated property market in Abia State. Stakeholders in the housing sector have welcomed the development, expressing optimism that the reform will reduce conflicts and foster mutual understanding between landlords and tenants. As Governor Otti’s assent is awaited, residents and stakeholders in the housing sector are hopeful that the new law will usher in a new era of fairness and accountability in Abia State’s property market. The Assembly’s commitment to passing this legislation reflects a broader recognition that housing is a fundamental right and that both tenants and landlords deserve a legal framework that protects their interests and promotes harmonious coexistence.