27/02/2025
*my thoughts on Real Estate Practices in Enugu and the proposed bill*
**From: Ezeh Onyema Shedrack, CEO (Domain Property Nigeria)**
**Contact: 08070327855**
Ndi ENUGU,
I am writing to share my thoughts on the current real estate practices in Enugu, particularly regarding agent fees and caution fees. As the CEO of **Domain Property Nigeria, a firm with over 5,000 agents working with and for us, I have firsthand experience of the challenges we face daily.
On Agent Fees:
The proposed 10% fee should not apply to all rental properties but only to high-value rentals or properties being sold. For lower-value rentals (e.g., a ₦36,000 or ₦60,000 yearly rent), the fee should be negotiable between the agent and the client. Here’s why:
1. **Effort and Costs**: At **Domain Property Nigeria**, our agents spend significant time, money, and energy searching for properties. We burn data, fuel cars, and even hire kekes (tricycles) to scout for houses. When a client is shown a house, they often assume it was easy to find, but the process is far from simple.
2. **Shared Commissions**: In many cases, multiple agents from **Domain Property Nigeria** collaborate to find a suitable property. For instance, six or more agents may work together to secure a house for a client. How should the 10% fee be divided among them?
3. **Impact on Low-Income Clients**: A fixed 10% fee on low-value rentals could disproportionately affect low-income clients who cannot afford high rents. If agents from **Domain Property Nigeria** stop handling low-value rentals, it will hurt the poor masses who rely on our services.
I suggest that high-value rentals and property sales should attract a 10% fee, while lower-value rentals should allow for flexible agreements between agents and clients. Otherwise, many agents, including those at **Domain Property Nigeria**, may focus solely on high-value properties, leaving low-income clients to fend for themselves.
# # # On Agent Registration:
I fully support the registration of agents to bring structure and credibility to the industry. At **Domain Property Nigeria**, we pride ourselves on professionalism and organization. While some agents have disorganized the business, many, like those at **Domain Property Nigeria**, are committed to maintaining high standards. Registration will help w**d out unprofessional practices and ensure accountability.
# # # On Caution Fees:
For landlords and landladies, I recommend the following:
1. **Separate Caution Fee Form**: A clear form should be issued for caution fees, detailing the terms of refund.
2. **Refund Process**: When a tenant moves out, the property should be inspected. If everything is in order, the caution fee should be refunded in full. If there is damage, the cost of repairs should be deducted, and the remaining balance refunded.
3. **Retention of Caution Fees**: I do not advocate abolishing caution fees, as some tenants may damage properties and leave without notice, leaving landlords to bear the repair costs.
# # # Final Thoughts:
The rising cost of living (cement, rice, fuel, etc.) affects everyone, including real estate professionals. At **Domain Property Nigeria**, we understand the need for standardized fees, but flexibility is crucial to accommodate varying property values and client needs.
I support initiatives to professionalize the industry through agent registration and improved practices. Let’s work together to create a fair and sustainable real estate ecosystem in Enugu.
Thank you for considering my contributions on behalf of **Domain Property Nigeria**.
Best regards,
**Ezeh Onyema Shedrack**
**CEO, Domain Property Nigeria**
