03/07/2026
🏡 *ASSOCIATION OF ESTATE AGENTS IN NIGERIA AEAN ADVOCACY*
WHO PAYS THE ESTATE AGENT'S COMMISSION?
One of the most common questions in the Nigerian real estate market is:
"If I appoint an estate agent to sell my land or property, who pays the agent's commission—the seller or the buyer?"
The answer is straightforward.
The law of agency provides that the person who appoints the agent (the Principal) is responsible for paying the agreed professional fee.
Therefore:
✅ If a property owner appoints an estate agent to market and sell a property, the owner pays the commission.
✅ If a buyer appoints an estate agent to source and negotiate a property, the buyer pays that agent's professional fee.
Simply put:
"He who appoints the professional should pay the professional."
The Lagos State Real Estate Regulatory Authority (LASRERA) was established to promote professionalism, transparency and consumer protection within the real estate industry. Its regulatory framework discourages unethical practices, including indiscriminate charging of parties who did not engage the agent.
The Nigerian Institution of Estate Surveyors and Valuers (NIESV) Scale of Professional Charges recognises an agency commission of 5% of the sale price for property sales, unless otherwise agreed in writing between the client and the professional.
Similarly, the Association of Estate Agents in Nigeria (AEAN) Code of Practice promotes ethical brokerage by requiring members to:
• Clearly disclose whom they represent.
• Agree professional fees before commencing an assignment.
• Avoid undisclosed dual representation.
• Never demand commission from parties who did not appoint them.
• Conduct transactions with honesty, fairness and transparency.
The era of charging both buyer and seller simply because a transaction is taking place should give way to professional agency practice founded on clear instructions, written agreements and ethical conduct.
A transparent real estate market protects consumers, rewards professionalism and enhances confidence in our industry.
Olugbenga Ismail, FNIVS, FRICS
Chairman, AEAN
AEAN Advocacy
