LAGOS – Worried by the unprofessionalism, widespread scam and lack of trust in the real estate business, the founder of Wardiere Oakmount and a real estate coach, Mr. Kunle Ilori has called for urgent need to regulate the real estate sector.
Ilori said this became imperative to save the industry from total collapse and Nigerians from losing their hard earned savings to fake real estate agents.
Ilori disclosed in a statement issued on Tuesday.
According to him, the real estate industry is among the economy sectors standards and prerequisites are not strictly enforced, unlike other professions like accounting, teaching, banking and medical.
He said, there is a need by the federal government to regulate the industry with code of ethics to checkmate the sharp practices of some real estate agents.
He noted that, the regulation would protect buyers and tenants and maintain the integrity of the professionals.
He noted that, the lack of regulation has tarnished the reputation of the real estate business in the country, thereby discouraging potential investors.
He called on the federal government under the ministry of land and housing to establish a licensing system for real estate professionals and develop a comprehensive code of ethics to guide real estate practice in Nigeria.
He added that the government should issue Real Estate Regulatory Agency Cards (RERA Cards) or certificates to licensed practitioners, adding that building a public portal that enlist all licensed real estate practitioners would allow buyers and tenants to verify who they are dealing with.
“Unlike other professions where standards and prerequisites are strictly enforced, anyone in Nigeria can wake up one day and decide to be a real estate agent, consultant, or even start a real estate academy without any formal training or certification.
“When you think about it, every serious profession has clear paths of entry. Doctors go to medical school, lawyers attend law school, teachers are trained at teachers’ colleges, and even police officers undergo training at the police college.
“Accountants and bankers take professional courses to qualify for practice. But when it comes to real estate, it’s a free-for-all. No license. No training. No accountability.
“To make matters worse, some people who have merely sold a few properties believe they are now qualified to establish real estate academies. Without a solid background or certification in real estate, these individuals churn out a new generation of unqualified, misinformed practitioners. This is one of the reasons we see a lot of unprofessional practices in the market.
“In developed countries, the story is different. Real estate professionals are required to take courses, pass exams, and obtain licenses before they can practice. They are given a code of ethics that guides their actions and ensures they operate in good faith. If they violate these codes, they risk being penalized or losing their licenses altogether. These checks and balances not only protect buyers and tenants but also maintain the integrity of the profession.
“Unfortunately, this is not the case in Nigeria. Here, there is no fear of penalties because there is no regulatory body to oversee the industry. This is why scams are rampant, landlords and tenants are exploited, and many buyers end up with properties riddled with issues. Worse still, there is no avenue for victims to seek redress.
“This lack of regulation has tarnished the reputation of the real estate profession in Nigeria. People no longer trust real estate practitioners because of the actions of a few greedy, malicious, and untrained individuals who have infiltrated the industry. It is high time we changed this narrative.
“The responsibility of regulating the real estate sector should fall on the Ministry of Lands and Housing. They should create a department dedicated solely to real estate regulation. This department should: Establish a licensing system for real estate professionals.
“Develop a comprehensive code of ethics to guide real estate practice. Create training programs (both online and physical) that aspiring practitioners must complete before being licensed.
“Issue Real Estate Regulatory Agency Cards (RERA Cards) or certificates to licensed practitioners. These cards should include a unique identification number for each person to verify their legitimacy.
“Build a public portal that lists all licensed real estate practitioners, allowing buyers and tenants to verify who they are dealing with.
“Additionally, any individual found practicing without a RERA license should face legal prosecution. This will serve as a deterrent to unqualified individuals and ensure that only trained professionals operate within the industry.
“If the federal government fails to act, state governments should take the initiative to create commissions or small agencies to regulate real estate practices within their regions.
“The lack of action at the national level should not hinder progress at the state level.
“In addition, these regulatory bodies should appoint individuals with real estate experience and global exposure to spearhead these changes. Such individuals should understand the dynamics of the real estate market and how to create a system that works for everyone.
“Regulating the real estate industry is not just about protecting buyers and tenants from scams. It’s about restoring the dignity and respect of the profession. It’s about creating a system where real estate practitioners are trusted and valued for their expertise. It’s about fostering an environment where the industry can thrive and contribute meaningfully to the economy.
“With RERA Cards, a public portal, and legal consequences for malpractice, we can create a system that deters scammers and encourages professionalism. Buyers and tenants will have confidence in dealing with licensed professionals, knowing that they are protected by law and ethical standards.
“The real estate sector is too important to be left in the hands of untrained and unaccountable individuals. If we want to see meaningful change, we must demand action from the government.
“The Ministry of Lands and Housing, or any other relevant authority, must rise to the occasion and set the wheels of regulation in motion. The time for change is now. If we fail to act, the malpractice and chaos in the real estate sector will only get worse. But with the right regulations, we can build a market that is fair, professional, and beneficial for all stakeholders.”
