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HomeViews and ReviewsLagos State's New Tenancy Law (IN DETAIL)

Lagos State’s New Tenancy Law (IN DETAIL)

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SECTION 1: GENERAL APPLICATION

(1) This Law SHALL APPLY to all premises within Lagos State, including business and residential premises unless otherwise specified

(2) This Law SHALL NOT APPLY to: (a) residential premises owned or operated by an educational institution for its staff and students; (b) residential premises provided for emergency shelter; (c ) Residential premises in a care or hospice facility; in a public or private hospital or a mental health facility; and (d) that is made available in the course of providing rehabilitative or therapeutic treatment.

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SECTION 2: JURISDICTION OF THE COURTS

(1) A Court SHALL HAVE jurisdiction on application made to it by a landlord or tenant or any interested person to determine matters in respect of the tenancy of any premises let before or after the commencement of this Law.

(2) The jurisdiction of a Court SHALL NOT be ousted by the defendant or respondent setting up the title of any other party.

(3) Proceedings may be brought under this Law at the HIGH COURT or at the MAGISTRATES COURT in the division or the Magisterial District in which the subject matter giving rise to the proceedings is located.

(4) Subject to the provision of this Law, a Court SHALL BE bound by the practice and procedure in CIVIL MATTERS in the Magistrates’ Court or the High Court of Lagos State.

SECTION 3: TENANCY AGREEMENT

For the purposes of this Law, a TENANCY AGREEMENT shall be deemed to exist where premises are granted by the landlord to a person for value whether or not it is (a) EXPRESS or IMPLIED; (b) ORAL or IN WRITING or partly oral or partly written; or (c) for a fixed period.

SECTION 4: ADVANCE RENT

(1) It SHALL BE UNLAWFUL for a landlord or his agent to demand or receive from a sitting tenant rent in excess of three (3) MONTHS in respect of any premises.

(2) It SHALL BE UNLAWFUL for a sitting tenant to offer or pay rent in excess of three (3) MONTHS in respect of any premises.

(3) Any person who RECEIVES or PAY rent in excess of what is prescribed in this section SHALL BE GUILTY of an offence and shall be liable to a fine of one hundred thousand naira (N100,000.00) or to three (3) months IMPRISONMENT or any other non-custodial disposition.

SECTION 5: RENT PAYMENT RECEIPT

(1) As from the commencement of this Law, all landlords of premises SHALL upon payment of rent by the tenants, be obliged to ISSUE a RENT PAYMENT RECEIPT to their tenants in respect of such payments.

(2) The receipt shall state the (a) DATE of which rent was received; (b) NAME of the landlord and the tenant; (c) LOCATION of premises in respect of which the rent is paid (d) AMOUNT of rent paid; and (e) PERIOD to which the payment relates.

(3) Any landlord who FAILS to issue a rent payment receipt to his tenant as prescribed under this Section, shall be liable to a FINE of ten thousand Naira (N10,000.00) payable to the Court.

SECTION 6: RIGHTS OF THE PARTIES

(1) The tenant’s ENTITLEMENT to Quiet and Peaceable Enjoyment includes the right to: (a) REASONABLE PRIVACY; (b) FREEDOM from unreasonable disturbance; (c) EXCLUSIVE possession of the premises, subject to the landlord’s restricted right of inspection and (d) the USE of COMMON AREAS for reasonable and lawful purposes.

(2) Where a tenant with the previous consent in writing of the landlord, effects improvements on the premises and the landlord determines the tenancy, such a tenancy SHALL BE ENTITLED to claim COMPENSATION for the effect improvements on quitting the premises.

SECTION 7: OBLIGATIONS OF THE TENANT:

Subject to any provision to the contrary in the agreement between the parties, THE TENANT SHALL BE OBLIGED to do the following:

(a) Pay the rents at the times and in the manner stated.

(b) Pay all existing and future rates and charges not applicable to the landlord by law.

(c) Keep the premises in good and tenantable repair, reasonable wear and tear excepted.

(d) Permit the landlord and his agents during the tenancy at all reasonable hours in the day time by written notice, to view the condition of the premises and to effect repairs in necessary parts of the building.

(e) Not to make any alterations or additions to the premises without the written consent of the landlord.

(f) Not to assign or sublet any part of the premises without the written consent of the landlord.

(g) Notify the landlord where structural or substantial damage has occurred to any part of the premises as soon as practicable.

SECTION 8: OBLIGATIONS OF THE LANDLORD:

Subject to any provision to the contrary in the agreement between the parties, THE LANDLORD SHALL BE OBLIGED to do the following:

(a) Not to disturb the tenant’s quiet and peaceable enjoyment of the premises.

(b) Pay all rates and charges as stipulated by law.

(b) Keep the premises insured against loss or damage.

(d) Not to terminate or restrict a common facility or service for the use of the premises.

(e) Not to seize or interfere with the tenant’s access to his personal property.

(f) Effect repairs and maintain the external and common parts of the premises.

SECTION 9: OBLIGATIONS OF THE LANDLORD REGARDING BUSINESS PREMISES ONLY

Subject to any provision to the contrary in the agreement between the parties, a BUSINESS PREMISES AGREEMENT SHALL BE TAKEN TO PROVIDE THAT WHERE THE LANDLORD

(a) inhibits the access of the tenant to the premises in any substantial manner;

(b) takes any action that would substantially alter or inhibit the flow of the customers, clients or other persons using the tenant’s business premises;

(c) causes or fails to make reasonable efforts to prevent or remove any disruption to trading or use within the business premises which results in loss of profits to the tenant;

(d) fails to have rectify as soon as practicable, any breakdown of plant or equipment under his care and maintenance which results in loss of profits to the tenant; or

(e) fails to maintain or repaint the exterior or the common parts of the building or buildings of which the premises is comprised and after being given notice in writing by the tenant requiring him to rectify the matter, does not do so within such time as is reasonably practicable, the landlord, is liable to pay to the tenant such reasonable compensation as shall be determined by the Court, where the tenant effects the repairs or maintenance.

SECTION 10: SERVICE CHARGE, FACILITIES AND SECURITY DEPOSITS

In any case where the landlord or his agent may in addition to rent require the tenant or licensee to pay:

(a) a SECURITY DEPOSIT to cover damage and repairs to the premises; (b) for SERVICES and FACILITIES for the premises; or (c) SERVICE CHARGES in flats or units that retain common parts on the premises.

The landlord or his agent shall issue a SEPARATE RECEIPT to the tenant for payments received the such tenant shall be entitled to a WRITTEN ACCOUNT at least every six (6) months from the landlord of how moneys paid were disbursed.

SECTION 11: PROVISION FOR RE-ENTRY

SECTION 12: LENGTH OF NOTICE

(1) Where there is no stipulation as to the notice to be given by either party to determine the tenancy, the following SHALL APPLY (a) A week’s notice for a tenant at will; (b) ONE (1) month’s notice for a monthly tenant; (c) THREE (3) month’s notice for a quarterly tenant; (d) THREE (3) month’s notice for a half-yearly tenant; and (e) SIX (6) months notice for a yearly tenant.

(2) In the case of MONTHLY TENANT, where he is in arrears of rent for three (3) months, the tenancy shall be determined and the Court shall make an order for possession and arrears of rent upon proof of the arrears by the landlord.

(3) In the case of a QUARTERLY or half-yearly tenant, where he is in arrears of rent for six (6) months, the tenancy shall be determined and the Court shall make an order for possession and arrears of rent upon proof of the arrears by the landlord.

(4) Notice of tenants under subsection (1) ( ), (d) and (e) of this Section NEED NOT TERMINATE on the anniversary of the tenancy but may TERMINATE ON or AFTER the date of expiration of the tenancy.

(5) In the case of a tenancy for A FIXED TERM, NO NOTICE TO QUIT shall be required once the tenancy has been determined by effluxion of time and where the landlord intends to proceed to Court to recover possession, he shall serve a seven (7) days written notice of his intention to apply to recover possession as in Form “TL4” in the Schedule of this Law.

(6) The nature of a tenancy shall, IN THE ABSENCE of any evidence to the contrary, be determined by reference to the time when the rent is paid or demanded.

SECTION 13: NOTICE TO LICENSEE

SECTION 14: NOTICE REQUIRED FOR ABANDONED PREMISES

(1) A premises will be deemed to be abandoned where the (a) tenancy has EXPIRED; and (b) tenant HAS NOT occupied the premises since the tenancy expired and has NOT GIVEN UP lawful possession of the premises.

(2) Following subsection (1) above, the landlord shall (a) issue a seven (7) days notice of the landlord’s intention to recover possession as prescribed in Form “TL4”, which shall be served by pasting the notice on the abandoned premises; and (b) apply to the court for an order for possession and an order to force open the premises.

SECTION 15: TENANT REFUSING OR NEGLECTING TO GIVE UP POSSESSION

As soon as the term or interest of any premises has been determined by a written notice to quit as in FORM “TL2” or “TL3”, in the Schedule of this Law and the tenant neglects or refuses to quit and deliver up possession of the premises or any part of it, the Landlord or his agent may cause the tenant to be served with written notice as in FORM “TL4”, signed by the Landlord or his agent, of the landlord’s intention to proceed to recover possession, stating the grounds and particulars of the claim, on a date not less than seven (7) days from the date of the notice.

SECTION 16: SERVICE OF NOTICES

(1) Notices referred to under Sections 12-15 of this Law shall be by proper service as prescribed under Section 17 and 18.

(2) Proper service shall be service in such a manner that it can be established to the satisfaction of the court that the person to be served will have knowledge of any of the notices.

SECTION 17: SERVICE OF NOTICES FOR RESIDENTIAL PREMISES

Proper service on a tenant of residential premises shall be personal service, which includes but is not limited to the following

(a) service on the tenant in person

(b) delivery to any adult residing at the premises to be recovered

(c) by courier where the tenant cannot be found, by delivering same at the premises sought to be recovered and the courier shall provide proof of delivery; or

(d) affixing the notice on a prominent part of the premises to be recovered and providing corroborative proof of service.

SECTION 18: SERVICE OF NOTICES FOR BUSINESS PREMISES

Proper service on a tenant of a business premises shall be by

(a) delivery to a person at the business premises sought to be recovered; or

(b) affixing the notice on a prominent part of the premises to be recovered and providing corroborative proof of service.

SECTION 19: DUTY TO NOTIFY OTHER PERSONS IN OCCUPATION

SECTION 20: PERSONS IN UNLAWFUL OCCUPATION

SECTION 21: SERVICE OF PROCESS

SECTION 22: USE OF FORMS

SECTION 23: INSTITUTION OF PROCEEDINGS TO RECOVER POSSESSION

Upon the EXPIRATION of the time stated in the notice as in FORM “TL4”, if the tenant neglects or refuses to quit and deliver up possession, the landlord may file a claim by way of summons as in FORM “TL6” for RECOVERY of possession, either against the tenant or against such person so neglecting or refusing, in the Magisterial District or High Court Division where the premises is situated.

SECTION 24: GROUNDS FOR POSSESSION

(1) UNLESS the agreement expressly stipulates otherwise, the Court SHALL have power to make an order for possession UPON PROOF of any of the following grounds – (a) ARREARS of rent; (b) BREACH of any covenant or agreement; (c) where the premises is reasonably REQUIRED by the landlord for personal use; and (d) where the premises REQUIRES substantial repair.

(2) Notwithstanding any agreement between the parties, the Court SHALL have power to make an order for possession UPON PROOF of any of the following grounds: (a) the premises is being USED FOR immoral or illegal purposes; (b) the premises has been ABANDONED; (c) the premises is UNSAFE and unsound as to constitute a danger to human life or property; or (d) the tenant or any person residing or lodging with him or being his sub-tenant constitutes by conduct, an act of INTOLERABLE NUISANCE or induces a breach of a tenancy agreement.

SECTION 25: RECOVERY OF POSSESSION FOR A FIXED TERM CERTAIN

Where – (a) a tenancy is PROVED to be for a fixed term certain; (b) the period of the tenancy has EXPIRED by effluxion of time; and (c) FORM “TL4” has been SERVED in accordance with Section 12(5) of this Law, THE LANDLORD shall be entitled to recovery of the premises.

SECTION 26: TRIAL

SECTION 27: PAYMENT OF ARREARS OF RENT

(1) Where there is any matter for determination before a Court under this Law, and the tenant admits the arrears of rent or a portion of the rent, the Court may order the tenant to pay such arrears of rent before the Court proceeds with the matter.

(2) Where arrears of rent are claimed for the use and occupation of the premises, the claim shall show the rate at which such sum is claimed, and where it is proved, judgment shall be entered for the amount so proved.

SECTION 28: COURT AS RECEIVER OF REFUSED RENT

(1) In any proceedings under this law, where a landlord refuses to accept the current rent from a tenant, the tenant may, upon application, to the satisfaction of the Court, pay such rent to the Court’s Registry.

(2) The Landlord in such a case shall, upon application to the satisfaction of the Court, be entitled to collect the refused rent from the Court, subject to the deduction of a sum equal to ten percent (10%) of the refused rent to be retained by the Court.

SECTION 29: ARBITRATION

SECTION 30: LANDLORD MAY CLAIM FOR mesne PROFITS OR FOR USE AND OCCUPATION OF PREMISES

SECTION 31: MEDIATION

(a) In proceedings under this Law, the Court shall promote reconciliation, mediation and amicable settlement between the parties.

(b) A Magistrate may refer proceedings in relation to any action, part of or any matter arising out of the action to mediation at a Citizens’ Mediation Centre established under the Citizens’ Mediation Centre Law to be dealth with in accordance with the Rules of Court.

(c) Referrals to mediation under the provisions of subsection (2) of this Section shall not to require the consent of the parties to the proceedings.

(d) The mediator shall submit the mediation agreement to the Court for endorsement for performance and enforcement within three (3) days after execution by the parties.

SECTION 32: CLAIMS AGAINST PERSON IN UNLAWFUL OCCUPATION

SECTION 33: CLAIMS SUPPORTED BY WRITTEN DEPOSITIONS

SECTION 34: DEFENCE SUPPORTED BY WRITTEN DEPOSITIONS

35. Service on persons in unlawful occupation

SECTION 36: DEFENDANT NOT DEFENDING CLAIM

SECTION 37: UNREASONABLE INCREASE OF RENT

(1) Subject to any agreement to the contrary, an existing tenant may apply to the Court for an order declaring that the increase in rent payable under a tenancy agreement is unreasonable.

(2) In determining whether an increase in the rent is unreasonable, the Court shall consider – (a) the general level of rents for comparable premises in the locality or a similar locality; (b) evidence of witnesses of the parties; and (c) any special circumstances relating to the premises in question or any other relevant matter.

SECTION 38: APPLICATION TO SET ASIDE OR VARY JUDGEMENT OF COURT

Any judgement by default under this Law shall be final and remain valid and may only be set aside upon application to the Magistrate on ground of fraud, non-service or lack of jurisdiction upon such terms as the court may deem fit.

39. Warrant for possession may be issued at any time

40. Form and purpose of warrant for possession

41. Duration of Warrant

42. Warrant for possession justifies entry on premises

SECTION 43: ENFORCEMENT OF ORDER OF COURT

At the expiration of the time ordered by the Court, if an order of possession of the Court is not obeyed, the Court at the instance of the landlord shall, where such order can be proved to have been served on the tenant, issue a warrant for possession, and if the order is that possession of the premises be given up by the tenant to the landlord, the Court shall immediately at the instance and at the cost of the landlord, issue a warrant for possession of the landlord.

SECTION 44. OFFENCES AND PENALTIES

SECTION 45: APPEALS

(1) A party to any proceedings in the Magistrate’s Court may appeal from the decisions of the Magistrates’ Court to the High Court in accordance with the provisions of the Magistrates’ Court Law.

(2) A party to any proceedings in the High Court may appeal in accordance with the provisions of the Constitution.

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