Lease agreement Lagos Nigeria - Lease agreements define the relationship between the landlord and the tenant. This formal definition of the landlord-tenant relationship clearly states the responsibilities of the tenant to the landlord and vice versa.
Agreements of this nature are usually drawn up by a real estate attorney. When this is the case, the attorney states his business name and address in the cover page of the document. Obviously, real estate
attorneys don't draw up documents cheap.
In Lagos, Nigeria real estate attorneys prepare lease agreement at a cost called the legal fee. Typically, attorneys or lawyers charge a fee of 5-10 percent of the value of the transaction as legal fees or attorney fees.
For example, suppose you wish to rent an apartment with rental price of 500,000 Nigeria Naira per annum. And the landlord will require you to pay two years rent in advance.
In this case, two year rent will be one million Naira. The attorney will charge you 10 percent of this amount (that is, 100,000 Naira) as legal fees. The real estate agent will also charge you another 10 percent of this amount (that is, another 100,000 Naira) as real estate agent commission.
For very expensive properties, the attorney may accept 3-5 percent of the value of the transaction as legal fee.
However, there is a trend that has started to take root in Lagos Nigeria in recent years. Many landlords now desire to keep the legal fee to themselves.
Why pay an attorney that much money just for drawing up a tenancy agreement? They wonder.
So, they collect the attorney fee from the tenant and give the tenant a free tenancy agreement from a previous transaction or something downloaded from the internet.
There are two things wrong with this.
1. The circumstances may be different and
2. No attorney will sign the document if he did not prepare it
If the terms of the tenancy agreement does not reflect accurately the terms you should give your tenant or the lease agreement was wrongly drawn up, you risk having a document that will not stand up in a court of law or that puts you at unnecessary risk.
Even when you get an attorney to review the agreement and he discovers that the terms are well articulated, you will still have to pay him a fee. Perhaps at this stage you can negotiate a lower legal fee because, in this case, you just need his accent.
Here is a short and sharp piece of advice for landlords and tenants.
P.S: Click HERE to download a standard tenancy agreement.