The Association of Estate Agents in Nigeria (AEAN) has expressed concern over what it describes as widespread unethical practices in the collection of estate agency commissions, urging practitioners to adhere to professional ethics and industry best practices to restore public confidence in the real estate sector.

The association said persistent disputes over who should pay estate agents’ commission have continued to create confusion among property buyers and sellers, leading to increased transaction costs and mistrust within the market.

Chairman of AEAN, Olugbenga Ismail, told The Guardian that the guiding principle in estate agency practice is straightforward; that the party who appoints the estate agent should be responsible for paying the agreed professional fee.

According to him, where a property owner appoints an estate agent to market and sell a property, the owner is responsible for paying the agency commission. Likewise, where a buyer engages an estate agent to search for, negotiate and secure a property, the buyer is expected to pay that agent’s professional fee. “He who appoints the professional should pay the professional,” he stated.

Ismail noted that the Lagos State Real Estate Regulatory Authority (LASRERA) was established to promote professionalism, transparency and consumer protection in the state’s real estate sector. He explained that the regulatory framework discourages unethical practices, including indiscriminate charging of commissions to parties who did not retain the services of an agent.

He added that agency fees should be transparent, properly disclosed and charged in line with applicable regulations and contractual agreements.

The AEAN chairman also referred to the Nigerian Institution of Estate Surveyors and Valuers (NIESV) Scale of Professional Charges, which provides guidance for practitioners. Under the scale, the professional agency commission for property sales is generally five per cent of the sale price, unless otherwise agreed in writing between the client and the estate surveyor and valuer.

According to him, the fee is payable by the client who instructed the professional to undertake the assignment.

Ismail, an estate surveyor and valuer, further said AEAN’s code of practice requires members to clearly disclose whom they represent, agree professional fees before commencing an assignment, avoid undisclosed dual representation, refrain from demanding commission from parties who did not appoint them, and conduct transactions with honesty, transparency and professionalism.

He stressed that adherence to these ethical standards would strengthen confidence in the real estate market while protecting both consumers and practitioners. The association warned that the long-standing practice of charging both buyers and sellers on the same transaction without proper authority or full disclosure has contributed to disputes, inflated transaction costs and weakened public trust in estate agency practice.

As Nigeria’s real estate industry continues to evolve, AEAN said higher professional standards are necessary to align the sector with global best practices. To minimise disputes, the association recommended that every agency relationship should be governed by a written agreement clearly stating the client being represented, the scope of the assignment, the agreed commission, when the commission becomes payable, and whether the appointment is exclusive or non-exclusive.

AEAN, an affiliate of NIESV, maintained that transparency, professionalism and strict adherence to ethical standards remain critical to building a trusted, efficient and globally respected real estate industry.