A. Introduction
There are a lot of misconceptions on the position of the Law regulating Landlord and Tenant relationship in Nigeria, particularly in Lagos State which has the highest number of Landlords and Tenants in Nigeria.
This edition of Akintunde Esan’s Legal Illumination, focuses on some key points of the Lagos State Tenancy Law enacted in 2011 which every Landlord and Tenant in Lagos State ought to know in order to avoid evitable embarrassments, trauma , disputes, court cases, imprisonment or payment of fines or damages.
B. 12 Important Points of Law to Note
1. Landlord: The person entitled to the immediate reversion of the premises
2. Tenant: Includes a sub-tenant or any person occupying any premises whether by payment of rent howsoever or by operation of law and not persons unlawfully occupying any premises under a bona fide claim to be the owner.
In African Petroleum Ltd v. J.K. Owodunni (1991) LPELR-213 (SC), it was held by the Supreme Court per Nnaemeka Agu,JSC at p. 27, para B illuminated that:
"A tenant who enters upon premises by reason of a contractwith the landlord is a contractual tenant. Such a tenant holds an estate whichis subject to the terms and conditions of the grant. Once that tenancy comes toan end by effluxion of time or otherwise and the tenant holds over without thewill or agreement of the landlord, he becomes a tenant-at-sufferance. This isstrictly a common law concept.
But sometimes there is a statute which givessecurity of tenure to such a tenant after his contractual tenancy has expired.When: such a statute exists he now holds the premises no longer as acontractual tenant because there no longer exists a contract between him andthe landlord. But he none-the-less retains possession by virtue of theprovisions of the statute and is entitled to all the benefits and is subjecttoall the terms and conditions of the original tenancy."
3. "Tenancy" Means holding of interest in land or property by a tenant under a tenancy agreement.
4. Tenancy Agreement: An agreement whether written or oral, express or implied between a landlord and a tenant regarding possession of premises and use of common areas and includes leases and sub-leases.
5. Notice to Quit: Where there is no agreement or Tenancy Agreement as to the notice to be given by either party to determine the tenancy, 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 as follows -
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a tenant at will – one (1) week’s notice
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a monthly tenant - one (1) month’s notice
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a quarterly tenant - three (3) months notice
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a half-yearly tenant - three (3) months notice
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a yearly tenant – six (6) months notice
Though, it is settled that, anotice to quit in order to be effective ought to determine the tenancy at theend of the current term of the tenancy, however, under the Lagos State 2011 Tenancy Law a notice to quit need not terminate on the anniversary of the tenancy but may terminate on or after the date of expiration of the tenancy. S.13(4).
6. Payment of Advance Rent: a. A sitting or new tenant who offers or pays rent in excess of one (1) year for a yearly tenancy and six (6) months for a monthly tenant shall be guilty of an offence and shall be liable on conviction to a fine of One Hundred Thousand Naira (N100,000.00) or to three (3) months imprisonment.
b. A landlord or his agent who demands or receives from a sitting or new tenant rent in excess of six (6) months from a monthly tenancy and one (1) year from a yearly tenant in respect of any premises shall be liable on conviction to a fine of One Hundred Thousand Naira (N100,000.00) or to three (3) months imprisonment.
7. Ejecting a Tenant:
a. It is a criminal offence for a Landlord to demolish, alter or modify a building with a view to ejecting a Tenant and without the approval of the Court; or
b. It is a criminal offence for a Landlord to attempt to forcibly eject or forcibly ejects a tenant.
c. It is a criminal offence for a Landlord to threaten or molest a tenant by action or words, with a view to ejecting such tenant.
d. It is a criminal offence for a Landlord to wilfully damages any premises with a view to ejecting a Tenant.
e. Any Landlord found guilty of a, b, c and d above shall be liable to a fine not exceeding Two Hundred and Fifty Thousand Naira (N250, 000.00) or a maximum of six (6) months imprisonment and any other non-custodial disposition. S.44.
8. A Licensee means a person who comes into occupation by mere permission, without the creation of a landlord and tenant relationship and has no estate or legal interest in the premises. Where a person is a licensee and upon the expiration or withdrawal of his licence, he refuses or neglects to give up possession, he shall be entitled to service of a seven (7) days’ notice of the owner's intention to apply to recover possession.
9. Grounds for Application for Order of Possession (S.25) : Unless a Tenancy 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 required by the landlord for personal use
d. the premises is being used for immoral or illegal purposes;
e. the premises has been abandoned;
f. the premises is unsafe and unsound as to constitute a danger to human life or property; or
g. 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.
10. Abandoned Premises (S. 15): 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.
11. Premises: Includes premises used for business, residential and non-residential purposes.
12. The Lagos State 2011 Tenancy Law is not applicable in Apapa, Ikeja GRA., Ikoyi, and Victoria Island.
C. Conclusion
Most of the Landlord and Tenant disputes are based on misunderstanding of the expectations of the parties the Landlord is an investors who wants returns from his or her property, while the Tenant is a consumer who wants value for his or her money.
Though, there are terms which are statutorily implied in a Landlord and Tenant contract, it is better to have a Written Tenancy Agreement where some common areas of dispute would have been proactively sorted out in advance. I have seen many Landlords shot themselves in the foot by not consulting a Lawyer for a standard Tenancy Agreement or before attempting to eject a Tenant from their Premises.
For further illumination on Tenancy Agreement, Landlord and Tenant disagreements and ejecting of a Tenant, you are advised to contact any sound Lawyer around you or Akintunde Esan.
TENANCY LAW: 12 THINGS EVERY LANDLORD AND TENANT IN LAGOS STATE SHOULD KNOW is a legal illumination of AKINTUNDE ESAN known as The LEGAL ADVISER ONLINE. Akintunde Esan is the Managing Partner & Principal Consultant @ ASE OLODUMARE CHAMBERS (Legal Practitioners/Consultants & Chartered Mediators)
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