**AEAN FEATURE**

# Inspection Fees: AEAN's Position Is Clear — Just Say No

### Professional estate agency should not begin with a charge to view a property

*Lagos, Nigeria*

The Association of Estate Agents in Nigeria (AEAN) wishes to restate its position on the increasingly common practice of demanding an "inspection fee" from prospective tenants, purchasers and other property seekers simply to view a property.

**AEAN does not support the charging of inspection fees.**

A property inspection is an integral part of the estate agency and transaction process. It enables a prospective client to determine whether a property is suitable before deciding whether to proceed with negotiations. Turning access to a property into a separate revenue-generating activity is inconsistent with the professional agency practice that AEAN seeks to promote.

We recognise that estate agents incur genuine costs in the course of their work — transportation, communication, marketing, staff time and the coordination of inspections. However, the solution is not to impose arbitrary charges on every prospective client who requests to see a property.

## The Bigger Problem: Multiple Layers of Agents

The prevalence of inspection fees is also symptomatic of a wider problem within the Nigerian property market: long and often unclear chains of intermediaries.

A prospective tenant or purchaser may respond to an advertisement only to discover that the person advertising the property is not the landlord's or vendor's authorised agent, but another intermediary several steps removed from the actual mandate.

This creates unnecessary cost, misinformation, duplicated listings and, in some cases, opportunities for fraud.

AEAN therefore strongly encourages property seekers to deal with verified professional agents who hold direct mandates or can clearly establish their authority to introduce the property.

Before paying money or committing to a transaction, clients should be comfortable asking:

- Who gave you the mandate to market this property?

- Are you dealing directly with the landlord/vendor or the appointed agent?

- Can the property and the mandate be independently verified?

- What professional fees will become payable if the transaction is successfully concluded?

## Our Advice to Property Seekers

If you are asked to pay an inspection fee simply to view a property, **AEAN advises you to decline the request.**

Instead, seek information from an agent with a direct and verifiable mandate.

> Professional agents should earn professional fees for professional services and successful transactions — not build a business model around collecting money from people merely seeking to inspect available properties.

Equally, landlords, developers and property owners have a responsibility to appoint competent agents, issue clear mandates and discourage uncontrolled chains of sub-agency that make it difficult for the public to identify who genuinely represents a property.

## Raising the Standard of Estate Agency in Nigeria

AEAN's objective is not simply to increase the number of people practising estate agency. Our responsibility is to raise the standard of practice.

We want a Nigerian property market in which clients can identify professional agents, mandates can be verified, property information is reliable, agency relationships are transparent and professional fees are clearly understood.

**The public should not have to pay simply to discover whether a property is suitable.**

- No arbitrary inspection fees.

- No endless chains of agents.

- No unclear mandates.

**Verify the agent. Verify the mandate. Inspect the property. Make an informed decision.**

That is the direction in which professional estate agency in Nigeria must move.

**ESV. Olugbenga Oladipupo Ismail, FNIVS, FRICS**

National Chairman

Association of Estate Agents in Nigeria (AEAN)

*This statement is issued by the National Chairman

The Federal Mortgage Bank of Nigeria (FMBN) officially launched the National Housing Fund (NHF) Diaspora Mortgage Loan on Friday, August 7, 2026, in London, United Kingdom. https://share.google/aimode/o8JjFqvMdHuTHZ0ls

This scheme provides a secure and structured way for Nigerians living overseas to finance and purchase residential properties back home. 

Key Features of the Loan

• Maximum Loan Limit: Borrowers can access up to ₦100 million in home loans.
• Interest Rate: The facility features a single-digit interest rate of 9%.
• Digital Integration: Applicants can complete their Know-Your-Customer (KYC) requirements digitally, register for the NHF scheme, and make monthly contributions remotely.
• Repayment Plan: The repayment period spans up to 10 years. 

Available Options

Diaspora participants can access funding through three main avenues: 

• Direct NHF Loans: Traditional mortgage path for purchasing ready-built houses.
• Rent-to-Own: Moving into an FMBN-backed property while paying towards total ownership.
• Individual Construction: Funding to build personal residential properties on owned land. 

Why it was Launched

The initiative, spearheaded by FMBN Managing Director Shehu Usman Osidi alongside the Nigerians in Diaspora Commission (NiDCOM), aims to eliminate the issue of third-party fraud. It bypasses reliance on friends or relatives to construct homes by letting individuals deal directly with the apex mortgage bank. The Central Bank of Nigeria (CBN) also co-developed the risk management framework to ensure project credibility and financial sustainability. 

If you would like to know more, tell me:

• Your current country of residence
• If you want the step-by-step registration guidelines for the diaspora NHF portal
• Whether you prefer buying a ready-built house or constructing one

AI responses may include mistakes. For financial advice, consult a professional. 

ASSOCIATION OF ESTATE AGENTS IN NIGERIA (AEAN)

 CODE OF PROFESSIONAL FEES & COMMISSION

Promoting Transparency, Ethics and Consumer Confidence

PREAMBLE

The Association of Estate Agents in Nigeria (AEAN) is committed to promoting professionalism, ethical conduct and consumer confidence in the real estate industry.

This Code establishes minimum standards for professional fees, agency relationships and ethical conduct. It is guided by the principles of agency law, international best practice, the regulatory framework in Nigeria, and the need to foster a transparent and sustainable real estate market.

1. PRINCIPLE OF AGENCY

The foundation of every agency relationship is that:

The person who appoints the agent (the Principal) is responsible for paying the agreed professional fee.

Accordingly:

- A Vendor appointing an agent to sell property shall pay the agreed commission.

- A Purchaser appointing a buyer's agent shall pay the agreed buyer representation fee.

- A Landlord appointing a letting agent shall pay the agreed letting commission.

- A Tenant appointing an agent to source accommodation shall pay the agreed tenant representation fee.

An agent shall not demand payment from a party who has not retained or instructed the agent unless that party has expressly agreed in writing to do so.

2. PROFESSIONAL COMMISSION

Property Sales

AEAN recognises the following professional benchmarks:

- LASRERA Guideline: Up to 5% of the purchase price.

- NIESV Scale of Professional Charges: Up to 10% of the purchase price, subject to professional engagement and applicable scale.

Members shall comply with the regulatory framework applicable to their jurisdiction.

Where no statutory limitation exists, commissions shall be negotiated fairly and disclosed in writing before commencement of the assignment.

3. BUYER REPRESENTATION

Where a purchaser appoints an AEAN member exclusively to identify, negotiate and secure a property:

- A Buyer Representation Agreement shall be executed.

- The buyer shall pay the agreed professional fee.

- The buyer's agent owes fiduciary duties solely to the buyer.

4. DUAL AGENCY

Dual representation should only occur where:

- Both parties provide informed written consent.

- All fees are fully disclosed.

- The agent can act fairly and impartially.

Secret commissions and undisclosed dual agency are strictly prohibited.

5. CO-BROKING

AEAN strongly encourages collaboration among members.

Where two or more AEAN members conclude a transaction together:

- Commission sharing shall be agreed before negotiations commence.

- Agreements should be documented in writing.

- Disputes should first be referred to AEAN's Ethics and Professional Practice Committee before litigation.

6. EXCLUSIVE AGENCY

Exclusive appointments should:

- Be in writing.

- State the duration.

- Clearly specify commission.

- Define termination provisions.

- Protect both client and agent.

7. OPEN LISTINGS

For non-exclusive instructions:

- The successful introducing agent shall earn the agreed commission.

- Multiple agents should cooperate professionally.

- Misrepresentation of authority is prohibited.

8. DISCLOSURE

Every AEAN member shall disclose:

- Agency status.

- Professional fees.

- Marketing expenses (where applicable).

- Any referral arrangements.

- Any conflict of interest.

9. PROFESSIONAL COVENANTS

Every AEAN member shall covenant to:

✓ Act honestly and with integrity.

✓ Protect the interests of the client.

✓ Maintain confidentiality.

✓ Avoid misleading advertising.

✓ Avoid false offers or fictitious bids.

✓ Keep proper transaction records.

✓ Account promptly for monies received.

✓ Operate dedicated client accounts where required.

✓ Comply with all anti-money laundering (AML) and know-your-customer (KYC) obligations.

✓ Maintain professional competence through continuing education.

10. PROHIBITED PRACTICES

AEAN members shall not:

- Charge hidden commissions.

- Collect fees from both parties without disclosure and consent.

- Misrepresent authority to market property.

- Divert clients from another instructed agent.

- Demand inspection fees that were not agreed beforehand.

- Publish false listings.

- Advertise property without authority.

- Receive secret rebates or kickbacks.

11. WRITTEN AGREEMENTS

Every instruction should, wherever practicable, include:

- Identity of the client.

- Property description.

- Scope of appointment.

- Commission basis.

- Payment terms.

- Marketing authority.

- Duration.

- Dispute resolution mechanism.

12. DISPUTE RESOLUTION

Members agree to submit professional disputes to AEAN's Ethics and Professional Practice Committee before commencing court proceedings, except where urgent legal relief is necessary.

13. GLOBAL BEST PRACTICE

AEAN aligns itself with internationally recognised principles adopted by leading professional bodies worldwide:

- Transparency of fees.

- Written agency agreements.

- Client-first representation.

- Full disclosure.

- Fiduciary responsibility.

- Professional indemnity.

- Ethical collaboration.

- Consumer protection.

- Fair competition.

- Professional accountability.

AEAN MEMBER PLEDGE

"I will uphold the highest standards of professionalism, integrity and transparency. I will place my client's interests above personal gain, charge only agreed professional fees, respect fellow practitioners and contribute to building a trusted and globally respected Nigerian real estate profession."

Yours faithfully,

For: AEAN

                            

Olugbenga Ismail, FNIVS, FRICS

National Chairman

Association of Estate Agents in Nigeria (AEAN)