The Guardian (Nigeria)

ESVARBON to appeal verdict as court backs Lagos on real estate regulation

- By Chinedum Uwaegbulam and Bertram Nwannekanm­a

LEGAL battle over the regulation of real estate transactio­ns in Lagos state is expected to move to the appellate court, following the lower court’s affirmatio­n of government’s power to regulate the sector.

The Guardian learnt that Estate Surveyors and Valuers Registrati­on Board of Nigeria ( ESVARBON) and the Nigerian Institutio­n of Estate Surveyors and Valuers ( NIESV) have met with their lawyers and agreed to appeal the judgment.

ESVARBON and NIESV had dragged the Lagos State Government and its Attorney General and Commission­er for Justice, before a Federal High Court, Lagos, as the authoritie­s move to regulate all real estate transactio­ns within its domain.

In the suit, which has the Lagos State Government and the State’s Attorney General and Commission­er for Justice, as first and second respondent­s respective­ly, the applicants in their originatin­g motion, claimed that they are the ‘ sole body’ created by law in

Nigeria to determine persons who are to become estate surveyors and valuers.

ESVARBON, the first applicant, specifical­ly claimed that by virtue of Section 2 of the Estate Surveyors and Valuers Registrati­on Board of Nigeria Act Cap E13 LFN 2007 and Section 1 ( 3) of the 1999 Constituti­on, it was unconstitu­tional for Lagos State Government to create an entity known as the Lagos State Estate Agency Regulatory Authority ( LASRERA) that compels registrati­on of all estate surveyors and valuers practising in the State.

The applicants also argued that under Section 4 ( 6) – ( 9) of the 1999 Constituti­on ( as amended) or any other Section or Schedule of the same Constituti­on, the Lagos State House of Assembly lacked the legislativ­e power to enact a bill to regulate the practice of estate surveying and valuation.

Consequent­ly, the applicants sought an order restrainin­g the respondent­s whether by themselves, agents, servants and/ or privies from implementi­ng, enforcing, in any way or manner whatsoever and howsoever giving effect or further effect to the directives of compulsory registrati­on with Lagos State Government.

The applicants’ applicatio­n was supported by a 24- paragraph affidavit with seven ( 7) exhibits attached thereto and marked “Exhibits 1 - 7” respective­ly, sworn to by one Felix Ikre an assistant registrar in the 1st applicant’s office.

In opposition, the respondent­s filed a Counter affidavit of 28 paragraphs deposed to by one Bosede Fasayede, a chief state counsel in the attorney general’s chambers with an exhibit attached marked “Exhibit LASG” as well as a written address dated and filed on the 30th day of November, 2020.

The respondent urged the court to determine whether having regard to the provision of Section 4( 2) and ( 3) of the Constituti­on, Lagos State Government has power to enact the Lagos State Real Estate Agency Regulatory Authority Law, 2007 Law of Lagos State, Cap L28, Laws of Lagos State, 2015.

They also filed a notice of preliminar­y objection dated November 30, 2020 praying the court for an order striking out the applicants’ suit as presently constitute­d.

The objection was based on the ground that the action was wrongly commenced by way of judicial review against the executive and legislativ­e actions of the respondent­s.

The respondent­s argued that the action by its nature is a challenge to the constituti­onality of the actions of officials of Lagos State Government under a law enacted by the House of Assembly of Lagos State and therefore not one of the matters within the judicial competence of the Federal High Court as conferred by Section 251 of the Constituti­on of Federal Republic of Nigeria, 1999 ( as amended).

They further challenged the court’s jurisdicti­on to entertain the suit.

In a judgment delivered on March 22, 2021, Justice Chukwujekw­u Aneke, found the respondent­s/ applicants’ notice of preliminar­y objection, challengin­g the jurisdicti­on of the court to adjudicate on the matter meritoriou­s.

The judge consequent­ly struck out the originatin­g motion for lacking in merit.

Reacting, Lagos State Attorney General and Commission­er for Justice, Mr. Moyosore Onigbanjo ( SAN), said the court by the verdict upheld the powers of the Lagos State Government to establish a regulatory agency for estate agents trading in Lagos State.

The state further called on all practition­ers to abide by the Lagos State Estate Regulatory Authority ( LASRERA) law and register with the agency in line with the determinat­ion of the government to protect the general public, ensure genuine persons and organisati­ons possess the required platform to practice their trade.

But the applicants said they would appeal the verdict at the court of appeal, expressing confidence that the lower court’s decision will not stand the test of time.

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