Abia Assembly Passes Landmark Tenancy Bill: Landlords, Tenants Face New Rules, Strict Penalties

The passage of the Abia State Real Estate, Landlords and Tenancy Bill by the Abia State House of Assembly marks a major milestone in the state’s efforts to reform property relations and create a fairer housing system for landlords, tenants, and estate agents.

One of the co-sponsors of the bill described its passage as a transformative moment that will bring order, transparency, and justice to property transactions across Abia State. The legislation, which now awaits the assent of Governor Alex Chioma Otti, OFR, is expected to take effect immediately after being signed into law.

According to the lawmaker, the bill is the product of an extensive legislative process that included public hearings where landlords, tenants, estate agents, and other stakeholders contributed to shaping its final provisions.

A major highlight of the legislation is the establishment of the Abia State Property and Tenancy Regulatory Agency, which will regulate property transactions, oversee compliance with tenancy laws, register estate agents, and ensure that disputes are handled within the framework of the law.

The new bill introduces clear limits on rent advance payments to protect tenants from excessive financial demands.

Under the proposed law:

• Sitting tenants cannot be required to pay more than six months’ rent in advance.
• New tenants cannot be asked to pay more than one year’s rent in advance.

Any landlord who violates these provisions risks prosecution.

To curb exploitation in the real estate sector, estate agents will no longer be permitted to charge more than five percent of the annual rent as agency fees.

Agents who collect more than the approved rate will not only be fined but will also be required to refund any excess amount collected from tenants.

The legislation significantly strengthens tenants’ rights by making illegal eviction a punishable offence.

Landlords will no longer be permitted to demolish, alter, or damage buildings to force tenants out without following due legal process. Likewise, intimidation, harassment, threats, or destruction of tenants’ property now attract criminal sanctions.

Tenants can only be evicted through valid court orders.

The bill also provides that warrants for possession remain valid for three months and may only be renewed up to three times. In addition, no eviction warrant can be executed on Sundays or public holidays.

The legislation prescribes penalties for several offences.

Landlords who demand rent beyond the approved limits face a fine of ₦100,000, three months imprisonment, or both.

Failure to issue rent receipts also attracts a ₦100,000 fine, one month imprisonment, or both.

Illegal eviction, harassment, demolition of occupied property, or damage to tenants’ belongings carries a penalty of ₦250,000, six months imprisonment, or both.

Individuals who obstruct court orders or unlawfully retake possession of property after judicial decisions face similar penalties.

The bill makes registration compulsory for all estate agents operating in Abia State.

Anyone acting as an unregistered agent faces a ₦50,000 fine, three months imprisonment, or both.

All property transactions must also be recorded in the state’s Property Registry. Transactions that are not registered may attract a ₦250,000 fine or six months imprisonment and will not be recognized by courts in Abia State.

The legislation introduces severe penalties for financial misconduct involving escrow or trust accounts.

Anyone found diverting or misappropriating such funds faces up to five years imprisonment or a minimum fine of ₦500,000, or both.

Administrative violations such as late permit renewals or failure to display property identification numbers will attract regulatory fines imposed by the Authority rather than criminal prosecution.

The lawmaker emphasized that the House of Assembly remains committed to ensuring effective implementation of the legislation once it receives the Governor’s assent.

According to him, the Assembly will monitor the establishment and operations of the Regulatory Agency through its oversight responsibilities to ensure the law is implemented fairly and that the rights of landlords, tenants, and estate professionals are adequately protected.

He noted that the legislation balances the rights and responsibilities of all parties by protecting landlords’ investments while safeguarding tenants from exploitation and illegal eviction.

The lawmaker described the passage of the bill as a victory for every Abian, saying it demonstrates the commitment of the Abia State House of Assembly to promoting justice, accountability, and order in the state’s housing sector.

If signed into law by Governor Alex Chioma Otti, the legislation is expected to usher in a new era of regulated property transactions and significantly improve landlord-tenant relationships across Abia State.