IMPORTANT NOTICE

Placing or erecting a “For Sale” or “To Let” signboard on a property is one of the most effective or cheapest ways of advertising a property (our publisher disagrees, arguing that CASTLES is actually the best and cheapest way to let or sell properties!) However, the internal revenue drive of the Lagos State Government might change all of that. The Lagos State Signage and Advertisement Agency (LASAA) which seeks to regulate outdoor advertising has now spread its tentacles to the real estate industry as payment is required for banners/signboards placed on properties. For some, such initiative in internal revenue drive by the state government is a lesson for other State on how not to rely only on federal Government allocations alone. For others, especially the estate agency practitioners who are affected, it is a harsh and exploitative measure. For the latter the Government seeks to reap where it has not sown.

Enquiries by CASTLES at the office of LASAA reveals that any estate agent who intends to put an advertisement banner on a property would be required to collect an Authorisation Form at the cost of N2, 500 per banner or signboard. They however only permit the banner/signboard to be kept on the property for a period of three months after which it must be renewed by the same amount for the same period of three months. Such banners/signboard must not be more than 0.5square metre in size. Some real estate practitioners interviewed reacted strongly to this new development saying that it is was an obnoxious law.  For people who pay taxes, and other land use charges, the LASAA initiative is a clear case of multiple taxation. Some agencies have a lot of properties in different locations in the state with signboards and banners.

Some of these advertisements stay on properties for as long as it takes for them to be sold. The use of the “for sale” or “to let” signboard can be very effective especially on properties whose potential buyers or tenants reside in the neighbourhood. The person living in the adjacent property or the same street may be the prospective client for a property in the market but may not know that it is in the market, or if he/she knows, may not know whom to contact. Beside the people already living in the area, their visitors, friends and relations, may be looking for similar properties in the neighbourhood. It costs very little to make a signboards (which could be made of wood, metal sheet or plastic sheet) but estate agents might not have envisaged that they would be paying for such signboard. It remains to be seen how estate agents plan to deal with this new development once it is being enforced. Our publisher needless to say agrees with LASAA on this section of the law!