WHO SHOULD PAY THE LAND USE CHARGE? PROPERTY OWNER (LANDLORD) OR TENANT?

WHO SHOULD PAY THE LAND USE CHARGE? PROPERTY OWNER (LANDLORD) OR TENANT?

Land Use Charge (to be shortened as LUC) is a consolidation of all property and land-based rates and charges payable in Lagos State. Neighbourhood Improvement Charges, Tenement Rates and Ground Rent have all been infused into one singular charge – the Land Use Charge. Thus, once you are paying LUC to the State Government, it is illegal for the local government to request for Tenement Rate on the same property.

By virtue of Section 4 of the LUC Law, the property owner is primarily responsible for the payment of the LUC. The occupier (or tenant) can pay for the LUC but he can request a reimbursement from the property owner (or landlord).

However, if there is a clause in the Tenancy Agreement between the landlord and the tenant that passes the responsibility of paying the LUC to the tenant, the tenant will be liable to make the payment and cannot obtain a refund from the landlord or net it off from the subsequent year’s rent. That is why it may sometimes be necessary to consult a legal practitioner before signing a Tenancy Agreement.

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For more information, please contact:
Ayobayo Babade Esq, ACIArb(UK), FIMC,
Tope Babade & Co (Real Estate Consultants),
Magodo Phase 2, Lagos, Nigeria.
Tel/WhatsApp: +234 813 834 4488
E- Property Catalogue: https://wa.me/c/2348138344488
Website: https://topebabadeandco.com