Agent commission on the sale of land in Nigeria is customarily 5–10% of the sale price for small plots and 3–7% for large parcels and sales to developers. The seller usually pays it, out of the proceeds, when the sale completes. None of this is fixed by law: the rate, who pays and when it falls due are whatever the parties agree, which is why the agreement should be in writing before the agent shows the land to anyone.
Who pays the commission on a land sale
There are two common arrangements, and they are often confused.
- The seller's agent. A landowner instructs an agent to find a buyer. The agent markets the land, handles enquiries, arranges inspections and negotiates. The seller pays the commission at completion.
- The buyer's agent. A buyer asks an agent to find land in a particular area. That agent is working for the buyer and is paid by the buyer under their own agreement.
Trouble starts when one agent tries to collect from both sides without telling either. If you are buying, ask in writing whether any buyer-side fee applies and who the agent is acting for before you negotiate the price, because a commission you did not expect changes what the land really costs. The full cost stack for a Lagos purchase, including legal fees, Governor's Consent and stamp duty, is in buying land in Lagos.
The customary percentages
- Small plots: 5–10% of the sale price
- Large parcels and developer-facing sales: 3–7% of the sale price
The percentage falls as the value rises, and on a large transaction it is always worth negotiating. On a low-value plot the opposite problem appears: the commission can be a disproportionate share of the price, which is one reason many owners of small plots market the land themselves. Formally registered agencies are required to add 7.5% VAT to their commission. Rates for houses, commercial property and lettings are set out in estate agent fees in Nigeria, and the agent commission calculator turns a percentage into naira for your own price.
When several agents are in the chain
Land deals in Nigeria often pass through more than one pair of hands: the agent the owner instructed, a second agent who knows a buyer, and sometimes a third who introduced the two. It is also common for an owner to instruct several agents at once on an open listing, where only the agent who introduces the eventual buyer earns the commission.
The rule that protects you is simple: one sale, one commission. The agents in a chain share it among themselves. Record a single rate with the agent you instructed, give each instructed agent a clear written instruction, and do not accept a price that has been quietly loaded to pay each person in the chain separately. Buyers should ask the seller, directly or through a solicitor, what price the seller is actually asking.
Family and community agents versus registered estate surveyors
On family and community land, the person who shows you the plot is frequently a family member or a local agent close to the family rather than a professional firm. That is normal, and such a person may well be owed a commission by the family. What they cannot do is stand in for the family's authority to sell, and what they are owed is not the same thing as money demanded by community claimants, which is explained in omonile in Nigeria. Keep the three things separate on paper: the price of the land, the agent's commission, and any settlement with the family or community.
At the other end of the market are registered estate surveyors and valuers, who are registered with the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) and are usually members of the Nigerian Institution of Estate Surveyors and Valuers (NIESV). They are bound by a code of conduct and tend to handle larger and more formal transactions. For a significant sale, ask for the ESVARBON registration number. How to vet any agent is covered in how to find an estate agent in Nigeria.
Put the commission in writing
A verbal fee agreement is very hard to enforce, and it is just as hard to defend yourself against. A one-page instruction letter is enough if it covers:
- The land, identified by its survey plan or title reference, and the asking price
- The commission rate, and whether it is calculated on the asking price or the price actually achieved
- Who pays it, and that it is the only commission payable on the sale
- When it is earned and when it is paid
- Whether the instruction is sole or open, and how long it lasts
- Whether advertising, signboards or a valuation report are included or charged separately
- That the purchase money is paid to the seller or the seller's solicitor, never into the agent's personal account unless the seller has authorised it in writing
When the commission is earned
Commission is payable on completion: when the buyer the agent introduced has paid and the transaction has gone through. An agent who demands commission before then, other than a documented retainer, is not operating to standard practice. The other side of the rule matters too. If an agent with a written instruction introduces a buyer and the two parties then close the deal privately to avoid the fee, the agent can still pursue the commission.
For sellers, the practical sequence of title check, pricing, marketing, deposit and Deed of Assignment is in how to sell land in Nigeria. If you would rather reach buyers yourself, you can list your land on Cabans; buyers can search land for sale across Nigeria.
Red flags
- Commission demanded before any buyer has paid
- An agent who will not say who they act for, or who refuses to let you speak to the owner
- A price that changes depending on which agent you ask
- Commission, family settlement and purchase price rolled into one figure with no breakdown
- A request to pay the purchase money into an agent's personal account
- No survey plan and no title document available for your solicitor to verify
Frequently asked questions
How much is agent commission on the sale of land in Nigeria?
The customary range is 5–10% of the sale price for small plots and 3–7% for large parcels and sales to developers. The rate is a matter of agreement, not law, so it should be fixed in writing before the agent starts work.
Who pays the agent when land is sold, the buyer or the seller?
The seller usually pays the selling agent, out of the sale proceeds at completion. A buyer who hires an agent to find land pays that agent under their own agreement. Because both arrangements exist, a buyer should ask in writing whether any buyer-side fee applies before negotiating the price.
When is the commission on a land sale earned?
On completion, when the buyer the agent introduced has paid and the sale has gone through. An agent who demands commission before the sale completes, other than a documented retainer, is not following standard practice.
If three agents are involved, do I pay three commissions?
No. One commission is payable on one sale, and the agents in the chain share it among themselves. Deal with the agent you instructed, record the single rate in writing, and leave the split to them.
Is the omonile or family signing fee the same as agent commission?
No. Commission is payment to an agent for finding a buyer. Money demanded by family members or community claimants is a separate matter that belongs in the title due diligence and the sale agreement, not in the agent fee. Never let the two be merged into one unexplained figure.
Do I pay VAT on agent commission?
Formally registered agencies are required to charge 7.5% VAT on top of their commission. Many informal agents do not issue VAT invoices, so ask at the start if you need a VAT-compliant receipt.
Can I sell land in Nigeria without an agent?
Yes. You can advertise the land yourself and keep the commission. You still need a solicitor to prepare the contract and the Deed of Assignment, and buyers will still want to verify the title and the survey plan.
Related guides
Estate agent fees in Nigeria · How to sell land in Nigeria · Buying land in Lagos · Omonile in Nigeria · Survey plans in Nigeria
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