Section 54 Mortgage and Property Law of Lagos State

Section 54 of the Mortgage and Property Law of Lagos State 2010 is about Protection of mortgagors from unconscionable practices. It provides as follows:

Each mortgage institution shall, in addition to the duties imposed by Law, with respect to any transaction including any practice, or course of business in connection with the transaction, in which the mortgage institution solicits, processes, places or negotiates a home loan:

(1) Responsibilities –
(a) act with reasonable skill, care and diligence obtainable in the code of ethics and professionalism for universal banks and guidelines on best practices
for primary mortgage institutions; and
(b) act in good faith and with dealing.

(2) Information by mortgagee to Lenders to Help Borrowers:
(a) any registered mortgage institution in the State shall at the time of receipt or preparation of loan application prepare and distribute booklets to help the borrowers seeking finance to purchase a residential real estate to understand better the nature and costs of real estate settlement services;

(b) each booklet shall be in such form and detail as the Board shall prescribe and, in addition to such other information as the Board may provide, shall
include in clear and concise language –
(i) a description and explanation of the nature and purpose of each cost incident to a real estate settlement;
(ii) an explanation and sample of the standard real estate settlement form

(iii) a description and explanation of the nature and purpose of escrow account when used in connection with loans secured by residential or home ownership scheme,

(iv) an explanation of the choices available to buyers of residential real estate in selecting persons to provide necessary services incident to a real estate
settlement, and

(v) an explanation of the unfair practices and unreasonable or unnecessary charges to be avoided by the prospective buyer with respect to a real estate settlement.

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