Treash:
In many property transactions such as sale, long lease or short let, issues have arisen between an agent and principal regarding compensation. On few cases, multiple agents claim commissions based on mere referral or introduction, leading to legal conflicts and increased transaction costs.
In S.D.V. Nigeria Limited v. P.K.O. Ojo & Anor, Mr Ojo, who was a registered Estate Agent, claimed that he introduced a property, which was up for sale to one Adebola Adejobi who subsequently brought the property to the attention of the M.D of SDV Nigeria Limited. SDV subsequently bought the property from SCOA Nigeria Ltd and Mr Ojo requested for his Agency Fees in the sum of $1,250,000.00 (One million, two hundred and fifty thousand US Dollars from SDV, but SDV Nigeria Limited rejected the request on the ground that it did not appoint Mr Ojo as its Estate Agent and Mr Ojo was not responsible for its purchase of the property.
The Supreme Court ruled that estate agents are not entitled to commission solely for introducing a buyer to a property transaction, establishing that compensation must be tied to a legally enforceable role in completing the deal.
The court further held that an estate agent must demonstrate active and effective participation in concluding a transaction to claim commission. Mere introduction of a prospective buyer, without evidence of involvement in negotiations or completion, does not create a valid entitlement. Ref: S.D.V. Nigeria Limited v. P.K.O. Ojo & Anor (2016) LPELR-40323 
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