A landmark decision, the Supreme Court of Nigeria has clarified a long-debated issue in estate agency law: simply introducing a buyer to a property does not automatically entitle an agent to a commission. The court emphasized that an agent must prove that their involvement was the main and effective reason the transaction was successfully completed.
The ruling came from a five-member panel of justices after a legal battle that lasted nearly 19 years, dating back to 2007. The case centered on Philip Kayode Olusegun Ojo, an estate surveyor who claimed he facilitated the purchase of a large industrial property in Kirikiri, Lagos, by SDV Nigeria Limited.
Ojo argued that he introduced the property—owned by SCOA Nigeria Limited—to SDV through one of its officers and played a key role in initiating negotiations. However, he alleged that SDV went on to complete the purchase independently, cutting him out of the deal and refusing to pay his commission.
He subsequently demanded over $1.25 million in commission, along with additional damages and interest. While the trial court partially ruled in his favor, the Court of Appeal overturned that decision. The matter was then taken to the Supreme Court for final determination.
At the heart of the case was whether an agency relationship existed and whether the agent’s actions directly led to the purchase. Ojo’s legal team argued that the relationship could be inferred from the conduct of the parties, even without a formal written agreement.
On the other hand, SDV maintained that no such relationship existed. They revealed that negotiations for the property had already begun months before Ojo’s alleged involvement, undermining his claim that he was the driving force behind the deal.
In its final judgment, the Supreme Court sided with SDV, ruling that Ojo failed to prove that his introduction was the decisive factor in the transaction. The court further stated that providing unsolicited information or services does not create a legal obligation for payment.
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