Buying land in Ghana? 8 checks to make before paying

Buying land in Ghana without verifying its ownership and legal status can expose purchasers to fraud, multiple sales and costly legal battles.

A parcel of land may have clearly defined boundaries and a site plan, yet the person offering it for sale may not have the legal authority to do so.

In other cases, competing ownership claims or incomplete land records can complicate a transaction long after payment has been made.

The Lands Commission has outlined key steps prospective buyers should take to protect their investments and reduce the risk of land disputes.

Here are eight important checks to make before paying for land in Ghana.

Conduct a search at the Lands Commission

One of the first steps when considering a land purchase is to conduct a search at the Lands Commission.

Prospective buyers should submit the relevant site plan to establish what the Commission's records show about the property. The search report may indicate whether the land is recorded as state-owned or vested land, whether ownership interests have been registered and whether other relevant information is available.

However, a search report does not automatically guarantee that the land is free from competing claims. Some customary landowners have not registered their interests, meaning the Commission's records may not contain complete information about the original landowning group.

Buyers should investigate gaps or inconsistencies in the results before proceeding.

Confirm who owns the land

Do not rely solely on assurances from a chief, family head, estate developer, agent or another person claiming ownership of a parcel.

Buyers must establish who holds the relevant interest in the land and whether the ownership claim can be supported by appropriate records and documentation.

This is particularly important for family and stool lands, where disagreements over ownership and family leadership can lead to competing claims.

Where ownership is unclear, prospective buyers should seek further clarification before committing their money.

Verify the seller's authority to sell

Even if a person can identify a parcel and provide documents relating to it, that does not necessarily mean they have the legal authority to sell it.

Prospective buyers should establish the seller's capacity to enter into the transaction and determine whether any additional authorisation or legal process is required.

This is especially important where land belongs to a family, stool or other customary landholding group.

The Lands Commission has acknowledged that incomplete records make it difficult to determine the original landowning group in some cases. Buyers should therefore investigate the seller's claim rather than assume that possession of documents establishes the right to sell.

Visit the site and check its boundaries

Before completing a purchase, buyers should physically inspect the land and confirm that the parcel being offered corresponds with the site plan.

They should check its location, measurements and boundaries and engage a licensed surveyor where necessary.

According to the Lands Commission, a site plan submitted for registration must be prepared by a licensed surveyor and approved by the Director of the Survey and Mapping Division or an authorised representative.

The Commission also uses authenticated, barcoded site plans to help verify parcels and improve the accuracy of its records.

A buyer should ensure that the plan identifies the exact land being purchased rather than a neighbouring or incorrectly described parcel.

Investigate competing claims and restrictions

Ownership discrepancies, family disagreements, unclear boundaries and multiple sales are among the factors that contribute to land litigation in Ghana.

Buyers should not ignore warning signs such as conflicting documents, objections from other people claiming ownership, or uncertainty about the property's legal status.

Where a search reveals possible competing interests, the seller should provide satisfactory clarification before the transaction proceeds.

If the land is affected by an ongoing court case or an injunction, prospective buyers should establish the legal implications and obtain appropriate legal advice before committing further funds.

The Lands Commission has said it uses alternative dispute resolution to help parties settle certain land disagreements.

Do not pay the full purchase price before verification

Paying the full price before establishing the legal status of a property can put a buyer's money at risk.

The Lands Commission advises prospective purchasers to complete the necessary ownership checks before making full payment.

Depending on the agreement with the seller, a buyer may make a limited initial payment while obtaining the site plan and conducting a search. The findings should then guide the decision on whether to proceed.

A deposit, however, should not be treated as a substitute for due diligence. Buyers should avoid committing substantial sums until they have verified the seller's authority and investigated any concerns raised by the search.

Lands Commission cracks down on ground rent defaulters in prime Accra areas

Ensure the transaction documents are properly prepared

Once the ownership checks are complete, buyers should ensure that the transaction is properly documented.

An indenture is a legal instrument documenting the transfer of an interest in land between the relevant parties. It should accurately describe the property, reflect the agreed terms and be properly executed by the required parties and witnesses.

The accompanying site plan must meet the Lands Commission's surveying and authentication requirements.

The instrument must also undergo the applicable stamp duty process before submission for registration.

Buyers should seek assistance from a qualified legal practitioner where necessary to ensure that the documents accurately reflect the transaction and comply with applicable legal requirements.

Complete the registration process

After acquiring an interest in land, buyers should take the necessary steps to register it in accordance with the applicable legal requirements.

A payment receipt alone does not provide the same documentation as a properly completed and documented land transaction.

The Lands Commission advises people who have already purchased land but possess only a receipt to pursue the necessary transaction documents, obtain a properly prepared site plan, conduct a search and take steps to register their interest.

Buyers should also be aware that property belonging to a deceased person must go through the appropriate legal processes before its title can be perfected or transferred.

JKB/EB

From Ghana to Atlanta: How an entrepreneur built a hair business in the US