LAND BUYING CHECKLIST IN GHANA: A PRACTICAL DUE DILIGENCE GUIDE FOR SAFE LAND ACQUISITION [PART 2] - AFRICA CONTINENTAL ENGINEERING & CONSTRUCTION NETWORK

LAND BUYING CHECKLIST IN GHANA: A PRACTICAL DUE DILIGENCE GUIDE FOR SAFE LAND ACQUISITION [PART 2]

After confirming ownership and title authenticity which we dealt with in Part 1, many buyers make the costly mistake of assuming the land is now “safe” to acquire. In reality, ownership alone does not guarantee that land can legally be developed or used for its intended purpose. This is where planning and regulatory compliance becomes critical.

In Ghana, land that is properly owned can still be undevelopable, restricted or even earmarked for public use under planning schemes, zoning regulations or environmental controls. Failure to verify these approvals before purchase often results in stalled projects, demolitions, investment losses, or prolonged legal battles.

In this Part 2 of the Land Buying Checklist series, we turn our attention to Planning and Regulatory Compliance, the essential checks every prudent buyer must undertake to ensure that a parcel of land is not only genuine, but also legally permissible, fit for purpose and free from future regulatory conflicts.

But before we go into the nitty-gritty of today’s discussion, let me remind you that, the Africa Continental Engineering & Construction Network Ltd stands out as one of Ghana’s leading authorities in real estate solutions. From land acquisition, title registration, architectural design, general construction, property development, real estate investment advisory services et cetera, we provide a 360ºC service experience.

Ready to move from interest to investment, kindly explore our available properties and reach out to our team for a swift professional service delivery, with thousands of serviced litigation-free parcels of land across Accra and key growth corridors, we are uniquely positioned to help you unlock value in residential, commercial and industrial real estate. 

Now, to begin with, it is important for us to understand that after establishing ownership and title authenticity, the next critical stage in the land acquisition process is the planning and regulatory compliance. This phase ensures that the land can be lawfully developed for the buyer’s intended purpose and that one’s investment is not later undermined by planning violations, environmental restrictions or physical limitations.

Ghana’s land administration framework makes compliance with spatial planning and environmental standards a legal necessity rather than a discretionary step pursuant to section (61) and section (97) of the Land Use and Spatial Planning Act, 2016, (Act 925). Now, continuing from checklist number 6 where we left off in part 1, we shall take a look at only two (2) checklist items today, that is number 7 and 8 in this part 2 starting with number 7.

Checklist Item 7: Confirming Land-Use and Zoning Status

Confirming land-use and zoning status is a statutory requirement under Ghana’s planning regime and a critical safeguard against acquiring land that cannot legally be developed for its intended purpose. In this regard, prospective land buyers must keep the following in mind, first, verifying zoning with Land Use and Spatial Planning Authority; second, confirm permitted use and lastly, road reservations and right-of-way.

Verify Zoning with Land Use and Spatial Planning Authority

Before acquiring land, buyers must verify the zoning designation of the parcel with the appropriate planning authorities. In Ghana, zoning and spatial planning are governed by the Land Use and Spatial Planning Act as categorically stipulated in section 2(1) of Act 2016 (Act 925), with the Land Use and Spatial Authority (LUSPA), being the implementing authority as mandated by section 1 of Act 2016 (Act 925).

LUSPA now, through the District Physical Planning Departments is legally mandated to prepare Structure Plans, Local Plans and Zoning Schemes that regulate how land within specific jurisdictions may be used. Key due-diligence actions worth noting for prospective buyers in this regard includes but limited to the following:

1. Request confirmation of zoning from the District Physical Planning Department.
2. Examine approved structure or local plans applicable to the land.
3. Ensure the zoning designation aligns with your intended development.

Failure to verify zoning regulations as set forth in section 117(1), section 119(1) and section 94(1&2) of Act 2016, (Act 925) can result in refusal of development permits, enforcement sanctions, or demolitions even where ownership is valid.

Confirm Permitted Use

Zoning determines not only land classification but also permitted, conditional and prohibited uses. Each zoning category carries specific development controls that must be complied with in accordance with the provisions of the subsidiary legislation L.I 2384, (2019). For example:

• 1. Residential zones permit housing and related amenities.

• 2. Commercial zones allow offices, retail and trading activities.

• 3. Mixed-use zones combine residential and commercial uses under defined conditions.

• 4. Agricultural or conservation zones restrict development primarily to farming or environmental protection.

• 5. Protected lands, such as wetlands designated under the Ramsar Convention etc are subject to strict national and international environmental controls.

These are some of the reasons why buyers must confirm as to whether:

• 1. The intended use is permitted as of right.

• 2. A change of use or special planning approval is required.

• 3. The land falls under ecologically sensitive or protected classifications.

Ignoring permitted-use restrictions will most likely lead to stalled projects, regulatory sanctions or both, subject to the provisions of L.I 2384, 2019) and section (102) of Act 2016 (Act 925).

Check Road Reservations

Planning schemes in Ghana also reserve land for public infrastructure, including roads, utilities and access corridors. These reservations are legally embedded in approved spatial plans and enforced through development controls in line with the provisions of section 102 of Act 2016 (Act 925).

Road Reservations: Road reservations protect land earmarked for existing or future transport infrastructure. 

These are typically shown on approved layout plans and must remain free from permanent structures and any development on such spaces to the contrary attracts sanctions in accordance with the strict provisions of section 102 of Act 20216 (Act 925). Therefore, developing on such land exposes buyers to the possibility of:

• 1. Compulsory acquisition

• 2. Demolition without compensation

• 3. Denial of development permits etc.

Right-of-Way and Building Setbacks: Rights-of-way ensure access for utilities, pedestrians and vehicles. They may not always be evident on title documents but are enforceable under planning regulations and local plans. Setbacks define the minimum distance between buildings and boundaries, roads or services. These standards are enforced at the permitting stage and vary by zoning category consistent with the provisions of section (61) and (69) of Act 2016 (Act 925). Failure to comply may result in stop-work orders, refusal of permits, or forced alterations after construction has commenced (section 102, Act 2016; Act 925).

Checklist Item 8: Environmental and Physical Assessment

Environmental and physical assessment is a mandatory component of land acquisition under Ghana’s land administration and spatial planning regime. Even where ownership and zoning are valid, land that is environmentally constrained or physically unsuitable may be legally restricted from development. Ghana’s regulatory framework therefore integrates environmental protection, disaster risk reduction and infrastructure planning into land-use decision-making, pursuant to sections 61, (69) and (162) of Act 2016, (Act 925). Under this, one must check the following: first, flood risk, wetland status or seismic exposure, second, soil condition suitability and lastly, accessibility and infrastructure availability.

Confirming Flood Risk, Wetland Status and Seismic Exposure

Flood risk assessment is central to land suitability evaluation in Ghana. The Land Use and Spatial Planning Act, 2016 (Act 925) requires that land-use decisions incorporate environmental hazards and risk-sensitive planning, including flood-prone zones and environmentally sensitive areas, with specific reference to the provisions of section 61and 69 of Act, 2016 (Act 925).

Floodplains, wetlands, drainage corridors and river buffers are commonly identified within approved Spatial Development Frameworks (SDFs) and Local Plans prepared by planning authorities. These areas serve critical hydrological and ecological functions and are therefore subject to strict development controls. Development within such zones may be restricted, require special approvals, or be prohibited altogether.

Environmental protection responsibilities in this regard are reinforced by the Environmental Protection Agency Act, 1994 (Act 490), which mandates the regulation of activities likely to have adverse environmental impacts, including developments in wetlands and flood-prone areas as established in section 61 and 69) of the Land Use and Spatial Panning Act, Act 2016 (Act 925) and in section 4(1) of the Environmental Protection Act, Act 1994 (Act 490; amended by Act 851). 

In addition to hydrological risks, seismic exposure must also be considered. Ghana lies along the West African Transform Margin and the Akuapem Fault line, with known seismic activity concentrated along the Accra–Axim coastal belt and the Aburi Hills enclave respectively. The Geological Survey Authority, established under the Geological Survey Authority Act, 2016 (Act 928), is mandated to identify seismic zones and provide geological and geotechnical data relevant to land development and construction safety (Geological Survey Authority Act, 2016).

Prospective land buyers must therefore confirm as to whether land they intend to acquire lies within flood-prone zone, wetlands, or earthquake-sensitive areas by consulting approved planning schemes, environmental regulations and geological data before purchase.

Soil Condition Suitability

Soil suitability is a critical determinant of whether land can support safe and cost-effective development. Ghana’s planning and development control framework recognizes soil characteristics as a key factor in assessing land usability and construction feasibility as defined in section (61) and (69) of Act 2016 (Act 925).

Soil composition affects foundation design, bearing capacity, drainage behavior and long-term structural performance. Certain soil types such as expansive clay, poorly drained lateritic soils, or reclaimed wetland soils may require specialized engineering solutions, significantly increasing development costs.

The Geological Survey Authority, under its statutory mandate, provides geological, geotechnical, and subsurface information to support land-use planning and infrastructure development across Ghana as enshrined in section 2 and 3 of the Ghana Geological Survey Act, 2016 (Act 928). Failure to assess soil suitability prior to acquisition can result in structural failures, regulatory delays, or substantial post-purchase cost overruns.

Accessibility and Infrastructure Availability

Accessibility and infrastructure availability are fundamental considerations in environmental and physical land assessment. Ghana’s planning system requires that land intended for development have both legal and physical access, typically through approved road networks identified in local planning schemes.

Landlocked plots or parcels without approved access routes may be deemed unsuitable for development until access issues are resolved. Road reservations and access corridors are legally protected within planning schemes and unauthorized access arrangements may be rejected during development control processes following the provisions of section (46) and penalties may apply where sufficient evidence of significant breaches are adduced, consistent with the provisions of section 48 of Act 2016 (Act 925). Early verification of access and infrastructure availability enables buyers to accurately estimate development costs and timelines and that reduces the risk of regulatory setbacks after acquisition.

Now, a Guide to Starting the Process

Now, the multi-million-dollar question is, how will the individual be able to put together all these pieces of relevant information or the professionals to conduct a comprehensive due diligence whilst saving time and cutting cost. A prudent land acquisition process must begin with the engagement of a reputable real estate consultant or a real estate legal practitioner who serves as the central coordinator of all pre-purchase and transaction requirements.

This takes away from the buyer, the burden of having to source individually, surveyors, legal practitioners, planners and other professionals relevant to the process. The consultant synchronizes these services, ensuring that due the diligence is properly sequenced, verified and professionally conducted.

This coordinated approach significantly reduces risk; curtail cost overruns and procedural errors, while providing the buyer with clarity and confidence throughout the process. In this regard as I mentioned earlier, the Africa Continental Engineering & Construction Network Ltd is your credible first point of call, offering buyers a structured, professionally guided entry into land acquisition, anchored in strict due diligence, regulatory compliance and integrated industry expertise.

Conclusion

In conclusion, the part 2 of the land acquisition process, the planning and regulatory compliance is a decisive filter between land ownership and usability. Verifying zoning status, confirming land-use permissions, assessing environmental risks, evaluating physical suitability and accessibility are essential steps under Ghana’s statutory planning framework. Buyers who neglect this phase risk owning land that cannot be legally or practically developed, while those who comply, secure both legal certainty and long-term value in their land investments.

But before we part, do note that information provided in this article or any article by this writer are the opinions or views of the writer for general informational purposes and does not constitute professional or legal advice. Readers are therefore advised to consult certified professionals/consultants before making any legally binding decision or any commitment that has financial implications. Stay tuned for Part 3 which will be on transaction and documentation.

References

Land Use and Spatial Planning Act, 2016 (Act 925). (2016). Republic of Ghana. https://ghalii.org/akn/gh/act/2016/925/eng%402016-09-22

1. Land Use and Spatial Planning Authority. (2016). About the Authority. https://luspa.gov.gh/about-us/
2. Land Use and Spatial Planning Authority. (2016). Planning permission and development control. https://luspa.gov.gh/planning-permission/
3. Land Use and Spatial Planning Authority. (2016). Spatial development frameworks and planning standards. https://luspa.gov.gh/
4. Land Use and Spatial Planning Authority (LUSPA) (2017). Mandate and Planning Functions. https://luspa.gov.gh/about-us 
5. Land Use and Spatial Planning Authority (LUSPA) (2023). Zoning Guidelines and Planning Standards.https://luspa.gov.gh/wp-content/uploads/2023/12/ZONING-GUIDELINES-final-DESIGN.pdf
6. Ministry of Environment, Science, Technology and Innovation (MESTI) (2016). National Environmental Policy & Ramsar Site Protection.https://www.mesti.gov.gh/web/
7. Environmental Protection Agency Act, 1994 (Act 490). Republic of Ghana. https://www.epa.gov.gh/epa-legislations/
8. Geological Survey Authority Act, 2016 (Act 928). Republic of Ghana. https://www.gsa.gov.gh/

Author

Daniel Kontie

CEO, Africa Continental Engineering & Construction Network Ltd

Email Address: d.kontie@acecnltd.com

Tel: +233209032280