Archive for acecn

26Feb’26

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LEGAL AND INSTITUTIONAL WEAKNESSES IN THE REAL ESTATE SECTOR [PART-4]: HOW UNREGULATED AGENCY COMMISSION PRACTICES IS COMPOUNDING THE RISK OF PROPERTY PRICE INFLATION IN GHANA

LEGAL AND INSTITUTIONAL WEAKNESSES IN THE REAL ESTATE SECTOR [PART-4]: HOW UNREGULATED AGENCY COMMISSION PRACTICES IS COMPOUNDING THE RISK OF PROPERTY PRICE INFLATION IN GHANA   The passage of the Real Estate Agency Act, 2020 (Act 1047) was widely celebrated as a major milestone in professionalizing Ghana’s real agency estate sector. The Act outlawed net listing pursuant to Section 48(1)(h) and sought to bring order to a market long characterized by informality and opacity. Yet, six years after its enactment, a fundamental structural weakness remains unresolved. Commission practices are discretionary and uncapped whilst dual commission charging is legally permissible if disclosed.   This regulatory gap is not merely a technical oversight. It is a market distortion mechanism. When commission structures are left unregulated in an environment like ours where there is limited enforcement capacity, they do not simply reward performance; they reshape pricing behavior across the entire property market, including the rental segment. What we are witnessing today is a quiet but systematic embedding of commission costs into property prices and rental values, thereby contributing to artificial price inflation across both ownership and tenancy markets. In a country already battling a housing deficit exceeding 1.8 million units (Ministry of Works and Housing, 2023), such distortions deepen affordability challenges and weaken consumer protection. But before we address the substantive issues 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, simply search “Africa Continental Engineering & Construction Network Ltd” on Google. Visit our website, explore 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, let us go into the nitty-gritty of the discussion starting with how discretionary and uncapped commission regime inflates property prices and rental values. How Discretionary and Uncapped Commissions Inflate Property Prices and Rental Values   In Ghana’s evolving property market, particularly under the framework of the Real Estate Agency Act, 2020 (Act 1047), the absence of a clearly defined and capped commission structures has created room for discretionary pricing practices that subtly but significantly inflate property sale prices and rental values.  When agency fees are left open to negotiation without regulatory ceilings, they are often embedded into listing prices or passed on to tenants and buyers, compounding transaction costs and distorting true market value. This becomes even more problematic in cases of double commission charging and opaque net listings, where multiple layers of fees are built into a single transaction. Over time, these practices contribute to artificial price escalation, reduced affordability and weakened trust within the real estate ecosystem and this is a perfect description of where we are now as a country.   Discretionary Commission Rates and Price Padding   Under Act 2020 (Act 1047), commission rates are not capped. In practice, agents charge anywhere between 5% and 10% and in some cases even higher. In property sales, sellers adjust listing prices upward to preserve their margins and by implication, agency commission becomes embedded in the asking price. In the rental market, the same pattern occurs. Landlords factor agency commissions into annual rent calculations, particularly in high-demand urban areas such as Accra and Kumasi. The result is rent escalation that is not driven purely by market fundamentals but by intermediary cost layering. This creates what economists describe as “price padding” where transaction costs are capitalized into asset prices and rental values. The World Bank (2020) has consistently warned that high transaction costs in property markets reduces affordability and suppresses market efficiency. When intermediary fees are not transparent or transparent but not properly regulated, they distort price signals and impair allocative efficiency. In Ghana’s case, discretionary commissions have become a silent contributor to inflation in both property prices and rental charges, hence the urgent need for a review of Act 2020 (Act 1047) to safeguard consumer protection and restore market efficiency. Incentive Escalation and Commission Bidding Wars   The absence of a statutory cap creates another distortion, sellers and landlords competing to offer higher commissions to incentivize agents for faster transactions. When a property owner offers 8–12% commission to attract agent attention, that incentive is factored into the listing price. Similarly, landlords may agree to higher agency fees to secure quick tenancy placement, particularly in competitive rental sub-markets. These elevated commissions are subsequently recovered through increased sale prices or higher annual rent demands. This phenomenon resembles what the OECD (2019) described as “intermediary-driven price amplification,” where fee competition among service providers is transferred to consumers rather than absorbed within professional margins. Instead of commissions being a cost of doing business, they become a cost of acquisition borne entirely by buyers and tenants in most cases. Over time, such practices contribute to systemic overpricing across comparable properties and rental units, thereby shifting market benchmarks upward just as we see in the Ghanaian real estate market today. Dual Commission: Disclosure without Protection   The Real Estate Agency Act 2020 (Act 1047) allows dual commission (charging both seller and buyer), provided it is disclosed as set out in Section 48(1) (e) of Act 2020 (Act 1047). However, disclosure does not eliminate economic burden. In property sales, the seller factors the seller-side commission into the property price, the buyer purchases at the inflated price and then pays an additional commission directly to the agent afterwards. Similarly in rental transactions, the landlord may adjust rent upward to account for commission paid to the agent, the tenant then separately pays agency fees to the agent afterwards. To demonstrate this practically, let’s assume the agency fee is 10%, one can do the arithmetic and see by what percentage or

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19Feb’26

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LEGAL AND INSTITUTIONAL WEAKNESSES IN THE REAL ESTATE SECTOR [PART-3]: WHY GHANA NEEDS A MANDATORY REAL ESTATE DEVELOPER REGULATION

LEGAL AND INSTITUTIONAL WEAKNESSES IN THE REAL ESTATE SECTOR [PART-3]: WHY GHANA NEEDS A MANDATORY REAL ESTATE DEVELOPER REGULATION Across many emerging markets including Ghana, the real estate sector remains an engine of urban growth, employment and national economic expansion. However, a key legal lacuna has become increasingly apparent; the absence of a mandatory and comprehensive regulatory framework specifically overseeing real estate developers’ conduct, accountability and transparency. This regulatory gap erodes market confidence, fuels operational uncertainties and exposes investors, consumers and the entire economy to significant risk. Without rapid legislative action to institutionalize developer oversight, the sector’s capacity to attract institutional capital and support sustainable development will continue to be a mirage. For some time now, a growing number of unscrupulous individuals who parade themselves as developers, collect substantial deposits from unsuspecting buyers, engage in speculative and unjustified pricing, deliver substandard buildings, or abandon projects entirely. In the absence of a mandatory statutory framework requiring licensing, financial capacity vetting, escrow protection and enforceable delivery standards, these rogue operators will continue to exploit these regulatory gaps and leave unsuspecting buyers impoverished.  The consequence of this is not only financial loss, but a gradual erosion of public confidence that unfairly tarnishes the reputation of genuine and professional industry players, such as the respected members of the Ghana Real Estate Developers Association (GREDA) who have upheld ethical and quality standards over the years. Therefore, it is against this backdrop that we believe a comprehensive developer regulatory regime would not be an attack on legitimate developers but rather serve as a protective shield that clearly distinguishes credible operators from bad actors who undermine the sector’s integrity. The Ghana Real Estate Developers Association (GREDA), as the leading voice of professional developers in Ghana, is well positioned to champion this reform, not as a criticism of the industry, but as a proactive step toward elevating standards, reinforcing credibility, protecting investors and strengthening long-term market stability. But before we address the substantive issues 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, simply search “Africa Continental Engineering & Construction Network Ltd” on Google. Visit our website, explore 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, let us get into the substance of the discussion, but first, establish clarity by defining who a developer is. Who is a Developer Functionally, a real estate developer refers to any individual or corporate entity engaged in the business of constructing buildings or developing land for sale, lease, or for other commercial purposes. For the avoidance of doubt, the term “developer” as used in this article is not intended to single out or target members of the Ghana Real Estate Developers Association (GREDA). The structural and regulatory gaps discussed extend beyond any single association and affect the broader real estate ecosystem. Indeed, while professional bodies such as GREDA play an important role in promoting standards and ethical practices, the challenges within the sector also involve operators outside formal associations, including individuals and entities that may not be properly incorporated, financially vetted, professionally regulated, or subject to any public registry oversight. In many cases, we have all witnessed situations where properties are developed and marketed without quality standards compliance set by the Ghana Building Code, escrow protection for buyer deposits, or effective accountability mechanisms. These systemic gaps rather than membership status in any particular association; are the core concerns addressed in this article. The focus, therefore, is on strengthening institutional frameworks, improving regulatory clarity and enhancing investor and consumer protection across the entire industry. The Regulatory Void In Ghana today, the primary statutory framework governing real estate activity is the Real Estate Agency Act, 2020 (Act 1047), which regulates agents, brokers and agency practice but does not impose comprehensive standards or licensing conditions uniquely on developers. This absence creates a structural problem, whilst agents are accountable, the very entities that initiate, fund and deliver real estate projects (developers) operate without specific binding compliance obligations, enforceable performance standards or statutory disclosure requirements. Impact on the Market The sectoral effects are enormous, among which are these; weak investor confidence, finance constraints, market instability and structural risk, consumer protection deficits, risk of substandard development practices. Weak Investor Confidence and Market Credibility: Investors both domestic and foreign depend on regulatory certainty to assess risk and price investments. Where developers operate in an opaque legal environment without mandatory accountability mechanisms, investors face heightened risk of project abandonment, fund misappropriation and contractual disputes. This discourages investment inflows and raises the cost of capital. In contrast, jurisdictions with strong regulatory frameworks like India under its Real Estate Regulation and Development, Act (RERA), Act 2016, have documented improvements in transparency, accountability and investor trust. The Act requires mandatory registration of all real estate projects and enforces standardized disclosures, helping restore buyer and investor confidence (Government of India, 2016). Finance Constraints: Without statutory developer standards, financiers including banks and institutional lenders face increased credit risk due to unpredictable project delivery outcomes. Regulatory frameworks like RERA reinforce financial confidence by tightening project accountability and reducing the prevalence of unscrupulous developers, which in turn attracts more stable capital flows and lowers the risk premium on real estate finance (RERA 2016). Market Instability and Structural Risk: The absence of a developer-centric law promotes market fragmentation. It creates an uneven playing field where compliant firms compete against unregulated actors who may ignore quality standards, deadlines and consumer protections. This destabilizes pricing mechanisms and degrades long-term confidence in market fundamentals. Consumer Protection Deficits: Without enforceable developer reporting and performance standards, buyers

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17Feb’26

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LEGAL AND INSTITUTIONALWEAKNESSES IN GHANA’S REAL ESTATE SECTOR [PART-2]: HOW THE ABSENCE OF STATUTORY ESCROW AND BUYER PROTECTION REGULATION IS FUELLING OFF-PLAN DEVELOPMENT FRAUD

LEGAL AND INSTITUTIONALWEAKNESSES IN GHANA’S REAL ESTATE SECTOR [PART-2]: HOW THE ABSENCE OF STATUTORY ESCROW AND BUYER PROTECTION REGULATION IS FUELLING OFF-PLAN DEVELOPMENT FRAUD   For decades, Ghana’s real estate market, especially the off-plan segment operated without a statutory framework governing how buyer funds are held, secured and managed. In contrast to mature markets where escrow regulation is foundational to property transactions, Ghanaian law allows developers to collect substantial deposits from home buyers without ring-fencing those funds in protected third-party accounts. This legal lacuna has created fertile ground for off-plan fraud, stalled or abandoned projects, diversion of pre-construction funds and buyers left as unsecured creditors when developers default or disappear.  Over the years, a few industry practitioners and policy analysts have been calling attention to the structural risks associated with this regulatory gap but nothing has since been done about it. In fact, it does appear developers do not want to hear about it, whilst policy makers pretend as though the problem never existed in the first place. Recent industry reports points to the fact that, because of the absence of mandatory escrow protection, developers retain unfettered access to buyer deposits and converting them into working capital rather than project financing which weakens contractual integrity and breeds distrust (ACECN, 2025). Therefore, the purpose of today’s article is to address how the absence of mandatory escrow arrangements, ring-fenced project accounts and enforceable consumer safeguards have enabled developers to divert funds for self-aggrandizement, abandon sites, or stall projects with minimal or no accountability. It further examines how this affect market confidence and proposed structural reforms urgently needed to protect investments and restore sector integrity. But before we address the substantive issues 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, simply search the blog of our website, explore 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, let us go into the rudiments of the discussion.   The Legal Lacuna in Buyer Protection   In 2020, Parliament of Ghana enacted the Real Estate Agency, Act 2020 (Act 1047) to address longstanding market distortions and to professionalize the country’s real estate agency sector. A key outcome of this legislation was the creation of the Real Estate Agency Council (REAC), tasked with the mandate of regulating real estate brokers/agents and promoting transparency in property transactions. However, despite this advancement, the attention of parliament was not drawn to the fact that, a similar enforceable protection was necessary for off-plan buyers, leaving a critical gap in safeguarding clients’ funds and exposing investors to significant financial risk. This lacuna has profound implications for market confidence, particularly as Ghana’s housing sector continue to rely heavily on pre-construction sales. Critically, Ghana lacks: A statutory requirement for escrow accounts in property transactions Mandatory third-party custodians to hold and manage pre-construction deposits Milestone-based release controls tied to measurable construction progress and Explicit remedies, including refunds or compensation if developers default or fail to deliver. As a consequence, buyers often pay funds into developers’ operational or even personal accounts, a recipe for funds misuse and fraud, with little legal recourse beyond the traditional breach-of-contract actions. In fact, a recent sectoral review indicates that, over 38 clients instituted a legal action against a particular developer (name withheld) in 2024 over stalled projects and buyer funds also not being accounted for. This is just to cite an example for want of space out of the many occurrences of this systemic cancer over the years. Impact on Investor Confidence   As previously highlighted, this regulatory gap has facilitated the diversion of clients’ advance payments, increased litigation and financial losses for unsuspecting buyers and ultimately, eroding market confidence. Over time, such unchecked vulnerability distorts capital flows, discourage institutional investment, weaken consumer trust and undermine the long-term credibility and stability of Ghana’s real estate industry. Erosion of Trust: Local buyers increasingly approach off-plan investments with skepticism. Many of them recount stalled projects, lack of progress updates and delayed delivery outcomes that are mitigated in jurisdictions with mandatory escrow and buyer protection frameworks. The pattern has discouraged middle-class Ghanaians from participating in formal off-plan markets, therefore, pushing transactions into informal and other opaque channels. Reverse Capital Flow: Ghana’s substantial diaspora community has historically been a robust source of real estate investment. Yet, the absence of statutory safeguards diminishes diaspora confidence and by extension, inflows of foreign capital. Professionals and buyers alike now cite the lack of escrow protection as a key deterrent, hence the need to address this now and decisively (ACECN 2026). Mandatory Escrow as Remedy   Escrow is a legal arrangement where funds are held by a neutral third party, typically a licensed bank or trustee until the seller or developer meets predefined contractual conditions verified by independent inspectors or regulators. In real estate, this mechanism protects buyers by: Securing funds from misuse Disbursing payments only upon verified construction milestones Providing legal recourse if developers default and Enhancing transparency and accountability The absence of statutory escrow means buyer deposits are unprotected, effectively, converting them into unsecured credit facilities for developers. In functional markets, escrow law transforms off-plan transactions from trust-based promises into enforceable, regulated financial arrangements and this is what we need in Ghana in order to restore market integrity. International Escrow Frameworks that Worked Dubai’s mandatory escrow framework is widely regarded as a global best practice in off-plan buyer protection. Under Law No. 8 of 2007 and subsequent regulatory oversight by the Dubai Land Department (DLD) and Real Estate Regulatory Agency (RERA), developers must open project-specific escrow accounts with

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17Feb’26

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LEGAL AND INSTITUTIONAL WEAKNESSES IN GHANA’S REAL ESTATE SECTOR: CAUSES, RISKS AND THE URGENT NEED FOR STRUCTURAL REFORMS [PART-1]

LEGAL AND INSTITUTIONAL WEAKNESSES IN GHANA’S REAL ESTATE SECTOR: CAUSES, RISKS AND THE URGENT NEED FOR STRUCTURAL REFORMS [PART-1] Ghana’s real estate sector has emerged as a strategic contributor to national economic growth, driven by rapid urbanization, demographic expansion and increasing domestic and foreign investment interest. Yet, the sector remains structurally constrained by deep-seated legal lacunae andinstitutional weaknesses that undermine tenure security, distort land markets and elevate transaction risks. Despite ongoing reforms, these lacunae and institutional weaknesses continue to affect investor confidence, housing delivery and urban development outcomes. This series will examine the core legal and institutional challenges confronting Ghana’s real estate sector, their root causes and the systemic risks they generate, while setting the tone for a reform-focused discourse in subsequent parts of this series. This first part is structured around two critical pillars, they are, Institutional Weaknesses and Legal Gaps. However, it is worth noting that, this introductory part will only provide a high-level overview of the key issues in brief to establish context. Subsequent parts in the series will examine each identified legal gap and institutional deficiency in greater depth, with focused analysis of their causes, implications and reform imperatives.  But before we go into the substantive issues, 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 visit the blog on our website, explore 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 let us begin with the legal gaps. It is regrettable that glaring legal gaps in Ghana’s real estate sector have long been overlooked, enabling repeated exploitation of unsuspecting buyers and exposing them to fraud, uncertainty, and protracted disputes. In this regard, we shall look at only 6 key legal lacunae for want of space, starting with Limited Title Registration Coverage. Limited Title Registration Coverage A major legal gap in Ghana’s real estate sector is the limited coverage of the land title registration system. Despite reforms, a significant proportion of land transactions still operate under deed registration, which merely records documents without guaranteeing ownership. This system allows multiple registrations over the same parcel of land and exposes buyers to competing claims and protracted litigation. The lack of indefeasibility under deed registration has been repeatedly exploited by fraudsters who sell the same piece of land to multiple buyers. Overlap between Customary and Statutory Land Tenure Systems According to peered-reviewed land governance research, about 80% of land in Ghana is held under customary ownership, yet statutory law governs registration and conveyancing (Unbink and Quan 2023). The absence of a fully harmonized framework linking customary land authorities with statutory registries creates legal ambiguity over authority to sell land. This overlap has enabled unauthorized family members, rival stools and impostors to transact land sale deals without proper consent, leading to disputes that innocent buyers have to resolve at a greater cost in the future. Absence of Mandatory Escrow to Protect Off-plan Buyers Ghana’s real estate legal framework does not impose a general obligation for buyer funds especially in off-plan developments to be held in escrow or protected until verifiable milestones are achieved. Developers are legally permitted to receive large deposits without ring-fencing funds. This exposes buyers to financial loss when projects stall, approvals are revoked, or developers default. Absence of Mandatory Developer Regulatory Law The absence of a dedicated regulatory framework for real estate developers is a significant legal lacuna in Ghana’s real estate sector. Without clear legal obligations, licensing requirements, or performance standards for developers, buyers are left exposed to risks such as delayed or stalled projects, substandard construction and mismanagement of upfront payments. This gap allows some developers to operate with minimal accountability, making it easier for them to exploit buyers who have limited legal recourse. Lack of Statutory Requirement for Verifying Seller Capacity There is no explicit statutory requirement compelling sellers to prove their capacity to sell through standardized verification processes prior to sale completion. As a result, individuals without legal capacity, such as junior family members or unauthorized representatives to successfully sell land to unsuspecting buyers, without buyers knowing they lack the capacity to sell the property in the first place. In fact, this is partly the reason why customary lands are considered the most unsafe property investment in Ghana. Discretionary Agency Commissions and Pricing Practices While Act 1047 regulates agency conduct, it does not establish enforceable commission ceilings or transparent pricing rules. This discretion has enabled some agents to inflate prices, conceal commissions within purchase costs, or prioritize seller interests over buyer protection, thereby indirectly harming buyers through distorted pricing structures (ACECN, 2024). Commission rates are discretionary and arbitrary; therefore, buyers are shortchanged whilst properties take quite a long time to sell at the disadvantage of property owners.  2.0 Institutional Weaknesses in Ghana’s Real Estate Sector Now, let us explore how institutional weaknesses affect Ghana’s real estate sector, highlighting how fragmented mandates, limited capacity and weak enforcement mechanisms have created opportunity for exploitation and risk for unsuspecting buyers. The first among these is corruption and transaction opacity in key institutions. Here we take a look at 11 of them starting with corruption. Corruption and Lack of Transparency in Key Institutions The Lands Commission, the principal institution responsible for land administration and registration is widely perceived to suffer from corruption, unofficial charges and extortion in land transactions. The absence of transparent processes and reliable access to public records allows intermediaries and insiders to manipulate transactions, leading to inflated costs and fraudulent transfers that continue to undermine sector confidence. Partial Digitalization and Poor System Integration The gradual rollout of digital platforms such

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17Feb’26

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LAND BUYING CHECKLIST IN GHANA: A PRACTICAL DUE DILIGENCE GUIDE FOR SAFE LAND ACQUISITION [PART 4]

LAND BUYING CHECKLIST IN GHANA: A PRACTICAL DUE DILIGENCE GUIDE FOR SAFE LAND ACQUISITION [PART 4]   Buying land in Ghana does not end when money changes hands or documents are signed. The most critical risk-management phase begins after purchase. Many buyers lose land not because they failed to pay, but because they failed to complete statutory post-purchase processes that convert private contracts into legally enforceable ownership rights under Ghanaian law. This final phase of the Land Buying Checklist series; Post-Purchase Perfection, focuses on two institutional actions that legally perfect land ownership. This we shall name, Checklist Item 12 and 13. That is Stamp Duty Payment and Title registration at the Lands Commission. Failure at any of these final stages exposes buyers to title challenges, resale disputes, financing barriers and litigation risks even years after the property acquisition. But before we address the substantive issues 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 visit our blog on the website here, explore 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, let us get back to the details starting with Checklist Item 12, Stamp Duty Payment. Checklist Item 12: Stamp Duty Payment   Under Ghanaian law, it is mandatory for Stamp Duty payment for land instruments to be made before title registration can be done pursuant to section 14 (a) and (b) of the Stamp Duty Act, 2005 (Act 689). Stamp Duty is a statutory tax payable on conveyancing instruments and is administered by the Ghana Revenue Authority (GRA). An unstamped land document is legally defective and unenforceable in any court of competent jurisdiction as prescribed by the provisions of section 13 of the Stamp Duty Act 2005 (Act 689). Now, this is how the process work, after execution, the instrument is submitted to the Ghana Revenue Authority (GRA) for assessment, stamp duty is computed based on the consideration value of the property. Payment is made and subsequently, the document is officially stamped and a stamp duty receipt issued. Why this Step is Critical   First, unstamped instruments are inadmissible in court as stated earlier and subject to section 13 and 14 of the Stamp Duty Act, Act 2005 (Act 689). Second, they cannot be registered at the Lands Commission pursuant to section 165 of the Land Act, 2020 (Act 1036). Stamping therefore transforms the land contract into a legally recognizable instrument by all parties as well as the state. Checklist Item 13: Registration at the Lands Commission   Land registration in Ghana is governed primarily by the Land Act, 2020 (Act 1036), a creation of Article 258 of the 1992 Constitution of the Republic of Ghana, with its implementing institution being the Lands Commission. Registration converts ownership into a public, searchable and enforceable proprietary right. However, depending on the geographical jurisdiction, registration comes in two different forms, it is either: A Land Title Certificate; that is if the land is located in a title registration district as stipulated in section 89 (1) of Act 2020  (Act 1036), or A Registered Instrument (Deed); that is if the land is located outside a title registration district subject to the provisions of section 89 (2) of Act 2020 (Act 1036). For clarity purposes, it important for readers to understand that, the two systems of land interest registration are not the same even though both constitute statutory proof of ownership. Deed registration does not confer indefeasible title; therefore, multiple entries for same parcel may exist whilst the former (title certificate registration) provides indefeasible title (state-guaranteed) title. Currently, it is only a small portion of the land mass of Ghana that has been declared registration district with specific reference to these few legal provisions for want of time, LI 1563, District 05, Accra, LI 1521, District 04, Accra, LI 1625 etc enacted under the old Land Tittle Registration regime PNDCL 152 (1986) which has been reinforced by the provisions of section 89 of the Land Act 2020 (Act 1036). These includes the Greater Accra Region, parts of the Ashanti Region and some parts of the Central Region (Kasoa), constituting approximately 2% of the total land mass of Ghana. It was therefore not surprise for his lordship, Justice Alexander Osei-Tutu, an appeal court judge made a clarion call for land reforms, sighted in Myjoyonline media report, on January 20, 2026. Registration Process   The registration process starts with the submission of; Application and stamped instruments Survey verification and site inspection Publication for statutory objection period where applicable (section 224 of Act 1036) Records verification and cadastral mapping Issuance of registration certificate or registered instrument Why Registration is most critical   Registration reduces the risk of multiple sales and overlapping grants by operation of section 110 and 112 of Act 1036. This makes ownership enforceable against third parties, enables lawful mortgage, transfer, subdivision and development approvals, and finally, confers superior evidentiary weight in land litigation. In Ghana’s high-risk land market, registration is the legal firewall between ownership and vulnerability. Why Post-Purchase Perfection is Non-negotiable     In Ghanaian law, payment does not equal ownership, execution does not equal security, possession does not equal legal title. Ownership becomes legally real only when the: Instrument is stamped in accordance with (Act 689) and Interest is registered in compliance with (Act 1036)   Anything short of this leaves the buyer exposed, regardless of how legitimate the original transaction may appear to be. Physical Site Possession   Finally but not least, possession is fundamental. This was discussed in the penultimate edition of

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20Jan’26

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LAND BUYING CHECKLIST IN GHANA: A PRACTICAL DUE DILIGENCE GUIDE FOR SAFE LAND ACQUISITION [PART 3]

LAND BUYING CHECKLIST IN GHANA: A PRACTICAL DUE DILIGENCE GUIDE FOR SAFE LAND ACQUISITION [PART 3]   By the time a land buyer reaches the transaction stage, confidence is usually high. Ownership has been verified, planning issues appear settled, then the temptation to hurriedly effect payment is often high, but this is where the greatest losses can occur. In Ghana’s land market, many properties do not become problematic at the title authentication stage, they unravel at execution.    Poorly drafted agreements, informal considerations, missing statutory consents and undocumented handovers have quietly turned “good lands” into decades-long legal battles over the years. The land was genuine; the transaction and documentation defective, this is where the mismatch is. In this Part 3, Transaction and Documentation, we expose the transaction blind spots most buyers underestimate and outline the documentation standards, legal safeguards and procedural discipline required to convert verified land into defensible, bankable property.   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 available properties on our property page 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.   Transaction and Documentation: The Legal Bedrock of Secure Land Ownership   This is not to underestimate the importance of the initial phases of the land buying due diligence process, but the most decisive moment when legal ownership is either secured or fatally compromised is the Transaction & Documentation Phase. This phase converts intent into enforceable rights and material mistakes here can render even the most rigorous due diligence an exercise of futility.   Today, we shall look at three (3) checklist items, 9, 10 and 11. First, Legal Documentation, second, Payment Structuring and third, Physical Possession and Protection, respectively.   Checklist Item 9: Prepare and Review Legal Documents   Once verification is complete, legal practitioners prepare or review key transaction documents, including the sale agreement, conveyance/indenture, site plan and statutory declarations. These documents define the parties’ rights, payment terms, land description and conditions precedent. Proper drafting ensures compliance with the provisions of section (207), (208), (209) of Ghana’s Land Act, 2020 (Act 1036) and reduces exposure to fraud, double sales and future litigation. Ultimately, careful legal documentation safeguards the buyer’s interest and facilitates successful registration and title perfection.   In Ghana, land ownership is transferred through a Deed of Assignment (Indenture), which must be prepared by a qualified lawyer pursuant to section 33 of the Land Act, Act 2020 (Act 1036). This instrument establishes the buyer’s proprietary interest and defines the legal boundaries of ownership rights. Professional legal drafting ensures the inclusion of enforceable warranties, indemnities, dispute resolution clauses and compliance with other statutory requirements.   Accurate Land Description and Coordinates   A legally valid deed must precisely describe the land using licensed survey coordinates, boundary bearings and parcel identifiers as required by law subject to section 207 (2)(a) of the Land Act 2020 (Act 1036). Site plans that are not verified or bar-coded by the Lands Commission remain unreliable and prone to duplication, overlap and boundary conflicts.   According to the Lands Commission, cadastral inconsistencies and inaccurate surveys are among the principal drivers of land disputes nationwide (Lands Commission Ghana, 2021). Buyers must therefore engage independent licensed surveyors to ensure the coordinates in their deeds align with official cadastral records.   Clear Consideration (Price) Stated   The purchase price must be clearly stated in the deed, a strict legal requirement as set out in section 163 (2) of the Land Act, Act 2020 (Act 1036). This serves three critical functions:  first, establishing enforceability of contract, second, providing a basis for stamp duty and registration assessment of the contract and finally, preventing a future dispute over payment obligations. Ambiguity in consideration clauses weakens contractual certainty and increases litigation exposure.   Execution by All Required Parties   For a deed to be legally binding, it must be properly executed by all parties with legal interest in the land, including spouses, family heads, stool authorities or trustees where applicable as mandated by section 34 of the Land Act, Act 2020 (Act 1036). Failure to secure proper execution invalidates the transaction and exposes buyers to title challenges.   Checklist Item 10: Payment Structure & Evidence   Financial discipline is as important as legal documentation. The majority of land fraud cases in Ghana arise from premature payments, undocumented transactions and informal cash dealings. Buyers must therefore ensure that all payments (considerations) are documented in accordance with section 163 (2) of the Act 1036.   Avoid Full Payment before Documentation   Paying the full purchase price before documentation completion in itself is not an infraction however; such an act removes the buyer’s leverage and creates incentives for default, double allocation or renegotiation. Experts strongly recommend staged payments, tied to milestones such as survey verification, title confirmation and deed execution (Africanvestor, 2025).   The best alternative would have been an explicit legal provision to protect buyers but unfortunately, Ghana does not have such consumer protection legislation, hence the need for one to include escrow provisions in the documentation to protect buyers.  This ensures funds are held by a third party and later transferred to the seller after the entire buying process is soundly completed.   Payments Traceable (Bank Transfer Preferred)   Apart from the strict legal requirement on the mode of payment for property transactions in Ghana as set out in section 45(1) of the Real Estate Agency Act, Act 2020 (Act 1047) which states that: “Payment for each real estate transaction shall be by bank draft,

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