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31Mar’26
LEGAL AND INSTITUTIONAL WEAKNESSES IN GHANA’S REAL ESTATE SECTOR [PART 9]: HOW PROLONGED LITIGATION IS INCENTIVIZING LAND FRAUD RATHER THAN DETERRING IT
LEGAL AND INSTITUTIONAL WEAKNESSES IN GHANA’S REAL ESTATE SECTOR [PART 9]: HOW PROLONGED LITIGATION IS INCENTIVIZING LAND FRAUD RATHER THAN DETERRING IT Ghana’s legal system is fundamentally designed to resolve disputes, enforce rights and provide certainty. In the land sector, however, the reality is more complex. The design of Ghana’s land governance, coupled with fragmented institutional arrangements and high demand for urban land, has unintentionally created a system where litigation is inevitable. Therefore, making slow adjudication a natural consequence. The results therefore become an interesting paradox; a legal system intended to provide clarity in land ownership has instead become a vehicle that sustains uncertainty in some cases, and indirectly incentivizes opportunistic behavior. In this part 8 of the series, I examined how the structural design of Ghana’s land governance and slow adjudication processes inadvertently create incentives for land fraud and make litigation a profitable strategy rather than a deterrent. Here I highlight also, the systemic factors that overload the courts, the consequences of prolonged disputes and identify reforms, including fast-track adjudication and criminal accountability that could restore order, certainty and fairness in the land sector. But before we go into the details 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. If you are ready to move from interest to investment, kindly visit the property page, 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 substantive issues, starting with a system designed to generate high volumes of Litigation. A System Designed to Generate High Volumes of Litigation Over the years, many people think the problem is the judiciary, but that is not the case. It is not about the judiciary’s competence. Ghana’s courts are staffed with capable judges and lawyers, but the problem has been long standing structural challenges, judicial service understaffing, limited resources and a high volume of complex land cases. Estimates suggest that between 52% and as high as 90% of cases in Ghanaian courts are land-related (Ghana Business News, 2023). The reality is that the legal and institutional framework governing land ranging from fragmented customary systems to overlapping statutory authorities, naturally produces disputes. The courts are simply the inevitable venue where these disputes converge and the pace of resolution reflects the sheer volume and complexity of the cases (World Bank, 2003; IMF, 2025). Delay as an Inherent Systemic Consequence Slow adjudication in land cases arises because the system funnels many disputes to already burdened courts. Land cases often take 10 to 20 years to conclude, with multiple layers of appeals extending timelines further, according to the World Bank (World Bank, 2003). This systemic delay has unintended consequences; parties can occupy or develop disputed land while litigation is ongoing, that is if no injunction is placed on the land. Opposing parties incur high costs for lengthy legal battles etc and this makes even a favorable judgment arrives too late to be anything meaningful to the victor. The primary reason delays embolden fraud is this, actors can sell the same parcel of land multiple times, knowing that the worst outcome is a legal battle that may take years or even decades to resolve. In such an environment, the financial risk of being caught is low, while the potential gain from fraudulent transactions is high. In effect, the systemic structure, not judicial inefficiency, creates an environment where persistence in litigation can become financially rewarding. Conflicting Decisions and Uncertain Outcomes The overlapping jurisdictions, incomplete cadastral mapping and inconsistencies in customary and statutory law create opportunities for conflicting judgments. In Ghana, systemic weaknesses in land administration have resulted in situations where the same parcel of land is allocated to multiple individuals, leaving the courts to grapple with conflicting claims and in some cases, producing inconsistent judicial outcomes. These are systemic risks, not the fault of individual judges or the judicial system as whole (Ghana Business News, 2010). They inadvertently enable multiple sales, forum shopping and endless cycles of litigation. Weak Enforcement Amplifies the Problem Legislation such as the Land Act, 2020 (Act 1036) has strengthened the legal framework, including criminalizing land guard activities. However, enforcement gaps persist, largely due to limited coordination and resources rather than judicial failure (The Ghana Report, 2024). The outcome therefore is, laws existing on paper, but violations carry limited immediate consequence, making perpetrators operate in an environment where the potential reward from disputes exceeds the risk of penalties. Information Gaps and Institutional Fragmentation Reliable land information is central to reducing disputes. In Ghana, land records are sometimes incomplete and often inaccessible, manual systems are prone to losses, manipulation, or error whilst coordination between courts, the Lands Commission and customary authorities is weak. These gaps encourage informal assurances over verified data, fueling disputes and litigation (Kontie, 2026; World Bank, 2003). Multiple Sales and the Economics of Dispute Systemic inefficiencies, coupled with high demand, make multiple sales profitable. Single parcels are often sold to several buyers, each armed with seemingly valid documentations, confident enough to contest any contender in the court of law until they realize they are carrying a bad case (The Ghana Report, 2024). As highlighted earlier, the slow pace of adjudication makes such fraud financially attractive. Perpetrators know that even if buyers litigate, resolution may take years, allowing the fraudster to benefit in the interim. This is because they know verification systems are weak, litigation is slow and penalties are uncertain, making opportunistic actors exploit these systemic gaps. The Emergence of Extra-Legal Enforcement Where formal systems fail to provide timely protection, informal actors emerge. Land guards proliferate due to delays, weak enforcement
26Mar’26
LEGAL AND INSTITUTIONAL WEAKNESSES IN GHANA’S REAL ESTATE SECTOR [PART 8]: HOW THE ABSENCE OF A DIGITAL LISTING FRAMEWORK IS DISTORTING MARKET INTEGRITY AND UNDERMINING REAL ESTATE GROWTH
LEGAL AND INSTITUTIONAL WEAKNESSES IN GHANA’S REAL ESTATE SECTOR [PART 8]: HOW THE ABSENCE OF A DIGITAL LISTING FRAMEWORK IS DISTORTING MARKET INTEGRITY AND UNDERMINING REAL ESTATE GROWTH Ghana’s real estate sector is expanding rapidly, driven by urbanization, diaspora demand and growing investor interest, yet beneath this growth lies a structural weakness that is quietly eroding trust, distorting prices and exposing unsuspecting buyers to fraud; that is, the absence of a coherent regulatory framework for online property listings. Today, Ghana’s digital property marketplace is fragmented, inconsistent and largely ungoverned. A single property can appear multiple times across platforms, often listed by different agents, at different prices and sometimes even after it has already been sold. Listings are scattered across social media platforms such as Facebook, Instagram and TikTok alongside a handful of independent property listing websites, with little to no verification or standardization. The result is a marketplace that is increasingly noisy, opaque and unreliable. This article examines how the absence of a structured digital listing framework is distorting market integrity and undermining the growth of the real estate sector, particularly in emerging markets like Ghana. It explores how fragmented property listings, information asymmetry and the proliferation of unverified intermediaries are eroding trust, inflating transaction costs and discouraging both local and international investment. By highlighting the systemic risks created by unregulated digital listing practices, the article underscores the urgent need for a coordinated regulatory and technological response to enhance transparency, protect consumers and unlock sustainable growth within the real estate market. But before we go into the details of today’s discussion, let me remind you that, the Africa Continental Engineering & Construction Network Ltd stands out as one of Ghana’s leading authority 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. If you are ready to move from interest to investment, kindly visit the property page, 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 substantive issues, starting with a market without a single source of data. A Market without a Single Source of Data In Ghana, there is currently no central authority or database that validates and authenticates property listings. This has created an open-access environment where anyone can list a property, licensed or not, multiple agents can market the same property simultaneously, prices vary arbitrarily across platforms, listings remain online long after properties are sold, fraudsters can easily impersonate agents or property owners and defraud unsuspecting buyers. This absence of structure has led to a breakdown in information integrity, which is the backbone of any functioning real estate market (World Bank, 2020). Buyers are left to navigate a confusing landscape where authentic listings compete with fake ones, genuine agents compete with unregulated actors and verified information is indistinguishable from misinformation. Legal Intent without Operational Clarity The Real Estate Agency Act, 2020 (Act 1047) clearly mandates regulatory oversight, specifically; Section 4(n) empowers the Real Estate Agency Council to monitor property advertisements across both traditional and digital platforms. However, while the Act provides broad oversight authority, it does not establish a clear operational framework for listing verification protocols, exclusive listing rights, duplicate listing control, mandatory updates or removal of sold properties and digital compliance mechanisms. This gap between legal mandate and practical implementation has allowed disorder to persist. Consequences: Trust Erosion and Market Distortion Loss of Buyer Confidence: Exposure to fake listings, inconsistent pricing and unverified agents leads to declining trust in the market. Increased Fraud and Financial Losses: Unregulated listing environments create opportunities for scams, particularly targeting diaspora investors (Interpol, 2021). Price Distortion and Market Inefficiency: Multiple listings with varying prices distort market signals and undermine valuation standards (RICS, 2020). Damage to Professional Credibility: Licensed professionals are forced to compete with unregulated actors, weakening industry standards (Ghana Real Estate Professionals Association, 2022). Reduced Investor Confidence: Lack of transparency discourages institutional and foreign investment (UN-Habitat, 2020). How Mature Markets Solved this Problem Countries such as the United States, United Kingdom and Canada addressed similar challenges through structured systems and strict enforcement. Centralized Listing Systems (MLS): The Multiple Listing Service (MLS) serves as a centralized database where only licensed agents can list properties, listings are verified and standardized, and each property has a unique record. This creates a single source of truth for property data nationwide (National Association of Realtors, 2023). Anti-Duplication Rules: MLS systems enforce strict rules against duplicate listings, ensuring that each property is represented accurately and consistently (Canadian Real Estate Association, 2022). Mandatory Listing Updates: Agents are required to update listing statuses promptly, ensuring that sold properties are removed or marked accordingly (UK National Trading Standards Estate Agency Team, 2021). Platform Integration: Major platforms such as, Zillow,Realtor.caand Rightmoveoperate by integrating with verified data sources rather than allowing open listing submissions (Zillow Research, 2023). Professional Gatekeeping: Only licensed agents are permitted to list properties, ensuring accountability and compliance (Real Estate Council of Ontario, 2022). Even though the Real Estate Agency Act, Act 1047 prohibits this practice pursuant to Section 22 (a) (b) (c) and (d), the enforcement is however, fantastically weak, hence the high level of noise and opacity we see in the market. What Ghana Must Do: From Fragmentation to Structure Establish a National Property Listing System: A centralized digital registry to serve as Ghana’s version of a Multiple Listing Service (MLS). Act 1047 should therefore be amended or an LI be enacted to provide a robust digital listing framework to clean up the system and build market trust. Enforce Exclusive Listing Rights: One property should have one authorized listing per transaction and in the event there is the need for double listing, the framework will require unique listing numbers for each listing and all connected to
19Mar’26
LEGAL AND INSTITUTIONAL WEAKESSES IN GHANA’S REAL ESTATE SECTOR [PART-7]: WHY THE AUTOMATIC LEASE RENEWAL WITHOUT STATUTORY PREMIUM/GROUND RENT FORMULA COULD FUEL THE NEXT WAVE OF LAND LITIGATION IN GHANA
LEGAL AND INSTITUTIONAL WEAKESSES IN GHANA’S REAL ESTATE SECTOR [PART-7]: WHY THE AUTOMATIC LEASE RENEWAL WITHOUT STATUTORY PREMIUM/GROUND RENT FORMULA COULD FUEL THE NEXT WAVE OF LAND LITIGATION IN GHANA Ghana’s real estate sector is experiencing rapid growth, driven by urbanization, rising middle-class demand for housing and increased investment in commercial and residential property. However, beneath this expansion lies a significant overlooked legal risk, the automatic lease renewal regime under Section 50(9) of the Lands Act, 2020 (Act 1036). While this provision was designed to protect lessees who have developed land, it simultaneously introduces a structural tension, the restriction of lessor’s ability to reclaim land for alternative use, and more telling is the fact that, Act 1036 failed to provide a statutory framework for determining renewal premiums and ground rent. This dual imbalance has the potential to fuel a new generation of land disputes in Ghana. Thisarticle therefore examines the legal implications of the absence of a statutory premium or ground rent formula, creating the opportunity for lessor exploitation and the denial of lessors’ right to alternative use of the land, the risks it presents to property investors, developers and financial institutions. It also proposes policy reforms that could bring greater certainty, fairness and long-term stability to Ghana’s real estate sector. But before we go into the details 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. If you are ready to move from interest to investment, kindly visit the property page, 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 substantive issues, starting with the potential chaos this likely to create. A Deferred Crisis, not a distant one This issue is not theoretical because many long-term leaseholds, particularly the 99-year leases granted in the 1950s and 1960s are now approaching expiration within the next two to three decades. The implications will be compelling under the renewal architecture of Section 50(9) of Act 1036. High-value urban areas such as East Legon, Cantonments, Ridge, Airport Residential Area, Labone and Osu could become hotspots for renewal disputes, valuation conflicts and protracted litigation. The time to address this structural weakness is now, not when these leases begin to expire en masse. Legal Position under Ghanaian Land Law Under Ghanaian land law, most interests in land are held under leasehold tenure, largely due to constitutional restrictions on freehold ownership. The general legal principle remains clear, upon expiration of a lease, the lessee’s interest terminates unless renewed. This position was affirmed in GIHOC Refrigeration & Household Products Ltd v Hanna Assi, where the Supreme Court emphasized that expired leasehold interests revert to the lessor. In practical terms, this means that without renewal, the lessee loses all legal interest in the land, regardless of the value of improvements made. Statutory Intervention: Section 50(9) To mitigate the harsh consequences of lease expiry, Parliament introduced Section 50(9) of the Lands Act, 2020 (Act 1036). This provision states that where bare land is leased by a holder of an allodial or usufructuary interest to an indigene and the lessee has developed the land for residential, commercial, industrial purposes, or for perennial crops, the lease is subject to automatic renewal for the same duration as the original term. This represents a significant departure from traditional property law principles, effectively limiting the lessor’s ability to refuse renewal where qualifying development has occurred. The Core Problem: Two Structural Gaps Despite its protective intent, Act 1036 created two major legal and economic gaps that could undermine the stability of Ghana’s real estate sector if left unaddressed, one in Section 50(9), the automatic renewal clause premised on certain conditions and the Act’s failure to institute a statutory premium/ground rent determination framework. Below are the potential implications of these weaknesses. Absence of a Statutory Formula for Renewal Pricing: The Act does not provide a clear or standardized methodology for determining renewal premiums or revised ground rent. As a result, renewal negotiations are largely left to the discretion of the parties and in practice, often to the dominant bargaining power of the lessor. This creates a fundamental paradox within the law; while the lessee has a statutory right to renewal, that right may become economically unattainable if the lessor demands excessively high premiums or imposes onerous rent conditions. In such circumstances, the legal protection offered by Section 50(9) risks being undermined in practice, as the lessee may be unable to meet the financial demands required to secure renewal. Restriction on Lessor’s Right to Alternative Use: The second structural concern lies in the limitation imposed on the lessor’s proprietary rights. Traditionally, upon the expiration of a lease, the lessor regains full control of the land and may determine its future use. However, Section 50(9) alters this position by compelling renewal where the statutory conditions are met. This effectively restricts the lessor’s ability to reclaim and repurpose the land, even where there may be legitimate economic or developmental reasons to do so. This raises an important policy question as to whether landowners should be indefinitely constrained from exercising control over their land solely because development has taken place. The Economic Implications for Investors and Financial Institutions For investors and financial institutions, leasehold expiration is not merely a legal issue, it is a financial one. Developers often invest substantial capital in land development, while banks rely on leasehold interests as collateral for property-backed financing. Where renewal becomes uncertain or financially burdensome, asset values may be affected, and lending risks may increase. According to the World Bank, clarity and security of land tenure are
12Mar’26
LEGAL AND INSTITUTIONAL WEAKESSES IN GHANA’S REAL ESTATE SECTOR [PART-6]: HOW FAILURE TO EXPAND TITLE REGISTRATION DISTRICTS IS FUELING LAND LITIGATION AND STALLING REAL ESTATE DEVELOPMENT
LEGAL AND INSTITUTIONAL WEAKESSES IN GHANA’S REAL ESTATE SECTOR [PART-6]: HOW FAILURE TO EXPAND TITLE REGISTRATION DISTRICTS IS FUELING LAND LITIGATION AND STALLING REAL ESTATE DEVELOPMENT The passage of the Land Act, 2020 (Act 1036) by Parliament of Ghana in 2020 was widely hailed as a landmark reform intended to modernize Ghana’s land governance system. The Act consolidated decades of fragmented land laws into a single legal framework with the aim of improving land administration, strengthening tenure security, reducing disputes and creating a more transparent and efficient system, capable of supporting investment and sustainable real estate development. The Act gives the Minister responsible for Lands and Natural Resources the power, on the advice of the Lands Commission, to declare new land title registration districts through a Legislative Instrument pursuant to Section 89 of Act 2020 (Act 1036). The purpose of this provision is to gradually extend Ghana’s title registration system across the country over time. Regrettably, 5 years after its enactment, not a single title registration district has been added and this continue to undermine the core objective of Act 1036, perpetuating uncertainty in land transactions, fueling litigation and stalling the growth of the real estate sector. Title registration districts remained concentrated in limited areas such as Accra, parts of Kumasi and Kasoa. Therefore, vast majority of the country remains outside the title registration districts constituting over 98% of the total land mass of Ghana, according to an Appeal Court Judge, Justice Alexander Osei-Tutu, (Osei-Tutu, 2026). This means that most land transactions in Ghana still operate under the deeds registration system, which records documents but does not guarantee ownership. The outcome is predictable, persistent land disputes, multiple land sales, costly and protracted litigation. The failure to expand registration districts has therefore become one of the most consequential institutional weaknesses in Ghana’s land governance system, with direct implications for real estate investment and infrastructure delivery. Therefore, the purpose of today’s article is to examine why the expansion of title registration districts has become an urgent national priority. It interrogates how the limited geographic scope of registration districts is contributing to persistent land disputes, legal uncertainty and rising litigation across the country. The article further explores the broader implications of this structural weakness for real estate growth, infrastructure development and investor confidence. Ultimately, it makes a compelling case for the government to take decisive and expedited action to expand title registration districts as a critical step toward strengthening land administration, reducing disputes and unlocking the full potential of Ghana’s land and property markets. But before we go into the details 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 the property page, 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 substantive issues, starting with why registration district expansion matters. Why the Registration System Matters Ghana operates two land registration systems, title registration, which provides a state-guaranteed record of ownership. Once a parcel is registered under this system, the title certificate becomes a strong legal evidence of ownership. The other is deed registration, which merely records documents related to land transactions. This distinction may appear irrelevant, but its practical consequences are enormous. Under deeds registration, multiple transactions can be recorded against the same parcel of land, leaving the courts to determine the rightful owner when litigation arises. Under title registration, the system itself prevents such duplication by maintaining an authoritative register of ownership. How Limited Registration Districts is Driving Land Litigation Because title registration districts cover only a small portion of Ghana, most land transactions continue to take place in areas where ownership cannot be conclusively verified through the registry. This institutional gap has several consequences. First, multiple sales of the same land remain common. Without a guaranteed title system, buyers often rely on private investigations and customary confirmations, which may not always be reliable. Second, disputes frequently end up in court. Land cases continue to occupy a significant portion of civil litigation in Ghana (LegalInk 2025). Third, these disputes often arise after development has already begun, leading to court injunctions that stall projects, locks up capital and increase development costs. In effect, the limited reach of title registration has created an environment where uncertainty about land ownership has become a structural feature of the property market. The Impact on the Real Estate and Infrastructure Sectors The implications of this institutional weakness extend far beyond the legal system. We shall discuss just a few for want of space. Increased Risk for Developers: Real estate developers must conduct extensive due diligence before acquiring land, including historical title searches, customary ownership verification and boundary confirmations. Even then, disputes may still arise. This significantly increases the risk associated with property development. Higher Property Prices: The cost of managing these risks is ultimately passed on to property buyers. Legal fees, surveys and extended due diligence all increase the cost of development. In practical terms, uncertain land governance contributes directly to higher housing costs. Delays in Infrastructure Delivery: Public infrastructure projects are equally affected. Disputes over land ownership can delay road construction, energy infrastructure and other public works. These delays often result in higher project costs and slower delivery of national development priorities. Reduced Investor Confidence: Secure property rights are one of the most important factors influencing real estate investment. Where ownership rights are uncertain, investors either demand higher returns or avoid the market altogether. This makes Ghana’s real estate sector less competitive compared with jurisdictions where land ownership systems are more reliable.
04Mar’26
LEGAL AND INSTITUTIONAL WEAKNESSES IN GHANA’S REAL ESTATE SECTOR [PART 5]: HOW THE ABSENCE OF MANDATORY SELLER CAPACITY VERIFICATION IN CUSTOMARY LAND TRANSACTIONS IS DRIVING LAND LITIGATION AND UNDERMINING REAL ESTATE DEVELOPMENT
LEGAL AND INSTITUTIONAL WEAKNESSES IN GHANA’S REAL ESTATE SECTOR [PART 5]: HOW THE ABSENCE OF MANDATORY SELLER CAPACITY VERIFICATION IN CUSTOMARY LAND TRANSACTIONS IS DRIVING LAND LITIGATION AND UNDERMINING REAL ESTATE DEVELOPMENT Ghana’s real estate sector is expanding but it is expanding on a fragile legal foundation. Urbanization is accelerating, residential estates are multiplying across Accra, Kumasi, Takoradi, Tamale and other emerging secondary cities. Infrastructure corridors are widening. Yet land disputes continue to undermine housing delivery, infrastructure rollout and investor confidence. According to the Judicial Service of Ghana, land-related cases remain a significant portion of civil litigation nationwide (Judicial Service of Ghana, 2023). Even more threatening is the LegalInk report that estimates that, land litigation constitutes about 90% of civil litigations in Ghanaian Courts (LegalInk 2024). It is against this background that, the World Bank has consistently warned that weak land governance systems increase transaction risk, discourage private capital and delay infrastructure delivery (World Bank, 2020). At the center of many of these disputes is one overlooked legal lacuna, the absence of Mandatory Seller Capacity Verification in Customary Land Transactions in Ghana. There is no mandatory, enforceable system requiring verification of seller capacity in customary land transactions before registration, and until that gap is addressed, Ghana’s real estate transformation will remain constrained. But before we go into the details 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 the property page 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 go into the nitty-gritty of the discussion by establishing the structural context of Customary Land Administration in Ghana. Structural Context of Customary Land Dominance It is established that, approximately 80% of land in Ghana is held under customary tenure (Ministry of Lands and Natural Resources, 2021). These lands are vested in stools, skins, clans, and families. The Land Act, 2020 (Act 1036) and by extension the Constitution of the Republic of Ghana recognizes customary interests and provides mechanisms for documentation and registration pursuant to Article 257 and Section 1 and 2 and Section 12 to 18 of the Land Act, Act 2020 (Act 1036). The Lands Commission oversees registration processes, while Customary Land Secretariats were introduced to improve record-keeping. However, while the law acknowledges customary authority structures, it does not impose a uniform, legally binding requirement that proves conclusively, before registration that a seller has lawful authority to alienate land. Indeed, it is true that the land registration process mandates a seller to sign instruments before the Lands Commission registers them. At this stage, personal identities are verified, however, one at the Lands Commission cannot verify as whether the person/s signing these documents really have the capacity to alienate land according to customary land procedure. The two are not the same; identity verification is not the same as the conclusive authority or capacity to alienate land on behalf of the stool, family or clan and this gap has made it possible for family members to sell land without the consent of the stool, family or the clan. As a developer and consultant of national repute in Ghana’s Real Estate sector, there were instances I bought lands and paid for it 3 times and in some instance more. This is what happens, someone sells land to you and after payment, another person or a group emerges claiming the land belongs to all of them as siblings or stool or family and was sold to you without their consent. They come with their terms which you have to honor. Even more painful is the fact that one can have as many as 3, 4 or even more people or groups coming later on to claim their portion of the sale. One would argue that why pay the subsequent claimants whilst you have the land registered already, the challenge is this, if you don’t settle it properly with them, you may end up keeping the title of the land, but you cannot possess/ develop the land. They will station land guards on the land and make sure nobody steps on the land. This is how serious the situation is in the real estate sector and in my opinion, these reforms to bridge this gap is long overdue and has to be treated with the urgency that it deserves. The Development Consequences The absence of mandatory seller capacity verification has real economic consequences that includes but not limited to the following: Multiple Sales and Competing Claims: Unverified authority enables different individuals to sell the same parcel in multiple times. Stalled Real Estate Projects: Developers face injunctions and financing delays where authority to alienate land is being challenged later on and this is a common phenomenon in Ghana’s Real Estate sector. Increased Housing Costs: Legal uncertainty raises risk premiums and litigation costs, which are ultimately transferred to homebuyers. This is because; developers will have to price properties in such a way that all these costs will have to be recovered and after that, a profit margin will then be added. Urban Planning Disruptions: Planning authorities struggle to enforce zoning where land ownership authority is disputed. This is partly the reason why planning and zoning regulations are disregarded. In some instances, these multiple owners try to develop the land faster in order to possess it. In so doing, they disregard zoning and urban planning regulations, and most times, develop without building permit at the blind side of the local Assemblies. Many do these developments at unconventional hours (most often, mid nights) and
26Feb’26
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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