RED FLAGS IN GHANA’S PROPERTY MARKET [PART 3]: LITIGATION AS A BUSINESS MODEL - WHEN LAND DISPUTES ARE DELIBERATELY ENGINEERED - AFRICA CONTINENTAL ENGINEERING & CONSTRUCTION NETWORK

RED FLAGS IN GHANA’S PROPERTY MARKET [PART 3]: LITIGATION AS A BUSINESS MODEL – WHEN LAND DISPUTES ARE DELIBERATELY ENGINEERED

Land remains the most critical economic asset in Ghana, underpinning investment, urban development and intergenerational wealth creation. However, the increasing prevalence of land disputes has introduced significant uncertainty into the property market. While disputes are often viewed as unintended consequences of systemic inefficiencies, there is growing evidence that some are deliberately orchestrated and sustained for economic gain.

In such cases, litigation ceases to be merely a mechanism for resolving conflict and instead becomes a strategic tool for extracting value. This article examines the growing phenomenon of litigation being weaponized as a business model within Ghana’s land sector, where disputes are not merely accidental but, in some cases, deliberately engineered for economic gain. 

It explores the structural weaknesses in land administration, including legal pluralism, weak record systems and slow judicial processes that create fertile ground for such practices to flourish (World Bank, 2003). It further analyses how strategies such as multiple sales, strategic encroachment and deliberate litigation delays are used to extract value from conflict rather than development. 

Ultimately, it highlights the economic and social consequences of this trend while proposing targeted reforms and practical safeguards for investors navigating Ghana’s increasingly complex property market. 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 real estate developers and consultants. 

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 our 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 discussion starting the structural context of why land disputes thrive.

The Structural Context: Why Land Disputes Thrive

Ghana’s land tenure system is characterized by legal pluralism, where customary land ownership coexists with statutory regulation. Approximately 80% of land is held under customary systems, administered by stools, skins, families and clans, while the state regulates formal registration and documentation processes. This duality often produces overlaps, inconsistencies and uncertainty in land ownership.

The complexity of this system is further compounded by weak land administration structures. Studies have identified poor record-keeping, lack of comprehensive cadastral systems and fragmented institutional mandates as major contributors to land disputes (World Bank, 2003). In many instances, multiple parties may hold documentation, formal or informal, purporting to establish ownership over the same parcel of land.

Moreover, the process of land registration in Ghana has historically been slow and cumbersome, reducing public confidence in formal systems and encouraging reliance on informal transactions. These structural weaknesses create an environment where disputes are not only frequent but, more critically predictable.

From Dispute to Strategy: The Rise of Litigation as a Business Model

Within this structurally vulnerable environment, some actors have exploited these systemic weaknesses by converting litigation into deliberate economic strategies. Litigation, rather than serving as a last resort, is premeditated and embedded within transactional behavior. One common manifestation is the deliberate multiple sale of land. 

Without name calling, this is how it happens in a practical scenario, customary land custodians or intermediaries may knowingly sell the same parcel to multiple buyers, each equipped with seemingly valid documentation. This practice inevitably results in competing claims and prolonged litigation. These multiple buyers depend on the supposed grantor as a key witness to prove root of title.

This gives the grantor significant influence over the case, as they can shape the narrative, provide or withhold documents and align with one party’s claim. Exploiting this position, some grantors approach both sides during litigation, demanding additional payments with promises to support their case, turning the dispute into an opportunity for further financial gain, even though they cannot ultimately determine the court’s decision.

Even more serious is the case that, while litigation is ongoing, the same land can still be sold to many more buyers as many as they can get.

Another strategy involves intentional encroachment on disputed or ambiguously owned land. Actors exploit gaps in enforcement and delays in adjudication, occupying land with the expectation that prolonged possession or negotiated settlements will yield economic benefit. In such cases, the dispute itself becomes a form of leverage. 

A practical illustration is a situation where a developer identifies a vacant plot in East Legon for instance, that is already subject to an ownership dispute but not actively developed. Taking advantage of delays in enforcement, the encroacher quickly fences the land and begins a basic structure before the rightful owner becomes fully aware.

Although the owner may apply for an injunction to stop further activity, in practice such orders can take time to obtain and enforce and sometimes encroachers continue occupation or return after initial intervention. As the dispute moves into prolonged litigation, the encroacher uses continued possession and delay as leverage, eventually pressuring the rightful owner into a negotiated settlement or discounted sale simply to avoid extended legal costs, uncertainty and loss of use of the land.

This reminds me of my most recent experience on this in Adenta, Accra in 2023 where I sad in a meeting with a popular developer and a family. The developer told the family that there is no way they can litigate with him and win, indirectly sending a signal for a peaceful settlement or lose it all.  

Additionally, litigation may be used strategically to delay development. 

By initiating legal proceedings, disputing parties can stall construction projects, impose financial strain on legitimate owners and ultimately force settlements under unfavorable terms. As noted in studies on land conflict resolution, delays in judicial processes can incentivized opportunistic behavior and prolong disputes beyond their substantive merit (Crook et al., 2007).

The Incentive Problem: Why the System Sustains it

The persistence of litigation as a business model is largely driven by misaligned incentives within Ghana’s legal and administrative systems. The judicial process for land cases is often protracted, with disputes taking several years to resolve, some 10 years, 20 years or even more. This delay increases the potential payoff for actors who use litigation strategically.

Institutional fragmentation further exacerbates the problem. The Lands Commission, customary authorities and local courts often operate with limited coordination, resulting in inconsistencies in documentation and adjudication (World Bank, 2003). These inconsistencies can produce conflicting claims and in some cases, contradictory judicial outcomes.

Weak enforcement mechanisms also reduce the cost of engaging in fraudulent or opportunistic practices. Where sanctions are minimal or inconsistently applied, actors face limited deterrence against deliberate multiple sales or encroachment. Consequently, the system inadvertently rewards those who can manipulate its inefficiencies.

Economic and Social Consequences

The transformation of litigation into a business model has profound implications for Ghana’s real estate sector and broader economy. One of the most immediate effects is increased investor uncertainty. The risk of acquiring disputed land discourages both domestic and foreign investment, raising transaction costs and reducing market efficiency (Deininger, 2003).

Land values are also distorted in such an environment. Properties entangled in disputes may experience depressed values, while litigation-free lands command significant premiums. This distortion undermines the integrity of the market and complicates valuation processes. Judicial congestion represents another critical consequence. 

The high volume of land-related cases places significant strain on the court system, delaying the resolution of other civil matters and reducing overall access to justice (Crook et al., 2007). In fact, some practitioner-based reports including LegalInk estimates that land litigation constitutes approximately 90% of civil cases in Ghanaian Courts (LegalInk 2024). 

With this information, one can imagine how long land litigation can travel, effectively making the benefits of this prolonged litigation for these unscrupulous actors more attractive than ever, but at the expense of sector integrity and the entire Ghanaian economy. 

At the social level, land disputes can escalate into community conflicts, undermining social cohesion and in extreme cases, leading to violence. Given the cultural and economic significance of land, such conflicts often extend beyond individual parties to affect entire communities.

Case Dynamics: How Engineered Disputes Typically Unfold

Engineered land disputes often follow a predictable pattern. Initially, a parcel of land is sold, sometimes legitimately, sometimes under questionable circumstances. Subsequently, a second sale or competing claim is introduced, often supported by alternative documentation. This triggers a dispute, which escalates into litigation.

Once in the legal system, delays become a strategic asset. Parties may file multiple motions, seek adjournments, or introduce procedural complexities to prolong the case. During this period, opportunities arise for negotiation, settlement, or continued exploitation of the land. Ultimately, the dispute may be resolved through attrition as mentioned earlier, where one party concedes due to financial or temporal pressures, or through negotiated settlement. At each stage, value is extracted not from productive land use, but from the persistence of conflict.

Policy and Institutional Reforms: Breaking the Cycle

Addressing litigation as a business model requires comprehensive reforms targeting both structural weaknesses and incentive systems. One critical intervention is the digitization of land records. A unified and transparent land information system would reduce the incidence of multiple sales and improve the reliability of ownership data (World Bank, 2003).

The establishment of specialized fast-track land courts could also significantly reduce delays in adjudication, thereby diminishing the attractiveness of litigation as a strategic tool. Similarly, strengthening enforcement mechanisms and imposing stricter penalties for fraudulent land transactions would enhance deterrence.

The promotion of Alternative Dispute Resolution (ADR) mechanisms offers another viable pathway. ADR processes, including mediation and arbitration, can provide faster and more cost-effective resolution of disputes, reducing reliance on prolonged litigation (Crook et al., 2007).

Finally, the introduction of title insurance systems could shift risk away from buyers and incentivize more rigorous due diligence within the market even though our existing system does not meet the requirements for the implementation of title insurance.

Implications for Buyers and Investors

In an environment where litigation can be engineered, buyers and investors must adopt a heightened level of diligence. Comprehensive title searches, engagement of qualified legal and surveying professionals and verification of ownership histories are essential safeguards.

Now, a Guide to Starting the Process

Having given you assurance, the multi-million dollar question is, how will the individual be able to put together all these pieces of relevant information or the professionals needed to conduct a comprehensive due diligence whilst saving time and cutting cost. A prudent property 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 the due 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. This is where the expertise of the Africa Continental Engineering & Construction Network Ltd comes into play.

At Africa Continental Engineering & Construction Network Ltd, our due diligence extends far beyond conventional Lands Commission searches. In addition to standard title verification, we undertake comprehensive title root tracing, litigation history checks, encumbrance searches and collateral registry reviews. 

We also incorporate on-the-ground intelligence through discreet community engagement, recognizing that critical insights often reside outside formal records. As a final validation step, we test possession by initiating controlled site activity, such as clearing or minor works, to surface any latent disputes. 

This layered and unconventional approach has enabled us to uncover hidden litigations and competing claims that routine searches may miss. However, such processes carry inherent risks and should not be attempted without professional guidance, engage our team to navigate them safely and effectively on your behalf.

Conclusion

In conclusion, litigation is fundamentally intended to uphold justice and secure property rights. However, when institutional inefficiencies and structural complexities persist, it can be repurposed into a mechanism for economic exploitation. In Ghana’s land sector, the emergence of litigation as a business model reflects deeper systemic challenges that require urgent attention.

Reforming land administration, strengthening legal frameworks and realigning institutional incentives are critical steps toward restoring integrity to the property market. Until such reforms are fully realized, stakeholders must recognize that in certain contexts, disputes are not merely incidental, they are deliberately created sometimes and sustained as instruments of profit. Do not go away, stay tuned for part-4

References

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• Bugri, J. T. (2012). Sustaining customary land secretariats for improved interactive land governance in Ghana. Land Use Policy. https://doi.org/10.1016/j.landusepol.2011.09.002
• Crook, R. C., Affou, S., Hammond, D., Vanga, A. F., & Owusu-Yeboah, M. (2007). The law, legal institutions and the protection of land rights in Ghana and Côte d’Ivoire. IDS. https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/4398
• Deininger, K. (2003). Land Policies for Growth and Poverty Reduction. World Bank. https://openknowledge.worldbank.org/handle/10986/15125
• Kasanga, K., & Kotey, N. A. (2001). Land Management in Ghana: Building on Tradition and Modernity. IIED. https://pubs.iied.org/9002IIED
• Ubink, J. M. (2008). In the Land of the Chiefs: Customary Law, Land Conflicts, and the Role of the State in Peri-Urban Ghana. Leiden University Press. https://doi.org/10.5117/9789087280413
• World Bank. (2003). Ghana Land Administration Project (LAP) Report. https://documents.worldbank.org/en/publication/documents-reports/documentdetail/

About Author

Daniel Kontie is a young enthusiastic Ghanaian Entrepreneur, the Executive Chairman of the Africa Infrastructure Group; comprising the Africa Continental Engineering & Construction Network Ltd (ACECN), Falcon 48 Developers; Africa Infrastructure Energy and Africa Land Banking Investment Ltd. All these are growing establishments, disrupting the conventional way of brand building across the African Continent. Daniel is a columnist, a writer and a member of the Ghana Built Environment Writers Association. He can be contacted via Tel: +233209032280; Email: d.kontie@acecnltd.com; Website: https://acecnltd.com/.