All you need to know before buying a property in Ghana
Real Estate development in Ghana has been on the rise these past few years due to the high demand for residential properties. Ghana is a hotspot for travelers and ex-pats alike that come and go all the time. For short or longer periods there are quite a number of people that troop into Ghana every year for vacation, business, and pleasure. If you are looking to invest in real estate in Ghana, there are quite a number of things you need to be sure about before you go ahead to make your first purchase of land or property. Also just so you know There are no restrictions on foreigners buying a property in Ghana. However, different kinds of land, some of which cannot be privately owned.
There are four types of land in Ghana: Government Land, Vested Land, Customary/Stool Land, and Family/Private Land. To acquire Government Land or Vested Land, an application must be filed with the Executive Secretary of Lands Commission or the Regional Lands Officer, depending on the location of the land.
Customary Land belongs to different Stools in Ghana, who have the authority to grant the particular customary land for which they are responsible. The 1992 Constitution states that there must be no freehold interest granted inland. Customary Land granted to private individuals or families before the 1992 Constitution is now considered private land. In this case, the buyer has to go directly to the owner of the land. {source: globalpropertyguide}.
Who does the Land Belong To?
Before making payment for any land or housing property, make sure you do your due diligence to go ahead and inspect said property and surroundings, validate the person, and check the deeds to the land over at the lands commission to ensure you are buying from the right owner of said Land/Property.
This is done to protect yourself from fraudsters as there are several instances where lands have been sold by fraudulent people to unsuspecting victims who later find out and tend to lose a lot of money over these payments. When it comes to land for sale in Ghana Ensure you involve yourself as much as possible in the entire process. You can have a personal lawyer go over the documents as well to ensure everything is done well before any payments are made.
Requirements For Real Estate Development
If you are purchasing undeveloped land in Ghana there are often development timeline requirements set forth by the government. It is common that you are required to build at least basic infrastructure such as a well and building or foundation within a 2 year period. Developing the land also helps to ensure fewer questions of ownership or unwanted harvesting of trees or other assets of the property. Development requirements should be determined before any purchase at a governmental office.
Land Leasing
In Ghana, most of the land is leased out for the long term and this can be renewed when expiry is due. No individual or company can own land for an indefinite period. For locals, a lease period can go as high as 99 years but it is restricted for foreigners and they have a shorter lease basis of up to 50 years. A lot of people make the mistake of thinking they own the land/property outright once they buy it from a real estate company or private individual.
Leasing a residential plot of land in Ghana you can go as high as 99 years or less, subject to renewal based on satisfaction of certain covenants and conditions. If yours is an allocation paper, you probably have one year to start construction of the building and 2 or 3 years to complete it; otherwise, the stool may re-enter and take back the land you bought. If the land is for agricultural, commercial, or industrial purposes, the lease term is no more than 50 years. If you bought the land or house from someone who bought the land from a chief, government, or another person or entity such as an estate developer, you received an assignment or a sublease of the unexpired residue of the original lease term, not the 50 years or 99 years.
Best Practices
To ensure you do not get duped or you are not too sure of a property you are looking to buy, your best bet is to go into business with a registered and certified real estate agent or company to assist you with your purchase. They will be a more secure option, especially for foreigners. There are quite a number of mortgage houses for sale in Accra you can look into and pay over a period of time.
When you find land or property you may be looking to buy, do well to scope the area, especially if the property is not yet developed. Visit the site morning afternoon and evening if you have the time. If you notice any funny activities on the property you can ask around if anyone else has bought the property. Make sure it is the right fit for you and also not be sold to others.
This is all for today, feel free to give us a call if you are looking to invest in real estate or looking to buy a beautifully furnished apartment. We will do well to get you a home that fits your needs.
