Buying Landed Property in Ghana – Frequently Encountered Issues

I presented a paper at a Property Seminar organised by Legacy&Legacy at the La Palm Royal Hotel on 28th April 2007. These are my notes; probably a rough-and-ready checklist for land transactions in Ghana.

1. Freehold
   o Highest interest in land
   o Indefinite period
   o Devolution ad infinitum, except upon a failure of successors
   o Constitutional bar on granting freehold over stool lands
   o Constitutional bar on granting freehold to non-Ghanaians
   o Overall gradual shift from freehold to leasehold, especially in urban areas
   
2. Leasehold
   o Interest granted for a specified period
   o Especially in the case of Government lands
   o Constitutional bar on granting leasehold exceeding 50 years to non-Ghanaians
   o Most leases are renewable
   
3. Procedure for purchase
   o Identify the land
   o Preliminary physical inspection
   o Take copies of vendor’s title deed and filed site plan
   o Searches at relevant land registries
   o Other inquiries as to ownership/availability, e.g. make inquiries in the area, if property owned by company – registered encumbrances (with Registrar-General’s department)
   o Consents
   o Drafting of transfer document
   o Payment of final purchase price and execution of transfer document
   o Stamping and registration
   o Additional inquiries in respect of buildings:
    Proper building permits
    Compliance with zoning and planning regulations
    Structural defects
   
4. Closing & Thereafter
   o Possession/occupation
   o Complete the contract (signing, witnessing, oath of proof and oath of execution)
   o Pay the balance of the agreed consideration, if any
   o Pay stamp duty (within 2 months or you pay a penalty)
   o Registration with Land Title Registry (registrable areas) or Deeds Registry (yet-to-be-declared registrable areas). Might involve the re-drawing of the site plan as part of plotting.
   o Capital Gains Tax – Vendor
   o Gift Tax by the beneficiary, if the land was gifted
   o Annual property rates (levied on buildings)
   o Annual ground rent, subject to the contractual terms (levied on land generally)
   o Note renewal terms, if any, with respect to leaseholds.
   
5. CHECKLIST
   (1) Visual inspection
   (2) Title documents: title deed, site plan, land title certificate, etc.: a. Does the grantor have capacity? (i. Government – acts by Lands Commission ii. Stool – Head of Stool with concurrence of elders, Lands Commission and the Office of Stool Lands Administrator iii. Family – Head of Family acting with consent of principal members); b. Signatures/Thumbprints (i. Grantor/Lessor, ii. Grantee/Lessee , iii. Concurring signatories); c. Consideration (How much? Mode of payment?)
   (3) Description: a. Street name and number, b. Plot number, c. Particular description/designation, e.g. Joey Villa
   (4) Type of Use: a. Residential, b. Commercial, c. Mixed Use, d. Compliance with planning and zoning permission, and e. Home Improvement – have the necessary permits been secured?
   (5) Type of Interest: a. Freehold, b. Leasehold, c. Others (e.g. licence)
   (6) Searches: a. Land Title Registry, b. Deeds Registry/Lands Commission
   (7) Stamping: a. LVB number, b. Adequacy of stamping,
   (8) Registration: a. Presentation & Plotting, b. Deeds Registry number, c. Land Title Registry number
   (9) Covenants in Leases: a. User and other restrictive covenants, b. Overriding interests – rights of way, natural rights of water, easements
   (10) Consents: a. Lands Commission – Government and stool lands, b. Minister for Lands & Forestry via Administrator of Stool Lands
   (11) Litigation status: a. Courts, b. Traditional authorities
   (12) Property tax payments: check with the relevant Metropolitan/Muncipal/District Assembly
   (13) Home Improvements: a. Construction/alteration permits, b. Approved site plans – approval letter and date, c. Compliance with zoning and planning laws – Town & Country Planning Departments, d. Compliance with regulations of central and local government authorities, e. Structural report by Building Inspector/Engineer