Housing in Ghana What to look out for in buying a property or land

In Ghana, if you decide to buy land, you should ensure that the property you’re buying is litigation free. How do you know that? You would have to ensure that the person you are buying the property from has legitimate ownership of the interest the person is claiming.

Often, we talk about interest in land and the things we refer to when we say interest is basically the bundle of rights. The person who is claiming ownership has this right which could be freehold, which means that the person has perpetual ownership of the land. It could also be a leasehold interest, which means that the person has the land for a period of 99 years or 50 years, and after that, the land reverts back to whoever sold the property.

Individual/family lands

Now if you’re buying land from someone who says, I have a lease of 50 years, then the documentation the person has must prove that he actually has 50 years. If it is family land you are buying, then that does not have constitutional restrictions with respect to the term of the leasehold. It could actually be a freehold.

Of course, there is a new land bill which when assented by the president becomes law and that is going to treat family lands similar to how it treats stool lands. And so, you are going to have restrictions on the term of the leasehold, which will mean that you can no longer have a freehold interest transferred to you when you are buying a family land.

State lands

State lands, also referred to as public lands are lands that are owned the by government and are managed by the Lands Commission for and on behalf of the state. These lands are also sold only by the Lands Commission or through the Lands commission.

We have a few exceptions which are Tema Development Corporation lands. Also known as TDC Company Limited. So, there are lands you can buy through TDC but you still have to go through the Lands Commission for your registration process and the lands that are also owned by the State Housing company limited. When you buy such lands, you also have to go through the Lands Commission to get them registered.

Essentially, all that we are saying is, to buy land, you must ensure that the document you are given refers to the exact interest you are negotiating and that you also know the number of leases on the land. You are able to acquire that interest you are buying. Also, one of the things you have to pay attention to when you’re buying land is the neighbourhood.

• Does the neighbourhood flood?
• Is there security in the neighbourhood?
• Do you have landslides and earthquake issues?

These are all things that you would have to ensure that you have paid attention to and you have researched before you buy land to determine that the document you have is valid and the interest that is being transferred to you is also the right interest owned by the vendor.

Ownership check

You would have to conduct a search at the Lands Commission which will reveal to you the history on the land. It will tell you whether or not the person you are buying the property from has registered his or her interest and whether or not the interest (he or she) is claiming corresponds to what is in their records. If there is no recorded transaction, it does not mean the person does not own the property. You would just have to ensure that you delve deeper into getting further information. You can try the following:

• Contact neighbours to find out who owns the property.
• Contact places like the district assembly to see who pays the property rate on that property.
• Visit ECG or Ghana Water Company to find out who has been paying those utility bills or to confirm the ownership of that property.

Neighbourhood check

When you have satisfied yourself with the documents that have been provided to you, the next thing you need to check is to ensure that the neighbourhood is fit for purpose. If you are buying to live in the property as your residential home, then you are looking at ensuring that the place is not flood-prone or the place is not earthquake-prone area.

The land is solid enough such that you will not have landslides in future, and you are not close to any hazardous chemicals that are being emitted from industries around you. Make sure good and potable water and all the various amenities you need to enjoy your property are provided. So those are the neighbourhood characteristics that you have to look out for.

Value check

Also, it will be proper to know the value of the property you’re buying before you put money on the table, know that you need to commission a qualified valuer to assess the value of the property, so that if you are negotiating, you are well informed about how much the property is selling for in the market and what you would also put on the table for that property.

These are the major things you need to look out for when you are buying land in Ghana. To add to the advice I’ve already given, when buying state land, ensure that whoever is selling to you has the consent of the state. Consent is just a letter, usually, one pager issued by the state institution, mainly the Lands commission or if it’s Tema, then you are talking about TDC to say that they have agreed for the property to be transferred to you.

Without this consent, you cannot register the property and if the property is not registered, you cannot use it for any financial transaction such as acquiring a mortgage. Also, the land or the property you purchase is of financial value and so you should not just buy the property with the aim of going to live in it, but also with the aim that in future you can release equity from the property by applying for a mortgage on the property or selling it to someone who will be buying with a mortgage.

Remember to go through all these steps I’ve given you when you are transacting on the property, especially when it involves a financial institution. Doing proper due diligence on a property before you buy will save you from fraudulent transactions and will guarantee your ownership. It is always important that you go through these steps I have given you adequately with the help of professionals to ensure that you’ve left no stone unturned. Don’t be rushed by the vendors in buying properties because usually when the deal is too juicy you need to be very careful.

Source: Housing In Ghana Magazine

Housing in Ghana magazine is a publication under the Housing in Ghana Foundation, an organization that is committed to promoting and facilitating access to quality housing solutions across Ghana. The bi-annual magazine publication serves as a comprehensive guide for individuals, families investors as well as other key industry players seeking information on real estate trends and news, property listings and investment opportunities within the country. Email: [email protected] 0555444665 | 0599663344

 

 

 

The post Housing in Ghana What to look out for in buying a property or land appeared first on The Business & Financial Times.

Read Full Story