A guide to real property investment: A blueprint for first-time investors

By Elizabeth FRIMPONG

Real property remains one of the most resilient and reliable wealth-building vehicles in Ghana. In an economic climate characterized by currency fluctuations and global uncertainty, tangible assets offer a hedge against inflation that few other investments can match.

However, the Ghanaian property market is unique. It operates with a specific set of rules, cultural nuances, and legal frameworks that can be daunting for the uninitiated. For Ghanaians at home and members of the diaspora taking the bold step into their first investment, whether to build a dream home, enter the rental market, or venture into commercial development; understanding the local terrain is the primary determinant of success.

It is important to note that property investment generally involves several broader considerations. Buyers often look at location suitability, including proximity to schools, roads, hospitals and growing commercial zones; market value and appreciation potential, to ensure the property fits long-term financial goals; infrastructure availability, such as access to water, electricity and proper drainage; financing and affordability, whether through savings, mortgages or payment plans; and the intended use of the property, whether residential, commercial or industrial.

While these practical factors help determine whether a property is attractive, the legal processes are what ultimately determine whether the investment is secure, which makes understanding the legal framework of land acquisition in Ghana essential.

Here is a detailed legal guide on what every first-time real estate investor in Ghana must know to navigate the market safely and profitably.

1. Land Tenure is Complex: Know who you are buying from and what you are buying

The most common pitfall for investors in Ghana is the assumption that all land is acquired under the same tenure system. Ghana’s land ownership structure is pluralistic system involving customary law which is backed by statute, the Land Act, 2020 (Act 1036). A lack of clarity here has led countless investors into protracted litigation or forced them to abandon projects entirely.

Who can own land:

• Private/Individual: Land owned by an individual(s) or a corporate.
• Stool/Skin: Land vested in the traditional authority (Stool in the South, Skin in the North) representing the community.
• Family: Land belonging to a specific family lineage, requiring the consent of the family head and principal members for alienation.
• Government: State-acquired land, usually requiring dealing with the Lands Commission directly.

2. Understanding how land ownership works in Ghana

Buying land or a house in Ghana is more than a financial decision, it is a legal one. Before money exchanges hands, every prospective buyer must understand how ownership works, what documents are required, and the right questions to ask. Legally, land in Ghana can be acquired by:

• Direct purchase from the Allodial Title holder: The allodial title is the highest and original form of land ownership in Ghana. It is held by stools/skins, families, clans, or occasionally the state. Anyone purchasing directly from an allodial owner is essentially obtaining a lease carved out of this ultimate ownership.
• Purchase (Assignment or sub-lease) from somebody who already holds a lease: A person who previously leased land from the allodial owner may transfer the remaining years of the lease to you through an assignment, or lease out a portion of their interest to you through a sublease. In both cases, you must confirm that the original lease allows such transfers and that proper consent is obtained from the allodial owner.

In Ghana, land is not sold outright forever; it is leased for a specific number of years (commonly 50 years for non-Ghanaians and up to 99 years for Ghanaians). A buyer must therefore consider whether the remaining lease term fits the intended investment: whether residential, commercial, industrial, or agricultural.

3. Verify ownership thoroughly

Before paying any amount, conduct formal searches at the Lands Commission to confirm ownership, encumbrances, previous transfers, and whether the land is genuinely available. However, official searches alone are not enough. You must also ask around the neighbourhood where the land is located, speak to boundary owners, residents, caretakers, and even local leaders. Community knowledge often reveals issues such as disputes, multiple sales, or ownership conflicts that do not immediately appear in formal records.

4. Ensure the sale is in writing

Under Ghanaian law, land transactions must be in writing. A valid sale requires a properly drafted:

• Deed of assignment
• Lease/Sub-lease agreement
• Or Deed of conveyance

This document must clearly identify the parties, describe the land, state the lease term, and outline payment terms and consents. Oral agreements, verbal promises, and “witnessed handshakes” hold no legal weight.

5. Register the property in your name

After signing the sale agreement, the transaction must be registered with the Lands Commission. Registration is what legally protects your interest and produces the Land Title Certificate (the document that proves ownership). Without registration, your claim can easily be defeated by someone who registers first.

The Golden Rule: Never rely on verbal assurances. Before money changes hands, undertake an independent search at the Lands Commission and the vicinity of the real property. Furthermore, physically verify ownership by visiting the local traditional authority or family head to confirm the seller’s capacity to transact.

The writer is a Chartered architect and project manager with Multi-Build Ltd, with over 10 years of professional experience, and has overseen the development and management of several real estate projects. She can be contacted via email at [email protected]/[email protected]

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