The Ultimate Guide to Buying and Selling Land in Ghana

Everything you’ll need to know to navigate the land market in Ghana with confidence.

Ghana has a diverse land market, with various types of land available for purchase at a fraction of what you might pay elsewhere. The most common types of land in the West African nation are residential, commercial, and agricultural properties.

Beachside land in Ghana

An overview of the land market in Ghana:

Residential land is in high demand in urban areas in Ghana, particularly in the capital city of Accra. Demand for commercial land, such as land for office buildings or shopping centres, is also high in urban areas. Agricultural land is generally more plentiful and is found in both rural and urban settings.

Several factors can influence the value of land in Ghana. Location is a significant factor, with land in prime locations such as city centres or near major transportation routes generally commanding higher prices. The availability of infrastructure, such as roads and utilities, can also affect land values. Other factors that can influence these values include the type of land (e.g. residential vs commercial), the level of development on the land, and the overall state of the economy.

Various factors, including population growth, urbanisation, and economic development, drive the demand for land across much of the African continent. As Ghana's economy has grown recently, demand for land has increased, particularly in urban centres. This has led to an increase in land values in many parts of the country, including Accra, Kumasi, Sekondi-Takoradi, and Cape Coast.

The impact of foreign buyers on land prices in Ghana can vary depending on the specific market and location. In general, foreign buyers may be willing to pay higher prices for land due to the perceived benefits of owning property in Ghana, such as a desirable climate or a growing economy. This can lead to increased competition for land and potentially drive up prices. However, it is important to note that foreign buyers generally make up a small portion of the overall market in the country, so their impact on land prices may be limited.

There are also some regulatory and legal issues that can affect the ability of foreign buyers to purchase land. For example, the Ghanaian government has put in place measures to protect the interests of Ghanaian citizens in the land market, including laws that restrict the sale of certain types of land to foreign buyers.

The legal process of buying and selling land in Ghana:

1. Research the land market: Before you begin the process of buying or selling land in Ghana, it is vital to familiarise yourself with the market and understand the available types of land and the factors that can affect land values.
2. Identify your needs: Consider what you are looking for in a piece of land, including the location, size, and type of land. Then, determine your budget and consider any other factors that are important to you.
3. Find a property: You can search for properties through real estate agents, online listings, or by contacting the owner directly. Viewing the property in person is a good idea to get a sense of the land and its condition.
4. Negotiate the price: Once you have identified a property you are interested in, you will need to negotiate the price with the seller. This can be done through your real estate agent or directly with the seller. See more on this below.
5. Hire a lawyer: It is recommended to hire a lawyer to handle the legal aspects of the transaction, including reviewing the contract and assisting with the transfer of ownership.
6. Review and sign the contract: Before you sign the contract, ensure that you fully understand the terms and conditions of the sale. Having a lawyer review the contract is also a good idea to ensure it is fair and legally sound.
7. Transfer the title: The process of transferring the title to the land typically involves submitting several documents to the appropriate government agency, such as the Lands Commission or the Land Title Registry. Again, your lawyer can assist with this process.
8. Pay for the property: Once the title has been transferred, you will need to pay for the property, typically through a bank transfer or a cheque.
9. Register the property: Registering the property in your name is essential to protect your ownership rights. This typically involves submitting several documents to the Land Title Registry, including the contract of sale and the transfer form. Your lawyer can assist with this process.
10. Finalise the sale: Once all the necessary documents have been submitted and the payment has been made, the land sale is considered final. You will receive a certificate of title or other documentation indicating that you are the owner of the property.

Some additional points to consider for your protection and safety:

• Be aware of Ghana's regulatory and legal requirements for buying and selling land. This can include obtaining licenses or permits, paying fees or taxes, and complying with any restrictions or guidelines that may apply. Your lawyer can guide these requirements.
• Consider obtaining a survey or title search before you buy land. A survey can provide detailed information about the land, including its size, boundaries, and any encumbrances or disputes that may affect the property. A title search can help you confirm that the seller is the legitimate owner of the land and that there are no outstanding claims on the property.
• Keep accurate records of the transaction. This can include the contract of sale, payment receipts, and any other documents related to the purchase or sale of the land. Having a complete and organised transaction record can help you protect your interests and resolve any issues that may arise.
• Be aware of the risks of buying or selling land in Ghana. There have been many instances of fraud or disputes related to land transactions in the country, so it is vital to take steps to protect yourself. This can include hiring a lawyer, obtaining a survey or title search, and thoroughly reviewing any contracts or agreements before you sign them.

Tips on avoiding scams and fraud:

Buying and selling land can be complex, and there is a risk of being scammed or defrauded. However, there are several steps you can take to avoid this happening to you:

• Research the land title and ownership: As mentioned above, ensure that the seller legally owns the land you want to purchase and that the title to the land is in order. You can do this by conducting a search at the Lands Commission in Ghana or hiring a lawyer to search for you.
• Hire a lawyer: Having a lawyer review the sales agreement and assist you with buying land can help protect your rights and interests. In addition, a lawyer can spot any red flags and advise you on potential risks.
• Be cautious of deals that seem too good to be true: If the price of the land seems unusually low or the seller offers too favourable terms, it may be a red flag. Be cautious of such deals and do your due diligence to ensure that the land is legitimate and the seller is genuine.
• Get everything in writing: Make sure that all agreements, including the price and terms of the sale, are put in writing and signed by both parties. This will provide you with a legal document you can refer to in case of any disputes.
• Do not pay the total amount upfront: It is generally a good idea to pay a deposit and then pay the balance in instalments. This will protect you in case the land is not as advertised or the seller fails to deliver on their commitments.

Following these steps can reduce the risk of being scammed when buying and selling land in Ghana.

More on negotiating the price and sale terms:

• Set a reasonable price: When buying land, it is crucial to understand the property's market value and make a fair and reasonable offer. Similarly, when selling land, set a price that reflects the property's value and considers any factors that may affect its valuation.
• Be flexible on terms: Consider being flexible on terms such as the closing date, financing options, or any contingencies that may be included in the contract. This can make the transaction more attractive to the other party and may increase the chances of a successful sale.
• Be prepared to compromise: Negotiations often involve give and take, so be ready to compromise to reach an agreement that works for both parties. Consider what is most important to you and be willing to make concessions on other issues to achieve your goals.
• Use a lawyer: Consider hiring a lawyer to help negotiate. A lawyer can provide valuable guidance on the legal aspects of the transaction and can help to ensure that your interests are protected.
• Communicate effectively: Effective communication is key to successful negotiations. Be clear about your needs and expectations, listen to the other party, and try to find common ground.
• Stay calm and professional: It is important to stay calm and professional during the negotiation process, even if things get contentious. Maintaining a respectful and constructive approach can build trust and increase the chances of a successful outcome.

Maintaining and improving the value of your land:

• Maintain the property: Regular maintenance can help preserve your land's value and protect your investment. This can include tasks such as keeping the land clean and free of debris, repairing any damage or maintenance issues, and maintaining any structures or improvements on the property.
• Make improvements: Improvements to the land, such as adding amenities or upgrading infrastructure, can increase its value and make it more attractive to potential buyers or tenants. It is crucial to consider the costs and benefits of any improvements and to obtain any necessary approvals or permits before making any changes to the property.
• Obtain necessary approvals or permits: Ensure that any improvements or changes to the land comply with local laws and regulations. This may require obtaining licenses or permits from the appropriate government agencies.
• Protect the land: Taking steps to protect the land, such as by securing it with fencing or gates, can help to prevent damage or unauthorised access.
• Market the land: Marketing the land effectively can increase its visibility and attract potential buyers or tenants. This can include listing the land on real estate websites, placing ads in local newspapers or social media, or working with a real estate agent.
• Stay informed: Keep up-to-date on market trends and changes that may affect the value of your land. This can help you make informed decisions about maintaining and improving the property.

Resources for finding and evaluating land:

There are many ways to find land for sale in Ghana, including the following:

• Real estate agents: You can search for land through a local real estate agent, who can provide information on available properties and assist with purchasing.
• Online listings: Several websites list lands for sale in Ghana, such as Jumia House and meQasa. These sites can be a good resource for finding properties in a specific location or price range.
• Directly from the owner: In some cases, you may purchase land directly from the owner by contacting them directly or through a referral.
• Other sources: You can also find land for sale through other sources, such as classified ads in local newspapers or word-of-mouth referrals.

To evaluate the land to ensure it is a good investment, you should consider several factors, including the location, size, and type of land, as well as the potential for development or use. You should also consider the costs associated with the land, including any fees, taxes, or maintenance costs.

It is a good idea to have a survey or title search performed to confirm the size and boundaries of the land and to ensure that there are no outstanding claims or encumbrances on the property. In addition, consider consulting with a real estate agent or lawyer to understand better the land's market value and any potential risks or issues that may affect your investment.

Finally, buying and selling land in Ghana can be a complex process that requires a thorough understanding of the market, the legal and regulatory requirements, and the factors affecting land values. Do your research and carefully consider your needs and goals before entering the market, and seek the assistance of lawyers and real estate agents to ensure that you are protected and that the transaction goes smoothly.

By following the steps above and taking the time to evaluate the land and the terms of the sale carefully, you can make informed decisions and increase the chances of a successful transaction. I hope you found this post helpful. Let me know your thoughts in the comments.

• You may also like Why Ghana’s Rental and Real Estate Market is Due a Revamp.