LAND BUYING IN GHANA WITHOUT LITIGATION

The demand for land in Ghana continues to rise as the country attempts to address a massive housing shortage of about 1.7 million units, as revealed by a Bank of Ghana study on the Ghanaian Housing Market a few years ago.

According to the bank, based on current real estate and development trends, it will take about ten years to develop one million units.

Whatever the case may be, the need for land has always been a major achievement for every Ghanaian, particularly when mortgages are not widely used in the country. A segment of the Ghanaian population prefers to own their own land and build rather than take out a loan or purchase a property outright. (We’ll have time to talk about mortgages as well.)

Ghana, which is known as the Gateway to West Africa, has piqued investor interest due to its stable political environment, warm hospitality, reliable power supply, improved transportation network, improved interment facilities, and vibrant economy.

Ghana – Properties
Ghana – Properties
Ghana – Properties

Despite being a valuable asset, obtaining land in Ghana is not easy due to the land tenure system. Indeed, the rising number of middle-class Ghanaians as well as investors (both foreign and domestic) has made land acquisition a major issue.

Another barrier to acquiring land is the land administration system, as well as the situation in which landlords sell the same land to multiple parties, resulting in protracted litigation. Litigations can drag on for years and cost all parties more money because the “wheel of justice grinds slowly.”

In the following paragraphs, I will provide some advice on how to secure a land that is free of litigation.

See the Land with Your Eyes

It is not advisable to pay for land that you have not seen and cannot identify or verify. When you visit the land, make sure the landowner shows you the exact boundaries of the land, either by pillars or notable land marks such as a tree, wall, rock, well, and so on. Take careful note of the directions to the land so that you don’t get lost in the future. Look at the land’s gradient and topography; is it rocky, sloppy, water-logged, and so on. Visiting the land allows you to observe any unusual behaviour by the seller(s) and to get to know the neighbours on the land in order to conduct further investigations on the owners and the status of the land, among other things. Make certain that you do not part with anything at this point.

Search for the Land

After physically verifying the land, its location, and nature, you can conduct a search at the Lands Commission to confirm the owner, size, location, topography, and all other pertinent information about the land. A cadastral plan, also known as an indenture or site plan, can make the search much easier. This search will tell you whether or not the land has been registered. These checks can take as little as a week or as much as a month. Regardless of how long this takes, it is preferable to spending years in court and spending more than you did when you purchased the litigated land.

What is cadastral plan ?

A cadastral plan, also known as a site plan, is a legal document that depicts the development of a parcel of land. It is the primary source of information in landowner disputes and lawsuits. It specifies the dimensions and locations of a piece of land. In Ghana, the Site plan must be prepared by a licenced surveyor for the Lands Commission of Ghana’s Survey Department. The plan should be able to identify the owners and their locations. You are not supposed to pay for the land until you have obtained the site plan for search and verification.

Get Your Own Surveyor

Obtaining the site plan is important, but verifying it and the land is not the end. You may need to conduct an independent survey of the land to ensure that the size and boundaries communicated to you by the owner and the site plan are accurate. Never put your trust in the landowner’s surveyor. Hire a surveyor to verify the land for you. I recall one case where a landowner lost his own land because the surveyor who prepared the site plan misplaced it. In fact, some surveyors can reduce your land on the site plan, and you will lose that portion on the real land, especially if it is a large land with difficult boundaries.

Purchase and Transfer Agreement

Any type of payment, whether outright or in instalments, should be preceded by a purchase and transfer agreement. A good Real Estate Broker should be able to assist you in the creation of a simple Purchase and Transfer Agreement, also known as the Sales and Purchase Agreement (SPA). A lawyer, on the other hand, is your best bet. Before making any payments, ensure that the agreement has been signed by you, the owner, and a witness from each party.

Installment of Outright Payment

Depending on your budget, you can choose to pay in full or in instalments. If you are paying in full, make certain that all necessary doubts about the land have been cleared and all documentation has been completed. Paying in full should give you a better bargaining position than paying in instalments. The benefit of instalment, on the other hand, is that it aids in the closure of any last-minute gaps. Some buyers use instalment payments to give themselves more time to verify land ownership and determine whether or not the land is in dispute.

Checking litigants

Finding a way to entice litigants, such as tricking them into believing there is a new occupant on the property, is a good way to keep them at bay. This is typically used prior to making payments or around the time, particularly when paying land instalments. After paying the first instalment, send a heap of sand and stones to the land, clear it, and prepare it for work to see if any other interested parties approach. If they do, it’s a red flag; if they don’t after a few weeks, you’re good to go.

Register Your Land

You can register the land with the Lands Commission once you have signed a purchase and transfer agreement with the landowner and paid up or nearly paid up for it. You do this by informing the Lands Commission that you have purchased the land and displaying receipts, signed agreements, and a site plan. You then file an application for land transfer and registration. After conducting all necessary due diligence and guiding you through the process, the Lands Commission should be able to provide you with a title certificate and cadastral plan. Depending on the circumstances, this could be done as soon as a few weeks or as late as a few months.

Easy Way Out

Another option is to hire a reputable real estate broker or agent to handle the transaction for you. Many people nowadays do not have the luxury of conducting site visits, searching and verifying documents at the Lands Commission, hiring a surveyor, defrauding land owners, and so on. The steps up there are not something to be taken lightly. It necessitates a high level of commitment, time, precision, diligence, and firmness, which many people find difficult to do in addition to their primary responsibilities. The services of a real estate broker or agent come in handy to ensure that you can follow the process through, secure your land, and continue with your other activities smoothly. You can get help from CBC Properties (CBC Global Limited) or any other reputable real estate broker or agent. The Ghana Real Estate Brokers Association (GAR) can also provide you with a long list of professionals from which to choose.

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