Interested in buying land in Ghana? One must recognise that all lands not the same. They are owned and administered differently by different agencies and under various laws. Sounds complicated? That’s reason to keep reading still the end. As of 2003, there were about 60,000 land disputes pending adjudication in Ghanaian courts, and about 25% of these cases were in courts in Accra [1]. There are land cases from the 1960s still pending in Ghanaian courts [2]. Land litigations are lengthy. You shouldn’t get caught up in such a situation. In this post, I will discuss all the essential information you need to know about buying land anywhere in Ghana.
Interests in land in Ghana
Interest is simply the (legal) right or bundle of rights a person, group of persons, agency or the state has in a parcel of land. For example, as legal lessor, you have the right to use the plot of land leased without interference and to also transfer any remaining years of your lease. It is essential to note this carefully, especially when buying from someone who is sub-leasing their land. The number of years remaining of their lease may be less than 99-years. I will explain only the most essential interests in land that applies generally. But there are other interests such as customary law freehold, usufructuary, common law freehold and customary tenancy. Per the 1992 constitution, a non-indigene of the landholding group cannot acquire a freehold interest from skin/stool lands.
Allodial title
This is the highest interest in land in Ghana and is held by stools, skins, clans, families or the state. Allodial interests are acquired through compulsory acquisition, first discovery and settlement, conquest, or agreement.
Leasehold interest
This is a temporary right to occupy a parcel of land or property. In general, one has an exclusive right to occupy the plot of land during the period of the lease. All lands in Ghana are sold as leasehold. The lease term for residential and commercial purposes are 99-years and 50-years, respectively for Ghanaians.
How is land measured in Ghana?
Land in Ghana is generally measured in square feet. At the time when undeveloped land was abundant even in peri-urban areas, a standard plot size was 100*100ft. Things have since changed. Standard plot sizes are now commonly 80*100ft or 70*100ft. In major cities such as Accra and Kumasi, smaller dimensions are not unusual. Typically, four full plots make an acre. A half plot can be used in building a townhouse.
Can foreigners buy land in Ghana?
Technically No! Article 266(1) of the 1992 Constitution prohibits a non-citizen from holding freehold interest in any land in Ghana. Foreigners get a maximum of 50-year lease terms at a time (Article 266(4) of the Constitution). They cannot own land outright! Leases can be extendable at their expiration following (re)negotiations with the allodial owners. Aside from the tenure term, there are no restrictions on foreigners in “buying” land in Ghana.
Guide to buying land in Ghana
1. Land tenure systems
Customary lands constitute 80%-90% of all undeveloped lands in Ghana [3]. Which means any land you buy anywhere in Ghana is most likely to be customary land. Customary lands are owned by communities, clans, tribes and families, and the allodial interest is vested in chiefs, clans, tribal and ritual heads, or families. The leadership of the landholding group allocates and manages land transactions according to their customs and practices instead of statutory tenure. This is the reason why local knowledge is critical—the process of land acquisition various from place to place with traditions.
The notation “skin/stool” is the traditional representation of the seat of the chief who sits on a stool in southern Ghana and on animal skins in much of northern Ghana.
Public or vested lands are managed by the Lands Commission. Where available, they are some of the safest lands to buy. To buy these lands, one must apply to the Regional Lands Officer or the Executive Secretary of the Lands Commission depending on the location of the parcel of land.
- Lands in Accra are predominantly a mixture of family and stool lands
- Most lands in the Ashanti region are stool lands
- Wa lands are a mix of skin and family lands
- Lands in Tamale are mostly skin lands
2. Buying a plot from the customary land market
The process of buying customary lands in Ghana vary widely across owners because of the different land tenure systems. Some skin/stool lands have customary lands secretariats (CLS) that plan, allocate and manage land transactions. Examples include the Gbewa CLS (Accra), Ejisu CLS and Juaben CLS (both in the Ashanti region). The process of buying from a family or stool/skin without CLS is can substantially vary from place to place. There is no standard process of acquiring land in Ghana.
Generic Guide to Acquiring Land [4]
3. Due diligence, inspections and negotiation
Most customary lands are unregistered. Therefore, it can difficult to identify the rightful representative of family lands. It is not uncommon for different family members to sell the same piece of land to various people. I have been a victim before. See how you to avoid getting scammed. Investigate the actual ownership of the land, including speaking to community members. Conduct site visits, observe the plot of land. Look out for anything suspicious; a trip of sand/stone already on the field, mounted pegs with names either than the seller, blocks etc. Demand for an official identification of the seller. Seek the services of a licensed surveyor to survey the land. This is important because there have been instances where site plans indicate different locations other than the plot of interest.
Check with the Local Planning Authority (district assembly) for the zoning status of the land, especially if the intended use is commercial/industrial.
4. Conduct a search at the Lands Commission
A site or cadastral plan is required to conduct a search to determine the ownership of the land and if it is already registered. A search takes about 2 weeks. It can longer too.
In this documentary by IMANI Ghana, however, the chief of Pantang (a suburb of Accra) and the business development manager of Devtraco, one of the biggest developers in Ghana talk about the inconsistencies at the Lands Commission. For the same piece of land, a title search can sometimes yield inconsistent results.
5. Making the buying decision
Before full financial commitments, one can check if there are any other interest in the land. You can simply deposit trips of sand/stones on site, or clear the site. If there are other interests, they’ll confront you. Also, bear in mind that land allocation notes issued by chiefs do not convey titles but only serve as evidence of purchasing the land. Therefore, you must register your deed or title with the Lands Commission as soon as possible. Whether to make full outright payment or by instalments is a personal decision. But you must make sure that you’re fully satisfied with the conditions surrounding the land before paying. Get witnesses and it’s better to make bank transfers. That way you’ll have additional evidence of the transaction.
Check with members of the Ghana Real Estate Developers Association (GREDA). Members of the associated are reputed in the real estate market in Ghana.
Prices of land in major urban areas
Land prices in Ghana vary significantly; based on location, condition of the land and the seller. Titled lands are also more expensive than un-serviced untitled lands. As expected, lands sold by agents or developers are more expensive than buying directly from the allodial owners. The most expensive locations to buy land in Accra are; Cantoments, Ridge, Labone, East Legon, Airport Hills and Spintex. At these locations, undeveloped land is also harder to get.
Many real estate developers provide the option to pay in instalments. One can also get a mortgage to buy land although interest rates on cedi denominated mortgages of about 24% per cent per annum are expensive. See here for other charges to expect on mortgages.
At the peripheries of Accra, land prices are relatively lower. At locations including Oyibi, Dawhenya, Kasoa, Afienya, Prampram, Dodowa, Tsopoli, Amansaman, and Teacher Mante, one can still get a plot of land from about 15,000 Ghana Cedis. But generally, prices per a plot at these locations range from 20,000 Ghana Cedis to 60,000 Ghana Cedis. Where the quoted price seems unreasonably cheap for the area, it’s most likely to be litigated—exercise extreme caution.
Online classified sites such as Meqasa and Tonaton are excellent places to start a general search to get a fair idea of land prices at the location of your interest. You should never buy land online.
Comments, questions, experiences? Please share them in the comments’ section below.
References
[1] Kline, A., Moore, É., Ramey, E., Hernandez, K., Ehrhardt, L., Reed, M., Parker, M., Henson, S., Winn, T., & Wood, T. (2019). Whose Land Is It Anyway? Navigating Ghana’s Complex Land System. Texas A&M Law Review, 6(1), 1–22.
[2] Mahama, C., & Dixon, M. (2006). Acquisition and affordability of land for housing in urban Ghana: a study in the formal land market dynamics. RICS Research Paper Series, 6(10), 4–45.
[3] Kasanga, K., & Kotey, N. A. (2001). Land management in Ghana: building on tradition and modernity. In International Institute for Environment and Development. IIED. https://www.cabdirect.org/cabdirect/abstract/20036794159
[4] Gyamera, E. (2018). Land Acquisition in Ghana; Dealing With the Challenges and the Way Forward.
This is by far the best and most insightful guide on acquiring land in Ghana that I’ve seen online so far. Thank you.
Glad this was helpful Bonner
I also want to buy land in ghana but seeing this , I would have to stop. This law tricky.
I clicked on some of your links and they all said the page cannot be found. Is it better to buy something already built than to buy and then build?
Thanks Marlene for drawing my attention. The links have been updated. To your question – it depends. One consideration is your own experience with construction and the landscape where you want to build. If you know what you’re doing, self-building will avoid the developer’s markup and overheads. Otherwise, buying can be a better option. There can be several risks in self-building though. Let me know if you require further info
Thanks for this insightful post. I’ve learnt a lot. It’s interesting how tricky it is to buy land in Ghana. The following tip, “simply deposit trips of sand/stones on site, or clear the site. If there are other interests, they’ll confront you”, is really interesting and is surely a great way to check if the land is been sold to another party.
You’re welcome James. Happy this was useful. Buying land in Ghana can be one heck of a headache
This is very educative.. have taken note of a couple f points… More power to your elbow…
Thanks, Angelina. Glad you found that useful