What to consider before buying a land in Ghana?  Here are common mistakes land buyers make in Ghana:

1. Failing to conduct a proper land search
2. Failing to consult with local municipal Assembly
3. Not understanding the land tenure system
4. Ignoring the physical condition of the land
5. Not obtaining proper documentation
6. Not considering future developments
7. Failing to negotiate the price
8. Not involving a lawyer
9. Overlooking the payment terms
10. Not involving your private land surveyor
11. Buying land Site unseen
12. Not researching the neighborhood

Real estate in Accra is booming despite economic challenges real estate still thrive. Acquiring land in Ghana is not that easy due to poor land tenure system. The land system in Ghana has a lot of bottlenecks that you will face.  As a result of rapid urbanization, land is high demand-driven.

As a result, land banking has become a lucrative investment among newbies and seasoned property investors. In Ghana especially Accra land price never goes down, always upward spiral. If you buy a plot of land for $25,000, a year time you can sell it double or triple the initial price.

But whether you are a newbie or experienced property investor, you still need to have a check list, do a thorough due diligence and leaving nothing to chance. Most people like cutting corners to acquire lands which cost them their money and litigation in court.

I want to be candid, if you planning to buy land in Accra, you will be confronted by a lot of constraints such as insecurity of land tenure, inadequate land policy, improper land documentation, indiscipline in the land system leading to fraud, family conflicts, greed, anxiety and frustrations, just to name a few.

Read also: What are the causes of land litigation in Ghana, Accra?

I will address most costly mistakes to avoid when buying land free of any encumbrances. Without wasting time let me discuss these costly mistakes you don’t want to miss.

 

1. Failing to conduct a proper land search:

Your first title search is at Lands Commission of your region. Don’t buying land without a search at the Lands Commission. Why? Because these government body keeps records of all registered lands. Fortunately, the land search report has been automated and consolidated meaning you can get all 3 search such as Public and Vested Land and Management Division (PVLMD), Land Registration Division (LRD) and Search and Mapping Division (SMD) in one report. Here is the best part, you can do all that online. This report will reveal the history of the land and any conveyance and current title owner.

How to conduct land search online?

• Register on the site
• Enter relevant details
• Scanned site plan must be edged pink/red
• The scanned site plan must be drawn to a standard scale.
• The grid on the scanned site plan must be visible
• Get quote, and make payments
• I suggest you follow up with an in-house personnel to tell you when it is ready. Normally a matter of days.

Read also: The Process of Buying and Registering a House in Ghana

2. Failing to consult with local municipal Assembly:

Some lands are earmarked for certain public developments such as roads, water ways, public structures, schools etc. It is common to see people’s home pulled down because they built on such lands. It is very important to visit your local or municipal assembly and have a consultation with a development planning officer or relevant city authorities to ensure that the land is suitable for your intended use and complies with local zoning regulations.

If you are buying in Accra, there are different Municipal districts you could visit. Find that which your land location fall under. Your enquiry should include checking the land use plan, building regulations, and environmental laws to ensure that the land is appropriate for your intended use.

 

3. Not understanding the land tenure system:

The land tenure system which includes stole/skin land, public land (state land and vested lands), family lands, customary land  can be confusing. It is important to educate yourself on the land tenure and their interest which also includes: the allodial title, freehold (customary free and common law freehold), and leasehold. You need to understand what you are signing for. It is important to understand the system to avoid any legal or ownership disputes. However, you can hire an attorney to guide you through all of that.

Read also:12 STEP BY STEP GUIDE ON HOW TO BUY LAND IN ACCRA, GHANA AS A GHANAIAN OR A FOREIGNER WITHOUT LIGITATIONS

 

4. Ignoring the physical condition of the land:

Before you acquire any land, it is important to inspect the land thoroughly to determine its suitability for your intended use. This includes checking the soil type, topography, drainage, and other physical features of the land. It is also important to identify any potential issues that may impact your plans, such as environmental hazards or legal disputes. Most land buyers make purchases before inspecting the land which is already too late. Some areas of Accra are prone to flood, you need to inspect, verify that before making a purchase. Accra metropolitan Assembly AMA has data of such areas if you don’t want to get flooded during raining season.

 

5. Not obtaining proper documentation:

In real estate you can only control a deal on paper. So therefore you can only be a legal owner if you obtain the required documents from the seller. Make sure all necessary documentation, including the deed, site plan,  land title certificate, and even seller’s ID are in order and accurate and matches that on land records at the Lands Commission. This will help protect your ownership rights and avoid any legal disputes.

 

6. Failing to negotiate the price:

Get a licensed land valuer to value your land. In Ghana everyone want things quick and waste no time to understand the value of what you are paying for. You don’t want to be one of such folks. It is also important to negotiate the price of the land to get a fair deal. Everything is negotiable and Ghanaians are good at that. You can also do a market research on the value of similar properties in the area and using this information to negotiate a reasonable price with the seller. Here is a tip: A motivated seller (someone who must sell at all cost because of pressing need) will accept your lowball offer. You never know.

 

7. Not considering future developments:

In real estate “follow where the tide is going: Meaning invest in areas the population is moving into. Depending on your investment goal it is important to consider future public developments and infrastructure plans because that may impact the value of the land. This includes proposed roads, bridges, public facilities, and other infrastructure projects that may affect the value of the land positively. For example, government plan to build a modern hospital near your land will increase its value drastically.

 

8. Not involving a lawyer:

No matter how big or small your real estate land acquisition is you don’t want to do it without an experience lawyer. Why? Because lawyers can spot redflags, save you time and money and safe you from land litigations. Again make sure to involve a competent lawyer who specializes in property law to review all documents and ensure that your interests are protected. A lawyer can help identify potential legal issues and negotiate the terms of the sale on your behalf. Most Ghanaian lawyers are generalist. You don’t need a generalist but a specialist in property laws of Ghana with years experience.

 

9. Overlooking the payment terms:

Failing to carefully review the payment terms and ensure that they are reasonable and manageable for you. As they say everything revolve around money”. Ensure to check the payments plans agreed on the contract- when and how you going to release those payments deposit, installment, and final payment terms to ensure that they are affordable and realistic. A rule of thumb, do not hand over cash to the seller, pay him through a variable sources such as through his bank account, card, etc.

 

10. Not researching the neighborhood:

Most people move into places only to realize there are no social amenities available and they get stuck. If you have school going kids make sure there are schools nearby. It is no brainer. It is also important to do a search the neighborhood to determine the availability of necessary amenities which includes checking the proximity to hospitals, markets, and other facilities that are important to you.

 

11. Not involving your private land surveyor

A land surveyor is land “surgeon”. They understand every detailed about the land.  Never accept any site plan the land owner provided you as accurate. You want to hire an independent licensed land surveyor to pick all the coordinate and prepare your own site plan.

 

Why you should use land surveyor in Ghana?

To make sure the size, the measurement and exact location is accurate. Land surveyors do plotting and validate the location, the boundaries, the structure, the fence, ownership details, the streets, pretty much everything about the land. In Ghana, most land sellers especially family lands have vast lands with mixed up site plans. If you come to them to purchase land, they could provide you with a wrong site plan out of poor record keeping or negligence or intentional. Your surveyor will save you from buying or encroaching on someone else’s land innocently. This happen everyday sign day in land transaction in Ghana.

 

12. Buying land Site unseen

In the developed world especially the US you can buy a property out of states- site unseen or be present at Title Company to sign paperwork, everything can be done remotely  or your rep. But in Ghana it is a different ball game all together. You don’t want to buy land without visiting the site. Ask neighbours around about the land, and in most cases you will be shocked. Even though your title search report shows the current seller is the legal owner you still want to visit the site. There could be hidden danger.  Buying lands with site unseen is like setting up your own trap. Beware of land guards.

Read also:10 Less Desirable Area to Live in Accra: Avoid at All Cost

 

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Conclusion

There are tremendous opportunities  in real estate investing in Ghana – whether in land banking or existing assets which could give you a good return of your investments. But there are challenges and pitfalls as I discussed above. Your job is to avoid those mistakes and you will be good. Don’t try to cut corners. You will pay dearly for it. In real estate it is all about buying right doesn’t matter the asset class. Hope this was helpful. Press share button below.