In Ghana, land ownership has evolved into a necessity for the average individual. As a wise man once put it, if you don’t own land you have nothing. To achieve ownership of land, there must be a party willing to transfer their interest in this case called Assignor -seller and another party ready to acquire the bundle of rights inherent in that property called the Assignee -buyer.   When focusing on the transfer of interests, particularly Assignment and Sublease, it’s crucial to distinguish between the two. It is also important to understand which interest you willing to take. Both sublessor and assignees should understand the impacts of their investments beforehand. If you are a seller, are willing to relinquish your interest and walk away with cash? And if you are the buyer, are you willing to have the assignor in between you and the allodial owners?   “Assignment” implies that the assignor (seller) has given up their interest in a property, essentially conducting an “outright sale” as commonly known in Ghana. The assignee (buyer) operates independently and can conduct transactions on the land without seeking permission from the assignor, except from the allodial title holder, such as a stool, skin, or government. The assignee completely get rid of the assignor.   Whereas with a Sublease, while the land has essentially been sold, the sublessor (seller) still maintains ownership, and the sublessee (buyer) is absorbed under their lease. Therefore, the sublessee requires permission from the sublessor to conduct any transactions on the land.   A current trend in purpose-built residential apartments or townhouses in Ghana is the prevalent use of the sublease type of transfer agreement by many developers, while a few developers outrightly sell their apartments. The sublease typically extends to the lease’s expiration.   This implies that even though the sublease extends to the lease’s expiration, the developers will eventually consider surrendering and renewing or renewing the lease to account for the reversionary interest when the original lease between parties expires. This approach is a strategic business move, aiming to generate revenue for developers, as their clients might be open to negotiating a fresh lease or a resale to other clients or homeowners who bought homes in the developer’s development project.   Along the way when developers assign their interest in these apartments, homes or whatever, the assignees (clients) become exclusive owners and are accountable for any further negotiations and transactions regarding their property.   Sublease and Assignment impose different obligations on the new owner. Therefore, it’s essential for each party to be stringent in their demands regarding the nature of the transfer and other covenants in the contractual agreement to avoid potential future complications. I will strongly advise you to hire a good lawyer to put the paperwork together. If you ask me which is better, both works fine but again it depends on the seller’s motivation and willingness to release his/her interest or stay in the transaction. Understand the differences between assignment and sublease in Ghana real estate transaction and land ownership in Ghana…    

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