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Important Things to Know Before Buying a Property in Ghana as A Foreigner

Ghana is one of the most welcoming, safe, hospitable, peaceful, colorful, and lovely places to live. It is an African nation that exudes the magnificence of its beauty via its vibrant and distinct culture, friendly people, delectable cuisine, and delightful tropical climate. If you want to relocate to Africa or spend more time there, it is one of the top tourist attractions on the continent and a wonderful place to live. Due to the burdensome requirements for land ownership and the convoluted procedures for registering real estate, however, purchasing property in Ghana is a sport. The procedures are time- and labor-intensive. For this reason, you require support from real estate firms.

Can foreigners buy property in Ghana?

The laws of Ghana do not make any distinctions about who is permitted to own property there; Ghana supports foreigners’ rights to purchase and hold property there. The only limitations imposed by Ghanaian law are on the form and duration of foreigners’ ownership interests. A Ghanaian can own a freehold interest in any land in Ghana that does not fall within the category of stool lands as well as a lease for as long as they choose.

The 1992 Constitution prohibits foreigners from purchasing or holding leasehold rights with a term longer than fifty (50) years. A lease’s term is extended after it expires. To ensure that future generations would still have access to the land after the lease expires, the landowner specifies in the transfer agreement that the lease is renewable. In general, Ghana allows both citizens and non-citizens with sufficient finances to invest in real estate and buy homes, subject to the restrictions mentioned above. Foreigners now have the freedom to purchase and own real estate in Ghana with assurance.

What type of property investments can foreigners buy in Ghana?

Clans, families, and people, in general, possess the land in Ghana. Government property is typically used for business and industrial purposes. The government hardly ever buys or sells residential real estate. In Ghana, the land is divided into four categories: family land, private land, customary or stool-owned land, and government land.

To explain these properties; Firstly, family land refers to the land owned by families. Make sure the head of the family who owns the land is the source of any land purchases you make. Any foreigner who wants to purchase such property must verify with senior family members who can attest that they are dealing with the family head and are qualified to manage the land on their behalf. By taking these steps, you could save years of legal and economic damages.

Secondly, individuals and private organizations are the owners of private land. The majority of Ghana is privately owned. Customary land that was left to or sold to people or private companies before Ghana’s 1992 Constitution is now regarded as private property. Except for land registration procedures, these are typically controlled by the individual or company without much governmental regulation. Therefore, it is vitally crucial to verify that the land genuinely belongs to the person or company you are negotiating with before buying private land by requesting a search from the Lands Commission of Ghana.

Thirdly, traditional leaders in a region typically hold customary land, which is usually managed by the chief in charge of that region or community. They have the power to choose who is eligible to buy land and how much it will cost. Additionally, the land’s availability for development initiatives benefits its communities. Foreigners may also investigate this method of land acquisition. Through direct communication with the local chief or traditional leaders of the region where the land is located, you may be able to acquire a portion of customary or stool land.

Lastly, land that is owned by the government is land that is typically purchased for development purposes from traditional leaders or individuals. Sometimes, the government shares ownership of land with the owners rather than buying it outright. Such property is referred to as vested or state property. It is typically not for sale to businesses. In the rare instances where vested land is available for purchase, it can be done so by applying to the land officer at the commission office in any region of the nation.

What are the limitations On Land & Property Ownership?

The Land Act reiterates the Constitution’s ban on foreign ownership of land. A leasehold interest longer than fifty (50) years may never be given to a non-Ghanaian. However, the Land Act now specifies what counts as a non-Ghanaian company or corporate body, which is defined as a corporation or corporate body when non-Ghanaian citizens possess more than 40% of the shareholding or ownership.

It is against the law to provide someone a freehold interest in their clan, family, or stool land.  To ensure compliance with this restriction, the Lands Commission recently published a notice indicating that it would not accept any land documents for processing and registration that grant the receiver a freehold interest. However, the notice also stated that documents with freehold interests that have already been presented for registration and those that have been properly registered will not be impacted.

Site plans describing the size and limits of the land that is the subject of a court decision must be submitted with any judgments affecting real estate. This aims to resolve property boundary disputes and lessen the possibility of altering the number of lands following court rulings. The precise interests awarded, which may be registered, must also be stated in the decisions. As a result, there will be less duplication and error when the Lands Commission enters information into the land registry.

Buying From Agents & Developers

It is advisable to avoid tension and purchase land directly from reputable real estate agents or developers. Verify if they are members of the Ghana Real Estate Developers Association (GREDA). The process will be as seamless as it should be for every foreign investor with the purchasing power because they are far more professional.

Large-scale land purchases are made by land developers, who subsequently complete the labor-intensive procedures necessary to acquire the land before reselling it to people. The most secure and developed areas of Ghana are where these real estate developers construct and market luxurious and reasonably priced homes and apartments within gated communities. In Ghana, most developers construct homes, particularly for foreigners. You may rely on their assistance to spare you from the stress, inconvenience, and legal hassles related to real estate purchases. Even though their services seem pricey, they are worth the money. A real estate company like Devtraco Plus ensures access to amenities and safe, comfortable living conditions when you purchase property from them. By providing its exclusive, high-end housing units in prestigious locations in Ghana, developers like Devtraco Plus have carved out a unique position in the global real estate market.

Are there mortgage options?

A mortgage is a bank loan that is used to finance the purchase of the real estate. It is possible to determine if someone wants to build or buy a house. Mortgage loan repayment is conducted over several years, with an average repayment length of five years in Ghana. Using a mortgage calculator, many banks that offer mortgages may assist you in selecting an appropriate mortgage alternative. A mortgage calculator is a piece of software that evaluates the best mortgage choice for a certain person based on their income, the length of time they can comfortably make payments, and the cost of the property.

Home Purchase Mortgage, Home Completion Mortgage, Home Improvement Mortgage, and Equity Release are just a handful of the mortgage alternatives provided by banks in Ghana. Different banks in Ghana offer a variety of mortgage products. Understanding all the available possibilities in detail is necessary to evaluate an appropriate mortgage facility. Customers can obtain various mortgage tools in Ghana from First National Bank through their partnership with Ghana Home Loans. There are three distinct home purchase mortgage options offered by First National Bank. You can check mortgage options and the details from Eden Heights.

What is the difference between freehold and leasehold land?

There are a few things to think about before deciding if you are thinking about purchasing real estate in Ghana. The decision of whether to purchase freehold or leasehold land is one of the most important. Full ownership rights and an unlimited use period are included with freehold land. Despite having complete ownership rights, leasehold property typically has a set number of years or decades during which it can be occupied. Depending on the sort of lease you sign, the duration of that occupation time varies. Concerning both kinds of properties, the seller is required to give title deeds and other transfer paperwork upon purchase and give their approval for any alterations.

Can I buy agricultural land in Ghana?

Fourteen (14) million hectares of Ghana’s agricultural land are now uncultivated, according to the Ministry of Food and Agriculture. Nevertheless, a 2013 World Bank assessment observed that surveys of ownership rights and land claims are underdeveloped, with 80% of the land being under the authority of local chiefs and 20% being state-owned. Despite being prohibited from doing so, foreigners are permitted to lease land for up to fifty (50) years. The constitution of Ghana gives local chiefs the authority to control a generous portion of the land through several customary tenure systems and recognizes them as the primary parties in land ownership, distribution, and conflict resolution.

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