How to Buy a House in Ghana: The Complete Process

Buying a house in a new country involves understanding local customs, laws, and market dynamics. This guide provides information for individuals considering purchasing a home in Ghana, covering property ownership regulations, the purchase process, and registration.

Understanding Property Ownership in Ghana

Ghana’s land tenure system is diverse, with land falling under several categories of ownership. These include customary lands (about 80% of total land, managed by traditional authorities), state lands (acquired by government for public purposes), and private lands (owned by individuals or corporate entities).

Property rights in Ghana are structured around freehold and leasehold arrangements. Freehold tenure provides complete, indefinite ownership rights, generally restricted to Ghanaian citizens. Leasehold tenure grants the right to occupy and use land for a fixed period, typically 25 to 99 years, after which it reverts to the original landowner.

Foreign individuals are generally prohibited from direct freehold ownership of land in Ghana. Non-citizens can acquire land through leasehold agreements, commonly for a maximum term of 50 years, which is often renewable. Foreign buyers can own physical buildings and improvements constructed on leased land.

The Ghana Investment Promotion Centre Act 865, 2013, provides certain protections for foreign investors. While foreign-owned companies registered in Ghana may have different provisions, individual foreign buyers typically use leasehold. All land transactions require careful legal verification and registration with the Lands Commission.

Ghana’s real estate market offers various residential property types:
Apartments and condominiums: Popular in urban centers, offering convenience and security within multi-unit buildings.
Detached houses: Standalone properties with their own land, offering privacy and independence.
Semi-detached houses: Share one wall with an adjacent property, a more affordable option than detached homes.
Townhouses: Multi-story units in a row, often part of planned communities.
Luxury homes and villas: High-end properties with premium amenities.
Duplex apartments: Offer two-level living spaces.
Property availability varies across regions.

Preparing for Your Home Search and Purchase

Finding properties in Ghana can be done through several avenues:
Reputable real estate agents: Provide local market insights and access to listings.
Online property portals: Such as Meqasa.com and Ghana Property Centre, offer extensive databases.
Direct engagement with property developers: An option for new constructions or off-plan purchases.

Financing a property purchase in Ghana typically involves several options. Cash purchases are the most straightforward. Local bank mortgages are available, though interest rates on cedi-denominated mortgages can range from 25% to 35%, with terms usually 10 to 15 years.

Non-resident buyers often face higher down payment requirements (25% to 50%) and slightly higher interest rates (1% to 3% more). Some developers also offer direct financing or flexible payment plans.

Assembling a professional team is important for property acquisition. This team typically includes:
A qualified lawyer: Essential for legal due diligence, title verification, contract drafting, and ensuring ownership transfer.
A reputable real estate agent: Assists with property identification, negotiation, and market analysis.
A surveyor: Necessary to verify land boundaries and conduct structural assessments.

Understanding associated costs beyond the property’s purchase price is important. Stamp duty, a mandatory tax on property transfers, ranges from 0.25% to 1% of the property’s market value, payable by the buyer to the Ghana Revenue Authority. A separate property transfer tax, typically 5% to 10% of the property value, is also levied on ownership transfer and paid by the buyer.

Annual property taxes, known as property rates, are levied by local government authorities and typically range from 0.5% to 3% of the property’s assessed value. These are recurring costs that property owners are responsible for after acquisition. Sellers are subject to a 15% capital gains tax on profits from property sales, which can indirectly influence negotiation strategies.

Legal fees for conveyancing services are regulated by the Ghana Bar Association and vary based on the property’s value and transaction complexity. These fees can range from 3% to 10% of the property’s sale price, with a tiered structure where higher value properties might incur lower percentage rates on the incremental value. Real estate agent commissions, typically 5% to 10% of the sale price, are often borne by the seller, though a buyer might also incur a commission if they retain their own agent.

Other potential costs include registration fees with the Lands Commission, which can range from 0.5% to 2% of the property’s value. If financing through a mortgage, additional fees such as loan processing fees (1% to 2% of the loan amount), valuation fees, and potentially mortgage insurance fees will apply. Surveyor fees, for boundary verification and site plans, can range from 0.5% to 1% of the property value or fall within a range of GHS 2,000 to GHS 8,000.

Buyers need to prepare several documents for the purchase process:
A valid passport or national identification.
Proof of funds.
A Tax Identification Number (TIN) issued by the Ghana Revenue Authority.
Ensuring the seller possesses important property documents such as the Land Title Certificate, Site Plan, Building Permit, and past Property Tax receipts is important for due diligence.

Executing the Purchase and Registration

The process of acquiring property in Ghana begins with a formal offer to the seller, outlining the proposed price, payment terms, and conditions. Once agreed, a Sale and Purchase Agreement (SPA) is drafted. This legally binding document details the property description, agreed price, payment schedule, and important clauses.

Upon signing the SPA, a deposit, usually around 10% of the purchase price, is paid by the buyer to demonstrate commitment.

Following the agreement, the buyer’s legal team undertakes thorough due diligence. This involves a detailed title search at the Lands Commission to verify seller’s ownership, confirm absence of encumbrances (mortgages, liens, litigation), and check for double sales. Lawyers also review deed terms, ensure current property taxes, and verify property measurements. A physical inspection confirms property condition and completed repairs.

The payment process proceeds as stipulated in the Sale and Purchase Agreement. Once full payment, or agreed-upon installments, are made, ownership transfer is formalized through a Deed of Assignment, also known as an Indenture. This legal document is prepared by the buyer’s lawyer and must be signed by both seller and buyer in the presence of witnesses. For properties on customary land, consent from the chief or family head may also be required.

The final step is property registration with the Lands Commission. This process legally records the change in ownership. The buyer submits the stamped Deed of Assignment, along with other required documents such as the site plan, application forms, passport-sized photographs, valid identification, and the Lands Commission search report.

The Lands Commission reviews the submitted documents for authenticity and may conduct site inspections to verify information. A public notice period, typically lasting one month, is often observed, during which any objections to the registration can be raised. After successful verification and the public notice period, the Lands Commission issues a Land Title Certificate, confirming legal ownership. While the official timeline for this process is sometimes cited as 90 days, it commonly takes between 4 to 12 months, and in some cases, even longer for first-time registrations.