Important Factors to Consider When Buying Land in Ghana

Over the last decade, I’ve engaged in numerous conversations with various individuals who’ve recounted their encounters purchasing land in Ghana. These discussions have included family members, friends, colleagues, clients, and others. Consistently, they’ve expressed the challenges associated with acquiring legitimate land in Ghana.

Some of the lands were bought from chiefs (who are supposed to be the custodians of the land) but they ended up having challenges such as double sale. A phenomenon where the same piece of land is sold to different people. Others bought from individual owners but also faced similar dilemma. A few purchased the land from Real Estate companies but ended up also losing the preferred land or being relocated to an unfavourable location when they were ready to develop the land.

So, the question now remains, what do you consider when purchasing a land in Ghana?

Due Diligence

The first thing you need to do is to perform due diligence on the land. One may ask how do I perform due diligence for a piece of land? Start by getting a qualified surveyor to pick the geographical points to ensure it is the same as the one on the site plan you were shown or given by the seller. The next step is to perform an advance search at the Lands Commission with the details given if it is the same as the site plan details. The advance search will provide you with details about the ownership and transfers of the land over a period of time. It is better to pay money for the search than to lose your entire money purchasing land from a scammer.

As a crucial part of your due diligence process, engage with residents or landowners in the surrounding area to verify land ownership. This step is invaluable as it allows you to gather additional information. Concurrently, inquire about the land’s past usage. Just envision drilling a borehole in an area that previously served as a cemetery.

Furthermore, ensure there is proper legal documentation for the land such as land title, site plan, and indenture. If you’re not purchasing directly from the original owner, ensure to authenticate the sale with the previous seller as the advance search will reveal. Consult with legal professionals to ensure clear ownership and avoid potential disputes.

District Zoning Plans

One may purchase any piece of land for different purposes. Either to use for agricultural, commercial or residential purposes. It is imperative that you visit the district assembly to ascertain the zoning plans for the area and find out if the piece of land you want to purchase has been zoned for that particular purpose. For instance, purchasing an area zoned for residential purpose and using it for commercial purpose like a factory or piggery for example, will cause you problems in the future as you may not be able to use it for your intended purpose.

During your visit to the district assembly, inquire about the infrastructure development plans for the neighborhood and any upcoming projects. Ascertain whether there are plans for road construction, drainage systems, etc. Additionally, inquire about the availability of electricity and water services in the vicinity or any future arrangements for these amenities. Gathering this information will be invaluable in your decision-making process when purchasing the land.

During your visit to the assembly, gather information on the prerequisites for securing a building permit and any other relevant details.

Soil Type and Land Topography

It is interesting to note that only a few people I talked to, actually considered the type of soil at the site of their land purchase. Depending on what you would want to do on the piece of land, it is important that you at least know the type of soil you have on that land. Imagine building your house on clay soil in a neighbourhood lacking good drainages . How will such a place be during the rainy season and how much money will you spend on an effective drainage system for your structure?

Taking into account the topography of the land is crucial, as the expenses associated with building on various soil types and terrains vary significantly. Some terrains may incur higher costs than others. My recommendation to anyone looking to purchase land is to consider buying it during the peak rainy season, if feasible, to observe firsthand how the rains impact the area.

Natural Hazards

Certain regions in Ghana have been identified as earthquake-prone zones, while others are susceptible to frequent flooding. Therefore, it’s crucial during your due diligence process, along with inquiries at the District Assembly and discussions with neighbors, to ascertain potential risks such as flooding, seismic activity, and infestations of snakes or other animals in the area.

Cost of Land

Verify whether the property is leasehold (with a lease for a set period) or freehold (permanent ownership with the ability to sell). In the instance of leasehold land, inquire about the remaining lease duration. Picture this scenario: You acquire a $100,000 parcel with ten years left on the lease from a secondary owner.
Additionally, inquire about any annual fees associated with the land and their corresponding costs. Never presume that the agreed-upon price with the seller encompasses all expenses.

Conclusion

By taking into account the points discussed above, you can significantly reduce the potential pitfalls associated with purchasing land, whether within the country or beyond its borders. It’s essential not to rush into a land purchase without carefully considering these factors, as doing so could lead to the loss of your investment or the acquisition of land that presents significant development challenges. So, exercise patience, conduct thorough assessments, and make well-informed decisions to secure a successful and trouble-free land purchase experience.