It is common practice for businesses to invest in commercial property in Ghana. This is usually done to expand the business in order to gain more profit. However, like all matters involving real estate in Ghana, navigating commercial property ownership is complex. It is therefore important for businesses to know and understand how the real estate system in Ghana operates in order to prevent losses.
- 1. Land Ownership Regime in Ghana
- 2. Conduct Due Diligence
- 4. Obtain Relevant Permits
- Depending on the use of the land, a business may need to obtain permits like building permits from the District Assembly and environmental permits from the Environmental Protection Agency.
- 5. Review the Purchase Agreement
- 6. Registration
Here are some legal considerations every business should know before acquiring commercial property.
1. Land Ownership Regime in Ghana
There are different ways people or businesses can own land in Ghana.This includes allodial title, customary freehold, and usufruct. But let’s be real; most businesses go for a lease. If the company is Ghanaian, it can lease land for up to 99 years. If it’s a foreign company, it’s usually capped at 50 years. Each type of land right comes with its own rules, so it’s important for any business to know exactly what kind of deal they’re getting into before signing anything.
2. Conduct Due Diligence
Before buying any commercial property, a business needs to do its homework. This means checking that the land actually exists, that the seller is the real owner, and that no one else is fighting over it. Skipping these steps could lead to expensive legal battles or even losing your money. A good place to start is by doing a search at the Lands Commission. It also helps to visit the land yourself and talk to people in the area to find out what they know.
3. Get Owner’s Consent
Where the land is owned by a stool or the government, a business may need prior written consent from the relevant authority or traditional council. Failing to acquire this consent may make the transaction void.
4. Obtain Relevant Permits
Depending on the use of the land, a business may need to obtain permits like building permits from the District Assembly and environmental permits from the Environmental Protection Agency.
5. Review the Purchase Agreement
The business must make sure the Agreement clearly describes the property, includes the price, and explains what the seller and the business are each responsible for. This helps make it easier to settle any disagreements that might come up later.
6. Registration
After signing the Agreement, the business may register the property with the Lands Commission. This gives them a better title to the property than any other person who may register the land in the future where there is a double sale.
In conclusion, acquiring commercial property in Ghana is not just a business transaction but a legal process that needs careful attention to avoid losing money. It is important to consult qualified legal and real estate professionals. They can help check all the details properly and make sure everything follows the rules, so your investment is safe and profitable.
Philipa N. A. Sima Nuamah on behalf of OSD and Partners. [email protected]
