Real estate agents and brokers operating without a licence in Ghana risk up to 10 years in prison under the Real Estate Agency Act, 2020 (Act 1047), as the Real Estate Agency Council (REAC) steps up enforcement of the law.
The legislation criminalises unlicensed real estate operations and other breaches, including document falsification and the acceptance of cash payments for property transactions. Depending on the offence, practitioners could face fines, imprisonment, suspension or revocation of their licences.
David Pappoe, Head of Anti-Money Laundering and Compliance at REAC, said the law prohibits individuals from providing brokerage or agency services without a licence issued by the Council.
“Section 22 says that no person must provide real estate services as a broker or agent, or engage in any transaction without a licence from REAC. So, that means when you operate without a licence, it’s a criminal offence,” he said.
Mr. Pappoe was speaking at a webinar organised by the UK-Ghana Chamber of Commerce and Akka Kappa Ghana Ltd. on compliance and enforcement in Ghana’s real estate market.
He said administrative breaches could attract a fine of 1,000 penalty units, equivalent to GH¢12,000, while criminal offences could attract fines ranging from 5,000 to 10,000 penalty units or prison terms of between five and 10 years.
He also warned practitioners against accepting cash payments for property transactions, explaining that the law requires real estate businesses to operate on a cashless basis.
“It is a cashless sector now for real estate. Not even GHS1 must be taken in the form of cash…When you accept cash, then it means you are in breach of the Act,” he said.
Buyers told to verify agents before paying
REAC is also calling on prospective property buyers to check the registration and licensing status of agents, brokers and other practitioners before entering into transactions.
Mr. Pappoe advised the public to report suspicious financial transactions to the Financial Intelligence Centre (FIC), while complaints involving clients, developers, brokers and agents should be referred to REAC.
Ethel Elizabeth Abruquah, a lawyer at Legal Ink in association with Clyde & Co, said buyers needed to conduct independent checks on properties before making financial commitments.
“Before committing to acquiring property in Ghana, it is very important to make your own independent verifications,” she said.
She recommended verifying property ownership, conducting searches at the Lands Commission and seeking legal advice where necessary.
Ms. Abruquah also reminded real estate practitioners and lawyers covered by Ghana’s anti-money laundering framework of their obligations to verify customers, report suspicious transactions and maintain the required records.
REAC moves to identify unregistered operators
Acting Chief Executive Officer of REAC, Emmanuel Jeffrey, said licensing remained central to the Council’s efforts to identify practitioners and strengthen oversight of the industry.
“The most important thing for me is the licensing,” he said, explaining that the Council wanted all persons operating in the sector to be registered and captured in its database.
He said REAC was working with institutions including the FIC, Bank of Ghana, Lands Commission and Ghana Revenue Authority to improve compliance.
The Council is also engaging local assemblies and other stakeholders to address the activities of unregistered operators advertising properties.
Established under Act 1047, REAC is responsible for licensing practitioners, maintaining a national register, setting professional standards, inspecting premises and enforcing discipline in the industry.
The law covers developers, brokerage firms, brokers, agents, property managers, marketers, salespersons and other individuals providing real estate services.
Licensed practitioners are also required to use forms issued by REAC, maintain separate client accounts, retain records for at least five years, submit quarterly transaction reports and annual audited accounts, and obtain professional indemnity insurance.
Industry backs stronger regulation
Edoardo Castagna, Director of Akka Kappa Ltd., described the establishment of REAC as an important step towards professionalising Ghana’s real estate industry.
He said difficulties in verifying property ownership, inadequate information and the continued presence of informal operators remained major challenges for buyers and investors.
He expressed hope that greater public awareness of the Council’s work would help buyers distinguish licensed practitioners from unregistered operators and improve confidence in the property market.
The webinar, moderated by Michael Taabavi, Trade and Investment Advisor for Infrastructure and Energy at the UK Department for Business, Innovation and Science, also examined licensing requirements, anti-money laundering obligations and REAC’s code of conduct and ethics.
