• by George

In Ghana’s vibrant real estate market, understanding the various types of property ownership is not just helpful—it’s essential. Whether you’re a first-time buyer, seasoned investor, or a Ghanaian in the diaspora looking to secure a property back home, navigating the complex landscape of land tenure systems can be challenging. With both customary and statutory systems coexisting, buyers need to be informed to make secure investments.

At Landmark Homes, we believe that educated buyers make confident decisions. That’s why we’ve created this comprehensive guide to help you understand the different types of property ownership in Ghana and what they mean for your investment.

Ghana’s Land Ownership Landscape: A Unique Dual System

Ghana’s land tenure system is characterised by a dual structure where customary practices exist alongside statutory regulations. This dual system emerged from Ghana’s colonial history and traditional governance structures, creating a complex web of ownership rights that can be confusing to navigate.

According to estimates, approximately 80% of land in Ghana falls under customary ownership, with the remaining 20% administered under statutory regulations. This unique system makes it crucial for buyers to understand exactly what type of ownership they’re acquiring when purchasing property.

Freehold Land Title: The Gold Standard

Freehold ownership is considered the most secure form of property ownership in Ghana. When you have a freehold title, you have absolute ownership of both the land and any buildings on it, with the freedom to use, develop, sell, or lease it as you see fit.

Key characteristics of freehold ownership:

• Unlimited duration of ownership (perpetuity)
• Complete control over the property
• Freedom to transfer ownership through sale, gift, or inheritance
• Right to develop or modify the property (subject to planning regulations)
• No rent or lease payments to any superior owner

Freehold titles require proper documentation, including a land title certificate issued by the Lands Commission, boundary surveys, and site plans. While freehold ownership offers the most security, it’s important to note that the 1992 Constitution of Ghana prohibits foreigners from acquiring freehold interests in land in Ghana.

Leasehold Land Title: Time-Bound Ownership

Leasehold ownership grants you the right to use and occupy land for a specific period, typically ranging from 50 to 99 years in Ghana. This form of ownership is particularly common in urban areas and is the primary type available to non-Ghanaians.

Important aspects of leasehold ownership:

• Limited duration (usually 50-99 years)
• Ownership reverts to the lessor (original owner) after the lease expires
• Annual ground rent may be payable to the lessor
• Development rights exist but may be subject to certain conditions
• Lease can be renewed, typically at an additional cost

Leasehold interests are documented through lease agreements, which should be registered with the Lands Commission. For foreign investors, this is typically the maximum interest in land that can be acquired in Ghana, with leases capped at 50 years.

Customary Land Title: Traditional Authority

Customary land ownership is deeply rooted in Ghana’s traditional practices and accounts for the majority of land in the country, especially in rural areas. Under customary tenure, land is held by traditional authorities such as chiefs, families, or clans on behalf of their communities.

Characteristics of customary land ownership:

• Governed by local customs and traditional practices
• Requires consent from traditional authorities for acquisition
• May lack formal documentation compared to statutory systems
• Rights of use and occupation are recognised but may not be formally registered
• Often involves customary ceremonies and traditional protocols

While customary land ownership is legally recognised in Ghana, transactions involving such lands should be formalised through proper documentation and registration to avoid disputes. The Lands Commission has been working toward integrating customary lands into the formal registration system through its Customary Land Secretariats.

State Land Title: Government-Controlled Property

State lands are properties acquired and held by the government for public purposes or in the public interest. The government may exercise its power of eminent domain to acquire land for infrastructure, public buildings, or other state initiatives.

Features of state land ownership:

• Controlled and managed by the government
• Used primarily for public purposes (roads, schools, hospitals, etc.)
• Can be leased to individuals or organisations for specific periods
• Subject to specific regulations and restrictions
• Acquisition often involves formal application processes

State lands that are leased to individuals or organisations typically come with specific terms and conditions regarding their use and development. While these lands often have clear titles, it’s essential to verify that the land has been properly acquired by the state and is being legally allocated.

Provisional Land Title: Temporary Ownership

Provisional land titles are temporary certificates issued by the Lands Commission while the full registration process is underway. They serve as interim documentation of ownership rights pending the completion of all necessary surveys, searches, and administrative processes.

Important facts about provisional titles:

• Valid for a limited time (usually specified on the certificate)
• Must be converted to full title within the specified period
• Offers some legal protection but less security than a full title
• Requires completion of additional documentation for final registration
• May have restrictions on certain transactions until fully registered

While provisional titles provide some level of security, buyers should be cautious and aim to secure full title deeds as soon as possible to avoid complications.

Other Forms of Ownership in Ghana

Stool/Skin Lands

These are lands attached to traditional leadership positions (stools in southern Ghana and skins in northern Ghana) and are held in trust by chiefs for their communities. Transactions involving stool lands require the consent of the chief and traditional council, as well as the Regional Lands Commission.

Family Lands

Family lands are owned collectively by families and managed by family heads. Any transaction involving family land requires the consent of the principal family members, and proceeds from such transactions are typically shared among family members.

Vested Lands

These are lands where the government has taken over the management but not the ownership. The original owners retain their beneficial interest, but the state manages the lands on their behalf.

Risks and How to Protect Yourself

Property ownership in Ghana can come with significant risks, including:

• Multiple sales of the same property
• Boundary disputes
• Unclear or falsified documentation
• Unresolved family or communal claims
• Fraudulent representation by unauthorised individuals

To protect yourself when purchasing property in Ghana:

• Conduct thorough due diligence: 

Verify the seller’s right to sell by checking with the Lands Commission and other relevant authorities.

• Hire professional help: 

Work with reputable lawyers who specialise in real estate transactions in Ghana.

• Visit the property: 

Physically inspect the property and its boundaries with a surveyor.

• Check for encumbrances: 

Ensure there are no outstanding mortgages, liens, or other claims on the property.

• Choose reputable developers: 

Work with established developers like Landmark Homes, who have a track record of clear titles and transparent transactions.

At Landmark Homes, all our developments, including our prestigious projects like The Madison and Sapphire in Labone, come with secure titles and comprehensive legal documentation. Our team handles all the complex legal processes, providing our clients with peace of mind and security in their investments.

FAQs About Property Ownership in Ghana

1. What is the safest type of property ownership in Ghana? 

Freehold ownership offers the most comprehensive rights but is not available to non-Ghanaians. For most buyers, a properly documented and registered leasehold from a reputable developer provides excellent security.

2. Can foreigners own land in Ghana? 

Foreigners cannot own freehold land in Ghana but can acquire leasehold interests for up to 50 years, with the possibility of renewal. Non-Ghanaians can, however, own buildings and structures erected on leased land.

3. How do I verify the authenticity of a land title? 

Title verification can be done at the Lands Commission through a search process. Professional lawyers can assist with this process to ensure thoroughness.

4. What is the difference between customary and statutory land? 

Customary land is governed by traditional practices and held by chiefs or families, while statutory land falls under the formal legal system with documentation prescribed by state legislation.

5. Why should I consider buying from a reputable developer like Landmark Homes?

 Reputable developers like Landmark Homes conduct thorough due diligence on land titles, handle all legal documentation, and provide warranties on their properties, significantly reducing the risks associated with property acquisition in Ghana.

Secure Your Investment with Landmark Homes

Understanding the types of property ownership in Ghana is essential to secure your investment and peace of mind. Landmark Homes offers verified properties with clear titles in prime locations like Sapphire and The Madison. Our experienced team handles all aspects of the legal process, ensuring that your property purchase is secure, transparent, and hassle-free.

Contact us today to explore secure and trusted real estate opportunities tailored for you. Discover the Landmark Homes difference, where luxury meets security in the heart of Ghana’s most desirable locations.