November 3, 2025
Due diligence when buying property in Ghana represents the difference between smart investment and devastating financial loss, as recent statistics reveal that land litigation comprises 52% of all court cases nationwide. Without proper verification procedures, buyers risk joining thousands who lose millions annually to sophisticated fraud schemes.
Dr. Kwame Asante, a US-based Ghanaian physician, lost $50,000 to a land scammer in Accra. His story echoes across Ghana’s property market, where inadequate due diligence has created a crisis affecting investors.
What does proper due diligence mean in Ghana’s property context?
Property due diligence involves systematic verification of ownership, legal status, and authenticity of all property documents. This comprehensive process protects buyers from double sales, forged documents, disputed ownership, and criminal fraud plaguing the market.
The Ghana Supreme Court’s ruling in Dora Boateng v Mackeown Investments revealed that 13 different individuals were registered as sellers of the same 50-acre land between 1984-2014.
Essential steps for conducting thorough due diligence
Lands Commission search forms the foundation of proper verification. This process costs GHS 163 and officially takes 90 days, though realistic timelines extend to 4-12 months. The commission maintains official records of land ownership, transfers, and encumbrances.
Document authentication requires verification with the Ghana Revenue Authority for stamp duty payment. Properties below GHS 10,000 attract 0.25% stamp duty, while those above GHS 50,000 incur 1% stamp duty. Digital processing through taxpayersportal.com completes applications within eight days.
For stool lands, consultation with the Office of the Administrator of Stool Lands and traditional authorities becomes mandatory. Family and customary lands, representing 80-90% of Ghana’s land, require proper consent from heads of family.
Licensed surveyor engagement ensures accurate boundary verification and legitimate site plans. The Ghana Institution of Surveyors regulates practicing surveyors, with licensing fees of GHS 446 plus GHS 290-2,100+ for cadastral plans.
Why legal professionals are indispensable
Legal professionals provide essential protection through contract review, ownership verification, and compliance with local laws. The Ghana Bar Association scales set maximum fees at 10% for properties up to GHS 200,000, representing a worthwhile real estate investment considering fraud risks.
Experienced lawyers navigate traditional authority structures, verify seller authority, and ensure proper registration procedures. They conduct searches at High Courts to identify potential encumbrances.
Critical mistakes that cost buyers millions
Relying solely on verbal assurances represents the most dangerous mistake. Professional criminals exploit buyer trust through sophisticated presentations and fake documentation. Always demand written verification from official sources.
Skipping registration leaves buyers vulnerable to future disputes and legal challenges. Proper registration with the Lands Commission provides legal protection and ownership evidence.
Ignoring encumbrances results in buyers inheriting debts, liens, or legal obligations attached to properties. Thorough searches reveal such issues before completion.
Rushing transactions plays into fraudsters’ strategies. Legitimate sellers accommodate reasonable verification timelines, while scammers pressure for immediate completion.
How smart buyers protect their property investment
Budget 5-15% of property value for comprehensive due diligence costs. This investment provides essential protection against documented fraud schemes that have claimed millions from unwary buyers.
Engage only licensed professionals, including surveyors, lawyers, and registered real estate agents. The Ghana Real Estate Developers Association maintains directories of certified professionals.
Never communicate exclusively with sellers. Conduct independent verification through multiple sources, including neighbours, local authorities, and traditional leaders.
Government digitisation creates new opportunities
The Land Act 2020 revolutionised Ghana’s property market by criminalising land guards with 5-15 years imprisonment and establishing electronic conveyancing systems. The $85 million PDB Ghana Limited partnership, beginning in 2025, will accelerate digital transformation.
The LC Online Portal enables electronic applications, payments, and document retrieval, reducing processing times from weeks to days. Enhanced security features streamline legitimate transactions while deterring fraud.
Due diligence in Ghana’s property market represents essential insurance against epidemic fraud affecting investors nationwide. While government reforms improve transparency, success depends on engaging licensed professionals, conducting systematic verification, and maintaining healthy scepticism.
Frequently Asked Questions
Q: How long does proper due diligence take?
A: Comprehensive due diligence requires 30-90 days for searches and verification.
Q: What are the total due diligence costs?
A: Expect 5-15% of property value, including legal fees.
Q: Can I skip professional legal assistance?
A: Professional guidance remains highly recommended given the complex laws and fraud schemes.
Q: Which documents need verification?
A: Verify land certificates, site plans, survey reports, and permits.
Q: How do I verify developer legitimacy?
A: Check GREDA membership, business registration, and completed projects.
At Landmark Homes Ghana, we understand property acquisition complexities and provide expert guidance throughout the due diligence process. Contact Landmark Homes Ghana today for professional real estate services through Ghana’s property market.