Buyer Beware: Things To Note When Buying a Property in Ghana

Buying a house in Ghana is a major decision. While you embark on the journey of property ownership in Ghana, there are several things you need to be aware of to ensure a smooth and successful transaction. So, in order to navigate the process with clarity and purpose, having criteria for your dream home and neighborhood could mean the difference between finding the right fit—or making a mistake.

The Home Hunting Stage Of The Buying Process

The home hunting stage in Ghana is an interesting aspect of the buying process. At this stage, you are expected to have a sheer number of properties available for sale. Depending on your preferences and budget, you can have over 100 options to choose from. However, locating the best properties in Accra that meet your specific requirements can be challenging.

To start your search, it's essential to explore your preferred neighborhoods thoroughly. This can involve physically visiting the areas, asking locals about properties for sale, and searching online. Many applications and websites, such as PropHunt, Ghana Property Center, and MeQasa, list properties available for sale or rent in Ghana.

While these resources can be helpful, it's often advantageous to employ the services of a reputable real estate agent or company. Real estate professionals have extensive knowledge of the market and access to properties that may be private. They can provide valuable guidance, assist with negotiations, and ensure a smooth buying process.

When working with a real estate agent, it's crucial to communicate your specific requirements. Discuss your budget, preferred location, property type, and other essential factors. A good agent will listen attentively and tailor their search accordingly.

Once you've identified a few potential properties, it's time to arrange viewings. This is an excellent opportunity to assess the condition of the property, its layout, and its surroundings. Take your time during viewings, ask questions, and take notes.

10 Things To Note When Buying A Property In Ghana

It’s critical to be aware of certain things when planning to purchase a house in Ghana. Here are some important things to note when buying a property in Ghana:

1. Title Verification

Once you have found the perfect house in Accra, the next thing to consider is to find out the authenticity of the seller’s ownership status. To have a smooth home purchase transaction in Ghana, it is essential to verify the property's title to ensure its legitimacy. Engage the services of a professional lawyer to conduct a thorough title search, verifying that the seller has the legal right to sell the property and that there are no outstanding encumbrances or disputes.

2. Land Registration

In Ghana, land registration is crucial for securing ownership rights. However, most lands do not have lease documents from the Lands Commission making it vulnerable to double sales. That’s why it is crucial to ensure that the property is registered with the Lands Commission. Incomplete or outdated land registration documents can lead to complications in the future.

3. Due Diligence

You have now found your dream that you wish to buy in Accra. Wait, before you commit to paying, be sure to conduct a thorough inspection of the property, in this case, the house. Inspecting the property before buying will help to identify any potential issues or defects. Consider factors such as the property's location, proximity to amenities, future development plans, and zoning regulations.

4. Don’t Be Too Emotional

Buying a home in Ghana can be an emotional endeavor, particularly for first-time buyers. The excitement of finally owning a piece of property is often accompanied by a mix of stress and anxiety. Buyers must navigate these emotions while staying focused on the technical aspects of the purchase. Working with professionals such as real estate agents, lawyers, and financial advisors can provide invaluable guidance and support throughout the process.

5. Hire Professionals to handle it

Seek the advice of experienced real estate professionals, including real estate agents, lawyers, and surveyors, who can provide valuable insights and guidance throughout the purchasing process. Their expertise can help you make informed decisions and avoid potential pitfalls.

6. Property Valuation

Before you go on to negotiate the price of the property, you must obtain an independent property valuation to determine the fair market value of the property. This will help you negotiate a reasonable purchase price and ensure you are not overpaying. Most of the time homebuyers in Ghana have a budget for their dream home not knowing the actual value of the home they want to buy. This often results in overpaying for a property that costs less than the sold price.

7. Sales Agreement

The sales agreement contract is important documentation for purchasing a house in Ghana once you have reached an agreement with the seller. This document is a legally binding sales agreement that should be drawn up. It should outline the terms of the sale, including the purchase price, payment schedule, and any other relevant conditions. This is particularly necessary to avoid gazumping.

8. Land Use Planning

Familiarize yourself with the local land use planning regulations to ensure that the property you are purchasing complies with the designated zoning and development plans. This will help prevent future conflicts or legal issues. In certain cases, an environmental impact assessment may be required before construction or development can commence on the property. Consult with the appropriate authorities to determine if this is necessary.

9. Property Taxes

In Ghana, owning real estate comes with certain financial obligations, including property taxes. These taxes vary depending on the municipality where the property is located and the type of property. Understanding these taxes is crucial for anyone looking to own a house in Ghana.

There are two main types of property taxes in Ghana:

1. Ground Rent: Ground rent is an annual tax levied on all landed properties, whether developed or undeveloped. It is typically a fixed amount determined by the MMDAs and is payable by the landowner or leaseholder. Ground rent is often used to fund local government projects and services.
2. Property Rate: Property rate is a tax levied on developed properties, such as residential buildings, commercial establishments, and industrial complexes. It is calculated based on the assessed value of the property, which takes into account factors like the size of the building, the number of rooms, and the condition of the property.

10. Long-Term Plans

Consider your long-term plans for the property. Whether you intend to use it as a primary residence, a rental investment, or for commercial purposes, having a clear vision will help you make informed decisions about the purchase.

Conclusion

Remember that buying a house is a significant financial investment, so it's essential to do your due diligence. Research the market, consult with professionals, and make informed decisions. With the right approach, you can find the perfect property in Ghana and enjoy the benefits of homeownership.