Land-related problems in Ghana are causing serious pandemonium in the real estate investment space. Most often, analysts downplay the effect of land-related issues, resulting in severe investment losses for investors.
In the courts of Ghana, there are numerous land dispute cases over real estate assets, such as litigation, double sales, encroachment, and other chieftaincy conflicts over lands, which are becoming serious investment challenges in the country.
In this comprehensive article, we’ll examine the effects that land disputes have on real estate investors and their potential to shape the landscape of real estate investment in Ghana. Land disputes are more than just legal conflicts; they can destroy the real estate market in Ghana.
What Is A Land Dispute?
A land dispute occurs when there is a misunderstanding between two or more separate entities over a parcel of land. In some instances, these parties all feel like they have a legal claim to that piece of property. In a nation like Ghana, where land is considered a valuable asset and highly sought-after, disputes are bound to happen. However, there should be a sound resolution to counter such situations.
What Are The Causes of Land Disputes in Ghana?
In Ghana, land disputes are happening almost every day, and in most cases, there is no clear winner or loser once everything is over. The following are some of the causes of land disputes in Ghana.
1. Land Encroachment
This is the most common type of land dispute in Ghana, where people of authority occasionally seize land belonging to private individuals. In the event of such conflicts, the land documents will help to adjudicate the case and determine the actual owner of the land.
2. Multiple Land Sales
In Accra in particular, there is a habit among some chiefs, heads of clans, and families, as well as land owners, of engaging in multiple sales of lands. Multiple land sales happen when a piece of land is sold to different buyers, with both buyers having authentic documents. A situation that often results in conflicting claims of ownership over one parcel of land. Given this, each buyer believes they have acquired the right of ownership, leading to legal battles over who holds the valid title to the land.
3. Insufficient Land Documentation
Most people who buy land in Ghana do not get adequate documentation. It is very common for land buyers in Ghana to hold a consent document from a chief or clan head as their sole document to claim land. However, this single document will be insufficient for legal claims and can pave the way for contradictory claims and disputes over any parcel of land in Ghana. 4. Adverse Possession Claim
Adverse possession is another cause of land disputes in Ghana. This is the legal process by which courts grant land titles to an occupier of a property who is not the owner. In this case, a squatter of a piece of property gains title and ownership of that property after living on the property for a certain period of time without interference. In Ghana, if a trespasser has possessed a property for 10- years, he can successfully claim land under adverse possession.
5. Intra-Family Dispute
It is instructive to point out that intra-family disputes over land in certain parts of Ghana cause severe land disputes among family members on land use, rights, and inheritance. For instance, if a family member passes on without writing a will, disputes can arise among heirs over the distribution of inherited land.
The Effects of Land Disputes on Real Estate Investment in Ghana
Land disputes have over the years created an unpleasant experience in the real estate market in Ghana, though investors believe that the market is still open for more opportunities. Here are some of the challenges real estate investors face because of land disputes in Ghana:
1. Stalled Investment Projects
Ghana’s ambitious development agenda involves facilitating investment for economic growth, infrastructure development, and social progress. Yet, thousands of investment projects have been stalled due to land dispute cases in Ghana. The very common reason for so many uncompleted housing projects aside from financing is because of land-related disputes. This is common on privately held lands; at least 80 percent of stalled projects in Ghana are on private lands.
2. Expensive Home Pricing
Where there is a dispute over investment land, it goes a long way toward affecting the final project price. To some extent, land disputes can result in increased construction costs because of delays in legal proceedings. It is interesting to know that a real estate investor cannot consume certain charges since their sole aim is to maximize profit to be able to amortize outstanding mortgages. So, of course, you should understand why housing is so expensive in Ghana.
3. Delay in Property Transactions
The common problem faced by real estate investors is the time it takes to process land transactions, which is attributed to land dispute cases in Ghana. Due to the fact that land dispute cases are popular in the country, seasoned investors always make sure that all the necessary documentation is in place before the transaction is signed and completed. Sometimes real estate investment in Ghana becomes frustrating because of the uncertainty land disputes may create for investors.
4. Decrease Property values
Land disputes have significant effects on real estate investment in Ghana. Imagine buying a plot of land in Accra, starting construction, and later finding out that the land has numerous cases in court. Even after everything is said and done, it will negatively impact the property value. This is because potential buyers may perceive the property as risky for investment.
5. Makes the Market Unattractive
Ghana is currently facing this problem because of land dispute cases. The number of land dispute cases is deterring investors and reducing the financial returns on investments in the country. Land disputes can negatively affect the perception of an area or neighbourhood. Potential investors may view the area as unstable or risky, impacting demand and property values beyond the specific property in question.
Conclusion
It is important to know that real estate investors will not endanger their investment capital by buying disputed land. Because of the fear of potentially losing their investment in the long run. This explains one more reason why investors may become hesitant to invest in areas that are prone to land disputes in Ghana.
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