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HOUSING GUIDE ACCRA 2015

HOUSING GUIDEACCRA 2015

Buy, sell and rent property online

www.lamudi.com.gh

Questions All Property

Hunters Should Ask

Page 4 – 8

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HOUSING GUIDE ACCRA 2015

Ashanti

Brong-Ahafo

Central

Eastern

Greater Accra

Northern

Upper East

Upper West

Volta

Western

INTRODUCTIONThe Lamudi Housing Guide – Accra Edition is a manual published yearly.

It serves as a resource for individuals and investors and provides real

estate agencies, apartment owners and property managers the

opportunity to directly showcase their available housing options to our

readership. From decorating tips to FAQs and checklists about renting,

this guide has it all.

Use it as a starting point to navigate the tricky business of obtaining

property in one of the most opaque, yet promising, housing markets

in Africa. If you have any feedback or a specific question related to

finding housing, please contact us.

HOUSING GUIDE ACCRA 2015

Contact: Lamudi Ghana: +233 (0)54 451 0009 contact@lamudi.com.gh

HOUSING GUIDE ACCRA 2015

Page 4 : Questions All Property Hunter in Accra Should Ask >>

Page 9 : Rent or Own: The Pros and Cons >>

Page 12 : Starting Online with Lamudi >>

Page 13 : Renting a Residential Property in Accra >>

Page 16 : Buying a House in Accra >>

Page 17 : Navigating the Mortgage Market >>

Page 20 : The Basics of Land Ownership in Accra >>

Page 24 : Property Taxes in Accra >>

Page 27 : Safety Phone Numbers & Resources >>

CONTENT

HOUSING GUIDE ACCRA 2015

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HOUSING GUIDE ACCRA 2015

QUESTIONS ALL PROPERTY HUNTERS

SHOULD ASK Accra’s real estate market is full of exciting properties

that offer great amenities and location perks. To make the most of

these options, there are certain questions particular to the country

all property hunters – renters and buyers – ought to ask, some of

which might not seem apparent at first.

HOUSING GUIDE ACCRA 2015

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HOUSING GUIDE ACCRA 2015

1. Is the individual or firm selling the property credible?

If you consult a firm, is this company part of any major real estate organizations, like the Ghana

Real Estate Developers Association GREDA or the Ghana Real Estate Professional Association

GREPA? Where did you learn of the seller? From a trusted site like Lamudi, or through uncautious

Internet browsing? For how long has the company existed? How familiar is he or she with

current real estate laws and regulations? Is the real estate or developer company registered?

2. Why does the seller/landlord wish to sell/lease the property?

1. Is the neighborhood suited to your needs?

Are there schools, hospitals, amenities, markets, grocery stores, sports clubs,

nightspots, restaurants, embassies, police stations, religious establishments,

and transportation options in the neighborhood that meet your preferences?

2. Is there heavy noise from animals, airports, busy roads, open-air

markets, construction sites, churches, revival halls, mosques,

other religious establishments, or other public spaces? Do neighbors

produce noise late at night or early in the morning (i.e. singing, chanting,

children going to school, people coming home from bars, etc.)

3. What is the sanitation situation? Are there open sewage gutters near

the property? How wide are they? Might they pose a hazard to your children,

elderly relatives, or vehicle? Is the property near a beach that contains garbage

or pollution? Is it located near a freshwater body that might attract mosquitos

and other insects? Is there a well-established system for garbage disposal

(i.e. in a gated community), or are you expected to dispose of your own waste?

Does the property contain a Western style toilet, shower, and

sink, or are alternative methods used?

4. Are there adequate sidewalks or pedestrian walkways

where you can move freely beside cars on the road?

Seller/ Landlord / Developer

Get to Know the Location

HOUSING GUIDE ACCRA 2015

IS THE NEIGHBORHOOD SUITED TO YOUR

NEEDS?

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HOUSING GUIDE ACCRA 2015

1. Are there other properties (for either rent or purchase) in the neighborhood?

For how much are they selling? Is the property you’re examining a price outlier?

2. Have other offers been made on this property?

3. For how long has the property been on the market?

4. What is the expected up-front deposit?

5. In which currency is the property listed? How might this affect

your ability to pay?

6. What is the seller’s willingness to negotiate the price?

1. Do you feel safe in the neighborhood? What is the neighborhood’s

reputation amongst Ghanaians who don’t live there? Amongst other

foreigners (if applicable)? Are the streets in the neighborhood well-lit and

well-populated at night? Are there many stray animals that might pose a risk to

your health and safety?

2. How long does it take to walk to the nearest police station?

3. Is the property unusually nice or poor compared to others in its neighborhood?

4. How reliable and legitimate is the seller or lessor of the property?

Does he or she live in or near the property?

5. Do the neighbors speak a language that permits mutual understanding and communication?

6. Does the property come with 24-hour security, or are you expected to provide it yourself?

How many security guards are there? Is there a gated security fence, wall, or other structure?

Is this gate operated manually by you or a guard or automatically using

a remote? Are there security cameras on the property? Where are they

situated? Is there a guard dog or other animal that might mistakenly

pose a hazard to you or your family?

7. Is the parking garage directly connected to the main entrance

of the property, or will you walk away from the secured garage

premises to access main entrance? Will you have to park your car

in the street?

Check the Security

Compare Pricing

DO YOU FEEL SAFE IN THE NEIGHBOR-

HOOD?

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HOUSING GUIDE ACCRA 2015

1. Is there a reliable supply of electricity and water? Which parts of the

neighborhood experience power cuts most frequently? For roughly how

many hours, on average, might you be without power each day?

2. Does the property come with a generator? Are you expected to

maintain it and/or supply fuel, or is this responsibility covered by

another party in the terms of the lease or purchase agreement?

3. Does the property have its own water tank? What is your

contingency plan in case of water or power failure?

4. Do street lights work in the evenings, if they exist at all?

Does the property allow for a smooth daily commute to work, university, or your child’s

school? Will your daily travel time feel comfortable?

Is the property located in an area that puts your daily commute in the flow of traffic or

against it? Are there side streets and alleyways in the neighborhood that might allow you to

bypass heavy traffic? Is the property located near a busy road that might pose a hazard for

children, pets, or the elderly?

Is there a reliable supply of public transit and taxis in the area,

or will you need to walk some distance to reach them?

What is the quality of the roads? Will your vehicle’s tires be able to

handle potentially poorly paved roads?

Might you be able to carpool with other neighbors?

Are you allowed to keep pets on the property?

Do zoning laws forbid you to host multiple families on the property?

Are you allowed to use the property as a residence and an office?

What parking laws govern the neighborhood?

Rules and Regulations

Traffic and Commuting

Electricity and Water

WILL YOUR DAILY TRAVEL

TIME FEEL COM-FORTABLE?

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HOUSING GUIDE ACCRA 2015

When was the property built? Who occupied it previously?

How many rooms are in the property?

Is the structure and layout of the property suitable to your needs?

Is the property furnished, semi-furnished, or totally unfurnished? How

many stories does the entire property contain? Which stories will you

use? Is there ample space for food preparation? Is the stove gas- or

electric-powered? What is the layout of the rooms? Are there any that

might be off-limits to you? Is there adequate closet space? How close is

the property to other units, houses, or compounds?

Does the property’s structure provide adequate protection against poor weather

(i.e. during the rainy season)? Is there water damage in the walls, closets, or gutters?

Have the basement or lower levels of the property ever flooded?

Does the design of the roof encourage water to seep into or away from the property?

Are there cracks in the roof? Have electrical fittings faced damage?

Is the property well-insulated against heat? Is there air-conditioning?

What types of building materials were used to construct the property?

What level of responsibility would you bear for any damages to the

property caused by you or your guests?

Does the property need repair, either aesthetic or structural?

If so, how much money would it cost you to repair or remodel the

property to your preferences? Is the opportunity cost of doing so too

high? What advice or commentary does the real estate agent, broker,

or apartment owner provide about handling these repairs?

Is there a pool, garden, tennis court, backyard, and other outdoor

amenities? Are they exclusively yours or will they be shared with others?

Who is expected to maintain these facilities? Is the outdoor area enclosed

and separated from other properties?

Are there reliable contractors in the neighborhood who might be able to

promptly address your maintenance needs?

Structure and Maintenance

DOES THE PROPERTY NEED

STRUCTURAL REPAIR?

HOUSING GUIDE ACCRA 2015

RENT OR OWN ? THE PROS AND CONSPeople interested in obtaining property in Accra have two primary options: renting and owning.

Like in any market, both present benefits and challenges. However in Accra, a variety of factors,

including cost, availability, and location, impact renters and buyers differently. Ultimately, acknowl-

edging these factors and individual preferences will help identify the pros and cons of both options.

According to our 2014 annual report, “The State of Real Estate in

Ghana,” only 13% of Ghanaian adults own houses, whereas 60%

can afford to rent. At least 13% of the population can afford neither,

reflective of a clear need for more affordable housing options.

Current estimates put the national housing deficit at 1.7 million

units, representing both a major opportunity for investors in

houses in Ghana, but also a major challenge for lower- and middle-

income buyers.

HOUSING GUIDE ACCRA 2015

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Only 13%

of Ghanaian adults

own houses

Oth

er

Tenants

House Owners

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HOUSING GUIDE ACCRA 2015

RENTING A RESIDENCEAccra contains many neighborhoods that offer a variety of condominiums and

traditional flats for rental, often to expatriates. There are advantages as well as

particular challenges existing in the rental market.

Contra Renting: • Difficulty finding apartments for short-term stays,

let alone affordable ones

• Requests from landlords to pay between 1 - 3 years of rent in

cash up front, or commit to a contract of this length

• Potential eviction by the landlord on short notice for personal

or family use (the Rent Act of 1963 does mandate, however,

that some time be given for evictees to secure new housing)

• 8% tax on income generated from collecting rent

Pro Renting: • Highly negotiable rent prices

• No individual responsibility for security or building maintenance

• Flexibility in the duration of one’s stay

• Having a contingency for failure to qualify for a home loan

The Ghana Rent Act allows

the landlord to any time call

back their property for

their own use.

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HOUSING GUIDE ACCRA 2015

BUYING A RESIDENCEBuying residential property in Accra remains a worthwhile investment.

The robust property market has attracted not only expatriates and foreign

investors, but also repatriated Ghanaians and middle- to high-income citizens.

However the market also poses significant challenges, particularly related to

pricing, access to capital and macroeconomic policy.

Contra Buying: • High costs of buying property

• Sellers’ and agents’ heavy emphasis on the narrow luxury sector of the

market at the expense of affordable housing for middle-income buyers

• Extremely high mortgage interest rates that are unfavorable to most buyers

• Long-term commitment, financial and otherwise, to the property

Pro Buying: • A chance to realize robust returns on investment in a

growing market

• Low property tax rates and highly negotiable prices

• National housing deficit puts home ownership at a

high premium

• A variety of locations, property styles, and amenities

• Ability to establish a long-term base and account for the

tastes and family preferences

Our 2014 report put the

annual growth rate of the

Ghanian real estate

sector at 11%

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HOUSING GUIDE ACCRA 2015

STARTING ONLINEGone are the days when you had to drive between neighborhoods in

search of ‘For Sale’ signs or browse newspaper advertisements for

apartment vacancies. Whether you choose to rent or buy, it’s always best

to begin your search for a new property online. The digital marketplace is an

ever-expanding space, and as realtors and apartment owners become more

savvy to Internet marketing practices, they have begun to rely on digital resourc-

es to generate interest in their properties.

Lamudi is a global online real estate marketplace

that allows consumers to search for properties and sellers

to advertise what they have available. Based on location, prices,

amenities, and other features, buyers can tailor their property search

to their needs. Our product allows buyers and sellers to synthesize

their interests in a streamlined manner. Ultimately, beginning one’s

search online reduces the stress and opacity of the process.

HOUSING GUIDE ACCRA 2015

Real Estate Agents:

Starting the search online, however, is no substitute for consulting the services of a real estate agent.

Lamudi is not a real estate agent or broker; rather we allow companies to advertise their properties on our

website. In a tricky market like Ghana, relying on the advice of a trustworthy

real estate agent is key.

Lamudi provides real estate agents with the tools to access the robust digital

marketplace. We host property listings and advertisements for agents, brokers and

developers. We also publish expert insights about the market. Agents who list on

Lamudi are directly connected to potential buyers. Furthermore, real estate agents

can gauge consumer interest in specific locations and building styles.

“Lamudi provides agents with the tools

to access a robust digital marketplace.

HOUSING GUIDE ACCRA 2015HOUSING GUIDE ACCRA 2015

RENTING A RESIDENTIAL PROPERTY IN ACCRA

Property Prices

Apartment prices in Accra can be quite high, even for rentals. In all of the top ten most expensive

locations in the city, the median per bedroom yearly rental price exceeds €10,000. In the first

quarter of 2015, the yearly per bedroom price in two of the city’s most costly areas, Airport City

and Airport Residential, exceeded €13,000, while North Ridge, Cantonments, and Ridge

followed closely behind as three other pricey areas for apartment rentals.

House rental prices closely resemble those of apartments, the area with the

most expensive median per bedroom yearly rent being Ringway Estates at

€14,782. All with median per bedroom yearly rent above €12,000, Ridge,

North Ridge, Airport West, and Cantonments contain some of Accra’s most

expensive house rental real estate as of the first quarter of 2015.

Popular Neighborhoods

The five most highly demanded neighborhoods in Ghana, as measured by the number of

searches on our website in May 2015, are all in the Greater Accra region. The prime residential

neighborhood of East Legon took the lead, with Spintex, Cantonments, Trassacco, and Airport

Residential among Accra’s hottest neighborhoods as well. Generally speaking, property supply

corresponds with property demand in Accra’s top areas. East Legon contained the greatest

number of listings, with Spintex, Cantonments, Dzorwulu, and Airport Residential also

maintaining a high supply of properties.

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“In all top ten most expensive locations in Accra, the median per bedroom yearly rental

price exceeds €10,000.

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HOUSING GUIDE ACCRA 2015

FOR TENANTSAnyone who wants to rent and occupy a property for a specified period of time is

known as a tenant. Tenants receive draft tenancy agreement (lease agreement),

from either an agent or the landlord, that contains stipulations of rental costs and

expectations for all parties involved.

Short-Term Rentals:

The overwhelming tendency in Accra is for leases to

last between one to three years, with a substantial

portion of the rent due up front. For expatriates

uncertain about the duration of their posting in

Ghana or young local professionals undergoing a

life transition, relatively long-term rentals are ideal.

However, rental properties for shorter-term stays

(i.e. one to six months) are less commonly available.

Nonetheless, it is still possible to find accommodation

for this length of time. One popular option is serviced

apartments that provide full furnishings for limited

durations and are still cheaper than hotel rooms.

Expatriate and professional networks, travel forums,

and local friends and family are great options to begin

the search for rental properties for less than

six months.

Tenancy agreements should include:

• The names of the tenant and landlord and

the property address

• The rental costs (and regulations governing

potential changes to these costs)

• The duration of the lease and upfront

deposit costs (including security deposit)

• The obligations of landlord and tenants:

furnishings, utilities and other provisions

guaranteed by the landlord.

• The parties expected to maintain the

building or apartment unit

• Rules and regulations (i.e. noise, pets,

children, etc.)

• The terms and conditions of termination of

the agreement

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HOUSING GUIDE ACCRA 2015

TENANCY AGREEMENTSIn Accra, all of the mentioned tenancy specifications are negotiable. If you as

a tenant feel uncomfortable with any of the stipulations, do not hesitate to

ask the landlord to incorporate them into the agreement. For example, if the

initial asking price is too high (which it often is), attempt to reach a happy

medium with the landlord. If the landlord is not inclined to meet your

conditions, walk away from the property.

Tenancy agreements must follow Ghanaian law. Especially for expatriates, the importance

of signing a good contract cannot be overemphasized in order to ensure a clear

roadmap such that both parties know what to expect.

The Rent Act (Act 220) was established in 1963 and mandated the Rent

Control Division as the body to monitor guidelines that manage tenant-land-

lord relationships. Lawmakers developed the Act to prevent undue evic-

tions by landlords and to protect tenants against unforeseen changes to

lease agreements and rental costs. Still, a court can order the vacation of

the tenant from a property should the landlord choose to renovate it or re-

quire it for immediate personal use. In case of eviction, the law provides the

tenant a period of time, typically three months, to secure new accommodation.

If you have any issues with your landlord, start by

reviewing the original tenancy agreement in detail and

talking with your landlord. If you need third-party assistance, the

best option is to speak to the Rent Control Division. Should the need

absolutely arise, the legal system is available to handle real estate

disputes as a method of last resort at your discretion.

“If the landlord is not

inclined to meet your

conditions, walk away

from the property.

HOUSING GUIDE ACCRA 2015HOUSING GUIDE ACCRA 2015

BUYING A HOUSE IN ACCRA

Homeowners’ Insurance:

If the June 2015 floods in Accra taught us one thing, it’s that the value of precautions to safeguard

one’s health, safety, and livelihood is immeasurably high. The same lessons apply to those buying

homes. But unlike in the United States and other countries where compulsory fire insurance for

homeowners and businesses is heavily enforced, similar mandates typically go unheeded in

Ghana where, according to a 2014 report on the insurance sector in Africa published by KPMG,

the insurance market has a penetration rate of only two percent.

Homeowners should expect to buy fire insurance that typically covers fire and other occurrences,

like explosions, gas leaks, natural disasters, and civil disturbances. Variously priced tiers of

insurance offer various levels of coverage, some just for fire, others for a range

of calamities. While insurance represents an additional cost, it should not be

ignored; the cost of rebuilding a fire- or flood-damaged house out of pocket

undoubtedly exceeds one’s monthly insurance payments.

According to another KPMG report, SIC Insurance, Star Assurance, Enterprise

Insurance, Metropolitan Insurance, and Vanguard Assurance were five of the

largest non-life insurance providers in Ghana, but many foreign and local

competitors exist. Furthermore, a budding micro-insurance industry

represents another opportunity for homeowners to secure insurance products.

The key is to choose the right insurance company with terms and conditions that suit your needs.

You are expected to pay a monthly premium and should you face an unexpected disaster, the

insurance company should pay the amount of your claim.

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“Choose the right insurance company

with terms and conditions that suit

your needs.

HOUSING GUIDE ACCRA 2015

NAVIGATING THE MORTGAGE MARKET

Some people can purchase properties outright with their savings, but

most have to secure mortgages in order to buy. Mortgages are loans

used in acquiring real estate, where the property being acquired is

used as collateral. In Ghana, mortgages can be acquired from banks

and other financial institutions.

An interest rate is the amount of money paid on the loan or the cost

of the loan. There are two main types of interest rates: fixed and

variable. The type of interest rate of the mortgage facility is left to

the individual to choose.

%

% %

17

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HOUSING GUIDE ACCRA 2015

Self-Build Mortgage (SBM):

SBM is the loan to apply for if you are interested in

building your own home. For most of the SBMs, the

money for each stage is usually only paid out once it

has been completed and a valuator has visited the site.

Home Purchase Mortgage (HPM)

HPM is designed purposely for people who intend to

buy a house. The borrower is made to pay a minimum

15 percent deposit, with the remainder of the loan

payment spread between 15-20 years.

Home Completion Mortgage (HCM)

HCM is a type of loan designed for people who already

started the building process but stopped along the

way due to financial problems. The uncompleted

house could have initially been funded by the owner’s

own money, his employer, bank or another mortgage

company. From the list above, you can then determine

the type of mortgage you require. Once this is done,

you would need to submit a completed application

form. Depending on the bank, you can do this online,

or download, print, then scan and email a completed

form. Alternatively, you can submit an application in

person at a banking premises. You will also need to

decide whether you want to file an application by

yourself, or jointly with two or more related people.

Fixed Interest Rate:

As the name implies, the interest on the rate of the

mortgage does not change over its lifetime.

Fixed rates are a good choice if you believe interest

rates are likely to increase. Even when they increase,

the rate of the loan will remain steady.

Variable Interest Rate:

With this type of interest rate, the monthly payment

may rise and fall over time with the inflation rate. This

could be a good option if you believe the interest rate

will head downwards, since repayments are reduced

as the rate falls. However, if interest rates start to rise

again, your monthly repayment shall rise accordingly.

It is important to stay educated on the rate of inflation

and research how this has fluctuated in recent years

before making your decision.

TYPES OF MORTGAGES

Documents required to apply:

1. Two Proof-of-Address Forms

2. Proof of Income

3. Two Forms of Personal Identification

4. Recent Banking Statements

5. Credit Reports

6. Offer Letter

7. Letter of Intent

8. Facility Letter

9. Professional Appraisal

10. Final mortgage agreement, signed and

witnessed, which may be done through

Power of Attorney

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HOUSING GUIDE ACCRA 2015

GHANAS’ CURRENT MORTGAGE TRENDSMortgage interest rates in Ghana are exceptionally high. In comparison

to the United States where the fixed mortgage interest rate runs at 3.87

percent (as of 4 June 2015), the same product in Ghana can run upwards of

12 percent. Oftentimes, many banks offer base rates between 25-30 percent,

depending on creditworthiness. Institutions that offer these services, among others,

include Ecobank Ghana, SG-SSB, CAL Bank, HFC Bank Ghana, and Ecobank Transnational. With

a rapidly depreciating cedi, a central bank money market interest rate that hovers around 25 percent,

and an inflation rate of roughly 16 percent (as of April 2015), Ghana’s macroeconomic climate is generally

unfavorable to consumers seeking capital. Typically, mortgages are pegged to the US dollar, meaning that

as the cedi depreciates relative to American currency, the cost of repaying the mortgage increases. As a

result, lenders often worry about their clients’ risk of default, in turn setting interest rates high, moving in

the same direction as the nationally established rate.

With mortgages in Ghana, repayment includes the interest and that is deducted from the individual’s

earnings each month. Specialists advise buyers to stretch the repayment period to avoid feeling bur-

dened. That said, mortgages have a maximum shelf life of 20 years, meaning that the payment period

is somewhat constrained. Furthermore, mortgages are unavailable to senior citizens older than 65, the

national retirement age, so any remaining loan payments must be made before then.

Despite this situation, buying property in Accra remains an attractive investment

opportunity. The country faces a property deficit, which some experts estimate

is nearly two million units, meaning that for those who can buy in spite of high

mortgage interest rates, property will retain value at a premium and could gener-

ate high long-run returns. Ultimately, while interest rates in the mortgage market

might hinder buyers with limited financial resources, these risks are outweighed by

the long-run rewards investment in Accra’s property present.

“In Ghana the macro-economic climate is

generally unfavorable to consumers seeking

capital.

HOUSING GUIDE ACCRA 2015HOUSING GUIDE ACCRA 2015

THE BASICS OF LAND OWNERSHIP

IN ACCRAMost land in Accra is not owned by private entities, or even by the national

government. Instead, it is usually owned by traditional community leaders

and chiefs, or stools. Allodial ownership, meaning sovereign autonomy over

a land, is generally held by these traditional entities. This article will explain

the various forms of land ownership and the complications that may arise

should you choose to acquire land.

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Types of Land Ownership:

Land in Accra is held by various stool/skin leaders, families, or clans, who are the allodial

owners. These lands are known as customary lands and, according to Appiah (2011), make

up about 80 percent of all land in Ghana.

1. Public lands, which roughly form the remaining 20 percent,

are comprised of state lands and vested lands.

2. State lands refer to those acquired by the Government of Ghana

from traditional allodial owners.

3. Vested lands refer to those owned by the state and customary

authorities in a form of partnership, i.e. split ownership (Larbi, 2008).

Public Lands

“Customary lands make up 80% of all

land in Ghana.

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HOUSING GUIDE ACCRA 2015

TYPES OF LAND INTERESTS & TITLESAllodial Title:

The allodial title is the highest legally recognized

land title. Only traditional leaders, families, and the

Ghanaian government can hold such a title.

Leasehold:

A leasehold/lease is an interest in land that has a

specified start and end for a period, subject to pay-

ment of annual ground rents and covenants. This is

the type of agreement that allows non-Ghanaians to

develop new property in the country.

Freehold Title Interest:

Customary Freehold: Effectively, this agreement only

allows members of the traditional community to par-

ticipate in land acquisition. Individuals or groups can

hold this interest in a land that is allodially owned by

a larger traditional community of which the interest

holders are members or subjects. It is an interest that

is transferable to successors of the individual or sub-

groups until there are no successors.

Common Law Freehold: Similar to the customary

freehold. The difference, however, is that this inter-

est can be acquired by both strangers and members

of the community that owns the land. A stranger in

this regard refers to a Ghanaian national who is not a

member of the land-owning community. It is important

to note that the 1992 Constitution by article 267 (5)

forbids the creation of freehold interests in stool land

in Ghana.

Acquiring Land as a Foreigner:

It is impossible for foreigners to obtain full allodial

ownership of lands in Ghana. Nonetheless, foreign

developers, investors, and builders can still construct

property on land leased from government or stool

communities. The typical lease agreement in Accra

lasts 99 years or more, but maximum 50 years for

foreigners. While the structure of land ownership in

the country and macroeconomic realities might appear

to deter foreign purchase of property, the national

government does its part to encourage foreign direct

investment (FDI) in real estate, where there exists a

housing deficit of roughly 1.7 million units.

When acquiring land, always consult a legal expert for

advice on what type of agreement to make. Negotiate

components of the lease agreement and investigate

the land’s ownership history. Additionally, take pre-

cautions to ensure the legitimacy of the lessor. In order

to obtain a title registry for the land, go to the Lands

Commission and be sure to commence development

or construction within the timeframe specified in the

agreement. Once the lease contract is signed, it is final

and legally binding, so ensure that all requirements

have been met.

Leasehold agreements should contain:

• Names of the interested parties

• Starting date and duration of the agreement

• The specific property being leased

(usually depicted by the site plan)

• Conditions for renewal or nonrenewal and

other covenants

• A specific consideration (lump sum, or

periodic payments, such as ground rent) for

granting the use of this object

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HOUSING GUIDE ACCRA 2015

LAND REGISTRATION IN ACCRA Many of the insights expressed below came in collab-

oration with Kwame Ankapong Yeboah, Land and

Property Investment Consultant, whom we thank.

Land Title Registration:

Its a system under which an authoritative record is

kept of the title to a particular parcel of land in a regis-

ter. This system is different from registration of instru-

ments under the Land Registry Act (Act 122); for where

the title to land is registered, it is the land register and

certificate which contain evidence of title. It is import-

ant to note that when a title to the land is completely

registered, it is irrevocable.

Registrable Land:

Types of registration instruments include: allodial title,

common law freehold, leases, concessions, vesting

assents, mineral and mining leases, and mortgages.

Steps to Acquiring a Land Certificate:

1. There are three laws in Ghana that govern the

registration of instruments and land titles. These laws

include the Land Registry Act, 1962 (Act 122); the

Land Title Registration Act, 1986 (PNDCL 152); and the

Stamp Duty Act, 2005 (Act 689). After acquiring a land,

you are expected to go to the Lands Commission with

all documents to start the registration process.

2. The Stamp Duty Act requires that the instrument is

stamped within two months of execution. Stamping is

a condition precedent for registration.

3. After the document has been stamped, you are

required to submit the document to the land registra-

tion division of the Lands Commission where a yellow

card is issued as form of acknowledgement of receipt.

4. In addition a letter is given to be sent to the Survey

Department for a cadastral/parcel plan.

5. When the cadastral/parcel plan is produced, it is

sent to the title office. An amount of money is paid for

a publication in the national newspapers. The essence

is to announce officially that someone has purchased

a land and is registering the title, allowing anybody to

make complaints before the title is assigned.

6. Simultaneously, the title office runs a search for po-

tential counterclaims. 21 days after the announcement

of the registration, the office may issue a certificate if

the search did not reveal any contradictory grant.

Benefits of Land Title Registration:

• Reduces litigation, as the registration process

is made official

• Removes opportunity for fraud against

innocent buyers

• Gives finality and secures an individual from

counter claims

• Allows easy transfer of interest – with a land

title, the land becomes more easy to sell and

then use it as security for a loan

• Title registration provides useful information

to valuers, buyers, inspectors, etc.

Challenges Getting a Land Title:

• Customer service at the land agencies is poor

• Sometimes, land agency employees appear

greedy and dishonest

• There is a lack of accessible information about

the registration process

• The process is paper-heavy, stressful, time-

consuming, and expensive

23

HOUSING GUIDE ACCRA 2015

CHOOSING THE RIGHT OFF-PLAN PROPERTY

How can one determine the right pre-sale proper-

ty before it is constructed? Here, we provide you

with some basic tips for selecting the right kind of

pre-selling apartment.

An Off-Plan or Pre-Sale Property

in real estate terms refer to purchasing apartments or

structures before they are completed. Bare lands are

marketed and sold in advance to interested property

owners before the buildings are constructed. Normally,

interested buyers can only see a plan or photos of how

the property will look after it has been constructed.

Choosing the Right Off-Plan Property

Purchasing an off-plan property requires time, pa-

tience, skill, and an eye for detail. For this reason, many

people seeking to buy property shift the responsibility

to real estate agents, an indication of how tedious the

selection process can be. How does one determine

the right kind of property in the construction stages?

Are there features or characteristics that need to be

searched before paying for the property? The following

tips will help.

Select a Trustworthy Developer

How well do you know the developers whose property

you are buying? Do they have a good track record?

How many off-plan properties have they developed

and sold? These are the questions you need to ask.

There are a number of established developers who

deal in off-plan properties. Investigate before you make

that investment.

Consider the Location

As always, the location of the property is very import-

ant. Is the area developing quickly? Is it close to a com-

mercial centre? What about accessibility to transporta-

tion? Visit the property site and assess its proximity to

transportation lines, like roads and railway lines.

Look at the Property Plan

Insist on looking at the property

plan – the dimensions and other

details, and remember to take

into consideration the purpose

for which you are purchasing

the property.

Payment Options

How is the property going to be

financed? Some off-plan properties require you to pay

up front for the property, so consider how you will pay

for the rest of the property.

Weigh your options before you invest in the property.

Study the Contract

Ensure you ask for a contract. Study it carefully, prefer-

ably with a lawyer, and ask the necessary questions. If

there are statements that need to be clarified, ask the

developers before you sign the contract.

“Purchasing an off-plan property re-

quires time, patience, skill, and an eye for

detail.

HOUSING GUIDE ACCRA 2015

PAYING PROPERTY TAXES IN ACCRA

Compared to many other countries, property taxes in Ghana are

quite low, but the process by which they are administered is

complex. Ground rent is what property owners pay to the allodial

owners of land in Ghana; effectively, it functions as a

property tax. Land ownership in Ghana falls under three titles:

traditional stool lands, government lands, and family land.

Ground rent is paid directly to whichever party fully owns the land.

Taxes are not determined by the value of the property, but instead by the class rating

of the neighborhood. Class 1 neighborhoods, like East Legon and Abelenkpe face the

highest levels of taxation, whereas Class 3 districts, like Jamestown and Chokor, are in

the lowest bracket.

HOUSING GUIDE ACCRA 2015

24

“Property taxes in

Ghana are determined

by the class rating of

the neighborhood.

25

HOUSING GUIDE ACCRA 2015

RESIDENTIAL TAX CLASSESResidential Class 1A: Achimota Forest Residential, Roman Ridge, Airport West,

East Legon, Ambassadorial Enclave, Ridge

Residential Class 1B: Zoti, Abelenkpe, Dworwulu, North Dworwulu, East Legon

Extension, West Legon, Ringway Estates, Nyaniba Tesano-1.

Residential Class 2A: South Odorkor, Dansoman SSNIT, Addogon, New Danso-

man Estates, Latebiokorshie, Candle Factory, Mamprobi,

Kanda Estates, Dansoman Estates, Nima Akuffo Addo,

Asylum Down, Naaflajo, GREDA Estates, New Achimota.

Residential Class 2B: Kwashieman North, Sakaman-Busia, Abofu New Danso-

man, Mataheko, Osofo Dadzie, West Abbosey Okai, Dan-

soman Sahara, North Alajo, Adabraka, Tesano-2, Kanesh-

ie, Borabora Estates, Awudome Estates, North Kaneshie,

Abeka, Fadama, Apenkwa, North Kaneshie Estates–CFC,

Akweteman.

Residential Class 3A: Kwashibu, Kwashiman, North Odorkor, Odorkor Old

Town, Kwashieman Old Town, Odorkor, Stanley Owusu,

Banana Inn, Korle Gonno, Mamprobi Sempey, Maamobi,

Old Dansoman, Kotobabi Police Station, Kpehe, Alajo, Ko-

tobabi, James Town, Manhean, Alogboshie, Abeka Lapaz,

Bubiashie/New Fadama, Kisseman/Christian Village

Residential Class 3B:

Abossey Okai, Sukura, Russia, Sabon Zongo, Town

Council Line, Mamponse, Tunga, Nima, Accra New-Town,

Shiashie Village, Darkuman, Bawleshie Mempeasem,

Anumle, North Abeka, Old Bubiashie, Nii Boyeman/

Achimota

Residential Class 3C:

Chorkor, Mpoase, Gbegbeise, Shiabu, Luga, Osu

Amanfo/Alata.

Commercial Class 1:

CBD and Extended CBD

Commercial Class 2:

Extended Central Business District including Tudu, Osu

Amantra, Osu Anorho, CDC, Kuku Hill, Airport West,

Switch Back Road, Roman Ridge, Airport By-Pass, Police

Quarters, and DVLA.

Source: Ghana Home Plans

26

HOUSING GUIDE ACCRA 2015

TAX RATES WITHIN THE GREATER ACCRA REGION

Ground rent rates apply uniformly, but funds are paid to stool, government, and family

owners as appropriate. Ground rents are paid by property owners to the respective stool

administration office, or, in the case of government, to the office of the Lands Commission.

In case of family lands, arrangements are made with appropriate private individuals so that

private allodial land owners receive requisite compensation.

Gross rental income is also taxed in Accra, with the owner of the rental property expected to pay

8 percent of this income, according to a 2014 Pricewaterhouse Coopers report. Levied by the

Government of Ghana, this charge is known as a final tax.

Rate Impost per Cedi:

Residential Class 1A

Residential Class 1B

Residential Class 2A

Residential Class 2B

Residential Class 3A

Residential Class 3B

Residential Class 3C

Commercial 1

Commercial 2

Minimum Rate GHC:

0.0017 – 0.0015

0.0014 – 0.0012

0.0013 – 0.0011

0.00104

0.0009 – 0.0008

0.0008 – 0.0007

0.0007 – 0.0006

0.01638

0.0098

115.00 ($38.33)

90.00 ($30.00)

70.00 ($23.33)

60.00 ($20.00)

50.00 ($16.67)

40.00 ($13.33)

30.00 ($10.00)

350.00 ($116.70)

250.00 ($83.34)

Source: Local Government Bulletin, no.4 Friday, 24th January 2014

HOUSING GUIDE ACCRA 2015HOUSING GUIDE ACCRA 2015

Emergency and Government Phone Numbers:

Websites of Interest: http://ama.ghanadistricts.gov.gh/

http://www.ghana.gov.gh/index.php/emergency-numbers

http://www.mwrwh.gov.gh/index.php/dept-agencies

References:Appiah, Michael. “Land Disputes Resolution in Ghana: The Role of Customary Land

Secretariats (CLS).” Case of Gbawe Customary Land Secretariat, 2011. Larbi, Word-

sworth O. “Compulsory Land Acquisition and Compensation in Ghana: Searching for

Alternative Policies and Strategies.” Presented at FIG/FAO/CNG International Seminar

on State and Public Sector Land Management. Verona, Italy, September 2008. Lodoh,

C.H.K and da Rocha, B.J. Ghana Land Law and Conveyancing, 2nd Edition, 1999.

27

191 Police (*might not work on all networks, including MTN and Tigo)192 Fire Service (*might not work on all networks)193 Ambulance (*might not work on all networks)

0302 664 605 – Architectural and Engineering Services Ltd. 0302 518 401 – Community Water and Sanitation Agency0302 662 412 – Electricity Company of Ghana, Accra East Branch 0302 666 577 – Ghana National Fire Service, Accra Cantonments Headquarters 0302 666 911 – Public Works Department0302 670 399 – Rent Control Department0302 232 829 – State Housing Corporation