Buying Real Estate in Accra from Abroad

Executive Summary

Buying property in Accra from overseas requires strict adherence to statutory verification protocols under the Land Act 2020 (Act 1036). Overseas purchasers must navigate a dual tenure system comprising statutory and customary land rights, constitutional restrictions on foreign ownership, and rigorous banking compliance rules. Executing transactions at distance involves verified legal representation, independent title searches at the Lands Commission, and regulated international banking transfers.

Powers of Attorney for Overseas Buyers

A buyer located abroad can execute a Power of Attorney (POA) to appoint a local representative or legal counsel in Ghana to act on their behalf. To be legally valid for property transactions before the Lands Commission, the POA must be formally executed in the buyer's country of residence.

If executed in a foreign jurisdiction, the POA must be notarised by a local Notary Public, legalised by the Ministry of Foreign Affairs (or equivalent authority) in the host country, and authenticated by the High Commission or Embassy of Ghana in that jurisdiction. Ghana is not a contracting state to the Hague Apostille Convention, meaning a standard apostille alone is insufficient; full consular legalisation at a Ghanaian diplomatic mission is mandatory. Once the legalised POA arrives in Ghana, it must be submitted to the High Court of Ghana for stamping and registration before the appointee can legally execute indentures, deeds, or registration filings on behalf of the buyer.

Independent Land and Title Verification

Overseas buyers must independently confirm the legal existence and ownership status of any property before remitting funds. In Greater Accra, property registration falls under either the Land Title Registration system or the Deeds Registration system administered by the Land Registration Division (LRD) of the Lands Commission.

Verification requires hiring an independent solicitor enrolled with the Ghana Bar Association who is unconnected to the seller, developer, or agent. The attorney submits a formal search application to the Lands Commission using the exact site plan drafted by a licensed surveyor and approved by the Survey and Mapping Division. The official search report confirms:

1. The registered owner or stool/family head with authority to grant the land. 2. Existing encumbrances, court judgments, mortgages, or caveats registered against the title. 3. The statutory tenure type (state, customary, or private) and unexpired lease term.

In addition to the official Lands Commission search, the buyer's lawyer must conduct a physical site inspection with a independent surveyor to verify boundaries, check for physical encumbrances or "land guards" (unlawful occupiers), and confirm that the site plan matches the physical coordinates on the ground.

Remittance, Foreign Exchange and Banking Compliance

All funds for purchasing property in Accra from abroad must be remitted through official banking channels in compliance with the Bank of Ghana’s Anti-Money Laundering (AML) guidelines and foreign exchange regulations. Transactions should be executed as direct international wire transfers (SWIFT) from an overseas bank account into a dedicated, regulated account in Ghana.

When transferring large sums into Ghana for real estate, commercial banks require:

• A copy of the executed Sales and Purchase Agreement (SPA) or offer letter.
• Proof of identity (passport and Ghana Card where applicable).
• Source of wealth documentation (bank statements, proof of income, or tax returns).

Capital brought into Ghana through official banking routes can be declared to the Bank of Ghana via the commercial bank. This official entry record protects the investor's right to repatriate capital and rental returns abroad in foreign currency under Section 27 of the Ghana Investment Promotion Centre (GIPC) Act 2013 (Act 865) or relevant central bank capital flow provisions.

Approved Payment Structures and Prohibited Transfers

Payments must only be remitted to specified, secure accounts:

• Client Escrow Account: Managed by an independent legal practitioner regulated by the General Legal Council of Ghana.
• Corporate Developer Account: Held directly in the registered name of a reputable developer registered with the Ghana Real Estate Developers Association (GREDA).

Payments must never be made to:

• Personal bank accounts of individual real estate agents, intermediaries, or family members.
• Mobile Money (MoMo) accounts or informal cash transfer services for initial deposits or acquisition costs.
• Individual cash payments in person.

Sellers must pay their statutory tax obligations, and buyers are responsible for paying stamp duty (which ranges from 0.25% to 1% of the valuation depending on the lease length in 2026) directly to the Ghana Revenue Authority (GRA) via official GRA/Lands Commission payment portals.

Specific Legal Restrictions and Tenure Caps

Under Article 266 of the 1992 Constitution of Ghana, non-citizens (including diaspora individuals who do not hold Ghanaian citizenship) cannot acquire freehold ownership in land. Foreign nationals are constitutionally capped at acquiring leasehold interests of up to 50 years at a single time. Any transaction claiming to convey a freehold title to a non-citizen is void by law.

Ghanaian citizens (including registered dual citizens holding a valid Dual Citizenship Certificate) can hold leasehold interests up to 99 years or customary title where applicable.

Risks of Buying Through Relatives or Local Agents

Using relatives or unregulated local agents to facilitate property purchases in Accra is one of the leading causes of financial loss for diaspora buyers. Key risks include:

1. Diversion of Funds: Money transferred to relatives for construction or land payments being misapplied or diverted to personal uses without completed work. 2. Registration in Wrong Names: Indentures or land certificates being executed in the relative's or agent's name rather than the buyer's name, granting them legal ownership. 3. Family Property Disputes: Relatives purchasing customary or family land that lacks clear title, leading to long disputes with rival family factions or chiefs. 4. Inflated Purchase Prices: Local intermediaries adding unapproved markups to the actual purchase price negotiated with the seller.

To eliminate these risks, overseas buyers must maintain direct contractual relationships with licensed Ghanaian legal counsel and developers, ensuring all documents are issued directly in the buyer's legal name.