Buying Property in Ghana: 50-Year and 99-Year Land Rules

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ACCRA, Ghana — Ghanaians living abroad who are planning to buy land, houses or apartments in Ghana are being reminded of an important distinction in the country’s land laws: the rights available to Ghanaian citizens can differ from those available to non-citizens.

The issue has become increasingly important as more members of the Ghanaian diaspora consider buying homes, apartments and investment properties in Ghana while living in the United Kingdom, United States, Canada, Europe and elsewhere.

For many diaspora buyers, purchasing property in Ghana represents more than an investment. It can be a way of maintaining a connection to the country, preparing for retirement, creating a family home or building an asset that can eventually be passed to children. But the legal structure surrounding land ownership can be complicated, and misunderstanding the difference between freehold and leasehold can create problems for buyers.

A recent property-law explainer published by MyJoyOnline, drawing on Ghana’s Land Act 2020, highlights the distinction between citizens and non-citizens. Under the law, freehold interests are heavily restricted, while leasehold is the normal form of tenure for much residential property. For Ghanaian citizens, including eligible dual citizens, leases can generally run for up to 99 years, while non-citizens are generally restricted to a maximum lease term of 50 years at any one time.

What is the difference between freehold and leasehold?

The first thing diaspora buyers should understand is that owning a house and owning the land beneath that house are not necessarily the same legal interest.

Freehold generally refers to an interest in land without a fixed expiry date, while leasehold gives the holder the right to use and occupy land for an agreed period.

In Ghana, leasehold is extremely common, particularly because a large proportion of land is stool, skin, clan or family land. The Land Act 2020 restricts the creation of new freehold interests over these categories of land and also prevents freehold interests from being granted to non-citizens.

This means that a buyer should not automatically assume that a property advertised as “for sale” comes with permanent freehold ownership of the land.

For a diaspora buyer, the most important question is therefore not simply, “How much does the house cost?” It is, “What exactly am I legally buying?”

The 50-year rule for non-Ghanaians

The 50-year rule is particularly important for diaspora members who do not hold Ghanaian citizenship.

Under Section 10 of the Land Act 2020, a non-citizen cannot be granted a leasehold interest exceeding 50 years at any one time.

This does not necessarily mean that the person loses the property after 50 years.

The legal structure allows for renewable leasehold arrangements, subject to the applicable law and the terms of the lease.

Another important distinction is that the restriction relates to the land interest. A buyer can own the building erected on the land while holding a leasehold interest in the land itself.

For someone living overseas and planning to purchase a house in Ghana, understanding this distinction before signing an agreement can prevent serious misunderstandings later.

What about Ghanaian citizens living abroad?

This is where the situation becomes particularly relevant to the Ghanaian diaspora.

A Ghanaian living in Britain, America, Canada or another country does not automatically become a non-citizen simply because they live abroad.

A Ghanaian citizen who also holds another nationality may have a different property position from someone who is solely a foreign national.

The current legal framework allows Ghanaian citizens to hold leasehold interests for up to 99 years, while non-citizens are generally restricted to 50 years at any one time.

For diaspora families, this makes citizenship status an important issue to establish before entering into a property transaction.

However, buyers should not rely solely on verbal assurances from sellers or agents.

The exact legal status of the land should be independently verified.

Why diaspora buyers need to be careful

Buying property from abroad can be more difficult than buying property while physically present in Ghana.

A buyer living in London or New York may rely heavily on relatives, friends, agents or developers to inspect land and negotiate transactions.

That can create opportunities for misunderstandings or, in some cases, fraud.

One of the biggest mistakes is paying a deposit before establishing who legally owns the land.

Another is relying on documents that have not been independently verified.

A buyer should establish the identity of the seller, verify the property’s title and conduct appropriate searches with the relevant authorities before committing substantial funds.

The buyer should also obtain independent legal advice rather than relying exclusively on the lawyer recommended by the seller or developer.

Buying land versus buying an apartment

For some diaspora buyers, purchasing an apartment within a professionally managed development can be less complicated than buying an undeveloped plot.

In a properly structured development, the developer should already have established its interest in the underlying land and should be able to provide documentation explaining the tenure associated with the individual property.

That does not remove the need for due diligence.

Buyers should still investigate the developer, the title, planning permissions, outstanding charges and the exact terms governing the property.

But the structure can be easier to understand than attempting to acquire a raw parcel of land from an individual seller.

The importance of the Lands Commission

The Lands Commission plays an important role in Ghana’s land administration system.

Diaspora buyers should ensure that appropriate searches and registration procedures are carried out.

The existence of a document presented by a seller does not automatically mean that the buyer has received a clean and secure title.

Land disputes in Ghana can be complicated because the same property can sometimes be claimed by different individuals or groups.

This is why professional due diligence is particularly important for people buying from overseas.

A relatively small amount spent on proper legal and title checks before a transaction can potentially save a buyer from a much larger financial loss later.

Family land requires particular caution

Family and customary land can involve additional complexities.

A person who appears to control a piece of land may not necessarily have the legal authority to sell it independently.

There may be family members, traditional authorities or other parties whose interests need to be considered.

Diaspora buyers should therefore be cautious when someone tells them that a transaction can be completed quickly because “the land belongs to the family.”

The correct question is whether the person selling the property has the legal authority to enter into the transaction.

Property remains attractive to the diaspora

Despite the complexities, property remains one of the most popular areas of investment for Ghanaians abroad.

Many diaspora families want a permanent home in Ghana.

Others purchase apartments for rental income, retirement or long-term investment.

Accra remains particularly attractive because of its population growth, business activity and demand for housing.

Areas around Airport, Cantonments, East Legon, Spintex, Tema and other parts of the capital continue to attract interest from local and overseas buyers.

But price alone should not determine the decision.

A property that appears inexpensive can become extremely costly if its ownership structure is unclear or if a dispute emerges later.

What diaspora buyers should check before paying

Before sending money for land or property in Ghana, buyers should confirm who owns the land, obtain independent legal advice, conduct the necessary searches, verify the seller’s identity and authority, review the lease terms, establish whether there are outstanding disputes or encumbrances and make sure the transaction is properly documented.

Buyers should also be wary of pressure to make immediate payments.

Statements such as “another buyer is coming tomorrow” or “pay now and we will sort out the documents later” should be treated cautiously.

A legitimate property transaction should allow sufficient time for due diligence.

A long-term investment decision

For Ghanaians abroad, buying property in Ghana can be a valuable long-term investment, but it should not be treated like an ordinary purchase.

The legal difference between a 50-year lease and a 99-year lease can be important.

Citizenship status can matter.

The nature of the underlying land can matter.

The identity and authority of the seller can matter.

And the quality of the legal documentation can determine whether an investment becomes a secure asset or a long-running dispute.

The key message for the diaspora is therefore simple: do not buy property in Ghana based solely on trust, photographs or a promise from an agent.

Understand exactly what you are buying, verify the land and obtain independent professional advice before committing your money.

With Ghanaian property prices attracting continued interest from the diaspora, understanding the country’s land laws is becoming increasingly important for anyone planning to buy a home or investment property from abroad.

This article is for general information and does not constitute legal advice. Property and land transactions are fact-specific, and buyers should obtain advice from a qualified Ghanaian property lawyer before completing a transaction.