Buying a Land? What to Know!

LEGAL THINGS TO DO BEFORE, DURING AND AFTER PURCHASING A LAND

The law acknowledges that the purchase of a land is a very serious matter. For this reason, the law requires that before one purchases a piece of land, care must be taken. The following ten (10) steps, if diligently followed, should secure any person interested in purchasing a land, with a valid interest and title in the land.

The steps are outlined as follows:
1. Visit the land and ask the neighbours who the original owner of the land is;
2. Meet the Original land owner and ask whether or not there is a current owner;
3. Negotiate with the land owner about the extent and nature of land;
4. Budget for all financial expenses to be incurred for the purchase of the land;
5. Attend the land with the land owner and a surveyor to measure out the boundaries of the land;
6. Sign a transfer agreement with the land owner;
7. Make payment for the land by installments in evidential form;
8. Put a structure on the land or anything to show that you have entered the land;
9. Inform all your neighbours about your new ownership of the land;
10. Register the land at the Land Registry;

Visiting the land and asking the neighbours who the original owner of the land is;
This is the first stage in purchasing a land. It deals with finding out who the real owner of that piece of land is, so you do not get defrauded by someone who is not the owner of the land. Of relevant importance is finding out from the persons living closest to the land who the original owner of the land is. Normally, the original owners are the chiefs/ stools/ skins, families, and sometimes individuals.

Meeting the Original land owner to ask whether or not there is a current owner;
The original owner is the person who first owned the land from time immemorial, and who may or may not have sold or transferred the land to another person or a current owner. Finding out who owned the land originally, will help you to easily identify the current owners of the piece of land you may want to purchase.

Negotiating with the land owner the extent and nature of land;
It is important to negotiate with the land owner, after identifying the owner, the nature of the land as well as the duration or limits of his or her interest. This is because the extent of his or her interest determines the type of interest he or she can transfer to you. You may also find out what best the land can be used for and the amount the owner is willing to accept as full payment for the land. It is important to involve your lawyer at each stage of the process because the type and location of the land may determine whether it may be used for residential, agricultural or commercial purposes. The type of land will also determine the duration of interest you can acquire legally. In Ghana for example, a stool land cannot be given out forever, it must be limited to a period of a maximum of ninety-nine (99) years. Lawyers are experts in advising on these matters. A search may also be conducted at the Land Registry for these purposes.

Budgeting of all financial expenses to be incurred for its purchase;
Before you go into negotiation for a land, you must be financially sound. You should be ready to pay for transport fares of both the land owner and any surveyor to and from the land during every visit necessarily made to the land with regards to your purchase. You must budget for the entire amount required for the land since not all land owners will accept installment payments. You must also budget for corner pillars, if required, to be erected at the corners of the land immediately after purchase.

Attending the land with the land owner and a surveyor to measure out the boundaries;
A very important requirement of the law when it comes to the ability of one to secure and protect an interest in land is knowledge of the definite boundaries, length and breadth, extent of the land so that entering unto another person’s land is avoided. This is done by a surveyor who earmarks or maps out the entire area of the land in documentary form. This document is what is referred to as the Site Plan.

Signing a transfer agreement with the land owner;
Of relevance is a transfer agreement to be signed between you and the land owner, evidencing a valid transfer of the land to you. This agreement is normally referred to as indenture, deed, or conveyance, and the interest that may be given you may either be a lease, assignment, etc.

Making payments for the land by installments in evidential form;
It is always advisable to make payments for land by installments. You should let the owner agree to this during the negotiation stage. The reason for installment payments but not outright payments is that payments for land made by installment enable you to buy more time to find who the real owner of the land is. It also secures you from making full payments in the event of any arising inconveniences. By evidential form, you should be discourage from making cash payments in person/physical. Rather you should prefer modes of payments where there is some evidence of your transfer of money to the land owner. This may be by bank transfer or mobile money transfer.

Putting a structure on the land or anything to show that you have entered the land;
It is important at this stage to tell the whole world, including new visitors to the land, about your ownership and possession of the land to avoid a double sale by the land owner. If you intend building on the land, you may raise the foundation or a fence wall on the land. For agricultural purposes you may grade the land and plant crops or trees on the land to indicate you act of farming on the land. You may even employ the service of a caretaker, who will erect a small structure on the land where he or she will reside to protect the land at all times against encroachers or new buyers.

Inform all your neighbours about your new ownership of the land;
As part of preventing greedy and wicked land owners from selling the same land to two or more other persons, you may be required to inform the neighbours living closest to the land about your new ownership of the land so that the neighbours can protect innocent buyers from buying the same land. Your neighbours will thereafter be your mouthpiece telling all visitors about your ownership of the land.

Registering the land at the Land Registry;
The final step is to register the land at the Land Registry. This stage does not validate your interest or title as some people may think. Registration only serves as notice to those conducting searches at the Land Registry about your ownership of the land. The validity of your purchase of any land is dependent on the validity of the land owner to sell the land to you and your payment of the purchase price backed by an agreement. Registration at the Land Registry does not validate one’s title.

In conclusion, a genuine owner selling a genuine land to you, and an agreement and payments being made by you for the said land, creates in you a valid interest and title in the land even without registration at the Land Registry.