Freehold and leasehold are the two terms you'll hear most often when land ownership comes up in Ghana, and they get confused constantly. The real answer is more interesting than most people expect, because for the large majority of land transactions in the country, freehold was never actually on the table to begin with.

What freehold actually means

Freehold is the strongest form of land interest recognized in Ghana. There are two versions: customary law freehold, which arises from a transaction under customary law with a stool, skin, clan, or family that holds the underlying land, and common law freehold, which arises through the more familiar transaction process most people associate with buying property outright.

Freehold has no fixed end date. Once held, it belongs to you indefinitely, subject to the usual legal obligations any landowner has.

The restriction that applies to everyone

Here's what most people don't realize. Under Section 9(2) of the Land Act, 2020 (Act 1036), nobody, citizen or not, can create a new freehold interest out of stool, skin, clan, or family land. Section 4(2) reinforces this specifically for stool and skin land, stating plainly that the acquisition of common law freehold interest in respect of stool and skin lands has been proscribed since 22 August 1969.

This matters because stool, skin, clan, and family land is where most land in Ghana comes from. So for the majority of land transactions in the country, freehold isn't a choice being taken away from a buyer. It's a category that hasn't been available to create as a new grant, for anyone, in over fifty years.

The Supreme Court of Ghana has confirmed this reading directly. In Tsuru III v. Attorney-General [2011] GHASC 20, the Court stated that under Article 267(5) of the Constitution, a stool cannot create and transfer a freehold interest in stool land to any person, language that draws no distinction based on citizenship or indigenous status.

The additional restriction on non-citizens

On top of that general restriction, non-citizens face a separate and absolute bar. Under Section 10 of the same Act, a person who is not a citizen of Ghana cannot hold a freehold interest in land in Ghana at all. Any agreement, deed, or conveyance that attempts to grant one is void.

What non-citizens can hold is leasehold, capped at a maximum of 50 years at any one time. This cap also applies to companies where more than 40% of ownership sits with non-citizens. Renewal is possible, but it isn't automatic, it depends entirely on what the lease itself provides.

What this means in practice

Put the two restrictions together, and the picture becomes clear. If the land you're buying originates from a stool, skin, clan, or family, which is true for most land in Ghana, a new freehold was never going to be part of the transaction, regardless of your citizenship. And if you're not a Ghanaian citizen, leasehold is the only lawful structure available to you in any case.

This is exactly why land developments across Ghana, including here at Forest Hill, structure their offering as a registered leasehold. It isn't a compromise made for foreign buyers specifically. It reflects how land ownership actually works in Ghana today, for nearly everyone.

Consider a practical example. A family in the Eastern Region holds land that's been passed down for generations, classic family land under Section 9. A diaspora Ghanaian abroad wants to buy a plot from that family to build a retirement home. Even if that buyer holds Ghanaian citizenship, the family can't grant them a new freehold interest in that land, because Section 9(2)'s prohibition applies regardless of the buyer's citizenship. What the family can grant is a lease, or a form of customary tenancy under Section 7, an interest created by direct agreement between the family and the buyer, on whatever terms they negotiate. Either way, the transaction is entirely legitimate. It just isn't freehold.

A few questions worth answering upfront

Does marrying a Ghanaian citizen change these restrictions for a non-citizen? No. Section 10(9) states plainly that the restrictions on a non-citizen's interest in land are not affected by marriage to a Ghanaian citizen, or by entering into a business partnership with one. This is worth knowing specifically because it's a common assumption, and an incorrect one.

What about buying through a Ghanaian company instead? This can work, but only within a specific threshold. Under Section 10(10), a company is treated as a non-citizen for these purposes if more than 40% of its equity is held by non-citizens. In other words, the company needs at least 60% genuine Ghanaian ownership to be treated as a citizen and avoid the leasehold cap. Structuring a company specifically to get around this restriction, without real Ghanaian ownership behind it, doesn't change the underlying legal reality.

What to ask before you commit

Ask directly whether the land originates from a stool, skin, clan, or family, since that determines whether freehold was ever legally possible in the first place, independent of your own citizenship. If you're not a Ghanaian citizen, ask to see the exact wording of the renewal clause in your lease, since that, not the 50-year figure itself, is what actually determines what happens when the term ends. We'll cover that in detail in the next article in this series.

This article is intended for general informational purposes only and does not constitute legal advice. Land law and registration requirements can vary by location and circumstance. Before making any decisions regarding land purchase, registration, or related legal matters, please consult a qualified, independent legal practitioner of your choosing.