Paying for Land in Instalments in Ghana

Many buyers in Ghana pay for land in instalments instead of in one payment. It is a normal arrangement. What you can rely on while you pay is what is written down.

Have your instalment plan in writing and signed

Under the Land Act, 2020 (Act 1036), section 34, a contract to buy or lease land cannot be enforced unless it is in writing and signed. The signature must be that of the person it is used against, or of someone authorised to sign for that person. A few narrow exceptions exist; your lawyer can say whether any applies to you. Section 35 adds that a transfer must be in writing and signed by both sides. A payment plan that exists only in a conversation or a message is not something to rely on.

So the schedule belongs in the agreement you sign, with your name on it and the seller’s. If a figure or a date matters to you, check that it is in the document.

Read the schedule before you sign it

Your lawyer can go through it with you. These are the points worth reading closely:

• the amount of each payment and the date it falls due

• where and how each payment is made, and what proof you receive

• what happens if a payment is late

• whether the plot is held for you while you pay

• when the lease is prepared, and what has to be paid first

If the agreement points to other documents, ask for copies before you sign.

Ask about the deposit

Some sellers, developers among them, ask for a deposit to hold a plot while the agreement is being prepared. Before you pay one, ask whether the deposit is refundable, and ask for the answer in writing. The deposit receipt should name the plot and the amount, and say the money is a deposit towards the agreement.

Keep your payment records together

Keep every receipt and bank confirmation with your agreement, in one place, in the order you paid. Pay only into the account the seller has confirmed in writing, which should be the one the agreement names. If you live abroad, keep the transfer confirmations as well as the receipts.

Ask for a statement of account

Every so often, ask the seller for a written statement showing what you have paid, what is left and when the next payment is due. Check it against your own receipts and bank confirmations. A difference is easier to sort out after two payments than after ten. If you live abroad, agree in advance how and when the statement will reach you.

Put any change in writing

Plans change. You may want to move a date, or the seller may offer a different arrangement. Whatever you agree, write it down, have both sides sign it, and keep it with the original agreement. A change agreed in a phone call or a message leaves you in the same position as a payment plan that was never written down.

Ask about paying your instalments early

Paying ahead of the schedule can work for both sides. The seller receives the money sooner, and the buyer may get a discount, an earlier lease, or both. Ask whether the agreement allows early payment and what you would get for it, and have the answer written into the agreement.

Know what happens to the money you have paid

An instalment plan means part of the price is paid before you hold the lease. The agreement should say what happens to that money if you stop paying. It should also say what happens if you want to withdraw or if the seller cannot deliver the plot, and which part can be refunded. Read this part as closely as the payment dates.

Ask about stamp duty

An agreement for a lease is charged stamp duty. A court will generally not accept an unstamped agreement as evidence until the missing duty and a penalty are paid (Stamp Duty Act, 2005, sections 22 and 32). A lease that is not stamped also cannot be registered at the land registry (section 14), so stamping comes before registration. Registering your lease is covered in After Buying Land in Ghana: Lease and Development Permit, and stamp duty is one of the charges in What Buying Land in Ghana Costs Beyond the Price. Your lawyer can tell you who arranges the stamping and when it is done.

An instalment plan is easiest to follow when every detail is written down and checked early, while the seller is ready to answer. More guides for buyers are in our Paying for Land in Ghana series.

Questions about a Forest Hill plot

If you are buying or considering a plot at Forest Hill, you can ask about payment plans through the enquiry form on this website. Our brochure sets out the five steps from booking to registered lease.