Ghana’s real estate market is booming but behind the rapid growth lies a dangerous reality many buyers ignore until it is too late. Imagine paying hundreds of thousands of cedis for land or a house, only to discover later that the property had already been used as collateral for a bank loan. That is exactly why the Bank of Ghana (BoG), through its Collateral Registry Department, is intensifying public education on property verification and secured transactions under the Borrowers and Lenders Act, 2020 (Act 1052).
At a recent stakeholder engagement program organized together with the Ghana Association of Real Estate Brokers (GAREB) at Alisa Hotel in Accra, officials warned property buyers, investors, brokers, and developers to stop purchasing property without conducting proper Collateral Registry searches. According to officials from the Collateral Registry Department, thousands of landed properties and buildings in Ghana have been registered as collateral for loans over the years.
In fact, statistics presented during the event revealed that over 86,420 immovable assets had been registered as collateral between 2010 and 2024. This means a property may look genuine, the documents may appear legitimate, the seller may sound convincing but the property could still have an active loan attached to it hence If buyers fail to verify the property’s status, they risk a lot such as losing money, entering legal disputes,purchasing encumbered property and possibility of Facing possible claims from banks or lenders. Under the Borrowers and Lenders Act, 2020 (Act 1052), Lenders must register security interests created over collateral, The Collateral Registry maintains records of assets pledged for loans, buyers and investors are encouraged to conduct searches before transactions. The Bank of Ghana says the system was created to Reduce fraud, Improve transparency, Strengthen confidence in Ghana’s credit market and Protect both lenders and buyers. Officials at the event stressed that conducting a Collateral Registry search should become as normal as conducting a Lands Commission search before buying any property. Ghana’s real estate sector has seen increasing reports of Double sales, Fake documentation, Land litigation and many at times Hidden debts tied to properties which many unsuspecting buyers only discover these issues after making payments.
The question is; How can Buyers Protect Themselves? Speaking on these challenges and the solutions, the President of the Ghana Association of Real Estate Brokers, Mr. Jacob Ansong adviced that before making any investment related to Real Estate; Conduct a Collateral Registry search, Conduct a Lands Commission search, Verify ownership document, Work with lawyers and licensed brokers and avoid rushed cash transactions. The Collateral Registry search can help determine whether a property has already been pledged as collateral for a loan or has an existing security interest attached to it.
THE JFT EDIT 
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