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Mitigating Risks and Liabilities in Land Transactions in Ghana: Buyers' Due Diligence

Source: Prince Kojo Tabiri, Esq. & Douglas Nketiah Boahene, Esq.

Mitigating Risks and Liabilities in Land Transactions in Ghana: Buyers' Due Diligence
MarryRight Ghana

Introduction

During land or property transactions, the due diligence period typically starts as soon as contact is made for the execution of a sale and purchase agreement or a contract of sale to be exchanged and agreed upon. In some instances, the due diligence period starts as soon as refundable contractual deposits are made. The buyer gathers all the information on the property during this precautionary period to aid in determining whether or not they will move forward with the transaction.

This article aims to help raise awareness about the importance of legal and environmental due diligence in Ghanaian real estate transactions and provide guidance on how to effectively assess potential risks and liabilities to aid investors to make more informed decisions and mitigate potential risks associated with property acquisition in Ghana.

A critical issue that is often overlooked during the due diligence process in Ghanaian real estate transactions is environmental due diligence. Without due diligence, the investors are potentially opening themselves up to a bad investment choice. Environmental due diligence in real estate transactions involves the assessment of known, potential, and contingent environmental liabilities and obligations associated with a parcel of property to be acquired.

It is notoriously known that legal due diligence relating to the title is often the primary focus of the due diligence process in Ghanaian real estate transactions. However, it’s important to recognize that environmental due diligence is also a critical aspect of the due diligence process that should not be overlooked.


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