Lawyer on why buying an already constructed estate is safer than purchasing land to build
The debate between buying land to build and purchasing an already constructed home is a common one in Ghana. While many aspire to build their dream house from scratch, the realities of land acquisition, litigation, and construction challenges make that path fraught with risks.
It is on this basis that real estate lawyer Victor Owusu Asante argues that buying an already constructed home—especially from a reputable estate company—offers greater security and convenience, provided proper due diligence is carried out.
In an interview, the private legal practitioner highlighted four key reasons why it is safer to purchase an already constructed estate house in Ghana rather than taking the risk of buying land to build.
1. Presumption of Possession
Lawyer Victor explained that buying a house within an estate often comes with the advantage of visible possession. The land has already been developed, the property is either occupied or maintained, and the community recognizes the estate company’s control over the land. Unlike bare land, which is vulnerable to multiple claims, a developed property carries clear physical evidence of ownership.
2. Avoiding the Construction Headache
He noted that estate companies typically acquire land, obtain permits, and handle construction. By purchasing from them, buyers skip these difficult and often contentious processes. However, this does not mean due diligence can be ignored—buyers must still take steps to protect themselves.
3. Assurance of Prior Due Diligence
Counsel further indicated that because most real estate companies operate as registered businesses, they are required to conduct certain checks before development. These include securing proper titles, obtaining permits, and ensuring compliance with land-use and planning regulations. Buyers benefit from this groundwork while still needing to carry out their independent verification.
4. Professional Verification of Quality
Finally, he stressed the importance of verifying the quality of construction. Even when buying from a company, it is advisable to engage a valuer or engineer to confirm that the right materials were used. This protects buyers from future maintenance burdens caused by substandard building practices.
Due Diligence Requirements for Buyers
In addition to the above reasons, Lawyer Owusu Asante emphasized specific due diligence checks every buyer should undertake before purchasing an estate property:
Engage a Qualified Surveyor
Hire a licensed surveyor to take the coordinates of the property. Conduct a search at the Lands Commission to verify ownership, check for encumbrances, and confirm proper registration of title or interest in the land.
Verify the Real Estate Company
Check at the Registrar-General’s Department to ensure that the real estate company is duly incorporated and legally recognized.
Confirm Planning and Permits
Conduct a search at the Land Use and Spatial Planning Authority (LUSPA) in the relevant area to confirm that valid development permits have been obtained.
Hire a Professional Valuer
Engage a valuer or construction expert to appraise the property and confirm that the materials used meet safety and quality standards and also to ascertain the sale value of the property.
Enter a Sale and Purchase Agreement
Before making any monetary commitments, secure yourself through a properly drafted sale and purchase agreement. Ensure this document is vetted by your lawyer to safeguard your interest, rights and obligations under the transaction.
Review Lease and Deed of Assignment
Have a lawyer carefully review the deed of assignment or lease agreement, paying close attention to the lease term—whether 25, 40, or 50 years, restrictive covenants such as land use etc.
