The Bank of Ghana (BoG) is urging real estate brokers and property investors to place greater emphasis on transparency and due diligence in property transactions as part of efforts to curb fraud and restore confidence in the sector.
Speaking during an engagement with members of the Ghana Association of Real Estate Brokers (GAREB), Deputy Head of the Collateral Registry Department, Mrs. Rosemary Akabutu, said conducting proper searches on assets before completing transactions is essential for protecting investments and reducing risks within the real estate market.
Mrs. Akabutu, who represented the Head and Registrar of the Collateral Registry Department, Mr. Fred Issiyama Kurantin, explained that the Borrowers and Lenders Act, 2020 (Act 1052), together with the Collateral Registry system, was introduced to improve Ghana’s credit environment and minimise lending-related risks.
According to her, the reforms became necessary due to longstanding challenges including weak enforcement mechanisms, limited access to credit and information gaps within the financial system.
“The importance of conducting searches and understanding any existing encumbrances on assets cannot be overemphasized. These are vital steps in minimizing risk, preventing fraud, and safeguarding investments,” she stated.
Mrs. Akabutu stressed that transparency remains key to building trust and confidence within both the financial and real estate sectors.
The engagement also brought attention to growing concerns about fraudulent land transactions and the activities of unlicensed operators within the real estate industry.
Representatives of GAREB noted that many individuals have lost substantial sums after purchasing lands that had already been used as collateral for loans without carrying out the necessary checks.
“For a very long time, real estate brokerage in Ghana operated largely through trust, word of mouth, personal relationships and experience,” the Association stated.
“People lost money. Some bought land that had already been used as collateral for loans without knowing. Others got caught in disputes they never expected.”
The Association said the situation highlights the urgent need for stronger regulatory compliance, better public awareness and more professional standards within the sector.
The Ghana Association of Real Estate Brokers (GAREB) has stressed that professionalism in the real estate sector goes far beyond simply connecting buyers and sellers.
According to the Association, practitioners must take responsibility for protecting clients from avoidable risks and fully understand the legal and regulatory systems tied to the properties they market.
“It is about responsibility. It is about protecting clients from avoidable problems. It is about understanding the systems connected to the properties we market,” GAREB stated.
The Association also urged the public to deal only with licensed real estate professionals as part of efforts to reduce fraud and improve accountability within the industry.
“The public should be encouraged to ask for licences before engaging any agent or broker. People should know that they can verify practitioners through the Real Estate Agency Council and through recognised professional bodies like GAREB,” the statement added.
GAREB further revealed that enforcement measures against unlicensed operators in the sector would soon be intensified.
“In the coming days, the Council will intensify its monitoring and enforcement activities. There will be inspections of offices and operations, and individuals or firms found operating without licences will be dealt with according to the law,” the Association warned.
The engagement formed part of efforts to educate real estate brokers on the key provisions of Act 1052, as well as the operations of the Collateral Registry and the procedures involved in registering and searching security interests.