Accra: The Bank of Ghana and Ghana Association of Real Estate Brokers (GAREB) are intensifying efforts to strengthen due diligence in property transactions as regulators and industry players seek to reduce fraud risks, improve transparency, and reinforce confidence in Ghana's real estate and credit markets.
According to Ghana Web, at an industry engagement on the operations of the central bank's Collateral Registry, officials emphasized that stronger use of property searches and verification systems will help prevent the sale or marketing of assets already pledged as collateral for loans. Rosemary Akabutu, Deputy Head of the Collateral Registry Department at the Bank of Ghana, highlighted that the Borrowers and Lenders Act 2020 (Act 1052) and the establishment of the Collateral Registry were introduced to address structural weaknesses in Ghana's credit market, including information asymmetry, weak enforcement systems, and elevated lending risks.
She pointed out that the reforms aim to strengthen confidence in secured lending by providing legal guidance on the registration, priority, and enforcement of security interests in both movable and immovable assets. Akabutu stated the importance of conducting searches and understanding any existing encumbrances on assets, noting that these are vital steps in minimizing risk, preventing fraud, and safeguarding investments.
The central bank acknowledged that limited public awareness remains a challenge despite the collateral registry reforms being in place for over a decade. As a result, the Bank of Ghana has expanded financial literacy and stakeholder outreach programs to improve understanding of the registry system and the broader secured transactions framework.
The engagement comes as Ghana's property sector faces increasing scrutiny over fraud, unlicensed brokerage activities, and disputes linked to land ownership and collateralized properties. GAREB president Jacob Ansong noted that brokers increasingly recognize that real estate transactions now require stronger professional standards and more rigorous verification procedures beyond simply matching buyers and sellers.
Ansong stressed the duty of brokers to conduct searches and perform extensive due diligence on properties, citing instances where properties have been used as collateral without the broker's knowledge. He indicated that it is the responsibility of brokers to determine whether a property has been used for collateral purposes before putting it on the market.
The association has engaged the central bank specifically to train brokers on how to conduct searches through the collateral registry system to reduce the risk of disputed or improperly marketed properties. Discussions also highlighted broader regulatory reforms in Ghana's real estate industry following the passage of the Real Estate Agency Act 2020 (Act 1047), which established the Real Estate Agency Council as the sector's legal regulator.
Ansong mentioned that the industry has historically operated with limited oversight, allowing unlicensed operators to flourish and exposing consumers to fraud and financial losses. Under the current law, agents and brokers are required to be licensed and subject to regulatory oversight and disciplinary procedures.
He added that the Council will intensify its monitoring and enforcement activities in the coming days, with an increase in inspections of firms and operators to curb illegal practices. The push for tighter verification standards and licensing enforcement reflects broader efforts to formalize Ghana's property market as demand for housing and real estate investment continues to rise.
Industry players believe that improved transparency and reliable property records could also strengthen access to mortgage financing and reduce risks within the banking sector. Ansong, however, argued that Ghana's housing challenge is increasingly an affordability problem rather than a pure supply deficit, noting that despite a 1.8 million to 2 million housing deficit, there are about 1.5 million houses lying vacant due to affordability issues.