Accra: The Ghana Association of Real Estate Brokers (GAREB) has called for deeper collaboration between real estate practitioners and the Bank of Ghana (BoG) to improve transparency and reduce risks in property transactions through the effective use of the Collateral Registry system. Speaking at a stakeholder engagement on the Collateral Registry system, the President of GAREB, Jacob Adofo Ansong, highlighted the system's importance in addressing challenges in Ghana's real estate sector, where buyers and brokers have often encountered hidden encumbrances on properties.
According to Ghana Web, Ansong explained that for a long time, real estate brokerage in Ghana operated primarily on trust, word of mouth, and personal relationships. Brokers and agents often lacked knowledge of where to check or what questions to ask before marketing a property, leading to disputes and financial losses in the sector. Many individuals lost money by purchasing land already used as collateral for loans without their knowledge.
Ansong emphasized that the Collateral Registry system is a key tool in professionalizing the industry and protecting clients. He stated that professionalism in real estate is not only about closing deals but also about being responsible and ensuring proper checks are made. Real estate professionals must understand financial and legal systems connected to property transactions to avoid exposing clients to unnecessary risks.
The GAREB President also called for stronger collaboration between regulatory and financial institutions to improve the safety and credibility of the sector. Building relationships with institutions like the Bank of Ghana is crucial for the real estate sector, which interacts with multiple institutions.
On behalf of the Bank of Ghana, the Deputy Head of the Collateral Registry Department, Rosemary Akabutu, highlighted the registry's importance in safeguarding credit and asset transactions in the country. She explained that the Collateral Registry improves access to credit while ensuring transparency in secured transactions. Collaboration with industry players like real estate brokers is essential for the system to have its full impact in reducing disputes and enhancing due diligence.
Jacob Ansong also addressed public concerns about unregulated actors in the industry, emphasizing that the sector is now governed by the Real Estate Agency Act, 2020 (Act 1047), which established the Real Estate Agency Council as the legal regulator. He cautioned against generalizing misconduct within the sector and urged stakeholders to support enforcement efforts by demanding proof of licensing before engaging agents. Licensed professionals are committed to ethical practice, and it is important to identify and address specific individuals or firms responsible for misconduct.
The stakeholders concluded that stronger regulation, education, and collaboration are essential to clean up the sector and restore public confidence in real estate practice in Ghana.