Last month, a diaspora buyer paid ₵200,000 for what he thought was his retirement home in East Legon. Three weeks later, another family showed up with legitimate documents proving they owned the same land. The deposit was gone, legal fees piled up, and trust shattered.
Stories like this repeat across Ghana’s property market, not because buyers lack intelligence, but because they skip critical steps in an emotional, complex process. Smart property buyers still lose money through preventable mistakes around verification, hidden costs, and rushed decisions.
This guide walks you through the seven most expensive errors property buyers make and shows you exactly how to sidestep each trap.
Mistake #1: Skipping Proper Title and Land Verification
Property buyers often pay deposits based on glossy brochures, family connections, or seller assurances without independent checks. This opens the door to double sales, fake documents, and years of court battles.
How to avoid it: Conduct an official search at the Lands Commission using plot details. Hire an independent lawyer to review documents and a licensed surveyor to confirm boundaries. Never pay full amounts before completing verification, regardless of who’s selling.
Mistake #2: Underestimating the True Cost of Buying
Budgeting only for the purchase price is a setup for financial stress. Property buyers frequently forget stamp duty, legal fees, Lands Commission charges, registration costs, and renovation expenses that add 10-15% to the headline price.
How to avoid it: Create a total-cost worksheet that includes the property price plus a 15% buffer for taxes, fees, and initial works. Request written breakdowns of all expected costs from agents, lawyers, and developers before committing.
Mistake #3: Not Defining Clear Goals as a Property Buyer
Mixing “dream home” emotions with “investment property” logic leads property buyers to purchase assets that serve no clear purpose. Someone wanting rental income buys a large family house in a purely residential area, or a family buys in a nightlife district unsuitable for children.
How to avoid it: Decide early whether your main goal is owner-occupation, rental income, or capital appreciation. Write down non-negotiables like commute time, school proximity, target rental yield, and acceptable risk level before viewing properties.
Mistake #4: Ignoring Location Fundamentals
Property buyers repeatedly prioritize beautiful interiors over location fundamentals like access roads, drainage, security, and neighborhood demand. A well-finished house on a flood-prone road with poor lighting and long travel times underperforms as both a home and investment.
How to avoid it: Evaluate area infrastructure, safety, road access, and nearby amenities before judging the property itself. Visit locations at different times—day, night, weekday, weekend—to assess noise, traffic, and how the environment feels after dark. Research planned infrastructure projects that could raise or damage value.
Mistake #5: Signing Contracts You Don’t Fully Understand
Sale agreements, off-plan contracts, and service charge agreements contain clauses property buyers gloss over or misunderstand. Hidden details on delivery timelines, penalty structures, service charge escalations, and default terms become expensive later.
How to avoid it: Never sign property documents without independent legal review from a real estate lawyer not tied to the seller. Insist on plain-language explanations of all key clauses and demand written amendments to any terms you don’t agree with.
Mistake #6: Trusting Verbal Promises Over Written Clauses
Property buyers believe statements like “we’ll fix the road,” “title will come soon,” or “we’ll add a pool later,” only to discover none of this appears in signed documents. In disputes, courts and regulators rely on written agreements, not phone conversations or site visit assurances.
How to avoid it: Get every promise that matters in writing—in the contract, addendum, or formal correspondence acknowledged by both sides. Assume that what is not written does not exist legally.
Mistake #7: Forgetting Exit Strategy and Resale Potential
Some property buyers focus only on today’s price without considering whether banks, future buyers, or tenants will want the asset later. Properties in unplanned areas or projects with weak documentation force owners into trapped equity situations.
How to avoid it: Ask whether mainstream banks will finance buyers in this project or area. Identify your likely future buyer or tenant and confirm the property matches their needs. Favor locations with proven demand and growing infrastructure over purely speculative areas.
Your No-Regret Checklist
Before any major payment, property buyers should:
- Verify title at Lands Commission with independent legal and survey checks
- Budget total cost: purchase price plus 10-15% for fees and initial works
- Define main goal and non-negotiables before viewings
- Prioritize location fundamentals over interior finish
- Refuse to sign contracts without full legal review
- Get important promises in writing
- Consider bank appetite, future demand, and exit options
Frequently Asked Questions
What’s the first thing property buyers should check before paying a deposit?
Confirm legal ownership through a Lands Commission search and have a lawyer review documents before any significant payment.
Is it necessary to hire a lawyer if the seller is family?
Yes. Land and property disputes frequently occur within families. Legal documentation protects both sides by making ownership and terms clear.
How much extra should property buyers budget beyond the purchase price?
Plan for roughly 10-15% on top of the purchase price to cover stamp duty, legal fees, Lands Commission charges, taxes, and initial works.
Are off-plan purchases too risky for first-time property buyers?
Off-plan can work, but Ghana lacks strong buyer protections. First-time property buyers should carefully vet developer track records, payment structures, and contract protections.
How can diaspora property buyers protect themselves from scams?
Diaspora property buyers should rely on independent legal checks, verified developers, third-party inspections, and secure payment channels instead of sending money based only on photos or recommendations.
Property buyers don’t need to be experts, you just need a process. Book a consultation with your trusted realtor to review deals before you commit and protect your investment from day one.
