An encumbrance is any claim, lien, charge, or restriction on a property that may affect the owner's ability to deal with it freely. Buying land with hidden encumbrances is one of the most costly mistakes in Ghana real estate. Here's how to find them before you buy.
What Are Encumbrances?
Common encumbrances on land in Ghana include:
- Mortgages: The land is pledged as security for a loan. The lender (bank) has a registered charge over the property. If the mortgage is not paid off before the sale, the buyer inherits this charge — and the bank can still enforce it.
- Caveats: A legal notice lodged at the Lands Commission by a third party claiming an interest in the land. A caveat stops the land from being transferred without the caveat holder's knowledge or consent.
- Court orders: Injunctions, attachment orders, or restraining orders affecting the property
- Liens: Claims by creditors who are owed money related to the property (e.g., unpaid construction costs)
- Easements: Rights held by third parties over the land (e.g., a right of way, utility wayleave)
- Restrictive covenants: Restrictions on what can be done with the land (e.g., "residential use only")
Why This Matters for Buyers
If you buy land with:
- An undisclosed mortgage — the bank can repossess the land from you even though you are innocent
- A caveat — you cannot register your own title without dealing with the caveat holder
- A court order — the sale itself may be void or challengeable
These are not theoretical risks. These scenarios happen regularly in Ghana.
How to Conduct an Encumbrance Search
Step 1: Title Search at the Lands Commission
Go to the Deeds Registry or Land Title Registry at the Lands Commission office in the relevant region.
Request a search for:
- All registered instruments (deeds, mortgages, leases) relating to the plot
- Any caveats or restrictions on the parcel
Provide: the plot number, parcel number, or the title certificate number. Cost: approximately GHS 100–300. Time: 1–5 days.
Step 2: Court Search
At the High Court registry, request a search for any court orders, injunctions, or attachments affecting the property. This is particularly important in active land dispute areas.
Step 3: Bank/Mortgage Check
Ask the seller to provide a letter from their bank confirming the status of any mortgage — whether it is discharged or still outstanding, and the outstanding balance if so.
Step 4: Ask Directly and in Writing
In the purchase agreement, require the seller to warrant (legally promise) that there are no undisclosed encumbrances. If a hidden encumbrance later appears, you can sue the seller for breach of warranty.
What If There Is an Encumbrance?
- Mortgage: Negotiate for the mortgage to be discharged from the sale proceeds before the balance is paid to the seller. Your lawyer can hold funds in escrow until the Lands Commission confirms discharge.
- Caveat: The caveat holder must be contacted. Either they agree to withdraw the caveat, or you need to understand their claim before proceeding.
- Court order: Do not proceed until the order is resolved. Walk away if necessary.
Cost of a Full Search
Lands Commission search: GHS 100–300
Court search: GHS 100–200
Lawyer search fee: GHS 500–2,000 (depends on lawyer)
Total: GHS 700–2,500 for a comprehensive check
This is a tiny fraction of any land purchase price. It is non-negotiable.
Use our free Land Deal Risk Check to assess your risk. Read about getting a title certificate and checking registration status.