Shop/Retail Premises Lease Agreement (Ghana)

A Shop/Retail Premises Lease Agreement in Ghana sets out the rent, deposit, term and obligations governing a landlord and tenant's occupancy of a property.

The Rent Act 1963 (Act 220) applies to the letting of premises in Ghana, including shops, offices, and residential accommodation. The Rent Control Department, established under the Rent Act 1963, administers the Act and has jurisdiction to adjudicate disputes between landlords and tenants in Ghana. Section 1 of the Rent Act 1963 (Act 220) sets out the scope of the Act and the definition of premises. The Rent Act imposes obligations on landlords — including the duty to maintain the premises in a state fit for the purpose for which they are let — and confers protections on tenants, including restrictions on eviction without court order.

The Land Act 2020 (Act 1036) thoroughly regulates land tenure, administration, and transactions in Ghana. Section 1 of Act 1036 vests the administration of stool and skin lands in the relevant traditional authorities (stools and skins), with the Office of the Administrator of Stool Lands (OASL) collecting and managing stool land revenues. Where the shop premises are situated on stool land, the lease must be registered with the Lands Commission under Section 122 of the Land Act 2020 (Act 1036), and ground rent (concession rent) may be payable to the relevant stool.

The Contract Act 1960 (Act 25) governs the general requirements for a valid lease in Ghana: offer, acceptance, consideration (rent), capacity of the parties, and a lawful purpose. A lease of three years or more must be in writing and registered with the Lands Commission under Section 122 of the Land Act 2020 (Act 1036) to be enforceable against third parties. Registration at the Lands Commission is required for all commercial leases to create an interest in land binding on successors in title.

The Ghana Revenue Authority (GRA) administers property income tax and withholding tax on rent payments under the Income Tax Act 2015 (Act 896). Tenants of commercial premises who are registered persons under Act 896 are required to withhold tax on rent payments to landlords and remit the withheld amount to the GRA. The stamp duty on lease agreements under the Stamp Duty Act 2005 (Act 689) is payable before registration with the Lands Commission.

The Electronic Transactions Act 2008 (Act 772) recognises electronic signatures in Ghana. A Shop Lease Agreement executed electronically is legally valid under Section 8 of Act 772, though registration with the Lands Commission may require a physically executed instrument. Disputes between landlords and tenants in Ghana may be resolved through the Rent Control Department, the High Court (Land Division) in Accra, or through arbitration under the Alternative Dispute Resolution Act 2010 (Act 798).

A Shop and Retail Premises Lease Agreement in Ghana is needed whenever a business owner, retailer, or trader occupies commercial retail premises belonging to another person and requires formal documentation of the tenancy.

A Shop Lease Agreement is required when a retailer or trader rents a shop unit in a Ghanaian shopping mall, market complex, or commercial arcade — such as those in Accra Mall, Westfield Junction, Kumasi City Mall, or the Makola Market commercial area. The agreement sets out the rent, service charges, permitted use, and duration of the lease, protecting both the landlord and the tenant.

A Shop Lease Agreement is needed when a franchise operator takes a retail unit in Ghana to operate a branded store under a franchise agreement. The lease must permit the franchisee's intended use, specify the fit-out obligations of each party, and address the assignment of the lease if the franchise agreement is terminated.

A Shop Lease Agreement is required when a food and beverage operator, pharmacist, hair salon operator, or other retail service provider rents a commercial unit in a Ghanaian business district or residential shopping precinct. The agreement must specify the permitted use in detail to prevent disputes about the scope of activities allowed on the premises.

A Shop Lease Agreement is needed when a financial institution — such as a bank or savings and loans company licensed by the Bank of Ghana (BoG) — leases a branch premises from a property owner. The agreement must address the bank's specific fit-out and security requirements, as well as the Bank of Ghana's regulatory requirements for branch premises.

A Shop Lease Agreement is required when a manufacturer or distributor of fast-moving consumer goods (FMCGs) takes a wholesale or distribution depot in an industrial estate in Accra, Tema, Kumasi, or Takoradi. The agreement must address access, loading facilities, and compliance with any applicable planning and environmental regulations.

Parties in Ghana should execute a Shop Lease Agreement before the tenant takes occupation and register the lease with the Lands Commission under Section 122 of the Land Act 2020 (Act 1036) promptly after execution to protect the tenant's leasehold interest against third-party claims.

A binding Shop and Retail Premises Lease Agreement in Ghana under the Rent Act 1963 (Act 220) and the Land Act 2020 (Act 1036) must contain the following essential elements.

Parties: Full legal names and addresses of the landlord and the tenant. Where a party is a company incorporated under the Companies Act 2019 (Act 992), its ORC registration number should be stated. The landlord's proof of title — whether a Land Certificate, Deed of Assignment, or Indenture registered with the Lands Commission — should be referenced to confirm the landlord's authority to grant the lease.

Description of Premises: A precise description of the shop or retail unit being let — including the address, floor area, floor level, and any common areas or facilities included in the lease — sufficient to identify the premises on the ground. Where the premises are on stool land, the relevant stool or skin and the Office of the Administrator of Stool Lands (OASL) registration details should be noted.

Lease Term: The start date, the end date, and the total duration of the lease. A lease of three or more years must be registered with the Lands Commission under Section 122 of the Land Act 2020 (Act 1036). Short-term leases of less than three years may be created orally or in writing but are best documented in writing for evidentiary purposes.

Rent: The annual rent expressed in Ghana Cedis (GHS), the payment frequency (monthly, quarterly, or annually), the bank account to which rent is payable, and any provision for rent review. The Rent Act 1963 (Act 220) empowers the Rent Control Department to investigate and fix rents for controlled premises. Withholding tax on rent payable to Ghanaian landlords under the Income Tax Act 2015 (Act 896) must be addressed — the tenant who is a withholding agent must deduct and remit the tax to the Ghana Revenue Authority (GRA).

Deposit: The amount of the security deposit (caution money), the conditions under which the landlord may retain it, and the timeline for its return after the lease expires. Ghanaian practice commonly requires a deposit of three to six months' rent.

Permitted Use: A precise statement of the permitted use of the premises — for example, retail pharmacy, supermarket, clothing store, or restaurant — to prevent the tenant from operating a use that is not permitted under Ghanaian planning law or the landlord's title documents. Any change of use requires the landlord's prior written consent.

Repair and Maintenance: The respective obligations of the landlord and tenant for maintaining the structure, the exterior, the installations, and the interior of the premises. The Rent Act 1963 (Act 220) imposes on the landlord a duty to keep the premises in a fit state for the purpose for which they are let.

Fit-Out and Alterations: Whether the tenant may fit out or alter the premises, the landlord's approval process, and the obligation to reinstate the premises to their original condition at the end of the lease.

Insurance: The party responsible for insuring the building (normally the landlord) and the party responsible for contents and public liability insurance (normally the tenant).

Registration and Stamp Duty: The obligation to pay stamp duty under the Stamp Duty Act 2005 (Act 689) and to register the lease with the Lands Commission under Section 122 of the Land Act 2020 (Act 1036) within the required period after execution.

Governing Law and Dispute Resolution: Ghana law, with disputes referred in the first instance to the Rent Control Department under the Rent Act 1963 (Act 220) or to the High Court (Land Division) in Accra, or through arbitration at the Ghana Arbitration Centre under the Alternative Dispute Resolution Act 2010 (Act 798).

Forms-legal.com provides this Shop Lease Agreement template as a starting point for commercial tenancies in Ghana. Landlords and tenants should seek advice from a solicitor enrolled with the Ghana Bar Association for complex or high-value commercial leases.