Leasehold Renewal Agreement (Ghana)

A Leasehold Renewal Agreement in Ghana governs the letting of property, fixing the rent, duration and the duties of landlord and tenant.

The Land Act 2020 (Act 1036) consolidates and replaces a series of earlier land legislation, including the State Lands Act 1962 (Act 125), the Administration of Lands Act 1962 (Act 123), and the Land Title Registration Law 1986 (PNDCL 152). Under section 53 of Act 1036, a lease of land for a term exceeding three years must be in writing, executed by the lessor and lessee, and registered with the Land Registration Division of the Lands Commission. A Leasehold Renewal Agreement that creates a new lease of more than three years must therefore be formally registered with the Lands Commission to be effective against third parties and binding upon successors in title.

Land tenure in Ghana encompasses four main forms: freehold (allodial title), customary freehold, leasehold, and licence. Leasehold interests are the most common form of title available to non-citizens and to corporate entities, as the Land Act 2020 (Act 1036) prohibits non-citizens from holding freehold title to land in Ghana. Under section 10 of Act 1036, a non-citizen may hold a lease of residential land for a term not exceeding fifty years, and a lease of land for investment or business purposes for a term approved by the Ghana Investment Promotion Centre (GIPC) under the Ghana Investment Promotion Centre Act 2013 (Act 865).

The Lands Commission of Ghana — established under the Lands Commission Act 2008 (Act 767) and constitutionally mandated under article 258 of the 1992 Constitution — administers the land registration system. The Land Registration Division of the Lands Commission processes applications for registration of new leases and renewal leases. A search at the Lands Commission under section 21 of the Lands Commission Act 2008 (Act 767) is required before executing a Leasehold Renewal Agreement to confirm the current title and encumbrances on the land.

Stool lands — land owned by traditional authorities (stools and skins) under customary law — are the most common category of land in Ghana and are administered by the Office of the Administrator of Stool Lands (OASL) under the Office of Administrator of Stool Lands Act 1994 (Act 481). Leasehold Renewal Agreements for stool land must be concurred by the OASL, and a portion of the ground rent payable under the renewed lease must be remitted to the OASL pursuant to section 10 of Act 481. Stools receive 25% of stool land revenue, the relevant traditional council receives 25%, and the District Assembly receives 50% under the formula prescribed by the OASL.

The Ghana Revenue Authority (GRA) requires lessors to report rental income from renewed leases under the Income Tax Act 2015 (Act 896). Stamp duty on Leasehold Renewal Agreements is payable under the Stamp Duty Act 2005 (Act 689) at the rate applicable to lease instruments, based on the annual rent and the lease term. The Internal Revenue Service (IRS) and the Ghana Revenue Authority (GRA) assess stamp duty at the time of registration of the lease with the Lands Commission.

A Leasehold Renewal Agreement in Ghana is required whenever an existing lease of land or property is approaching its expiry date and the parties wish to continue the tenancy relationship under a new lease term.

A Leasehold Renewal Agreement is required when the original lease of a residential property in Accra, Kumasi, Takoradi, or any other Ghanaian city is expiring and the landlord is willing to grant the tenant a fresh lease on the same or revised terms, rather than terminating the tenancy and seeking a new tenant.

A Leasehold Renewal Agreement is needed when a company incorporated under the Companies Act 2019 (Act 992) holds a lease of commercial premises — office space, warehouse, factory, or retail unit — and the board of directors has resolved to renew the lease for a further term to secure the company's continued occupation of the business premises.

A Leasehold Renewal Agreement is required when a stool land lessee whose lease is managed by the Office of the Administrator of Stool Lands (OASL) under the Office of Administrator of Stool Lands Act 1994 (Act 481) wishes to renew a residential or agricultural lease granted by a traditional stool, and must obtain concurrent approval from the OASL before executing the renewal instrument.

A Leasehold Renewal Agreement is needed when a non-citizen investor holding a leasehold under the Land Act 2020 (Act 1036) section 10 and the Ghana Investment Promotion Centre Act 2013 (Act 865) requires a renewal of the lease to maintain their investment in Ghana, and must demonstrate compliance with their GIPC investment registration as a condition of renewal.

A Leasehold Renewal Agreement is required when agricultural land leases granted by the Lands Commission on behalf of the government or by a traditional authority expire and the farmer or agricultural company wishes to renew for a further planting cycle, as required by the Food and Agriculture Sector Development Policy (FASDEP) and relevant guidelines of the Ministry of Food and Agriculture.

Parties in Ghana should prepare a Leasehold Renewal Agreement (Ghana) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Land Act 2020 (Act 1036), the Lands Commission manages land registration in Ghana. Section 43 of the Land Act 2020 governs leases of stool and skin lands. The Office of the Administrator of Stool Lands (OASL) manages stool land revenue under Article 267 of the Constitution of Ghana 1992. The Land Court (High Court division) adjudicates land disputes. The Stamp Duty Act 2005 (Act 689) imposes duty on property instruments. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A valid Leasehold Renewal Agreement in Ghana under the Land Act 2020 (Act 1036) section 53 and the Rent Act 1963 (Act 220) must contain the following essential elements.

Parties: Full legal names and addresses of the lessor (landlord) and lessee (tenant). Where either party is a company registered under the Companies Act 2019 (Act 992), the company registration number from the Office of the Registrar of Companies (ORC) must be stated. Where the lessor is a traditional authority, the name of the stool or skin and the concurrence of the Office of the Administrator of Stool Lands (OASL) must be recorded.

Property Description: A precise description of the land or building being leased, including the plot number, parcel reference, survey plan number, physical address, and the Land Register folio at the Lands Commission where the original lease is registered.

New Lease Term: The commencement date and expiry date of the renewed lease. Under section 10 of the Land Act 2020 (Act 1036), non-citizen lessees may not hold a residential lease for more than fifty years. The renewed term must be stated in years, months, and days with clear start and end dates in DD/MM/YYYY format.

Rent: The annual or monthly rent payable under the renewed lease, stated in Ghana Cedis (GHS), the payment date, and the bank account or mobile money account (Mobile Money Interoperability — MoMo) to which rent is to be paid. Any rent review provisions — including the frequency of review and the benchmark (market rent, CPI, or fixed percentage increase) — must be clearly stated.

Advance Rent: Confirmation that advance rent collected from the tenant complies with section 25 of the Rent Act 1963 (Act 220), which prohibits residential landlords from collecting more than six months' rent in advance.

Premium or Key Money: Where a premium is payable by the tenant for the grant of the renewed lease, the amount, payment date, and tax treatment under the Income Tax Act 2015 (Act 896) must be stated.

Permitted Use: The permitted use of the property under the renewed lease — residential, commercial, industrial, agricultural — and any restrictions on use or subletting imposed by the lessor or by the planning permission granted by the relevant District Assembly under the Land Use and Spatial Planning Act 2016 (Act 925).

OASL Concurrence: Where the land is stool land, a statement confirming that the Office of the Administrator of Stool Lands (OASL) has concurred in the grant of the renewed lease, as required by section 10 of the Office of Administrator of Stool Lands Act 1994 (Act 481).

Lands Commission Registration: A covenant by the lessor to register the Leasehold Renewal Agreement with the Land Registration Division of the Lands Commission within 60 days of execution, with stamp duty paid under the Stamp Duty Act 2005 (Act 689).

Forms-legal.com provides this Leasehold Renewal Agreement template as a starting point for land transactions in Ghana. Solicitors enrolled with the Ghana Bar Association should be engaged for lease renewals involving stool land, government land, or leases for terms exceeding five years, given the OASL concurrence and Lands Commission registration requirements under Act 1036.

Additional compliance elements for a Leasehold Renewal Agreement (Ghana) used in Ghana include: Under the Land Act 2020 (Act 1036), the Lands Commission manages land registration in Ghana. Section 43 of the Land Act 2020 governs leases of stool and skin lands. The Office of the Administrator of Stool Lands (OASL) manages stool land revenue under Article 267 of the Constitution of Ghana 1992. The Land Court (High Court division) adjudicates land disputes. The Stamp Duty Act 2005 (Act 689) imposes duty on property instruments. Forms-legal.com provides this template as a starting point for Ghana-compliant documentation.