Land Charge Certificate Application (Ghana)

A Land Charge Certificate Application in Ghana records the particulars needed to apply for the registration, permit or approval it concerns.

The Land Act 2020 (Act 1036) replaced the previous statutory framework governing land registration and charges in Ghana, consolidating earlier legislation including the Land Registry Act 1962 (Act 122) and the Land Title Registration Law 1986 (PNDCL 152). Under section 110 of Act 1036, the Registrar of Lands is required to issue a charge certificate to the chargee upon registration of a charge, and that certificate constitutes conclusive evidence of the registered charge and its priority over subsequently registered interests.

The Land Title Registry, operating under the Lands Commission established by the Lands Commission Act 2008 (Act 767), maintains the register of all registered charges over land in Ghana. The Lands Commission has regional offices in Accra, Kumasi, Tamale, Cape Coast, Koforidua, Ho, Wa, Bolgatanga, and other regional capitals across Ghana's 16 administrative regions. Charges registered in the Land Title Registry take priority over unregistered charges and over charges registered later in time, under the principle of indefeasibility of title enshrined in the Land Title Registration Law 1986 (PNDCL 152) as amended by Act 1036.

A charge certificate application must be distinguished from a simple mortgage, which was the instrument used before Act 1036 under the Mortgages Decree 1972 (NRCD 96). Under Act 1036, a charge is the preferred mechanism for creating a security interest in registered land, and the charge certificate is the corresponding document issued by the Lands Commission upon completion of registration. A charge certificate application should also be distinguished from a caution lodged with the Lands Commission under section 84 of Act 1036, which merely prevents dealings with the land pending resolution of a dispute, without creating a security interest.

The legal framework for charge certificate applications in Ghana draws on the Land Act 2020 (Act 1036), the Lands Commission Act 2008 (Act 767), the Stamp Duty Act 2005 (Act 689) which prescribes stamp duty on charges over land, and the Income Tax Act 2015 (Act 896). Parties completing a Land Charge Certificate Application (Ghana) should verify the current stamp duty rate applicable to charges, as the Ghana Revenue Authority (GRA) updates rates periodically. A Land Sale Agreement for Ghana and a Mortgage Agreement for Ghana are related documents that parties typically execute before applying for a charge certificate.

The Bank of Ghana (BoG) requires banks and other financial institutions that accept land as collateral to obtain and hold a valid charge certificate as part of their credit risk management, consistent with the Banking Act 2019 (Act 1003) and the BoG's prudential guidelines on collateral management. For lending facilities secured on land in Ghana's major commercial centres — Accra, Kumasi, Takoradi, Tema, and Tamale — the charge certificate is a standard condition precedent in the facility agreement signed between the bank and the borrower before funds are disbursed.

A Land Charge Certificate Application in Ghana is required in the following circumstances.

When a landowner or leaseholder in Ghana borrows money from a bank licensed by the Bank of Ghana (BoG) and pledges registered land as security, the lender will require a charge certificate application to be filed with the Land Title Registry under section 110 of the Land Act 2020 (Act 1036) before disbursing funds. Without registration of the charge, the lender has no priority over other creditors in the event of default.

When a developer in Accra, Kumasi, or any of Ghana's 16 administrative regions obtains a construction finance facility from a financial institution regulated by the BoG to develop property, the terms of the facility will typically require a registered charge certificate over the land title as a condition precedent to drawdown. The charge certificate application triggers the Land Title Registry's registration process.

When a company incorporated under the Companies Act 2019 (Act 992) and registered with the Office of the Registrar of Companies (ORC) charges its land assets as security for a debenture or other corporate borrowing, a charge certificate application must be filed with the Land Title Registry. The company must also register the charge with the ORC within 28 days of creation under Act 992.

When a borrower is refinancing an existing facility secured on land, a new charge certificate application is required to register the new chargee's interest and, simultaneously, a discharge of the previous charge must be lodged with the Lands Commission to remove the earlier registration.

When probate or letters of administration have been granted by the High Court of Ghana and an estate includes registered land, the executor or administrator may need to file a charge certificate application if the estate's land is pledged to satisfy debts of the deceased. The grant of probate or letters of administration from the High Court must accompany the application.

Parties in Ghana should file a charge certificate application promptly after executing the underlying charge instrument. Delayed registration creates a risk that a subsequent registrant may gain priority under the indefeasibility provisions of the Land Act 2020 (Act 1036).

A Land Charge Certificate Application in Ghana under the Land Act 2020 (Act 1036) must contain the following essential elements to be accepted by the Land Title Registry of the Lands Commission.

Identification of the Land: The application must state the parcel number, block, plot, and sheet reference from the Land Title Registry, together with the district, town, and region in which the land is situated. Where the land is described by a site plan, the site plan number and date approved by the Lands Commission must be referenced. Errors in land identification can cause the Land Title Registry to reject the application or to register the charge against the wrong parcel, with potentially serious consequences for the chargee's security interest.

Identification of the Chargor: The chargor's full legal name, Ghana Card number (issued by the National Identification Authority (NIA)), residential or registered office address, and — for corporate chargors — the company registration number issued by the Office of the Registrar of Companies (ORC) under the Companies Act 2019 (Act 992) must be stated. The chargor must be the registered proprietor of the land or hold a registered leasehold interest under the Land Act 2020 (Act 1036). A title search at the Lands Commission confirming the chargor's registered title and the absence of prior charges or encumbrances is essential before proceeding with the charge application.

Identification of the Chargee: The chargee's full legal name, address, and — where the chargee is a financial institution licensed by the Bank of Ghana — its BoG licence number must be stated. The chargee is the party in whose favour the charge is created and to whom the charge certificate is issued under section 110 of Act 1036. Banks operating in Ghana — including GCB Bank, Absa Bank Ghana, Ecobank Ghana, Stanbic Bank Ghana, and CalBank — are the most common chargees in commercial land charge transactions.

Nature and Amount of the Charge: The application must state the principal amount secured, the interest rate (if any), and whether the charge is a fixed charge over the specific parcel or a floating charge over future assets. Section 110 of Act 1036 requires the charge certificate to describe the nature of the obligation secured. For revolving credit or overdraft facilities, the maximum amount secured must be stated clearly in the charge instrument.

Stamp Duty Endorsement: The charge instrument must be stamped by the Ghana Revenue Authority (GRA) under the Stamp Duty Act 2005 (Act 689) before the Land Title Registry will accept the charge certificate application. The current stamp duty rate on charges over land must be confirmed with the GRA at the time of application, as rates are updated periodically and vary by instrument type and amount secured.

Lands Commission Consent: Where the land is held under a Government lease or stool land allocation, consent from the Lands Commission under the Lands Commission Act 2008 (Act 767) or from the relevant stool authority under the Administrator of Stool Lands Act 1994 (Act 481) may be required before a charge can be registered. Failure to obtain the necessary consent invalidates the charge registration and exposes the chargee to the risk of losing its security.

Signatures and Attestation: The charge instrument must be executed by both the chargor and the chargee and attested by a Commissioner for Oaths or a solicitor enrolled with the Ghana Bar Association. The forms-legal.com Land Charge Certificate Application template includes the standard attestation clause and all sections required by the Lands Commission for a complete charge registration application under Act 1036.

Application Fee: The prescribed registration fee must accompany the application. Fee schedules are published by the Lands Commission and updated periodically. Applicants in Accra should submit to the Land Title Registry at the Cantonments headquarters; those in Kumasi, Tamale, Cape Coast, and other regions should submit to the relevant regional Lands Commission office.