Customary Land Allocation Agreement (Ghana)

A Customary Land Allocation Agreement in Ghana governs the relationship between the parties by fixing what each must do.

Customary land tenure is the dominant form of land ownership in Ghana, accounting for an estimated 78% of all land in the country. Customary land in Ghana is held in trust by traditional authorities — stools and skins — for the benefit of their communities, or is held by families and clans as family property. Under the Land Act 2020 (Act 1036), which came into force on 29 December 2021 and replaced the State Lands Act 1962 (Act 125), the Administration of Lands Act 1962 (Act 123), and other land legislation, customary land allocations are recognised as valid interests in land that may be registered at the Lands Commission.

Section 35 of the Land Act 2020 (Act 1036) defines "customary land" as land held under customary tenure and vested in a stool, skin, family, or clan. Section 36 of Act 1036 recognises the authority of stools and skins to allocate customary land to members of their communities and to non-members, subject to the provisions of Act 1036. Section 122 of the Land Act 2020 (Act 1036) provides for the registration of customary land rights at the Lands Commission, which is the statutory body responsible for land administration in Ghana, established under the Lands Commission Act 2008 (Act 767).

The Office of the Administrator of Stool Lands (OASL), established under Article 267 of the Constitution of Ghana 1992 and the Office of the Administrator of Stool Lands Act 1994 (Act 481), collects and disburses stool land revenue — including customary drinks money and land rents — on behalf of stools and skins. The OASL distributes stool land revenue to the Office of the Traditional Authority (25%), the District Assembly (55%), and the Traditional Authority for development purposes (20%). All payments of customary land allocation fees on stool lands should be made through or notified to the OASL.

Family land in Ghana — land held by a family or lineage group — is governed by customary law principles that vary between ethnic groups. Among the Akan, family land is held in common and the family head (Abusua Panyin) has authority to allocate it, subject to the consent of principal family members. Among the Ewe, family land is allocated by the family head. Among northern groups (Dagomba, Mamprusi, and others), land is held by the earth priest (Tindana) or the skin and allocated through the skin's authority structure. The Customary Land Allocation Agreement must correctly identify the granting authority in accordance with the applicable customary law.

The Land Act 2020 (Act 1036) requires customary land allocations to be registered at the Lands Commission to obtain a formal title (a Certificate of Customary Ownership or a Leasehold Title). Registration protects the allottee against competing claims and subsequent allocations of the same land by the grantor. The forms-legal.com template provides a compliant starting point for documenting customary land allocations in Ghana before formal registration at the Lands Commission.

A Customary Land Allocation Agreement in Ghana is required in the following circumstances.

A Customary Land Allocation Agreement is needed when a stool, skin, family, or clan in Ghana allocates customary land to an individual or company for residential, commercial, agricultural, or industrial development. Without a written allocation document, the allottee has no evidence of their right to occupy and develop the land, and cannot proceed with registration at the Lands Commission under the Land Act 2020 (Act 1036).

A Customary Land Allocation Agreement is required as the foundational document in the process of obtaining a Certificate of Customary Ownership or a Leasehold Title from the Lands Commission. The Lands Commission requires a written allocation document, executed by the authorised representative of the grantor (the stool chief, family head, or clan head), as the primary evidence supporting the title registration application.

A Customary Land Allocation Agreement is needed when a company incorporated under the Companies Act 2019 (Act 992) and registered with the Ghana Investment Promotion Centre (GIPC) under the Ghana Investment Promotion Centre Act 2013 (Act 865) acquires customary land for a commercial or industrial project. The GIPC and other regulatory bodies require evidence of valid land rights before issuing investment permits or business licences related to the use of the land.

A Customary Land Allocation Agreement is required when a financial institution licensed by the Bank of Ghana requires evidence of valid land rights before approving a construction loan or mortgage secured on customary land. The bank's legal team will require the allocation document, the OASL receipt for payment of allocation fees, and evidence that the land has been registered or is in the process of registration at the Lands Commission.

A Customary Land Allocation Agreement is needed to establish the allottee's rights against third parties — including subsequent allottees of the same land, neighbouring landowners, and encroachers — before development commences. A customary allocation that is not documented and registered is vulnerable to double-allocation, a persistent problem in Ghana's customary land market.

Parties in Ghana should execute a Customary Land Allocation Agreement before any development costs are incurred on the allocated land. Commencing construction without a formal written allocation document and Lands Commission registration creates a significant risk of losing the investment if the allocation is subsequently disputed or overturned.

A valid Customary Land Allocation Agreement in Ghana under the Land Act 2020 (Act 1036) and customary land tenure principles must contain the following essential elements.

Grantor Identity and Authority: The full name of the grantor — whether a stool (identified by the stool name and the name of the chief occupying the stool), a skin, a family head (Abusua Panyin), or a clan representative — and confirmation of their authority under the applicable customary law to allocate the land. For stool land, the agreement should record the stool name, the name of the occupant chief, and the location of the stool in Ghana's traditional authority hierarchy. The grantor's Ghana Card number or other identity documentation should be stated.

Allottee Identity: Full legal name, Ghana Card number, residential address, and occupation of the allottee. Where the allottee is a company, the company's name, ORC registration number, and registered office address under the Companies Act 2019 (Act 992) must be stated.

Description of the Allocated Land: The location of the land (town or village, district, region), the plot number or reference as recorded in the stool's or family's land register, the area in square metres or acres, the four boundary pillars or natural landmarks, and any reference number on the Lands Commission's records or district map. A site plan prepared by a licensed surveyor should be attached to the agreement as a schedule.

Purpose of Allocation: The specific use for which the land is allocated — residential construction, commercial development, agricultural use, or other purpose. Many customary allocations are conditional on the land being developed for the stated purpose within a specified period; failure to develop may result in the land reverting to the grantor.

Consideration: The customary drinks money or allocation fees paid to the grantor, the OASL receipt number confirming payment of stool land revenue (for stool land allocations), and any annual customary tribute or ground rent payable by the allottee to the grantor. The allocation fees and ground rent amounts must be stated in Ghana Cedis (GHS).

Development Obligations: Any development conditions imposed by the grantor — typically that the allottee must commence and complete construction within a specified number of years from the date of allocation — and the consequences of failure to develop (reversion, forfeiture, or renegotiation).

Registration Obligation: The allottee's obligation to register the customary allocation at the Lands Commission under the Land Act 2020 (Act 1036) within a specified period, and the grantor's obligation to cooperate in the registration process by executing any further documents required by the Lands Commission.

Witnesses: The agreement must be witnessed by at least two adult witnesses who are not parties to the agreement, as required by Ghanaian customary practice and the Lands Commission's registration requirements. Forms-legal.com provides this Customary Land Allocation Agreement (Ghana) as a starting point for documenting customary land rights in compliance with Act 1036.

Additional compliance elements for a Customary Land Allocation 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.