Property Co-Ownership Agreement (Ghana)

A Property Co-Ownership Agreement in Ghana governs the relationship between the parties by fixing what each must do.

Section 35 of the Land Act 2020 (Act 1036) recognises co-ownership of land in Ghana in two principal forms. The first is tenancy in common, under which each co-owner holds a defined and separate fractional share of the property (e.g., 50% each, or 60%/40%), which can be dealt with independently — transferred, mortgaged, or devised by Will — without the consent of the other co-owners, subject to any restrictions agreed in the Co-Ownership Agreement. The second is joint tenancy, under which the co-owners hold the property collectively without separate fractional shares, and where the right of survivorship applies — meaning that upon the death of one joint tenant, the deceased's interest in the property automatically passes to the surviving joint tenant(s), without forming part of the deceased's estate for succession purposes.

The Lands Commission of Ghana, established under the Lands Commission Act 2008 (Act 767), is responsible for the management of government land, stool land, and family land, and for the administration of the Land Title Registry. The transfer of ownership interests between co-owners, or the mortgage of a co-owner's share to a bank licensed by the Bank of Ghana (BoG), must be registered with the Lands Commission under the Land Title Registration Act 1986 (PNDCL 152) to be effective against third parties.

The Customary Land Secretariats, established under the Office of the Administrator of Stool Lands Act 1994 (Act 481) and the Lands Commission Act 2008 (Act 767), administer stool land on behalf of traditional authorities in Ghana. A significant proportion of land in Ghana — particularly in the Ashanti Region, Eastern Region, Volta Region, and parts of Greater Accra — is held under customary tenure as stool land or family land. Co-owners of land held under customary tenure should confirm whether the land is registered with the Lands Commission and whether customary land rights affect the co-ownership arrangement.

The Internal Revenue Service division of the Ghana Revenue Authority (GRA) assesses capital gains tax on the disposal of immovable property under the Income Tax Act 2015 (Act 896). Where a co-owner sells their share of the property to a third party or to the other co-owner, capital gains tax may be payable on the gain realised. The Co-Ownership Agreement should address how the capital gains tax liability arising from a sale will be apportioned between the co-owners.

The Rent Control Act 1986 (PNDCL 138) — administered by the Rent Control Department, a division of the Ministry of Works and Housing — governs residential tenancies in Ghana. Where co-owned property is let to tenants, the Co-Ownership Agreement should address how rental income will be collected and distributed, and which co-owner is responsible for compliance with the Rent Control Act 1986 and the tenancy management obligations under PNDCL 138.

A Property Co-Ownership Agreement in Ghana is needed whenever two or more persons jointly acquire or own land or immovable property and wish to formally document their respective rights, obligations, and exit arrangements.

A Property Co-Ownership Agreement is required when two or more individuals purchase residential or commercial property together — for example, a married couple purchasing a matrimonial home under the Matrimonial Causes Act 1971 (Act 367) and the Customary Marriage and Divorce (Registration) Act 1985 (PNDCL 112), or business partners acquiring a commercial building — and wish to document their respective ownership shares and financial contributions.

A Property Co-Ownership Agreement is needed when siblings or family members inherit property jointly under the Intestate Succession Act 1985 (PNDCL 111) and need to regulate how the inherited property will be managed, maintained, and eventually sold or distributed, given that the property may have been transferred to them as co-owners under the estate administration process governed by the Administration of Estates Act 1961 (Act 63).

A Property Co-Ownership Agreement is required when two companies incorporated under the Companies Act 2019 (Act 992) jointly acquire land for a development project — for example, a joint venture development of a residential estate or a commercial complex — and need to document the ownership structure, development obligations, and profit-sharing arrangements under the joint venture.

A Property Co-Ownership Agreement is needed when a buyer and a lender agree on a co-ownership structure for a property purchase under an Islamic finance arrangement — where the bank licensed by the Bank of Ghana (BoG) and the buyer jointly own the property in declining proportions as the buyer repays the purchase price, under a diminishing Musharakah structure permitted under the Ghana Islamic Finance framework.

A Property Co-Ownership Agreement is required when a foreign investor registered with the Ghana Investment Promotion Centre (GIPC) under the Ghana Investment Promotion Centre Act 2013 (Act 865) co-owns property with a Ghanaian partner, and the parties need to document their respective ownership interests in a manner consistent with the foreign investment restrictions on land ownership under Act 1036 and the GIPC Act.

A Property Co-Ownership Agreement is needed when co-owners of a property wish to formalise their arrangement before applying for a mortgage from a bank regulated by the Bank of Ghana (BoG), because the bank may require a signed Co-Ownership Agreement as part of its due diligence before approving a joint mortgage secured on the property.

A Property Co-Ownership Agreement is required when a co-owner wishes to sell their share of the property or exit the co-ownership arrangement, and the parties need a pre-agreed mechanism — such as a right of first refusal in favour of the other co-owners — to govern the exit process consistently with Section 35 of the Land Act 2020 (Act 1036).

A legally effective Property Co-Ownership Agreement in Ghana under the Land Act 2020 (Act 1036) must contain the following essential elements.

Parties: The full legal names, addresses, and identification details (Ghana Card number issued by the National Identification Authority (NIA), or company registration number from the Office of the Registrar of Companies (ORC) for corporate co-owners) of each co-owner. Where a co-owner is a non-Ghanaian national, the agreement should confirm the co-owner's immigration status under the Immigration Act 2000 (Act 573) and the applicable land ownership restrictions under the Land Act 2020 (Act 1036).

Property Description: A precise description of the co-owned property, including: the physical address and Ghana Post GPS digital address under the Ghana Post GPS Act 2019 (Act 985); the plot number and land registration number from the Lands Commission under the Land Title Registration Act 1986 (PNDCL 152); the land certificate or title deed reference number; the area of the land (in acres or hectares); and the type of tenure — freehold, leasehold, stool land, family land, or government land under the Land Act 2020 (Act 1036).

Ownership Shares: A clear statement of each co-owner's ownership share expressed as a percentage or fraction (e.g., 50%/50%, 60%/40%), and whether the ownership is held as tenants in common or as joint tenants under Section 35 of the Land Act 2020 (Act 1036). Where the parties hold as tenants in common, each co-owner's share should correspond to their financial contribution to the purchase price, unless the parties expressly agree otherwise.

Financial Contributions: A schedule of each co-owner's financial contributions to: the purchase price; stamp duty payable under the Stamp Duty Act 2005 (Act 689) on the transfer of the property; Land Title Registration fees payable to the Lands Commission; mortgage repayments (where the property is mortgaged to a bank licensed by the Bank of Ghana (BoG)); annual property rates payable to the relevant metropolitan, municipal, or district assembly (MMDA) under the Local Governance Act 2016 (Act 936); and ongoing maintenance and repair costs.

Decision-Making: The decision-making process for significant decisions relating to the property — for example, letting the property to tenants, carrying out capital improvements, or selling the property — specifying whether unanimous consent or majority consent is required, and how disagreements will be resolved.

Right of First Refusal: A pre-emption right giving each co-owner the right to purchase the other co-owner's share before it is offered to a third party, specifying the procedure for triggering and exercising the right — including the timeframe for the non-selling co-owner to exercise the right and the basis for valuing the share (e.g., open market valuation by a certified valuer registered with the Ghana Institution of Surveyors (GhIS)).

Default and Forced Sale: The consequences of a co-owner's failure to contribute to mortgage repayments, rates, or maintenance costs — including the right of the other co-owner to contribute on the defaulting co-owner's behalf and to recover the contribution with interest, and ultimately to seek a court order for the sale of the property under Section 35 of the Land Act 2020 (Act 1036) if the default persists.

Registration with Lands Commission: The obligation to register the Co-Ownership Agreement with the Lands Commission of Ghana under the Land Title Registration Act 1986 (PNDCL 152), so that the co-ownership arrangement is binding on third parties — including subsequent purchasers of a co-owner's share and banks taking a mortgage over the property.

Governing Law: The agreement is governed by the laws of the Republic of Ghana, including the Land Act 2020 (Act 1036) and the Land Title Registration Act 1986 (PNDCL 152). Disputes should be resolved by mediation in the first instance, or by the High Court (Land Division) in Accra or the regional High Court with jurisdiction over the property.

Forms-legal.com provides this Property Co-Ownership Agreement template as a starting point for co-owners of property in Ghana. Given the complexity of land tenure in Ghana — particularly in relation to stool land, family land, and customary tenure — co-owners are strongly encouraged to seek legal advice from a solicitor enrolled with the Ghana Bar Association before executing this agreement.