Greater Transparency Crucial to Building Confidence in Real Estate Sector - Asiamah-Koranteng

Stakeholders in Ghana's real estate brokerage industry must prioritize greater transparency and rigorous due diligence in all property transactions to bolster public trust and confidence. This call comes amid rising concerns about land disputes, fraudulent dealings, and insufficient documentation, which collectively erode investor confidence and hinder the sector's growth.

Mr. Fred Asiamah-Koranteng, Director of the Collateral Registry Department at the Bank of Ghana (BoG), emphasized that transparency is paramount, not only for financial dealings but also for fostering integrity and safeguarding stakeholder confidence within the real estate industry. He spoke at a recent engagement in Accra, organized jointly by the Ghana Association of Real Estate Brokers (GAREB) and the Bank of Ghana.

The event focused on educating brokers and agents about the Borrowers and Lenders Act, 2020 (Act 1052), the functions of the Collateral Registry, and the critical importance of conducting searches to identify any encumbrances on properties before finalizing transactions. Asiamah-Koranteng stressed that these checks are essential for minimizing risks, preventing fraud, and protecting investments, thereby strengthening overall confidence in the sector.

He noted that the Borrowers and Lenders Act and the establishment of the Collateral Registry represent significant reforms aimed at transforming Ghana's credit market and creating a more secure lending environment. The Act mandates the BoG to operate the Collateral Registry to enhance transparency and reduce information gaps in the credit system. Despite these reforms being in place for some time, public awareness remains low, prompting the BoG to intensify financial literacy and engagement programs.

Jacob Adofo Ansong, President of GAREB, acknowledged that the real estate brokerage sector in Ghana has historically relied heavily on trust, personal relationships, and informal arrangements. The lack of proper due diligence has unfortunately led to instances where unsuspecting buyers have acquired properties with existing legal issues.

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It is important for industry players to appreciate the need for proper checks before properties are marketed or sold because these measures help to strengthen confidence in the sector.