BoG pushes stronger property checks to reduce fraud in real estate sector

The Bank of Ghana (BoG) is urging real estate brokers and property investors to prioritise transparency and due diligence in property transactions to help reduce fraud and strengthen confidence in the sector.

Speaking at an engagement with members of the Ghana Association of Real Estate Brokers, GAREB, Deputy Head of the Collateral Registry Department, Mrs. Rosemary Akabutu, said conducting searches on assets before transactions is critical in protecting investments and improving trust in the real estate market.

Mrs. Akabutu, who spoke on behalf of the Head and Registrar of the Collateral Registry Department, Mr. Fred Issiyama Kurantin, said the Borrowers and Lenders Act 2020, Act 1052, together with the Collateral Registry, were introduced to improve Ghana’s credit environment and reduce lending risks.

She noted that the reforms became necessary due to challenges such as weak enforcement systems, limited access to credit, and information gaps within the financial sector.

According to her, “the importance of conducting searches and understanding any existing encumbrances on assets cannot be overemphasized. These are vital steps in minimizing risk, preventing fraud, and safeguarding investments.”

Mrs. Akabutu stressed that transparency remains central to building confidence within both the financial and real estate sectors.

The engagement also highlighted growing concerns within the real estate industry over fraudulent land transactions and the activities of unlicensed operators.

Addressing participants, representatives of GAREB noted that many people had lost money after purchasing lands already used as collateral without conducting proper checks.

“For a very long time, real estate brokerage in Ghana operated largely through trust, word of mouth, personal relationships and experience,” the Association stated.

“People lost money. Some bought land that had already been used as collateral for loans without knowing. Others got caught in disputes they never expected.”

The Association further stressed that professionalism in the industry must go beyond simply connecting buyers and sellers.

“It is about responsibility. It is about protecting clients from avoidable problems. It is about understanding the systems connected to the properties we market,” GAREB said.

The Association also called on the public to work only with licensed real estate professionals to reduce fraud and improve accountability within the sector.

“The public should be encouraged to ask for licences before engaging any agent or broker. People should know that they can verify practitioners through the Real Estate Agency Council and through recognised professional bodies like GAREB,” it added.

GAREB further disclosed that enforcement against illegal operators within the sector would soon be intensified.

“In the coming days, the Council will intensify its monitoring and enforcement activities. There will be inspections of offices and operations, and individuals or firms found operating without licences will be dealt with according to the law,” the Association warned.

The engagement sought to educate real estate brokers on the key provisions of Act 1052, the operations of the Collateral Registry, and the processes involved in registering and searching security interests.

المصدر: MyJoyOnline (GH)