Players in the real estate brokerage industry have been urged to uphold greater transparency and rigorous due diligence in all property transactions to strengthen public trust and enhance confidence in the country’s real estate sector.
The call comes amid growing concerns over land disputes, fraudulent property dealings and inadequate documentation, which continue to undermine investor confidence and threaten the growth of the industry.
The Director of the Collateral Registry Department of the Bank of Ghana (BoG), Mr Fred Asiamah-Koranteng, stated this in remarks made on his behalf during a stakeholder engagement in Accra yesteday, averred that transparency was critical not only in financial transactions, but also in fostering trust, ensuring integrity and safeguarding the confidence of stakeholders in the real estate industry.
The engagement, organised by the Ghana Association of Real Estate Brokers (GAREB) GAREB in collaboration with the Bank of Ghana (BoG), was aimed at educating brokers and agents on the Borrowers and Lenders Act, 2020 (Act 1052), the operations of the Collateral Registry, and the importance of conducting searches to identify encumbrances on properties before transactions are concluded.
The programme, held in Accra, was on the theme: ‘Strengthening Stakeholders Confidence through a Comprehensive Understanding of the Borrowers and Lenders Act, 2020 (Act 1052) and the Operations of the Collateral Registry.’
According to Mr Asiamah-Koranteng conducting searches and understanding existing encumbrances on assets were essential steps in minimising risks, preventing fraud and protecting investments.
“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,” he stated.
He noted that the Borrowers and Lenders Act, 2020 (Act 1052), together with the establishment of the Collateral Registry, represented key reforms introduced to transform Ghana’s credit market and create a more secure lending environment.
Mr Asiamah-Koranteng further stated that the Act mandated the BoG to establish the Collateral Registry to support the registration and public notice of security interests in order to enhance transparency and reduce information gaps within the credit system.
Despite the reforms being in existence for several years, he observed that public awareness about the operations of the registry remained low.
He said the BoG had therefore intensified financial literacy and stakeholder engagement programmes to educate the public and build trust in the country’s credit delivery system.
The President of GAREB, Mr Jacob Adofo Ansong, in his remarks, admitted that real estate brokerage in Ghana had for many years operated largely on trust, personal relationships and informal arrangements.
According to him, the absence of proper checks had resulted in cases where unsuspecting buyers purchased lands or properties already used as collateral for loans.
“Professionalism is not only about finding buyers or closing deals. It is also about responsibility and protecting clients from avoidable problems,” he stressed.
Mr Ansong said brokers and agents could no longer afford to remain unaware of systems such as the 7Collateral Registry because clients relied heavily on their guidance before engaging lawyers or financial institutions.
He further called for stronger collaboration among institutions including the Lands Commission, Financial Intelligence Centre, Real Estate Agency Council, Ghana Revenue Authority, banks, lawyers, valuers and surveyors to make the real estate sector safer and more reliable.
BY KINGSLEY ASARE
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