Ghana's real estate regulator warns practitioners to comply with Act 1047 or face sanctions
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Ghana's Real Estate Agency Council has warned developers, brokers and agents that breaches of the Real Estate Agency Act, 2020 can attract fines, licence suspension or revocation, and criminal penalties including prison terms.
The Real Estate Agency Council (REAC) has urged real estate practitioners, developers, brokers, agents and other stakeholders in Ghana's property sector to comply with the Real Estate Agency Act, 2020 (Act 1047), warning that breaches can attract administrative sanctions, licence suspension or revocation, and criminal penalties.
The warning came during a UK-Ghana Chamber of Commerce and Akka Kappa Ghana Ltd webinar titled "Building Trust in Ghana's Real Estate Market: The Role of the Real Estate Agency Council (REAC), Compliance Requirements, and Enforcement."
The Head of Anti-Money Laundering and Compliance at REAC, David Pappoe, said administrative sanctions include a fine of 1,000 penalty units, which he put at about GH¢12,000. For criminal offences such as operating or advertising without a licence, falsifying documents and accepting cash payments, he said penalties range from 5,000 to 10,000 penalty units, or five to 10 years' imprisonment.
"Section 22 says that no person must provide real estate services as a broker or agent, or engage in any transaction without a licence from REAC. So, that means when you operate without a licence, it's a criminal offence," Mr Pappoe said. He added that real estate is now a cashless sector, so "not even GHS1 must be taken in the form of cash."
He urged the public to verify the licence status of practitioners before engaging them, and to report suspicious or cash transactions to the Financial Intelligence Centre (FIC) and complaints involving clients, developers, brokers or agents to REAC.
Mr Pappoe said Parliament enacted Act 1047 to regulate real estate practice and commercial transactions, including the sale, purchase, rental and leasing of property, and established REAC as the statutory regulator of the sector. Compliance obligations include using REAC-issued forms, maintaining a cashless operating environment, keeping separate client accounts, preserving records for at least five years, submitting quarterly transaction reports and annual audited accounts, and holding professional indemnity cover.