Home Mortgage Finance Law
The legal and land administration system is yet to transform traditional land ownership system by developing legally protected and commercially tradable interest in land. Extension of freehold interest in land as pertains in the western area to the provinces may be one of solution, caution must however be exercised by land administrators and law officers who should be mindful of the importance of land ownership to the socio-economic and political stability in our societies. For example, in Ghana, one cannot or acquire a freehold interest in stool lands. (Land held by chiefs in trust of the subjects) or government lands. One can only acquire freehold interest in family lands and even that, it is seldom to get the family grant a freehold, yet, land is tradable, mortgage business continue to flourish and land acquisition by people from other ethnic groups and foreign nationals continue to grow.
The traditional land ownership ‘Usufruct’ (the right to use the land) which operates in various forms in the provinces does not grant secured interest in land as the use of land is at the pleasure of the traditional Authorities (Grantor) who can technically re-take possession any time with or without compensation. However, lease duly executed and registered are recognized interest in land. Such leases if properly draft provide security of tenure and should contain renewal clauses and term of renewal. In development of estates, particularly block of flats and controlled communities, interest of home owners and mortgage companies, and value of properties are well preserved when leases rather than conveyances are granted. Management such estates or block of flats is also made easier and effective. Land Administrator should therefore be flexible in addressing the issues of the dual land rather than tenure system and to consider other suitable interest in land rather than replicating what pertains in the western area in the provinces this may lead to the development of land less peasant in the country or destabilize social and traditional harmony.
Another area when the law officers will have to tighten up is the form of conveyances. Conveyances are currently signed by vendors and witnesses attest to the fact that the vendors executed the conveyances in their presence. A purchaser do not in any way or anywhere in conveyances acknowledges receipt. In the good old days where we were each others neighbours, this form of conveyance was adequate. We do not believe it is still adequate. There is the need for a system which will help detect people poising as owners or thieves stealing conveyances who may fraudulently use these land documents to raise loans through mortgages or execute fraudulent conveyances to transfer ownership. This weakness in the form of a conveyance poses real challenge to mortgage financing and the law officers and the registrar general should consider making it a condition for a vial conveyance, lease or assignment that the purchaser, lessee or the assignee executes the relevant land documents as well and in addition endorse the back of the site plan. This will provide the mortgage company or would be purchaser a signature vendor or applicant’s signature.         Â
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