Understanding Land Interests and Acquisition in Ghana
26 Aug 2026
3 min read
Having an interest in land does not always mean owning the land outright. A person may have different rights in land depending on the type of the interest acquired and the person or entity granting it.
Understanding the type of interest being acquired is important when buying, leasing, inheriting, or otherwise dealing with land. It can determine the rights a person has, how long those rights last, and whether the interest can be transferred or inherited.
The Land Act, 2020 (Act 1036) recognises six main interests in land.
This guide provides a practical overview of these interests and some important restrictions on their acquisition.
What This Guide Explains
This guide explains:
The main interests in land recognised under Ghanaian law
The basic features of each interest
Restrictions on the acquisition of certain interests
Why understanding the interest being acquired matters
This guide provides general legal information only and is not intended to determine the nature or validity of any interest in a specific property.
The Main Interests in Land
The Land Act, 2020 (Act 1036) recognises six main interests in land:
A. Allodial Title
Allodial title is the highest or ultimate interest in land.
It may be held by the State, a stool or skin, a clan or family, or an individual.
Allodial title may arise in different ways, including through compulsory acquisition, conquest, gift, purchase, or agreement.
Other interests in land may be derived from the allodial title.
B. Customary Law Freehold
Customary law freehold is an interest arising from a transaction under customary law.
It may be acquired through an outright purchase, gift, or inheritance from the holder of the allodial title, where the law permits.
It is generally of perpetual duration (i.e. it can last forever), inheritable, and transferable. However, it remains subject to the jurisdictional and cultural rights recognised in relation to the stool, skin, clan, or family holding the allodial title.
C. Common Law Freehold
A common law freehold arises under the general principles of common law.
It is generally of perpetual or uncertain duration, and may be inherited or transferred.
It remains subject to the interest of the State and the jurisdictional and cultural rights of the stool, skin, clan, or family that holds the allodial title.
D. Usufructuary Interest
A usufructuary interest is an interest that may be enjoyed by subjects or members of a stool, skin, clan, or family.
It may arise, for example, where a person develops an unappropriated portion of the land of the relevant stool, skin, clan, or family, OR where the interest is expressly granted.
A usufructuary interest may be inherited or transferred.
E. Leasehold Interest
A leasehold is the most common interest held by individuals in Ghana.
It is an interest granted for a fixed or ascertainable period.
It may arise when a person who holds an allodial title, customary law freehold, common law freehold or usufructuary interest conveys to another person an interest in land for a specified term, subject to terms and conditions.
It gives the holder rights to use and enjoy the land for the agreed period, but it does not extinguish the superior interest of the person who granted the lease.
F. Customary Tenancy
A customary tenancy is an interest in land created by contract.
It arises where a stool, skin, clan or family which holds the allodial title, or a person who holds a customary law freehold or usufructuary interest, enters into an agreement with another person to grant that person an interest in land upon agreed terms and conditions.
It may involve the payment of rent, sharing of farm produce, or physical partition or severance of the farm or land.
Restrictions on the Acquisition of Land
The law places certain restrictions on who may acquire particular interests in land in Ghana.
A. Non-Ghanaian Citizens
A person who is not a Ghanaian citizen cannot acquire a freehold interest in land in Ghana. Any agreement, deed or conveyance that purports to confer a freehold interest on a non-Ghanaian is void.
A non-Ghanaian may acquire a leasehold interest, but the lease cannot be granted for a term exceeding 50 years at any one time.
B. Companies with Foreign Ownership
For these purposes, a company is treated as a non-citizen where more than 40% of its ownership is held by non-citizens. Such a company is therefore subject to the restrictions applicable to non-citizens.
C. Freehold Interests in Customary Land
Freehold grants over stool, skin, clan, or family land are prohibited. Documents purporting to create such interests are not registrable.
Why Does the Type of Interest Matter?
The type of interest being acquired can affect:
- The rights the person has in the land;
- How long the interest lasts;
- Whether it can be transferred or inherited;
- The conditions attached to it; and
- Whether restrictions apply to its acquisition.
For this reason, it is important to understand what interest is actually being acquired before entering into a land transaction.
A document describing a transaction as a "sale" does not, by itself, determine the nature or validity of the interest being transferred.
Need Help With a Land Transaction?
Understanding the interest being acquired is only one part of a land transaction.
Before buying, leasing or otherwise dealing with land, it is important to verify the interest being offered, the authority of the person granting it, and the relevant land records and documentation.
Explore Niellégal's relevant legal guides or use our Consult a Lawyer feature to request an introduction to an independent lawyer on the Niellégal Professional Network.
Important Note
This guide provides general legal information for educational purposes only. Laws may have changed since this guide was last updated. For specific legal advice about your situation, please consult a qualified lawyer. Accessing or using this information does not create a lawyer–client relationship.
Last updated: January 2026