Growth of the Real Estate Sector in Ghana
The real estate sector in Ghana is rapidly growing, particularly in urban areas. This expansion results from people’s busy schedules, which hinder their ability to search for housing, and from landlords and property owners struggling to connect with potential tenants.
Job Opportunities in Real Estate
The industry’s growth has generated numerous job opportunities, both full-time and part-time. This includes not only established agencies like Senco Properties & Investment but also individual agents who operate independently.
The Real Estate Agency Act – 2020
To regulate this burgeoning sector, the Real Estate Agency Act – 2020 was introduced. This legislation established the Real Estate Agency Council as the primary regulatory body overseeing the industry.
Role of Real Estate Agents and Brokers
The Rent Act 1960 (ACT 220) further defines the role of real estate agents and brokers through the Rent Control Department of Ghana. This act outlines the responsibilities and limits on fees that agents can charge.
Offenses by Agents Under the Rent Act
Emmanuel Hovey Kporsu, Head of Public Relations at Rent Control, shared insights with the Daily Graphic on the department’s role in promoting peaceful landlord-tenant relations. They focus on education and reconciliation while ensuring compliance with the Rent Act.
Violations and Penalties
Despite clear regulations on fees and rent advances, violations persist. According to Section 25, Sub-section (1)(c) of the Rent Act, agents are only allowed to charge specific fees after securing apartments for tenants.
Landlords may collect a maximum of six months’ rent in advance and can only offer five percent of this amount as commission to agents. Agents should charge five percent per annum, not more. If a tenant stays for five years, the landlord is only required to pay commission for the first year.
Charging tenants ten percent and then demanding an additional ten percent from landlords is illegal. Offenders face up to two years in jail or a maximum fine of GH¢10,000 if convicted.
Contact Information
Mawuli Senyo
Email: senyo@sencodevelopers.com
Phone: +233201950509 or +233244114886
Senco Properties & Investment and Senco Global Developers Ltd.
