LAWS  OF GHANA

LAND DEVELOPMENT (PROTECTION OF PURCHASERS) ACT, 1960 ACT 2

ARRANGEMENT OF SECTIONS

1. Power to cure defective titles.

2. Reopening of past cases.

3. Provisions as to payments.

4. Interpretation.

ACT 2

LAND DEVELOPMENT (PROTECTION OF PURCHASERS) ACT, 1960

AN ACT to protect purchasers of land, and their successors, whose titles are found to be defective

after a building has been erected on the land.

1. Power to cure defective titles

(1) Where

(a) a person has taken a conveyance of land in a prescribed area at any time after 31st

December, 1944, whether before or after the date on which the area became a prescribed

area, and

(b) the purchaser or a person claiming through the purchaser has in good faith erected a building

on the land, and

(c) proceedings are brought to obtain a possession order in relation to the land on the ground

that a person other than the purchaser or a person claiming through the purchaser is entitled

to the land,

the High Court, where it considers that if this Act had not been passed the possession order would fall to

be made by reason that the conveyance taken by the purchaser did not operate to confer on the purchaser

the title to the land, but that to make the order would cause hardship and injustice to the person against

whom it would fall to be made, may, instead of making the possession order, make an order providing

that the conveyance taken by the purchaser shall be considered for all purposes to have operated to confer

on the purchaser the title to the land.

(2) Where an order is made under subsection (1), and the Court considers that the order would by

itself cause hardship and injustice to a person, the Court may make a further order requiring the person in

whose favour the order under subsection (1) is made to pay to that person a sum of money by way of

compensation.

(3) The aggregate of the sums ordered to be paid under subsection (2) shall not exceed an amount

equal to twice the value of the land at the date of the purported conveyance to the purchaser.

(4) The Court may exercise the powers conferred by this section in any proceedings although the

proceedings were instituted before the commencement of this Act, and, in proceedings on appeal,

although that the decision appealed against was given before the commencement date.

2. Reopening of past cases

(1) Where

(a) a person took a conveyance of land in a prescribed area at some time after 31st December,

1944 and before the date on which the area became a prescribed area, and

(b) the purchaser, or a person claiming through the purchaser, in good faith erected a building on

the land, and

(c) a possession order was made in relation to the land in proceedings finally disposed of before

the date on which the area became a prescribed area, and was so made by reason that the

conveyance taken by the purchaser did not operate to confer on the purchaser the title to the

land,

the person against whom the possession order was made may, at any time within twelve months after the

date on which the area became a prescribed area, apply to the High Court for an order under this section.

(2) Where the Court considers that the making of the possession order would cause hardship and

injustice to the person against whom it was made, the Court may make an order setting aside the

possession order and providing that the conveyance taken by the purchaser shall be considered for all

purposes to have operated to confer on the purchaser the title to the land.

(3) An order under subsection (2) shall not be taken to render unlawful anything done in the period

before the making of the order or to found a claim for mesne profits for any other compensation in respect

of occupation during that period.

(4) Where an order is made under subsection (2) and the Court considers that the order would by itself

cause hardship and injustice to a person, the Court may make a further order requiring the person in

whose favour the order under subsection (2) is made to pay to that person a sum of money by way of

compensation.

(5) The aggregate of the sums ordered to be paid under subsection (4) shall not exceed an amount

equal to the aggregate of

(a) twice the value of the land at the date of the purported conveyance to the purchaser, and

(b) the value at the date when the order under subsection (4) is made of the improvements

carried out on the land since the making of the possession order.

(6) Where an order is made under subsection (2) and it is proved

(a) that a lease or any other right to the occupation of the land was granted by a person who, by

virtue of the order, is to be taken to have had no right to make the grant, and

(b) that the person or the person’s successor received a payment in respect of the grant by way

of premium, rent in advance or otherwise which was wholly or partly attributable to any

period after the making of the order,

the Court may make a further order requiring the person against whom the order under subsection (2) is

made to refund to the person who made the payment or successor the amount of the payment or the part

attributable to the period, as may be appropriate.

(7) The Court shall not make an order under subsection (2) if, after the making of the possession

order, the land was conveyed to a person who took in good faith and for a valuable consideration, but in

lieu of this the Court may make an order requiring a party to the proceedings before it, being a person

who has been unjustly enriched by virtue of the defect in the purchaser’s title to pay to the person against

whom the possession order was made a sum of money by way of compensation.

(8) Where the person against whom the possession order was made has since died, subsections (1) and

(7) shall apply as if references to that person were references to the person who would be entitled to the

land if, at the time of that person’s death, the person had been entitled thereto.

3.

Provisions as to payments

An order requiring the payment of a sum of money under this Act may provide that the sum shall be

payable by instalments or on a future date specified in the order, and may further require the giving of

security for the sum payable under the order.

4.

Interpretation

(1)

In this Act, unless the context otherwise requires,

“conveyance” includes a transfer of land by customary law;

“possession order” means an order requiring the delivery up of possession of land or setting aside

a conveyance or making a declaration of title or otherwise in defeasance of title to land;

“prescribed area” means an area prescribed for the purposes of this Act by a legislative

instrument made by the Minister responsible for Lands;

“purchaser” means a person who takes a conveyance in the circumstance referred to in section 1

or section 2.

(2) For the purposes of this Act a person shall be considered to have erected a building if that person

has carried out the greater part of the work required for the erection of it.