In an enlightening interview on Gumzang FM, Surveyor George Oppong-Gyemfi, the Divisional Head of the Land Valuation Division (LVD) of the Lands Commission in the Upper East Region, has cautioned the public against treating property transactions like petty trading.
“Selling a building or land is not like selling tomatoes in the market,” Surveyor Oppong-Gyemfi remarked, emphasizing that professional valuation is the only way to ensure fairness and legal protection in real estate.
Surveyor Oppong-Gyemfi explained that the LVD does not operate in a vacuum but is strictly governed by Section 22 of the Land Commission Act, 2008 (Act 767). This legislation mandates the division to provide essential services, including: Determining the total market value of a property. Assessing fair rent for government and private entities. Determining property rates for Metropolitan, Municipal, and District Assemblies (MMDAs).
The Divisional Head stressed that whether one is a buyer or a seller, seeking professional advice is non-negotiable. He noted that while a seller has the right to set a price, a buyer should with the seller’s consent, engage a certified valuer to verify if that price reflects the true market value.
“You may have the money and want to invest, but you may not know what goes into the pricing of that land,” he noted. He further clarified that while private practitioners exist, specific valuations such as those for compulsory acquisition compensation, must be certified by the Lands Commission to be legally binding.
Addressing a common concern among landholders, Surveyor Oppong-Gyemfi highlighted the critical role of Stamp Duty. Many landholders view it as an unnecessary tax, but the Surveyor corrected this misconception. “If you don’t pay stamp duty and a legal issue arises, a judge will not admit your document in court. Stamp duty gives your document legal validity.”
He explained that charges for stamp duty fall into two categories: Firstly, Chargeable Instruments, these include leases and conveyances. The cost varies based on the size of the land (acreage) as shown on the cadastral plan and secondly, Non-Chargeable Instruments, under the Stamp Duty Act, 2005 (Act 689), recently amended in 2023, documents like Power of Attorney or Letters of Administration attract a fixed nominal fee (approximately GH₵ 72.00 for originals).
What makes one piece of land more expensive than another? Surveyor Oppong-Gyemfi listed several “value determinants” that professional valuers consider: Proximity to main roads and urban centers. Size, the total acreage. Whether the land is flat (easy to build on) or steep (which can lower value), (topography). The presence of electricity, water, and sewage systems.
The Surveyor also touched on the sensitive issue of Compulsory Acquisition. Under Article 20 of the 1992 Constitution, the state is required to pay “fair and adequate compensation” if it takes over private land for public use (like building a hospital). The LVD ensures this fairness by conducting physical site inspections rather than “conjuring figures” from an office. Similarly, when a property owner passes away, valuation is required for the estate of the deceased. This ensures that assets are distributed fairly among beneficiaries, preventing family disputes.
Finally, he advised those seeking loans to respect the bank’s demand for a valuation report. “The bank is trying to minimize risk,” he explained. In cases of default, the valuation serves as the basis for the court to attach and auction the property to recover the debt.
Surveyor Oppong-Gyemfi concluded by urging residents of the Upper East Region to visit the Lands Commission for professional guidance, ensuring their investments are protected by the full rigors of the law.