In Ghana, the real estate industry is regulated by the Real Estate Agency Act, 2021 (Act 1047). This legislation sets out the legal framework and requirements for operating a real estate agency in the country. Here are some key points about the Real Estate Agency Act in Ghana:
Licensing: The Act mandates that individuals and entities engaged in real estate agency activities must obtain a license from the Ghana Real Estate Agency Council (GREAC). This license is necessary to operate legally as a real estate agency and provide services such as property sales, rentals, leasing, and property management.
Professional Qualifications: The Act emphasizes the importance of professionalism in the real estate industry. To obtain a license, individuals must meet specific educational and professional requirements set by GREAC. These requirements may include completing relevant real estate courses, acquiring practical experience, and passing qualifying exams.
Code of Conduct: The Act establishes a code of conduct for real estate agencies and their agents. This code outlines ethical standards and behaviors that agents must adhere to when dealing with clients, other agents, and the general public. It promotes transparency, honesty, fairness, and professionalism in all real estate transactions.
Agency Agreements: The Act requires real estate agencies to enter into written agreements with clients before undertaking any agency work. These agreements should clearly outline the scope of services, terms, and conditions, including fees and commissions.
Trust Accounts: Real estate agencies are required to maintain separate trust accounts for handling clients’ funds. This ensures that client funds are properly safeguarded and not commingled with the agency’s operating funds. The Act specifies the rules and procedures for handling and accounting for these trust funds.
Dispute Resolution: The Act establishes mechanisms for resolving disputes between real estate agencies, agents, and clients. It provides for the resolution of disputes through mediation, arbitration, or the Ghanaian court system, depending on the nature and severity of the dispute.
Regulatory Oversight: The Ghana Real Estate Agency Council (GREAC) is responsible for overseeing the implementation of the Real Estate Agency Act. GREAC has the authority to issue licenses, enforce compliance with the Act and the code of conduct, and regulate the conduct of real estate agencies and their agents.
It is important for real estate agencies in Ghana to familiarize themselves with the provisions of the Real Estate Agency Act and ensure compliance with its requirements. Adhering to the Act’s regulations helps maintain professionalism, protects the interests of clients, and contributes to the overall integrity and development of the real estate industry in Ghana.
