28 Aug ALBAR PHARMACY V. MARGARET DONKOR, [HIGH COURT] SUIT NO. IRL/63/12, 4 JUNE 2019.
“I am inclined to agree with Counsel for the Plaintiff that, barring any evidence to the contrary, an official search report emanating from the Lands Commission regarding ownership of a particular parcel of land should carry a higher probative value than mere representations made by one’s neighbours as regards which entity owns or has interest in a particular parcel of land.
I agree that the Plaintiff is entitled to rely on the results of the search report emanating from the Lands Commission as prima facie evidence of the rightful owner of the land in dispute. This is because the Lands Commission is a Governmental Agency set up to keep official records of land transactions in Ghana. … Where, therefore an official search conducted at the Lands Commission shows that a particular parcel of land has been acquired by Government, a reasonable person, is entitled to rely on that report to conduct his or her affairs.”
The Plaintiff, a pharmaceutical company duly registered in Ghana, instituted an action against the Defendant, a Public Affairs Officer at Parliament House, for trespass to land. The Plaintiff alleged that the Defendant unlawfully entered and constructed a residential building on its land. The Plaintiff claimed to have acquired the land from the President of the Republic of Ghana, acting through the Lands Commission. The Plaintiff sought a declaration of title to the land, a perpetual injunction to prevent the Defendant from interfering with its possession, an order for the demolition of structures erected by the Defendant and removal of debris, and general damages for trespass.
In response, the Defendant admitted to constructing a one-storey dwelling house on the land but counterclaimed for a declaration of title in her favour. She contended that the land did not belong to the Government of Ghana as alleged by the Plaintiff, but rather to the Numo Nmashie Family, from whom her vendor derived his title. The Defendant asserted that she lawfully acquired the land from her vendor and relied on inquiries about the land’s ownership from neighbours, which, according to her, confirmed the Numo Nmashie Family as the rightful owners of the land. The Defendant further claimed that she is a bona fide purchaser for value without notice and counterclaimed for a declaration of title.
The Court had to determine the following issues among others:
- Whether the plaintiff has legal title to the disputed land; and
- Whether Defendant made all usual and proper inquiries about the land in dispute before she entered upon it.
To establish its title to the land, the Plaintiff tendered in evidence an allocation letter issued by the Lands Commission, a lease agreement executed between the Government of Ghana and the Plaintiff, and a search report from the Lands Commission concerning the disputed land. The search report reflected a plotted transaction between the Government of Ghana and the Plaintiff. Counsel for the Plaintiff relied on Section 37 of the Evidence Act, 1975 (NRCD 323) and argued that information contained in an official search report issued by the Lands Commission, being a public institution, is presumed to be authentic and can reasonably be accepted as prima facie evidence of the ownership of the land.
The Defendant, on the other hand, admitted during cross-examination that she did not conduct an official search at the Lands Commission prior to acquiring the disputed land. Instead, she relied solely on representations made by her immediate neighbours regarding the ownership of the land. In response, Counsel for the Plaintiff contended that the Defendant’s failure to undertake proper due diligence, particularly by omitting to conduct a formal search, disqualifies her from invoking the defence of a bona fide purchaser for value without notice.
The Court held that the Plaintiff had adduced sufficient and credible evidence to establish that it acquired a legal interest in the disputed land from the Government of Ghana. In accepting the Plaintiff’s claim, the Court agreed with Counsel for the Plaintiff’s argument and emphasized that the Lands Commission is the statutory body responsible for maintaining official records of land transactions in Ghana. Consequently, the Court held that an official search report from the Lands Commission carries a higher probative value than informal representations made by private individuals, such as a person’s neighbours, regarding land ownership or interest. The Court further noted that the results of an official search at the Lands Commission can be reasonably relied upon in conducting one’s affairs involving land.
The Court further held that a purchaser of land has a duty to properly investigate the title of their grantor. The standard of prudence expected in such investigations requires that a purchaser must take reasonable steps, including conducting the necessary searches at the Lands Commission, to verify the vendor’s title. The Court emphasized that it is insufficient for a purchaser to rely solely on representations made by the vendor or adjoining landowners. This level of diligence is essential for a purchaser to successfully invoke the equitable defence of bona fide purchaser for value without notice.
Insight: The judgment in this case underscores the critical importance of conducting official searches at the Lands Commission as a fundamental component of investigating a vendor’s title to land. It also illustrates some of the legal advantages associated with such searches, including:
- An official search report, as an authenticated record maintained by a public institution, is presumed to be genuine under the Evidence Act and may be reasonably relied upon in the conduct of one’s affairs, including land transactions.
- Conducting a proper search helps a purchaser satisfy the standard of prudence required in land acquisition, which is essential for accessing equitable remedies, such as the defence of bona fide purchaser for value without notice.
This publication may provide a summary of legal issues but is not intended to give specific legal advice. If you require legal advice, please speak to a qualified lawyer, which may include a qualified member of our legal team at B&P ASSOCIATES (info@bpaghana.com).
AUTHOR:
Peter Korsi Simpson.
Trainee Legal Associate.