REAC urges stakeholders to comply with Real Estate Act or face sanctions

The Real Estate Agency Council (REAC) in Ghana has called on industry players, including developers, brokers, and agents, to adhere to the Real Estate Agency Act, 2020 (Act 1047) or face sanctions. Failure to comply with the law could lead to administrative penalties such as fines, suspension, or revocation of licenses, and even criminal charges.

David Pappoe, the Head of Anti-Money Laundering and Compliance at REAC, detailed that fines for breaches can reach 1,000 penalty units, equivalent to GH¢12,000, for actions like failing to display a license or certificate, operating without a license, falsifying documents, or accepting cash payments. Criminal penalties range from 5,000 to 10,000 penalty units or a sentence of five to ten years in prison.

Pappoe emphasized that operating without a license is a criminal offense in a cashless real estate sector where cash transactions are strictly prohibited. He advised the public to verify the license status of real estate practitioners before engaging their services and to report suspicious activities to the Financial Intelligence Centre (FIC) or REAC.

The Real Estate Agency Act, 2020, established REAC as the regulatory body responsible for licensing practitioners, maintaining a national register, setting professional standards, and enforcing discipline. Practitioners are required to use REAC-issued forms, maintain a cashless operation, keep client records for five years, submit quarterly transaction reports, and obtain professional indemnity coverage.

Ethel Elizabeth Abruquah, a legal expert, stressed the importance of stronger regulation for buyer protection, recommending that buyers conduct independent verifications of property ownership and conduct thorough searches at the Lands Commission. Akka Kappa LTD. Director Edoardo Castagna praised the REAC's role in professionalizing the industry, noting that it helps establish standards and distinguishes licensed professionals.

However, he acknowledged trust issues stemming from information asymmetry and informal operators, and called for increased public awareness of REAC's role to bolster investor confidence. Emmanuel Jeffrey, the Acting Chief Executive Officer of REAC, emphasized the council's efforts to strengthen enforcement through licensing, collaboration with other institutions, and public education.

Licensing is critical for establishing a database of practitioners, and REAC is working closely with institutions such as the Financial Intelligence Centre, Bank of Ghana, Lands Commission, and Ghana Revenue Authority to ensure compliance. Jeffrey assured the public that the Council will continue its efforts to maintain the integrity of the real estate market.