LAND DEVELOPMENT (PROTECTION OF
PURCHASERS) ACT, 1960 (ACT 2)
ARRANGEMENT OF SECTIONS
Section
1. Power to cure defective titles.
2. Reopening of past cases.
3. Provisions as to payments.
4. Interpretation.
THE SECOND ACT
OF THE PARLIAMENT OF THE REPUBLIC
OF GHANA
ENTITLED
THE 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.
DATE OF ASSENT: 9th August, 1960
BE IT ENACTED by the President and
the National Assembly in this
present Parliament assembled as
follows:—
Section 1—Power to Cure Defective
Titles.
(1) Where—
(a) a person (in this section
referred to as "the purchaser")
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 him 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 him is entitled to the
land,
the 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 him
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 deemed for all purposes
to have operated to confer on him
the title to the land.
(2) Where an order is made under
the preceding subsection and the
court considers that the order
would by itself cause hardship and
injustice to any person, the court
may make a further order requiring
the person in whose favour the
order under the preceding
subsection is made to pay to that
person a sum of money by way of
compensation:
Provided that the aggregate of any
sums ordered to be paid under this
subsection shall not exceed an
amount equal to twice the value of
the land at the date of the
purported conveyance to the
purchaser.
(3) The court may exercise the
powers conferred by this section
in any proceedings notwithstanding
that the proceedings were
instituted before the commencement
of this Act, and, in proceedings
on appeal, notwithstanding that
the decision appealed against was
given before the commencement
thereof.
Section 2—Re-opening of Past
Cases.
(1) Where—
(a) a person (in this section
referred to as "the purchaser")
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 him, 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 him
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) If the court considers that
the making of the possession order
caused 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
deemed for all purposes to have
operated to confer on him the
title to the land:
Provided that an order under this
subsection 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 or other
compensation in respect of
occupation during that period.
(3) Where an order is made under
the preceding subsection and the
court considers that the order
would by itself cause hardship and
injustice to any person, the court
may make a further order requiring
the person in whose favour the
order under the preceding
subsection is made to pay to that
person a sum of money by way of
compensation:
Provided that the aggregate of any
sums ordered to be paid under this
subsection 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 this subsection is
made of any improvements carried
out on the land since the making
of the possession order.
(4) Where an order is made under
subsection (2) of this section and
it is proved—
(a) that a lease or 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 said person or his
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) of
this section is made to refund to
the person who made the said
payment or his successor the
amount of the payment or the part
thereof attributable to the said
period as may be appropriate.
(5) The court shall not make an
order under subsection (2) of this
section 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 thereof
the court may make an order
requiring any party to the
proceedings before it, being a
person who has been unjustly
enriched by reason 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.
(6) Where the person against whom
the possession order was made has
since died, subsections (1) and
(5) of this section shall apply as
if references therein to that
person were references to the
person who would be entitled to
the land if, at the time of his
death, the said person had been
entitled thereto.
Section 3—Provisions as to
Payments.
An order requiring the payment of
any sum 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 any sum payable under
the order.
Section 4—Interpretation.
(1) In this Act—
"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.
(2) For the purposes of this Act a
person shall be deemed to have
erected a building if he has
carried out the greater part of
the work required for the erection
thereof.
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