Introduction

Land is elemental; it is where life begins and it is where life ends (Gray and Gray, 2005). Land is
a basic resource for wealth creation and a necessity for the existence of man. As Gray and Gray
(2005) so aptly put it, land provides the physical substratum for all human activity; it is the
essential base of all social and commercial interaction. Land and land-related resources, as
commodities in a free market system, are needed for several reasons. Most Ghanaians buy land
for the purpose of constructing a building, a residence, or developing a farm or some other
enterprise. Mahama and Antwi (2006) remark however that, cultural tradition tends to look down
upon the selling of property because the selling of property could be implied by others that the
owner is in debt or has had some other misfortune.
Notwithstanding this the property market in Ghana, though a developing one has a lot of
prospects for the future. According to a Ghana Investment Promotion Center Publication (2010)
the residential property market alone registered an estimated eight-five thousand (85000)
transaction annually over the last decade an indication of an ever increasing number of
developments and transaction on the property market every day. This implies that, the need for
individuals and families to acquire their own private accommodation which they can call home
cannot be overemphasized.
The complex nature of the transactions such as conveyance of property and the assessment of
sale or rental values require expert advice of a professional with special knowledge in this field.
From the point of view of Richards (2004), non-human agencies such as companies, while
having a separate personality, could not function without a human representative who acts on
behalf of the company. As a consequence, it becomes questionable whether the transactions in

the property market like any other market would exist without the doctrine of agency (ibid). He
further adds that, agency is an essential fact of business life. There is, for that reason, the need
for the provision of a clear mechanism for offering real property for sale because all markets
require commodities and trading systems (Wallace, 2009).
Carr et al, (2002) identify an agent as one authorized to represent a principal in negotiations
formation of contract and/or various other tasks. The agent for estate basically links demand and
supply. In Ghana, there is a multiplicity of problems surrounding the estate agency practice. The
practice is not well developed and mostly unofficial. In recent times, the profession has been
under the influx of untrained and ordinary persons.
In summary, a well-built property market works with a good coordinated estate agency system as
well as a strong structured information collation and dissemination point. This promotes a
reliable means of land management and administration. Adequate and relevant information on
land in any economy is a good foundation for wealth generation and national development.

Statement of Problem
Agency is a crucial part in any business transaction and the property market is no exception. In
Ghana, agency plays as important role in the acquisition and disposal of property. The rental
market which is the most active property market in Ghana (Mahama and Antwi, 2006) has in
recent times experienced the incursion of untrained agents in the trading of properties operating
as estate agents. Most established institutions and firms that have qualified professionals who act
as estate agents also deal with properties of a particular class within a certain price range
targeting high income earners leaving room for the unprofessional agents to operate. Most of the

unprofessional estate agents have no registered business, no formal education or training on the
subject matter hence lack knowledge in areas that is needed in the acquisition and disposal of
properties. Some of these areas include preparation of a tenancy agreement, conducting
marketing research on rental and sale prices, advertising and marketing of properties, description
of property and neighborhood details, etc.
The absence of a laid down structure or rules has brought a lot of controversies in who can start a
business and who cannot, how to be a registered estate agent and what are the qualifications,
commission to be charged on rents and sales of properties, what constitute registration fees,
viewing fees, agent collaboration fees etc., making it difficult for landlords, potential buyers and
sellers to trust and request the assistance of estate agents.
It is in the light of all these accompanying problems that the Ghana Institution of Surveyors
(GHIS) the professional body responsible for professional estate agents has called on parliament
to expedite action on the passage of the survey council bill to help regulate the practice of
surveying in Ghana (GNA 2010) but up to date the bill has not been passed.
In summary the lack of legal framework consequently adds to the multiplicity of problems
surrounding estate agency practice in Ghana making potential sellers and buyer question the use
of estate agents in property transactions.
The absence of a laid down structure or rules has brought a lot of controversies in who can start a
business and who cannot, how to be a registered estate agent and what are the qualifications,
commission to be charged on rents and sales of properties, what constitute registration fees,
viewing fees, agent collaboration fees etc., making it difficult for landlords, potential buyers and
sellers to trust and request the assistance of estate agents.