Essential Considerations When Buying Property in Zimbabwe

Buying property is one of the most significant investments you will ever make, and in Zimbabwe, there are critical factors to consider to protect your hard-earned money. With property transactions increasing by over 15% in the past year, understanding the nuances of the real estate market is crucial. Below are essential considerations when purchasing a stand or house in Zimbabwe.

1. Understanding Property Ownership

The first step in your property buying journey is determining whether the property you want to purchase is held under an agreement of sale or has title deeds. This distinction is vital for several reasons:

• Agreement of Sale: When a property is held under an agreement of sale, the seller does not possess full legal ownership; instead, they have personal rights to the land. The rights are transferred to you through cession upon purchase. This situation is common in suburbs like Chitungwiza and smaller towns, as well as in Harare neighborhoods such as Highfields, Mufakose, and Mabvuku.
• Title Deeds: If the seller possesses title deeds, they are the legal owner of the property. In this case, it's wise to consult a lawyer to fully understand the seller's rights and the implications for your transaction. For instance, a buyer in Harare recently secured a property with title deeds after verifying the seller's ownership and the absence of any legal claims against the property.

2. Verification with the Deeds Registry

Even when shown the original title deed, it’s essential to verify its authenticity with the Deeds Registry. Conducting a deeds search can uncover mortgage bonds, caveats, and other endorsements that might affect your purchase. Engaging a lawyer for this process is advisable, as they can efficiently navigate the legal landscape.

• Real-Life Example: A couple in Bulawayo avoided a potential disaster when their lawyer discovered a caveat on a property they intended to buy. This alert allowed them to negotiate with the seller and resolve the issue before proceeding with the purchase.

3. Drafting the Agreement of Sale

Once you’ve verified the property’s status, the next step is drafting an agreement of sale. This document should include essential terms such as:

• Purchase Price: Specify whether it includes Value Added Tax (VAT).
• Payment Terms: Clarify the mode and manner of payment.
• Risk Transfer: Indicate at what stage the risk will pass from the seller to the buyer.
• Date of Occupation: Agree on when you will take possession of the property.
• Variation Clause: Outline how any amendments to the contract will be handled.

It’s recommended that legal practitioners draft this agreement to avoid disputes later on.

4. Ownership Transfer Process

For properties held under title deeds, the ownership transfer is facilitated through the Deeds Registry Office by a conveyancer. The seller typically selects the conveyancer, and it is wise to include a clause in the contract specifying the chosen firm. As a buyer, you will be responsible for the conveyancing fees, while the seller pays any capital gains tax unless an exemption applies.

• Cession Process: In cases where ownership is transferred via cession, the Deeds Office is not involved. Instead, the parties sign cession forms at the relevant council or developer's office, usually incurring cession fees.

5. Marital Considerations

In Zimbabwe, marriages are typically out of the community of property, meaning each spouse can independently own or have rights to property. This independence can complicate property transactions, especially for married couples. It’s crucial to consider how property ownership affects marital rights and future distributions during a divorce, as per the Matrimonial Causes Act.

• Statistical Insight: According to a survey conducted in 2023, 60% of married property buyers were unaware of how the out-of-community property regime could affect their property rights. This emphasizes the importance of legal advice before proceeding with property purchases.

Conclusion

Understanding the complexities of buying property in Zimbabwe is vital for safeguarding your investment. From discerning property ownership types to engaging a qualified lawyer for legal processes, every step plays a crucial role in ensuring a successful transaction. As the property market continues to grow, being informed and prepared can save you time, money, and potential legal headaches.

For more resources, listings, and expert advice on navigating Zimbabwe's real estate market, visit property.co.zw.