The Procedure of Changing Property Ownership in Zimbabwe

Changing property ownership in Zimbabwe is a process governed by several legal requirements and administrative steps to ensure the transfer is legitimate and recognized by the relevant authorities. Here’s a comprehensive guide to understanding the procedure:

1. Sale Agreement

The first step in the property transfer process is the creation of a sale agreement between the buyer and the seller. This contract outlines the terms and conditions of the sale, including the purchase price, payment terms, and any other pertinent details.

2. Obtain a Capital Gains Tax Clearance Certificate

Before any transfer can be executed, the seller must obtain a Capital Gains Tax Clearance Certificate from the Zimbabwe Revenue Authority (ZIMRA). This certificate confirms that all capital gains tax obligations have been met.

• Step 1: The seller submits a capital gains tax return to ZIMRA.
• Step 2: ZIMRA assesses the return and issues a tax assessment.
• Step 3: The seller pays the assessed tax amount.
• Step 4: Upon payment, ZIMRA issues the Capital Gains Tax Clearance Certificate.

3. Appoint a Conveyancer

A conveyancer, who is a registered legal practitioner specialising in property law, is appointed to handle the legal aspects of the transfer. The conveyancer prepares the necessary documents and ensures all legal requirements are met.

4. Deeds Office Search

The conveyancer conducts a deeds office search to verify the current ownership and ensure there are no encumbrances, such as mortgages or liens, that could affect the transfer.

5. Drafting the Transfer Documents

Once the search confirms the property's status, the conveyancer drafts the following documents:

• Deed of Transfer: This document formally transfers ownership from the seller to the buyer.
• Power of Attorney to Pass Transfer: If the seller cannot personally attend to the transfer, this document authorises the conveyancer to act on their behalf.

6. Lodging Documents with the Deeds Office

The conveyancer lodges the signed transfer documents, together with the Capital Gains Tax Clearance Certificate, with the Deeds Office. This step involves:

• Paying the relevant transfer duty and registration fees.
• Ensuring all documents are correctly completed and signed.

7. Deeds Office Examination

The Deeds Office examines the lodged documents to ensure compliance with all legal requirements. This process includes:

• Verifying the authenticity of signatures.
• Checking the accuracy of the information provided.
• Ensuring all fees and taxes have been paid.

8. Registration of Transfer

Once the Deeds Office is satisfied with the documentation, they register the transfer. This involves:

• Recording the new owner's details in the deeds registry.
• Issuing a new title deed in the buyer’s name.

9. Collection of New Title Deed

After the registration process is complete, the new title deed is available for collection. The conveyancer usually collects this document on behalf of the buyer and hands it over to them.

Important Considerations

• Due Diligence: Both parties should conduct thorough due diligence to avoid future disputes. This includes verifying the property's legal status and ensuring there are no outstanding debts or claims against it.
• Professional Assistance: Engaging professional services, such as conveyancers and real estate agents, can streamline the process and mitigate risks.
• Costs Involved: Be aware of the various costs involved in the transfer process, including legal fees, transfer duties, and taxes.

Changing property ownership in Zimbabwe involves a series of legal and administrative steps designed to ensure a smooth and legitimate transfer of property. By understanding and following these procedures, buyers and sellers can protect their interests and complete the transaction successfully.