Zimbabwean Conveyancing Process Explained.

Conveyancing is the legal process of transferring ownership of land or immovable property from one party (transferor) to another (transferee)

A Conveyancer is a person who is mandated to legally effect transfer of ownership of immovable property from the transferor to the transferee

Due diligence refers to all the searches and inspections a buyer carries out before buying a property. The buyer must before signing any offer form, physically inspect the property to establish its existence and condition. They must satisfy themselves they are dealing with a bona fide seller. This is particularly important in light of the increase in fraudulent sales of immovable property in Zimbabwe. It is advisable for the buyer to engage a conveyancer to conduct due diligence for them. The conveyancer conducts a search at the Deeds office to verify the seller’s ownership of the property and establish whether the property is transferable.

Once the buyer is happy with the results of the pre-offer due diligence, they can go ahead and make their offer to the seller. Should the seller accept the offer, the parties can then have a sale agreement drafted for them. The sale agreement should inter alia, set out the subject matter of the sale, the purchase price, the payment terms, who the conveyancer will be, when risk and profit in the property will pass from the seller to the buyer, when the buyer will take occupation of the property, the parties obligations, how disputes will be resolved and how amendments to the sale agreement will be effected. It is advisable to him the sale agreement drawn up by a conveyancer.

To enable the Conveyancer to prepare the transfer documents, the seller must lodge with the Conveyancer, the original title deed in respect of the property. The buyer must pay the Conveyancer the Conveyancing fees which fees are calculated in terms of a Conveyancing Tariff. These fees consist of stamp duty which is payable to the Deeds office and the fees payable to the conveyancer for attending to the conveyancing. The Conveyancer will then draft for the seller’s signature, a Power of Attorney To pass Transfer and a Declaration by seller. He will then draft for the buyer’s signature a Declaration by Purchaser. The Conveyancer also drafts for his signature two draft deeds of transfer.

The parties to a sale agreement are responsible for ensuring all outstanding levies, rates and taxes are settled before transfer. The conveyancer must in addition to the aforesaid documents, lodge with the Deeds office the following documents:

• (i) Rates Clearance Certificate: The seller must obtain a Rates Clearance Certificate from the local authority confirming that there are no outstanding council rates or levies on the property.
• (ii) Levy clearance certificate: The seller must in the event of the sale of a flat held under sectional title, obtain from the Flat Owners Association a Levy Clearance Certificate.
• (iii) Capital Gains Tax Clearance Certificate: The Zimbabwe Revenue Authority (ZIMRA) issues this certificate after interviewing the parties and assessing any capital gains tax payable by the seller.

The Conveyancer will then lodge the transfer documents with the Deeds office. If there is a new bond to be registered over the property or an existing bond to be cancelled the documents will be lodged at the Deeds Office at the same time with the transfer documents. The documents are examined by the Deeds Office. When the Deeds Office is satisfied with the accuracy of the documents, the transfer is then registered. This is done by cancelling the existing title deed registered in the seller’s name and issuing a new title deed in the buyer’s name.

Upon successful registration, the buyer receives a copy of the registered Deed of Transfer, signifying their legal ownership of the property. That completes the conveyancing process.