Article by Manyara Mavis Musara
When one intends to purchase or sell an immovable property, which could be residential or commercial, they involve the services of a Conveyancer if the property has a title deed. A Conveyancer is a registered legal practitioner who manages the transfer process until the property is registered in the name of the purchaser.
In Zimbabwe, this process is governed by the Deeds Registries Act [Chapter 20-05] as amended in 2005. Each case will depend upon its own circumstances. The seller has to grant a Power of Attorney to Pass Transfer to the Conveyancer to enable the Conveyancer to appear before the Registrar of Deeds to effect the transfer.
Agreement of sale
This agreement should be reduced in writing and signed by both parties and their respective witnesses. The seller of the property should have the intention to sell the property involved and the purchaser should be willing and able to purchase the property. The purchaser usually acquaints themselves with the property and does due diligence on the property before entering into an agreement of sale with the seller.
The seller should be the one in whose favour the title deed is currently registered. The seller, purchaser and property should be fully described.
Capital gains tax clearance certificate
The tax has to be paid for in terms of the Capital Gains Tax Act [Chapter 23:01] by the seller. If the property in question was acquired after the 22nd of February 2019, capital gains tax is payable at 20% of the gain. For properties which were acquired before the 22nd of February 2019 and sold after this date, the capital gains tax is charged at 5% of the gross amount realised from the sale.
However, there are exemptions provided for in terms of the Act. The Zimbabwe Revenue Authority issues out a Capital Gains Clearance Certificate after payment of the assessed tax.
Rates clearance certificate
For the property to be transferred into the purchaser’s name, current rates arrears must be cleared by the seller. Further, there is a three-month advance payment which can be paid by either party as circumstances might dictate. The relevant authority issues a Rates Clearance Certificate after these payments are made.
Transfer fees
These are usually borne by the purchaser in terms of the pro-former invoice issued by the Conveyancer. The invoice usually incorporates Stamp duty and registration fees for lodging. The fees are on a sliding scale in terms of the Law Society of Zimbabwe (Conveyancing Fees) By-laws, 2013 and should be paid in advance before any work is done.
Please take note that this article should not be taken as legal advice but as general information regarding the subject matter. The writer can be contacted at mmusara@mmmlegal.co.zw for more information.