TRANSFER OF IMMOVABLE PROPERTY IN ZIMBABWE

  • October 15, 2019
  • Conveyancing / Uncategorized

Understanding the property transfer PROCESS

Immovable property is property that cannot be moved from one location to another. It is affixed to the earth and is incapable of being moved. Land and houses constitute immovable property. Sometimes people are confused as to how one acquires ownership rights over a house or land. In some instances, people assume that mere occupation of a property confers ownership rights to them. It is important for existing and aspiring property owners to understand the property transfer process.

Transfer is done by a specialised lawyer called a conveyancer. The transfer of legal title of an immovable property from one party to another is generally known as conveyancing. Conveyancing also includes the registration and cancellation of legal encumbrances such as mortgage bonds and caveats.

Acquisition of immovable property

Immovable property is acquired through various ways which include sales, donations, sheriff sales, inheritance and divorce transfers. The list is however not exhaustive. Property which is registered under a title deed is transferred by a conveyancer regardless of the method of acquisition. This article will outline the steps and procedures for a simple transfer of property.

“It is imperative for a prospective purchaser to acquaint oneself with the property that they intend to purchase”

Inspection of the property

It is imperative for a prospective purchaser to acquaint oneself with the property that they intend to purchase. A purchaser needs to inspect the property and be satisfied with the condition and state of the property. The agreement of sale of immovable property usually carries a clause that stipulates that the purchaser has inspected the property and is aware of its extent, boundaries, locality and its physical characteristics. A purchaser is therefore unable to renege from such an agreement after signing the agreement and having indicated that they have inspected the property and are aware of its physical state. Inspection helps to guard against “surprises” when a person eventually takes possession of the property. As an example, one might find that the plot that they purchased does not have any arable land but is a vast expanse of a mountain. A physical inspection therefore assists one in making an informed decision in property transactions.

Due diligence

It is encouraged that a purchaser conducts due diligence before a property purchase and legal representation is recommendable at this stage. Due diligence is the investigation of all factors that affect the transfer of the property to the purchaser. It is essential to verify the authenticity of the title deed with the Registrar of Deeds and to confirm the current ownership of the property. A deeds search will also inform a purchaser on the existence of mortgages, caveats and any other legal encumbrances on the property.

With the upsurge of property frauds, one ought to verify the identity of the Seller. There are reported incidences where bogus sellers are involved in transactions. At times, the purported seller possesses identity documents which bear the actual seller’s details but the fraudster’s face. As a cautionary measure a person ought to be wary when dealing with an elderly person bearing a plastic identity card. It is also important to verify the seller’s identity because an owner whose property is sold and transferred without her consent remains the owner and can recover that property from the purchaser. This is regardless of whether or not the purchaser was an innocent purchaser.

A special power of attorney should exist where the seller has appointed a representative to sale on their behalf. Such special power of attorney should be perused to verify if it satisfies all the legal requirements for the transfer to be effected.

A red flag should be detected where the property is being sold at a price which is significantly below the market values of a particular area.

Who appoints the conveyancer?

Unless agreed otherwise, the seller has the right to appoint the conveyancer to attend to the transfer.  The position that the seller has the right to appoint the conveyancing attorneys was reinforced in the case of  Scapelox Trading (Pvt) (Ltd) v Mashangwa Family Trust and others  HH 91/14 wherein the learned judge stated that “it is trite that a conveyancer represents the seller and as such the practice in the jurisdiction is that the seller chooses a conveyancer of his choice to transfer the property from the seller to the purchaser”.

However, it is the obligation of the Purchaser to pay transfer fees.

Signing of documents

Once the purchaser has satisfied herself with the property and done all the due diligence, the parties can enter into an agreement of sale and sign same. The sale of an immovable property must be in writing. The agreement of sale should clearly describe the property sold and the purchase price payable and the terms of payment if any. It is advisable that the purchase price be deposited into the conveyancers’ trust account and be released to the Seller upon registration of the transfer. The parties’ obligations should also be spelt out together with remedies for breach amongst other terms and conditions.

In order to comply with formal requirements for transfer to be effected the conveyancer drafts the documents necessary for transfer to be effected.  Of importance is that the conveyancer drafts a power of attorney authorising the him/her to pass transfer. This power of attorney must be signed by the seller. Both parties sign declarations for stamp duty purposes which stamp duty is paid to the Registrar of Deeds. Declarations are required in terms of the Stamp Duties (Declarations for Acquisition or Disposal of Property) Regulations, 1999.

Rates clearance and capital gains tax certificates

The Registrar of Deeds will not register title until furnished with a rates clearance certificate from the local authority with jurisdiction over the property. It is the seller’s obligation to clear all the outstanding rates on the property sold. The purchaser has the duty to pay advance rates for a period specified by the municipality. The local authority issues out a rates clearance certificate upon application by a conveyancer.

The parties must attend at the Zimbabwe Revenue Authority offices and be interviewed in connection with the sale. The purpose of the interview is to assess the capital gains tax payable by the seller on the transaction. Once the tax payable is ascertained and has been paid, ZIMRA issues out a capital gains tax clearance certificate. The capital gains tax clearance certificate is in turn filed with the Registrar of Deeds in order for transfer to be effected. Capital gains tax is chargeable in terms of the Capital Gains Tax Act (Chapter 23:01) as read with sections 37 to 39 of the Finance Act [Chapter 23:04].

Registration of transfer

When all the documents have been signed and formalities met, the transfer documents, rates clearance certificate, capital gains tax clearance certificate and draft deeds are lodged with the Deeds Registry in order for transfer to be registered in the purchaser’s name. It is imperative to note that the conveyancer can not lodge the transfer documents unless satisfied that the purchase price has been paid or secured.

 In conclusion, it should be noted that the actual documents to  be lodged and the procedural requirements might vary depending with the circumstances of each transaction. In order to avoid prejudice to either of the parties to the sale, it is critical to obtain professional assistance from the time of purchase until title is transferred to the purchaser.

By Dorcas Atukwa

Spread the word, this post has one comment, adv isiah mureriwa.

Good paper. Can I sent you an article I wrote on Sale of Land in Instalments and the Protection of the Purchaser based on the South African Alienation of Land Act

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Information guide to residential property transfer

CONVEYANCING

Conveyancing describes the legal procedure whereby the ownership of immovable property is transferred. Property ownership in Zimbabwe is recorded in the Registrar of Deeds’ Office which deals with conventional and sectional title property ownership. Conveyancing is a complex process involving many role-players, all managed by the Conveyancer who is a legal practitioner. The transferor nominates the Conveyancer, whose primary duty is to protect the interests of the transferor.

PROPERTY TRANSFER

A typical residential property transfer commences once the Conveyancer receives the executed Agreement of Sale setting out the rights and obligations of the Seller and the Purchaser. The sale of immovable property must be recorded in writing.

The course of action taken by a Conveyancer in transferring property is determined by the specifics of the case and the details of these vary considerably. Therefore, the information we have set out below is by way of guidance. It should not be relied upon as generic advice. Specific advice should be sought in all cases.

THE CURRENT TITLE DEED

Prior to the Agreement of Sale being executed, a deed search should be conducted to confirm the current ownership of the property, the property description, any mortgages, caveats, servitudes, or other restrictions against alienation. If this is not done before the Agreement of Sale is signed, it will be carried out by the Conveyancer before transfer.

WHERE THERE IS A MORTGAGE BOND REGISTERED AGAINST THE TITLE DEED

If a mortgage bond is registered against a title deed, all the condition(s) on the mortgage bond must be met and the mortgage bond over the property must be cancelled before transfer. If the mortgage has been registered by a bank, the bank will write to the Conveyancer requesting that s/he confirms the details of the transfer. The bank will also confirm to the Conveyancer the amount required to settle the mortgage on the date of transfer. The bond cancellation attorneys will thereafter receive instructions from the bank to attend to the cancellation process. If there is no amount outstanding on the bond, the bank will confirm this and sign a ”Consent to Cancellation of the Bond”.

WHERE A TITLE DEED HAS BEEN LOST

If the original title deed has been lost, an application will have to be made for a duplicate original title deed. Where a diagram deed is lost, a survey diagram will have to be framed by the Surveyor General’s department before replacement. In addition, an application for a lost title deed requires publication in a newspaper and the Government Gazette which process will delay the transfer. This application attracts additional costs which are governed by the Law Society of Zimbabwe (Conveyancing Fees) By-laws, 2013.

DOCUMENTS FOR SIGNATURE

Preliminary documents will be prepared for signature by the parties. These include:-

  • A Power of Attorney – the Seller (or his/her agent appointed through a Special Power of Attorney) authorises the Conveyancer formally in this document to appear before the Registrar of Deeds to register the transfer in the Deeds Office. How about resolutions for corporates?
  • Declarations – In terms of the Stamp Duties (Declarations for Acquisition or Disposal of Property) Regulations, 1999 the Seller and Purchaser (or their agents) will be required to sign separate Declarations confirming the purchase price, the property sold and the extent of improvements thereon.

CAPITAL GAINS TAX

Where the property being sold was acquired after the 1st of February 2009, capital gains tax is payable at 20% of the capital gain. For properties which were acquired before the 1st of February 2009 and sold after this date, the capital gains tax is charged at 5% of the gross capital amount realised from the sale. Capital gains tax is charged and calculated as per the provisions of Section 6 & 7 of the Capital Gains Tax Act [Chapter 23:01], as read with Sections 37 to 39 of the Finance Act [Chapter 23:04]. A seller may be exempted from capital gains tax in certain specified instances. Our lawyers can advise further on this. The common exemptions are set out below.

  • Where the property is the primary residence and the seller is over the age 55.
  • A sale by Executor out of a deceased estate.
  • Transfers of any specified assets between spouses.
  • Transfer of principal private residence between former spouses following a divorce order.
  • The sale of a principal private residence where the sale proceeds are used to acquire/construct a new principal private residence.
  • Transfer of business property used for the purposes of trade by an individual to a company under his/her control where such company will continue to use the property for the purposes of trade.
  • Donation of housing units to a local authority, approved employee share ownership trust or community share ownership trust or scheme.

For a full list of all the exemptions see Section 10 of the Capital Gains Tax Act [Chapter 23:01]).

TRANSFER FEES

The Conveyancer will issue a pro-forma invoice in respect of transfer fees which include transfer duty, the conveyancing fee together with VAT thereon, disbursements, Deeds Office fees, postages and other sundries. The invoice will not include any bond or bank fees which a party must pay to the bank. The transfer fees are calculated on a sliding scale as prescribed in the Law Society of Zimbabwe (Conveyancing Fees) By-laws, 2013. Transfer fees are required to be paid before any work is done and the amount will be held in trust pending transfer save for the amounts necessary to pay for Stamp Duty and registration costs.

DRAFTING THE TITLE DEED

The next stage of the conveyancing process involves following up the bond cancellation process (if required), obtaining the original title teed and drafting a new title deed. The Purchaser and Seller’s identity documents will be required. In drafting the new title deed, the Conveyancer will refer to the original title deed (Seller’s copy), the Agreement of Sale and documentation evidencing proof of payment of purchase price. It is also critical for the Conveyancer to receive the parties’ clear and correct instructions at this stage to ensure the drafting is accurate.

ZIMRA INTERVIEW

The Seller and Purchaser (or their authorised representatives by virtue of Power of Attorney or Resolution in the case of a company) will be required to attend an interview by ZIMRA, which they will attend together with one of our members of staff. The parties will be required to produce their identity documents to confirm their identity, the original Agreement of Sale and proof of purchase price (or at the very least, payment of a deposit). Following the interview, ZIMRA will calculate the Capital Gains Tax payable. An official receipt will be issued once payment has been made together with a Capital Gains Tax Clearance Certificate or applicable exemption.

There are different considerations depending on whether the applicant is a limited company or an individual, therefore our members of staff will assist in the filling in of the ZIMRA forms ( CGT1 and REV1 ) and ensuring that the supporting documents and information is ordered in the manner required by ZIMRA for assessment in each particular case.

RATES CLEARANCE

No property can be transferred until the current rates arrears account, together with a three-month pre-payment for rates, water and services, have been paid. It is ordinarily the duty of the seller to pay for rates clearance and obtain a Rates Clearance Certificate which is a requirement for lodgement in the Deeds Office. It is possible to set out in the Agreement of Sale that the Purchaser must reimburse the Seller who pre-pays the rates clearance amounts. Levy clearance or homeowners’ association clearance may be required in the event of the sale of a flat.

LODGING DOCUMENTS WITH THE DEEDS REGISTRY

Once all the documents have been prepared and the clearance certificates are at hand, transfer will be lodged at the Deeds Office. The Deeds Office has the right to reject any documentation, and raise queries which would require the documents to be re-lodged. Once the Registrar is satisfied, transfer will be registered. Transfer of ownership passes from the Seller to the Purchaser once a new title deed is formally executed by the Registrar of Deeds. If a mortgage has been obtained by the Purchaser, the mortgage bond is simultaneously registered against the new title deed.

Once the title is registered in the Deeds Office, the Seller will receive the net purchase price. This marks the end of the conveyancing transaction.

If the property is in a new development, the title deed will first be sent to the Surveyor General for the process of “deduction”, which confirms the demarcation of the newly registered land’s boundaries from the parent deed’s land. This can take a few months. The Deeds Office will deliver the registered title deed (and mortgage bond if applicable) to the law firm. Where there is a bond on the property, the title deed is sent to the bond holder which is usually a bank or financial institution.

RECEIPT OF TITLE DEED AND SAFE KEEPING

The Purchaser will be asked to sign an acknowledgement of receipt upon receipt of the title deed. The documents must be kept safely and securely by the owner, and cannot be laminated or otherwise defaced as this will invalidate them. If lost or defaced, the owner will have to apply for a lost title deed which will result in additional costs.

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transfer of immovable property in zimbabwe

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Our Practice Areas

Conveyancing (property transfer)..

Real Estate Law gives the legal framework for the transfer of real estate. We at Kanokanga and Partners understand Real Estate Law. Real Estate Law requires that all property transfers, registration and cancellation of mortgage bonds be attended to by conveyancers. Conveyancers are property lawyers.

Conveyancing lawyers offer expert advice and professional services in respect of immovable property. Conveyancing is a legal process whereby a person, company or trust becomes the lawful and registered owner of fixed property. Conveyancing law is concerned with the transfer of legal title of a property from one person to another. The transfer of legal title from one person to another is done by conveyancers. Unless the parties agree otherwise, the seller or transferor appoints the conveyancer.

Conveyancing fees are charged in accordance with a recommended tariff as laid down by the Law Society of Zimbabwe. At Kanokanga and Partners we assist our clients throughout the entire conveyancing journey starting with the conduct of a Deeds office search to confirm any encumbrances that may be registered against the property to the registration of the transfer with the Deeds office. We handle all aspects of conveyancing work.

Our conveyancing and property law services include but are not limited to:

  • Conducting Deeds Office searches
  • Drafting sale and purchase agreements and relevant legal documents for commercial, industrial and residential conveyancing transactions.
  • Reviewing sale agreements.
  • Mortgage bond registrations and cancellations.
  • Drafting property transfer documents such as the Power of Attorney to Pass Transfer, The Seller’s Declaration, The Purchaser’s Declaration, The Draft Deeds of Transfer.
  • Application for rates clearance certificates, Application for Capital Gains Tax Clearance Certificate etc.
  • Applications for the replacement of lost Title Deeds and Mortgage Bonds.
  • Donation transfers, Estate transfers, Sectional Title transfers, transfer of subdivisions.
  • Drafting and review of lease agreements, handling landlord and tenant disputes and evictions.

There are generally no restrictions on foreigners owning immovable property in Zimbabwe. Section 71(2) of the Constitution of Zimbabwe provides that, “every person has a right in any part of Zimbabwe to acquire, hold, occupy, use, transfer, hypothecate, lease or dispose of all forms of property, either individually or in association with others”

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What our clients say..

They are approachable, ethical, friendly and professional. — Edith

They are able to respond quickly and provide focused legal advice and representation. — Esther

They handled my property transfers with speed. — Brian

They have a real ”the client comes first attitude.” — Wendy

Kanokanga and Partners are a top firm whose reputation goes before them. — Tendai

I am truly grateful to you for helping me with my divorce case. — Mercy

They are bright, hardworking, knowledgeable, understanding and a pleasure to work with. — Paula

The firm creates an atmosphere of complete trust and a sense that their sole focus is on you and your needs. — Patricia

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Zimbabwe: Deed Of Transfer

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A Deed of Transfer is a legal document that shows proof of ownership to an immovable property. This is the most important document ever signed by an individual since a property is usually one of the valuable assets a person can own. Therefore the Title holder must ensure that all reasonable steps are taken to keep it safe. The Title holder is the owner of an immovable property whose name is registered in terms of Deed Registries Act. Each property has its own separate Deed of Transfer containing all the details pertaining to a specific piece of Land.

The Title Deed is fully equipped with the following:

  • Name of existing owner as well as the previous owner.
  • Name and signature of the Attorney who prepared the document.
  • Name of the Law Firm.
  • Full description of the property including the measurements.
  • Purchase price paid by the owner of the property.
  • Date of Registration.
  • Signature and Seal by the Registrar of Deeds.
  • All conditions restricting the use or sale of the stated property.

In certain aspects these features or conditions can also protect the owner where the owner may not build over a certain building line on the property's boundary wall so as to create space between the stated property and its neighbours. The owner of the immovable property must under normal circumstances always have the Title Deeds of his property in his possession. However, in some instances the Deed of Transfer maybe in the possession of a Bank, which holds a Mortgage Bond over the property, if any.

The Deed of Transfer is important as it secures a person's property from invasions or unlawful acquisitions.

For a Deed of Transfer to be registered it has to pass through (3) three important stages as follows:-

Conveyancer : The Deed of Transfer is prepared by the Conveyancer, who is a registered lawyer, and the only person qualified to register property transfers. This process requires extensive knowledge, skill and accuracy.

Examiner : The document is examined by the Qualified Examiner at Deeds Office to ensure that it complies with all relevant regulations.

Registrar of Deeds: The Office is currently housed under the Ministry of Justice, Legal and Parliamentary Affairs. The Registrar of Deeds, after satisfied with the accuracy of the document, has all the powers to register the Deed by signing and placing a Seal on the document. It therefore becomes a Legal Document.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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transfer of immovable property in zimbabwe

Buying An Immovable Property In Zimbabwe

transfer of immovable property in zimbabwe

When buying a property (stand/house) in Zimbabwe there are a number of issues to look at so as to protect your hard-earned cash. Below are some of them;

1. First determine whether the property you want to buy is held under an agreement of sale (in which case the rights will be transferred to you by cession) or it has title deeds . The difference between the two is significant for a number of reasons. Where the property is held under an agreement of sale the person is not the ‘owner’ of the land in the legal sense, what he/she has are personal rights to the land. When one buys this land, the rights to the land are transferred to him/her through cession . This is usually the case with most houses in Chitungwiza and other smaller towns. In Harare this is common in Highfields, Mufakose and Mabvuku. On the other hand, where the person who is selling you the land has a title deed he/she is the owner of the land in the legal sense. It is wise to engage a lawyer who can help you understand the nature of the prospective seller’s rights in the land.

2. Where the land is held under a title deed and even if you are shown the original title deed there is need for verification with the Deeds Registry on a number of issues. A deeds search (preferably done on your behalf by a lawyer) will detect mortgage bonds , caveats and other endorsements, if any. You also need to physically see the land being sold and the identity of the seller. Where the rights in the land are to be transferred to you through cession, you need to have sight of the agreement which gives the seller rights in the land. You also need to check with the person or institution which will process the cession for example the council. In some cases there may be conditions for cession to go through.

3. The next stage is to have an agreement of sale drafted and this is better left to legal practitioners. Important terms include whether the purchase price is inclusive of value added tax (where applicable), mode and manner of payment, the stage at which risk will pass, date of occupation and variation of the contract.

4. Where the land is held under a title deed, the process of change of ownership is done through the Deeds Registry Office by a conveyancer . It is the seller who chooses the conveyancer and parties may put a clause in the contract specifying the conveyancing law firm. The buyer will have to pay the conveyancing fees whilst the seller pays the capital gains tax unless there is an exemption. Under cession, the Deeds Office is not involved but the parties simply attend at the council or developer’s offices where cession forms are signed. Cession fees are usually charged.

5. In Zimbabwe marriages are out of community of property . This means that each party in a marriage can independently own or have rights in a property. They can do whatever they want with the property without consulting their spouse unless the property is registered in both their names. Where parties are married they must be alive to this principle when buying a house . Note however that upon divorce the assets of the parties are distributed in terms of the Matrimonial Causes Act . The contents of this article are for general information purposes only and do not constitute our legal or professional advice. We accept no responsibility for any loss or damage of whatsoever nature which may arise from reliance on any of the information published herein. Copyright © Marume & Furidzo Legal Practitioners 2018

20 Comments

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Thanks, it is very informative

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Belinda Sharples

What recourse does a seller have when the buyer takes occupation after paying for the property but then fails to transfer ownership. Tax clearance and rates clearance but buyer refuses to pay conveyancing fees or to transfer ownership. Has occupation and paid in full but does not own the property?

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Arthur Jerenyenje

the key element is the change of ownership part. you can not lay claim on any property that documents do not prove is yours. that is why it is important for the buyer to verify ownership of the seller and then ensure the smooth exchange of ownership into their name, then they can claim ownership

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Hi. I bought land from the City of Bulawayo and they keep saying we cant build because they ddnt service the plots. I need help either by law. What does the Zimbabwe laws say about this. Its almost two years nw.

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Marume & Furidzo Legal Practitioners

May you please call +263 242 700 609 or email [email protected] for help. Regards, Support

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Jerry Chiwato

Hie. May you please assist me with details of charges needed for buying a stand in Chitungwiza or any other urban area. Also advise on terms of payment.

Thank you for enquiring. Kindly contact us using any of the following Telephone: 263 242 700609 Mr. Marume: +263 772 834 327 Mr. Furidzo: +263 772 380 877

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Anotida Chikumbu

Thank you. This was helpful. I am a land developer and Real Estate owner. I get so many questions from my clients with regards to the properties I buy and sell.

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OCEAN KATIVHU

Helpful indeed.

' src=

Very helpful.thank you very much. it helps when we deal with clients

' src=

Can you sell land that you inherited without going for estate, only agreement of sale, developer cession. I am the only beneficiary?

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I wanted to ask about mortgages. Currently, there is a property that I am interested in and I have put in an offer via the agent. However the agent was reluctant to put my offer forward as my method of payment will be via a mortgage. Am i right to believe that a higher percentage of properties in Zimbabwe are therefore bought via cash only? Why are sellers put off by the mortgage payment plan?

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Patrick Nyathi

Kindly assist. I purchased a house from my uncle who unfortunately passed on before drawing up an agreement of sale. However ,he had given me the title deeds. He left behind a will in which he did not include the house under discussion. How do I change ownership ?

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Rudo Mateko

Hw do I get security for a cesfion withheld because the cedent is still in office as a Councillor and can only do so wen out of office or at end of term

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Hello Is there anyway I can expedite the process of obtaining my deeds? I bought a piece of land 2 years ago and I’m desperate to secure a building mortgage to start building. Seller is still awaiting capital gains certificate from zimra. I need my deeds processed ASAP as I want to start building via the mortgage route, Which obviously I can’t do without those deeds! Seller is blaming zimra for delaying! 2 years is rather too long to be waiting for documentation.

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transfer of immovable property in zimbabwe

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The sheriff for zimbabwe v humbe & anor (hh 378-20, hc 7525/19 ref case hc 11601/17 ref case hc 5642/18) [2020] zwhhc 378 (09 june 2020);, zimlii flynote: .

  • PRACTICE AND PROCEDURE
  • Interpleader proceedings
  • property attached in execution
  • PROPERTY AND REAL RIGHTS
  • ownership of immovable property

                                                                                                                                                                                                                                                 THE SHERIFF FOR ZIMBABWE

FRANK HUMBE

DESMOND MUCHINA

HIGH COURT OF ZIMBABWE

CHINAMORA J

HARARE, 2 June 2020 & 9 June 2020  

Opposed application - interpleader

N Chiota , for the applicant

T Govere, for the claimant

A Borerwe , for the judgment creditor

            CHINAMORA J: Introduction: On 2 June 2020, I heard argument in relation to interpleader proceedings brought in terms of Order 30 r 205A as read with r 207 of the High Court Rules, 1971. I dismissed the claimant’s claim, and the order which I granted, inter alia , declared the property which had been placed under attachment executable. I now provide the reasons for my decision.

The facts giving rise to this application are: the judgment creditor obtained a judgment in the sum of US$352,851-30 plus interest and costs against Sparkles Services (Pvt) Ltd and Godfrey Munyamana (“the judgment debtors”). Pursuant to the judgment, the judgment creditor caused a writ of execution to be issued on 8 May 2018, resulting in the Sheriff attaching Stand 67 Guildford, Borrowdale Estate of Subdivision H of Guildford Borrowdale Estate, measuring 6803 square metres, held under Deed of Transfer No. 1447/2009 (“the property”). This was done by notice of attachment issued on 22 May 2018. The property is registered in the name of the judgment debtor.

Not amused by the attachment the claimant caused the applicant to institute interpleader proceeding claiming that the property belonged to him. These proceedings were commenced on 10 September 2019. He averred that he purchased the property from Mr Godfrey Munyamana and Mrs Fadzayi Munyamana on 15 December 2013, and had fully paid the purchase price. The claimant asserted that he had instituted proceedings under HC 11367/15 seeking transfer, but the lawsuit was settled through a deed signed on 12 December 2017. He further said that the parties had done the capital gains tax assessments at ZIMRA. On that basis, he claimed that the property was his or special circumstances existed for the property not to be declared executable.

On his part, the judgment creditor was steadfast that the property was executable since it was registered in the name of the judgment debtor. He proceeded to argue that by law the judgment debtor owned the property. The judgment creditor contended that the claimant applied under HC 5642/18 to obtain transfer under the Titles Registration and Derelict Lands Act [Chapter 20:20], never pursued the application as it was incompetent. Finally, he submitted that as he had no title deed he should take issue with the judgment debtor and seek an appropriate remedy through the court.  I have to decide on the competing interests of the claimant and judgment creditor.

The applicable law

The law relating to interpleader proceedings is settled. A claimant must set out facts and allegations which constitute proof of ownership.  The party objecting to execution must prove on balance of probabilities that the property is his or hers. (See Bruce N.O  v  Josiah Parkers and Sons   Ltd 1972 (1) SA 68 (R) at 70 C-E). The onus is on the claimant to prove ownership of the property claimed. (See Deputy Sheriff, Marondera v Travese (Pvt) Ltd & Anor HH 11-03).

As already indicated above, the property to which the claimant lays a claim is registered in the name of the judgment debtor. This raises a presumption that such property belongs to the person (juristic or otherwise) who has title to it. The position was put this way by de villiers cj, in Zandberg v Van Zyl 1910 AD 258 at 272:

“…possession of a movable raises a presumption of ownership; and that therefore a claimant in her inter pleader suit claiming the ownership on the ground that he has bought such a movable from a person whom he has allowed to retain possession of it must rebut that presumption by clear and satisfactory evidence.”

In casu , the judgment debtor has title to the property. It is indeed immovable property. However, I propose to equate possession in the case movable goods to title in respect of immovable property. To the extent that possession and title raise a rebuttable presumption of ownership, the principle in Zandberg v Van Zyl supra equally applies to immovable property. The starting point is to examine the legal implication of title. Title confers real rights in immovable property. It cannot be gainsaid that a title deed is prima facie proof that a person enjoys real rights over the immovable property defined in the deed. In Fryes (Pvt) Ltd v Ries 1957 (3) SA 575 at 582, the court held that:

“Indeed the system of land registration was evolved for the very purpose of ensuring that there should not be any doubt as to the ownership of the persons in whose names real rights are registered. Generally speaking, no person can successfully challenge the right of ownership against a particular person whose right is duly and properly registered in the Deeds Office.”

The same legal position obtains in this jurisdiction. In Takafuma v Takafuma 1994 (2) ZLR 103 (S) at 105H-106A, mcnally ja had this to say:

“The registration of rights in immovable property in terms of the Deeds and Registries Act [Chapter 139] (now [Chapter 20:05]) is not a mere form. Nor is it simply a device to confound creditors or the tax authorities. It is a matter of substance. It conveys real rights upon those in whose name the property is registered.”

See also Chapeyama v Chapeyama 2000 (2) ZLR 175 (S)

Of further relevance to transfer of title in immovable property, is s 30 A of the Capital Gains Tax Act [ Chapter 23:01 ], which reads:

“30A Capital gains tax not withheld in terms of Part IIIA to be paid before transfer of specified asset

(1) No registration of the acquisition of a specified asset in respect of which capital gains tax is not withheld in terms of Part IIIA shall be executed, attested or registered by—

( a ) The Registrar of Deeds in terms of the Deeds Registries Act [ Chapter 20:05 ];

( b ) the person responsible for registering the transfer of shares of any company registered or incorporated in terms of the Companies Act [ Chapter 24:03 ];

unless there is submitted to the Registrar of Deeds or the person concerned by either of the parties or their agents concerned in the transaction a certificate issued by the Zimbabwe Revenue Authority stating that any capital gains tax payable on the acquisition of the specified asset has been paid”.

The essence of the above provision is that the process of transfer is has not yet been completed. Thus, on a proper construction of s14 of the Deeds Registries Act and s 30A of the Capital Gains Act, acquisition of ownership in land immovable registration.

Applying the law to the facts

To substantiate his claim, the claimant produced an agreement of sale signed between him and the judgment debtor. On the basis of the authorities mentioned above, the legal effect of registration of title in the judgment debtor’s name is evident. Title in the property remains in the judgment debtor. Such title can only be legally divested upon transfer to the claimant or a third party, whereupon the transferee would acquire real rights to the property. As things stand, the agreement without the process of transfer through the Deeds Registries Act only vests personal rights in the claimant. The legal reality was spelt by the court in Fischer v Ubomi Ushishi Trading & Ors 2019 (2) SA 117 (SCA) at para 18, in the following terms:

“That agreement, though binding on the contracting parties, did not by itself vest ownership of Mr Haynes’ half share in the property in Mrs Haynes, any more than a contract of sale of land passes ownership to the buyer. It follows that  Middleton [2010 (1) SA 179 (D)] was correctly decided. The vesting of ownership of the property in Mrs Haynes required an act of transfer by way of an endorsement on the title deed of the property in terms of s 45 bis (1) (a)  of the Deeds Registries Act”.

That said, I have already acknowledged that there is a rebuttable presumption that if property is in the name of someone, that person is presumed to be the owner of that property. Since the claimant has alleged that he is the owner of the attached house, he bears the onus to prove, on a balance of probabilities that he is the owner. I have to decide whether that onus has been discharged. Put differently, the issue for determination is whether or not the claimant has set out facts and allegations which constitute proof of ownership.

It is important to note that these interpleader were triggered by the attempt to execute this court’s judgment in HC 11601/17. As title is still in the judgment debtor’s name, prima facie , the property can be sold in execution of the judgment obtained by the judgment creditor in HC 11601/17. The claimant relied on CBZ Bank v David Moyo & Anor SC 470-15 for the proposition that a deed of transfer is prima facie proof of ownership. Developing on this argument, he submitted that the registration of the property in the name of the judgment debtor did not affect his claim to ownership arising from the agreement of sale. He further argued that, on the authority of that case, the property should not be declared executable. One should not latch onto a legal principle from one case and apply it to another without considering the factual context of each case. In this respect, it is worth recalling that in Bariadale Investments (Pvt) Ltd v Puwayi Chiutsi & Ors HH 842-19, where chitapi j aptly noted:

“I do accept the general rule and the general approach of the court but would caution that a case authority is only binding or persuasive if the ratio decidendi sought to be invoked pertains to a factual scenario which is similar to the case under determination because every case is determined on its own peculiar facts and circumstance”.

The decision in CBZ Bank v David Moyo & Anor supra turned on its facts. The evidence showed that title had not been effected due to circumstances beyond the purchaser’s control, after he had done everything expected of him to effect transfer. The brief facts are that: Mr Moyo purchased and paid the full purchase price for the property in August 2010. He acted promptly to secure registration of title by paying the transfer fees and obtaining tax and rates clearance certificates. He took occupation 3 months after the date of payment of the purchase price, in Novemebr 2010, in terms of the sale agreement. The transfer could not be registered because a creditor of one of the sellers had registered a caveat on the title deeds of the property. The caveat was registered after Mr Moyo was already in possession of the property and a day before his transfer papers were filed in the Deeds Registry.

In casu , the factual scenario is not comparable. The telling question to ask is: since the agreement of sale was signed in 2013, why was transfer not effected by the time of execution in 2018? Mr Govere , for the claimant, initially explained that the claimant had applied for registration of title in terms of the Titles Registration and Derelict Land Act. However, when asked by the court if ownership could be obtained that way, counsel conceded the futility of the application. The record shows that when that application was opposed, it was never prosecuted. Despite the propriety of the application being challenged, the claimant took no steps to seek an order compelling the judgment debtor to transfer the property to him. 

It must be borne in mind that proceedings under HC 11367/15 for the judgment debtor to effect transfer preceded those under HC 5642/15 purportedly in terms of the Titles Registration and Derelict Lands Act. Mr Govere argued that the lawsuit in HC 11367/17 was resolved by a deed of settlement signed on 12 December 2017. It is relevant to mention that the sale was concluded on 15 November 2013, and if we go by the receipts attached to the claimant’s papers, the purchase price was fully paid in July 2015. Yet nothing was done to obtain transfer from November 2013 till 2017 when summons was issued. Also amazing is that the capital gains tax assessment was done on 16 July 2020 for Mr Munyama, and only done on 20 March 2020 for Mr Munyama had been assessed 2 years earlier on 16 July 2018. Clearly, no plausible explanation has been given for such a lackadaisical approach to enforcing one’s rights. It seems the claimant would have contentedly sat on his laurels were it not for the interpleader proceedings. I say this because, quite apart from the casualness outlined above, nothing had still not been by the time the writ of execution was issued on 8 March 2018 and the attachment done on 22 May 2018. It was not until 10 September 2019, that interpleader proceedings were commenced.

I have to decide whether the claimant has discharged the onus on him to establish his claim to the property. For the property to be spared from execution the court must find that “special circumstances” exist. That was the decision made in CBZ Bank v David Moyo & Anor supra , which defined special circumstances as follows:

“Special circumstances exist where a purchaser has failed to have the property registered in his name, when he and the seller have demonstrated a clear intention to effect transfer and when there was no legal impediment to such transfer or the impediment does not justify the refusal to grant protection to the purchaser”.    

Based on the papers before me and the disconcerting chronology of events in this matter, I am loathe to accept that the claimant acted in a manner consistent with someone who proceeded with swiftness, but failed to obtain transfer through no fault of his own. The promptness with which Mr Moyo acted in CBZ Bank v David Moyo & Anor supra was certainly not mirrored in casu . Lest this view is taken as unfair, I must state that the claimant was legally represented in all the proceedings he brought before this court. Given that he was acting advisedly, the clumsiness evident from the way the issue of transfer was dealt with is both inexplicable and inexcusable. Once full compliance with the terms of the agreement of sale had been made, transfer should have been sought immediately. Even after deciding to deploy another option, what boggles the mind is: why prompt action was not taken to obtain redress as soon as the claimant and/or his lawyers knew that the Titles Registration and Derelict Lands Act route was a cul de sac .

           At the end of argument, I came to the view that not enough evidence has been adduced to prove on a balance of probabilities that the attached immovable property belongs to the claimant and not to the judgement debtor. Nor was I satisfied that the claimant had established special circumstances warranting me to declare the property not executable. The claim was, accordingly, dismissed. Although the judgment creditor sought costs on an attorney and client scale, I was not satisfied that any conduct on the part of the claimant justified such costs. Costs being in the discretion of the court, in the exercise of that discretion I decided against awarding punitive costs.

Disposition

            It is as a result of the foregoing that I made the following order:

  • The claimant’s claim to the property which is listed on the Notice of Seizure and Attachment dated 22 May 2018, which were placed under attachment in execution of the order in Case No HC 11601 be and is hereby dismissed.
  • The above mentioned property attached in terms of the Notice of Seizure and Attachment dated 22 May 2018 be and is hereby declared executable.
  • The claimant shall pay the judgment creditor’s and the applicant’s costs.

V Nyemba & Associates , applicant’s legal practitioners

Munangati & Associates , claimant’s legal practitioners

Ngwerume Attorneys at law, judgment creditor’s legal practitioners

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Taxation Law in Zimbabwe - an overview

31 March 2023

Nobert Musa Phiri, Partner at Alliott Global Alliance law firm member Muvingi & Mugadza Legal Practitioners in Harare, offers a general overview of taxation law in Zimbabwe, important to businesses and individuals operating in the country.

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Taxation is an important consideration for any business operating in Zimbabwe or looking to invest. For individuals it is also important for one to take special consideration of the tax implications of any transaction. It becomes essential to develop efficient tax strategies to enable investment and growth. This article provides a general overview of tax law in Zimbabwe.

Taxation Overview:

In Zimbabwe, the nature and the source of the income determine whether or not it is taxable. The identity and country of residence of the recipient are often irrelevant. Thus, generally, all receipts (not of a capital nature) arising from a source within Zimbabwe are taxed, irrespective of the residential status of the taxpayer. Income arising from sources outside Zimbabwe is taxable only if its source is “deemed” by the legislation to be within Zimbabwe.

Since the Income Tax Act [Chapter 23:06] does not define the “source", guidance on the subject is derived from case law. In CIR v Lever Bros and Unilever Ltd (1946) the applicable principle was that the source of receipts, received as income, is not where they come from, but the originating cause of their being received as income is the work which the taxpayer does to earn them.

The principle laid in the Lever Bros and Unilever Ltd case sets the pace for determining the source of income in Zimbabwe. The work which a taxpayer does may be a business which he carries on, or an enterprise which he undertakes, or an activity in which he engages and it may take the form of personal exertion, mental or physical, or it may take the form of employment of capital either by using it to earn income or by letting its use to someone else. Often the work is some combination of these.

One notable aspect in this regard though, is that the matter of whether receipts are remitted to Zimbabwe or not, is not relevant, thus making a taxpayer liable even for offshore receipts.

In determining the source of income in Zimbabwe, one would require to interpret and rely on the deeming provisions of the main statutes governing tax administration, Double taxation Agreements (DTAs) and Case law.

The Zimbabwe Revenue Authority is mandated at enforcing the provisions of the tax statutes.

Key statutes governing tax administration.

  • Finance Act Chapter 23:04
  • Revenue Authority Act Chapter 23:11
  • Income Tax Act Chapter 23:12
  • Value Added Tax Chapter 23:12
  • Capital Gains Tax Act Chapter 23:11
  • Customs & Excise Act Chapter 23:02
  • Stamp Duties Act Chapter 23:09
  • Estate Duty Act Chapter 23:03

Income Tax:

Zimbabwe presently operates on a source-based tax system. This means that income from a source within, or deemed to be within Zimbabwe will be subject to tax in Zimbabwe unless a specific exemption is available. The specific circumstances of a transaction should always be considered to determine whether the transaction gives rise to taxation in Zimbabwe.

Income earned by foreign companies from a source within, or deemed to be within Zimbabwe will be subject to tax in Zimbabwe. In such a case, one should determine whether the foreign entity is obligated to register a local entity. The rate of corporate tax and income earned by individuals from trade and investment is set out in the table below.

Investment income

Investment income normally comprises of interest and dividends. Zimbabwe treats the Withholding Tax (WHT) deducted from investment income as a final tax; consequently, there is no need to declare this type of income on tax returns or to pay any additional tax.

Dividend income

'Dividends' means "any amount distributed by a company ... to its shareholders...". The WHT on dividends is at a rate of 15%, except in the case of distributions made from companies that are listed on the Zimbabwe Stock Exchange, where a lower rate of 10% is applicable.

Interest income

Interest arising in the name of Zimbabwe residents from ’financial institutions normally has a WHT of 15% deducted by the institution before it is paid to the investor. Non-resident persons are exempt from this WHT. Interest arising from sources other than ’financial institutions’ is subject to tax at the corporate tax rate.

Allowable deductions

Section 15 (2) the Act makes provisions for specific allowable deductions. Some of the deductions development and exploration costs.

Value Added Tax (VAT):

Where a local resident meets a particular threshold and is registered for VAT, the income received will be taxed at 15%. (The Finance Act Number 3 of 2019).

What is VAT?

Value Added Tax (VAT) is an indirect tax on consumption, charged on the supply of taxable goods and services. It is levied on transactions and on the importation of goods and services. The principal legislation is the Value Added Tax Act (Chapter 23:12).

What is the General Rate of VAT?

With effect from the 1 st of January 2023 the general rate of VAT in Zimbabwe is 15%. Section 17 of the Finance (No.2) Act, 2022 which was gazetted on the 30th of December 2022 provides as follows;

The rate of value added tax in respect of—

(a) goods or services supplied by any registered operator in the course or furtherance of any trade carried on by the registered operator; and (b) the importation of any goods into Zimbabwe by any person; and (c) the supply of any imported services by any person; and (d) goods and services sold through an auctioneer (as defined in section 56(6)) of the Value Added Tax Act [Chapter 23:12] by persons who are not registered operators shall be fifteen per centum.

Generally, all goods and services are standard rated unless specifically exempted, zero-rated or subject to VAT at a special rate.

i Zero-rate (0%) Exports of goods from Zimbabwe to any address in an export country. Basic foodstuffs such as sugar.

ii No value added tax is chargeable on exempt supplies. (Section 11 of the Act).

Examples of exempt supplies include: • Financial services. • Provision of electricity for domestic use. • The supply of any medical services by any person or institution. • Rates charged by Local Authorities.

Value Added Tax on Betting and Gaming:

The rate of value added tax in respect of transactions or receipts on betting and gaming as set out in the table in Part 11 of section 17 of the Finance (No.2) Act,2022 is generally 15%.

General Rate of Value Added Tax on Supply of Cellular Telecommunications Service: (Part 111 of Section 17 of the Finance Act (No.2) Act,2022)

The rate of value added tax in respect of the supply of cellular telecommunications services during furtherance of the supply of such service by a registered operator shall be 15%.

Customs Duty:

Customs and Excise Duty is administered in terms of the Customs and Excise Act [Chapter 23:02]. Tariff classification, valuation and origin are core customs compliance procedures and the main pillars for establishing liability for duties and VAT on imported goods. Imported and exported commodities need to be classified according to an appropriate tariff heading. The tariff classification code is directly linked to the rate of duty payable on that commodity. In Zimbabwe the general rate of Customs duty on imported goods ranges between 0%-40% (please confirm in a Tariff handbook). However, depending on the imported commodity, preferential rates of duty may be applicable.

Zimbabwe is a signatory to a number of trade agreements with different countries which it confers preferential rate of duties on imported commodities from such countries (when accompanied with the relevant proof of origin). Most notable are the following agreements:

COMESA (consisting of African countries) SADC (consisting of African countries) AfCTA (consisting of African countries)

Excise Duty is levied on certain locally manufactured goods, certain luxury or non-essential items) and this is administered under the Excise Tariff.

Because ZIMRA is in the position to control and prevent the importation or exportation of commodities, it acts as an agent on behalf of numerous other government institutions or organisations to ensure that commodities, in terms of other legislation, are not imported or exported illegally when it is a requirement from other departments or institutions that permits must be issued. Therefore, it should also be noted that certain commodities will require valid permits before they are imported or exported.

Capital Gains Tax:

Capital Gains Tax (CGT) is an amount levied on the capital gain arising from the disposal of a specified asset in terms of section 6 of the Capital Gains Tax Act [Chapter 23:01]. Specified assets mean immovable property (land and buildings) and any marketable security (debentures, shares, unit trusts, bonds, intellectual property). Valuations for the purpose of determining the values of the assets will also be required by the taxing authority (ZIMRA), together with proof of payment for the property (if case of a sale).

Rates of Capital Gains Tax The table below summarises the CGT rates as provided for in terms of the Finance Act (Chapter 23:04):

The taxation of Capital Gains is split into two transactions as shown above. In respect of the first class (before 22 February 2019) the Capital Gain is determined to be the gross value and in respect of the second class (after 22 February 2019) capital gain is determined in terms of the normal rules.

The Seller of a specified asset has the obligation to pay Capital Gains Tax when disposing of a property. However, the Seller may be exempted from paying Capital Gains Tax in certain specified instances. Some of the exemptions are set out below.

  • Where the property is the primary residence and the seller is over the age of 55.
  • A sale by the Executor out of of a deceased estate.
  • Transfers of any specified assets between spouses.
  • Transfer of principal private residence between former spouses following a divorce order.

Stamp Duty (Tax on property purchase)

In Zimbabwe, stamp duty is payable on the registration of title upon acquisition of immovable property. The Stamp duty is calculated in accordance with the Schedule to Chapter II of the Finance Act [Chapter 23:04] as read with the Stamp Duties Act [Chapter 23:09].

In terms of the Stamp Duties Act, stamp duty is calculated using the declared value of the property or the consideration payable as at the date of acquisition of property. The date of acquisition is also defined as the date on which the transaction was entered into or the date on which the person who acquired the property became entitled to it. In other words, stamp duty is charged on the current fair market value of the property or the purchase price.

The Registrar of Deeds will require declarations from both parties to the transaction indicating the value of the property and the improvements thereon and this is to ensure that the adequate and appropriate duty is paid.

The Stamp duty calculations in terms of the Schedule to Chapter II of the Finance Act [Chapter 23:04] are currently as follows;

For example:

Calculation of stamp duty payable on acquisition of property valued at $4 000.00 Duty is = (1% * 4000) + 70 = 40 + 70 =$110.00

2. Calculation of stamp duty payable on acquisition of property valued at $50 000.00 Duty is = 3% * ($50 000.00 – 20 000.00) + 370 = (3% * 30 000.00) + 370 = 900 + 370 = $1 270.00

3. Calculation of stamp duty payable on acquisition of property valued at $120 000.00 Duty is = 4% * (120 000.00 – 100 000.00) + 2 770.00 = (4% * 20 000.00) + 2 770.00 = 800 + 2 770.00 = $3 570.00

The law places exemptions from payment of stamp duty on registration of an acquisition of immovable property in certain circumstances which are listed in item 5 to the Schedule to Chapter II of the Finance Act, which include the following;

  • Property acquired by way of inheritance
  • Property acquired in terms of a divorce order
  • Property acquired by an ecclesiastical, charitable or educational body which is recognised by the Government as being of a public character as approved by the Minister
  • A joint owner of the property who acquires sole ownership in the whole property
  • Registration of a correction of an error in the registration of the acquisition of the property where the stamp duty has already been paid
  • Property acquired by a local authority from a State through a transaction not involving purchase and sale.

Deceased Estates Taxes:

Masters Fees

All deceased estates are liable to pay a tax of 4% of the value of the Estate to the Master of High Court. Normally, the estate should be able to cater for its own expenses. However, if the estate cannot pay for its own expenses, the beneficiaries may make cash contributions to avoid the sale of assets

Estate Duty Tax

It is the tax charged on the value of estates exceeding a certain amount as may be gazetted.

HOW IS ESTATE DUTY CALCULATED? Total Assets subtract Total Liabilities subtract Principal residence subtract Family Car Subtract Rebate = Dutiable Amount 5% of the Dutiable amount is the estate duty payable

For assistance please contact the author Nobert Musa Phiri  and the corporate practice group at [email protected]

Further reading:

  • A perfect alliance across professions - expanding AGA's footprint in Africa
  • The need for due diligence prior to mining project investment
  • COP26 implications and opportunities for Zimbabwe
  • Important changes to Zimbabwe's mining regulatory framework

About Muvingi Mugazda Legal Practitioners:

Leading, Dynamic and Innovative

Muvingi & Mugadza Legal Practitioners , AGA's law firm representative in Zimbabwe, is a distinguished law firm whose expertise and practice has continued to expand and evolve over the years to meet its clients’ requirements. Formed in 1982 the experienced and specialised legal practitioners at the firm offer the full range of legal services and are committed to delivering them in line with the firm values, those being, integrity, excellence, respect and innovation.

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COMMENTS

  1. TRANSFER OF IMMOVABLE PROPERTY IN ZIMBABWE

    The transfer of legal title of an immovable property from one party to another is generally known as conveyancing. Conveyancing also includes the registration and cancellation of legal encumbrances such as mortgage bonds and caveats. Acquisition of immovable property

  2. A Guide To The Transfer Process Of Immovable Property In Zimbabwe

    There are no prohibitions on non-residents from buying or selling immovable property in Zimbabwe.

  3. Transfer Of Ownership In Immovable Property

    The first important thing in the transfer of immovable property is the agreement of sale which contains the terms as agreed between the parties. Where the transfer is a donation there should be a deed of donation. It is illegal and self-defeating to understate the value of the property in the agreement of sale or deed of donation.

  4. Information guide to residential property transfer

    CONVEYANCING Conveyancing describes the legal procedure whereby the ownership of immovable property is transferred. Property ownership in Zimbabwe is recorded in the Registrar of Deeds' Office which deals with conventional and sectional title property ownership.

  5. Understanding Conveyancing in Zimbabwe: Frequently Asked Questions

    Conveyancing is the legal process through which title or ownership of immovable property (land) is transferred from one person to another or the granting of a burden over property such as mortgage bonds. WHAT IS A CONVEYANCER?

  6. How to Transfer Property in Zimbabwe

    When one sells an immovable property which is held under a Deed of Transfer (Title Deed), the buyer upon paying the full purchase price, is entitled to take transfer of the property. The process by which the buyer takes transfer is called conveyancing. The person (a lawyer) who does the conveyancing is called a conveyancer.

  7. Title Deeds and Cessions: Buying Property in Zimbabwe

    Before one purchases immovable property in Zimbabwe it is important to always conduct due diligence over the property, to confirm current ownership of the property, and any encumbrances registered over such property, such as a caveat.

  8. Residential Property Transfer in Zimbabwe

    Published Jul 19, 2021 + Follow CONVEYANCING Conveyancing describes the legal procedure whereby the ownership of immovable property is transferred. Property ownership in Zimbabwe is...

  9. conveyancing in zimbabwe

    There are generally no restrictions on foreigners owning immovable property in Zimbabwe. Section 71(2) of the Constitution of Zimbabwe provides that, "every person has a right in any part of Zimbabwe to acquire, hold, occupy, use, transfer, hypothecate, lease or dispose of all forms of property, either individually or in association with ...

  10. Effective transfer of ownership in Zimbabwe

    In Zimbabwe there are two categories of property rights: real rights and personal rights. A real right is an exclusive interest or benefit enjoyed by a person in a thing. It is an absolute right and entitles the holder to enforce it against other persons. ... Stamp duty is payable on the registration of transfer of immovable property. The ...

  11. Notorial, Trusts, Power of Attorney, Notorial Bonds, Ante Nuptial

    Conveyancing is the act of transfer of title of immovable property from one person to another. It is in essence the legal process of buying and selling property. Notarial Practice includes the preparation and attesting to specific contracts and other documents. Our Conveyancing department provides services to both local and foreign (individual ...

  12. BUYING AND TRANSFER OF IMMOVABLE PROPERTY IN ZIMBABWE

    The transfer of legal title of an immovable property from one party to another is generally known as conveyancing. Conveyancing also includes the registration and cancellation of legal ...

  13. Deed Of Transfer

    A Deed of Transfer is a legal document that shows proof of ownership to an immovable property. This is the most important document ever signed by an individual since a property is usually one of the valuable assets a person can own. Therefore the Title holder must ensure that all reasonable steps are taken to keep it safe.

  14. Buying An Immovable Property In Zimbabwe

    1. First determine whether the property you want to buy is held under an agreement of sale (in which case the rights will be transferred to you by cession) or it has title deeds. The difference between the two is significant for a number of reasons.

  15. Chiangwa v Katerere And 5 Others (SC 61-21, Civil Appeal No ...

    The Constitution of Zimbabwe ; Acts of Parliament; Laws of Zimbabwe; Subordinate Legislation ... The immovable property was transferred to the first respondent on 2 April 2007 by virtue of deed of transfer number 1597/2007. ... had solicited for his own appointment so as to transfer the property to the appellant which conduct she alleged was ...

  16. PDF Real Estate Investment in Zimbabwe

    Zimbabwe has developed an accurate system of property registration which aims to provide an efficient transfer process and security of title to land and land rights in a free market. The system allows both local and international entities to become registered owners of immovable property in Zimbabwe. The shortcomings of the above

  17. Humbe v Muchina And 4 Others (SC 81-21, Civil Appeal No. SC ...

    It is indeed immovable property. However I propose to equate possession in the case of movable goods to title in respect of immovable property. To the extent that possession and title raise a rebuttable presumption of ownership, the principle in Zandberg v Van Zyl (1910 AD 258 at 272) applies to immovable property. The starting point is to ...

  18. The Sheriff for Zimbabwe v Humbe & Anor (HH 378-20, HC 7525/19 ...

    It is indeed immovable property. However, I propose to equate possession in the case movable goods to title in respect of immovable property. To the extent that possession and title raise a rebuttable presumption of ownership, the principle in Zandberg v Van Zyl supra equally applies to immovable property. The starting point is to examine the ...

  19. Stamp Duty: Buying Property in Zimbabwe

    In Zimbabwe, stamp duty is payable on the registration of title upon acquisition of immovable property. The Stamp duty is calculated in accordance with the Schedule to Chapter II of the Finance Act [Chapter 23:04] as read with the Stamp Duties Act [Chapter 23:09].Stamp duty is a tax that people buying a property have to pay.

  20. Taxation Law in Zimbabwe

    Transfer of principal private residence between former spouses following a divorce order. Stamp Duty (Tax on property purchase) In Zimbabwe, stamp duty is payable on the registration of title upon acquisition of immovable property. The Stamp duty is calculated in accordance with the Schedule to Chapter II of the Finance Act [Chapter 23:04] as ...

  21. Movable Property Security Interests Act

    AN ACT to provide for the registration of movable property security interests; to amend various Acts; and to provide for matters incidental thereto or connected with the foregoing.Enacted by the Parliament and the President of Zimbabwe. 1. Short title and date of commencement

  22. Ready v Ready (857 of 2022) [2022] ZWHHC 857 (30 November 2022)

    It is confirmed that the Plaintiff is the sole owner of the immovable property known as no 37 Benghezi Road, Braeside, Harare and will continue to pay the monthly instalments for the purchase of the property." ... that the property had been fully paid for and that Council's conveyancers should be instructed to proceed with the transfer of ...

  23. Sharing Of Property Upon Divorce: The Fear Of Losing Property

    The Constitution of Zimbabwe, 2013 on section 71 (2) provides that, every person has the right, in any part of Zimbabwe, to acquire, hold, occupy, use, transfer, hypothecate, lease or dispose all forms of property. This includes even on divorce.