Unavoidable facts to be aware of while purchasing immovable property in Zimbabwe

Authored by Urayayi Chikwetu

Sep 08, 2023

Introduction

The purchase of immovable property typically necessitates a significant outflow of financial resources from the buyer. Sleepwalking into such transactions must be avoided. Being alive to the facts I will describe below will assist the reader in avoiding some of the problems that the majority of people have when purchasing real estate due to a lack of this information. In other words the information will act as a shield against possible losses.

1. Types of property rights

Property rights that can be gained are divided into two different types: real rights and personal rights. A real right is considered to be the ultimate kind of ownership; it is absolute in principle, and the holder of the right is able to safeguard his property from whoever possesses it. Such rights are obtained by registering and transferring title in accordance with the Deeds Registries Act (Chapter 20:05). Personal rights, on the other hand, are relative in principle; the holder can assert the right against a person who has a duty to fulfil in terms of an obligation arising from among other thing a contract or delict . Knowledge of these two rights is required for individuals seeking to buy property. These rights grant the holder specific privileges known as capabilities. True ownership, for example, empowers the owner to govern, use, burden, enjoy the rewards, consume, alienate, and vindicate the object.

2. The laws that affect investment into immovable property

The most important areas of law for a buyer to consider when purchasing immovable property include inter alia,the Constitution of Zimbabwe ,Deeds Registries Act (Chapter 20:05), Regional Town and Country Planning Act (Chapter 29:12), Environmental Management Act (Chapter 20:27) the Finance Act (Chapter 23:04), the Stamp Duties Act (Chapter 23:01) and the Capital Gains Tax Act (Chapter 23:01).The Constitution is the supreme law and all the laws must conform to it and it also provide from the protection of property rights. The buyer of immovable property must ensure that the transaction he or she entering into does not result in the violation of the property rights of another person. The Deeds Registries Act (Chapter 20:05), which will inform the investor upon the transfer of ownership. As regards the Regional Town and Country Planning Act (Chapter 29:12), the buyer must look for what this Act say on matters pertaining to planning, zoning and permits with which the immovable development should comply with. The Environmental Management Act (Chapter 20:27), assists a buyer of immovable property to assess if there is any need for an Environmental Impact Assessment Report prior to commencing a development. Finally, the buyer of immovable property must know the various taxes that are applicable when purchasing the immovable property. This information is found after reading the Finance Act (Chapter 23:04), the Stamp Duties Act (Chapter 23:01) and the Capital Gains Tax Act (Chapter 23:01) and the relevant regulations.

3. Conveyancer and lawful transfer of immovable property

A conveyancer in short is an attorney who has specialized in the preparation of deeds and documents destined for the registration in the deeds registry. In particular the conveyancer performs a number of duties which result in lawful transfer of property and these duties include among other things the following :

(a) Ensure validity of alienation

(b) Manage financial matters and transaction process

(d) Link simultaneous transactions

(e) Lodge deeds

(f) Execute and register deeds

(g) Ensure compliance with tax requirements imposed by several tax statutes

(h) Ensure that all debts due to the local authority are settled before transfer

It is vital to note that the documentation required for the transfer to be completed include the identities of the buyer and seller, if they are natural persons. In circumstances when both the buyer and seller are juristic persons, documentation of the juristic person's registration will be requested. When the conveyancer has thoroughly executed his or her mandate and the documents pass the conformity test, the Registrar will proceed with the registration of the deed. The transaction would have gone through legally, giving the buyer peace of mind.

4. Due diligence required when acquiring immovable property

The input of many public offices, mainly the Deeds Registry office, Surveyor General's Office, the High Court, the office of the Master of the High Court, City of Harare, is required before the acquisition of immovable property. The first public office to visit is the Deeds Registry, where the seller's title can be verified. This will include checking for any conditions, encumbrances, caveats, or securities that may be endorsed on the title deed. The High Court Registrar will offer information on all pending and concluded litigation. It is critical for the buyer to determine whether or not there is any pending or finalized lawsuit involving the property he wishes to purchase, as well as the seller. If the property is part of a deceased estate, lawful transfer can take place only after consulting with the Master of the High Court and the appointed executor or executrix dative. In some cases, the Master's permission is required to transfer property. Due diligence is very important and must be performed before purchasing an immovable property to avoid some losses. Due diligence is critical and must be completed before purchasing an immovable property in order to minimize losses.

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