Introduction
I have written many articles on properties, capital gains tax and conveyancing or transfer of properties before. I have explained that for transfer of a property to be effected from the transferor such as a seller to the transferee such as a purchaser, there are two distinct but related processes, namely:
- Obtaining a Capital Gains Tax (“CGT”) clearance certificate from the Zimbabwe Revenue Authority (“ZIMRA”).
- Transfer in the Deeds Registry, whereby the Deed of Transfer or title deed in the name of the transferor is cancelled and a new one in the name of the transferee is registered.
In my article of 5 June 2025 titled “Possible delays in Capital Gains Tax Clearance Certificate”. I explained what may cause delays in obtaining a CGT clearance certificate. I got feedback from many readers. In today’s article I look at possible delays in the second leg, that is, the process by which the conveyancer lodges transfer documents for a property to be transferred from the transferor to the transferee.
Factors that may lead to delays in transfer of property in the Deeds Registry
There are several possible factors, which include the following:
- Delayed payment of conveyancing or transfer fees by the transferee.
- Delayed payment of stamp duty by the transferee.
- System downtime at the Deeds Registry.
- Absence of key documents required for registration at the Deeds Registry.
- Queries raised by the Deeds Registry.
Delayed payment of conveyancing or transfer fees by the transferee
If the transferee delays paying the conveyancing / transfer deposit, this may delay the work of the conveyancer. Usually the conveyancer wants the assurance that fees will be recoverable when due i.e. when work has been done.
Delayed payment of stamp duty by the transferee
It is a requirement that the transferee pays stamp duty for transfer to be effected from the transferor, unless the transaction is exempted from stamp duty. It may very well happen that the transferee delays paying stamp duty, usually due to lack of funds. This may happen where for example the transferee was not aware of this obligation or the extent thereof.
Deeds Registry system downtime
The receipting system at the Deeds Registry may be down here and there thereby affecting lodgement and commencement of the transfer process. The Deeds Office however tries to do its best.
Absence of key documents required at lodgement
Absence of the following key documents may lead to delays in the completion of transfer or registration of the new deed of transfer in the Deeds Registry:
- Original Deed of Transfer, also known as title deed.
- Draft Deed of Transfer in favour of the transferee. This is prepared by the conveyancer.
- Power to pass transfer issued by the transferor to the conveyancer.
- Certified registration documents for the transferor and transferee, including identity documents of individuals involved.
- Resolution by directors, trustees, etc, where applicable.
- Proof of residence of transferor.
- Valid rates clearance certificate.
- Declaration by the seller / transferor and the purchaser / transferee.
- Proof of payment of stamp duty.
- Certificate of compliance in the event of subdivision.
Queries raised by the Deeds Registry
It is common for the Deeds Registry officials such as the examiners or Registrar to raise queries on the lodged documents if such documents are not in order or if any are missing from those lodged.
The queries may vary depending on the nature of the transfer. For example transfer may be due to:
- Sale between individuals.
- Sale between an individual and a juristic persons such as a company or even a trust / trustees for the time being of the trust.
- Sale between juristic persons.
- Transfer or sale from a deceased estate.
- Donation.
- Sale in execution of a court judgment against a judgment debtor.
It is common for the Registrar or examiners to raise queries even on the draft Deed of Transfer lodged by the conveyancer. Such queries may be on issues such as:
- Transferor details.
- Transferee details.
- Reason for transfer.
- Property description. This can be a problem area.
- General or special conditions attaching to the property.
Conclusion
There are two distinct but related stages in property transfer. One involves applying for and obtaining a Capital Gains Tax (“CGT”) clearance certificate from ZIMRA. The second one involves lodging transfer documents in the Deeds Registry so that the current or holding Deed of Transfer in favour of the transferor is cancelled and the one in favour of the transferee is registered whereupon the transferee becomes the lawful registered owner of the property.
Disclaimer
This simplified article is for general information purposes only and does not constitute the writer’s professional advice.
Godknows (GK) Hofisi, LLB(UNISA), B.Acc(UZ), Hons B.Compt (UNISA), CA(Z), MBA(EBS, Heriot- Watt, UK) is the Managing Partner of Hofisi & Partners Commercial Attorneys, chartered accountant, insolvency practitioner, registered tax accountant and advises on deals and transactions. He has extensive experience from industry and commerce and is a former World Bank staffer in the Resource Management Unit. He writes in his personal capacity. He can be contacted on +263 772 246 900 or ghofisi@hofisilaw.com or gohofisi@gmail.com. Visit www//:hofisilaw.com for more articles.
