New Conveyancing Fees for Zimbabwe: What Property Buyers and Sellers Need to Know!

The Law Society of Zimbabwe recently released updated guidelines for conveyancing fees, effective as of June 2024. These changes will impact anyone involved in property transactions in Zimbabwe, from first-time homebuyers to seasoned real estate investors. Let's dive into what these new fees mean for you and how they might affect your property dealings.

What is Conveyancing?

Before we delve into the specifics, it's essential to understand what conveyancing actually is. In simple terms, conveyancing is the legal process of transferring property ownership from one person to another. It involves a series of steps to ensure that the buyer receives the property title free from any encumbrances and that all legal requirements are met.

The Role of a Conveyancer

A conveyancer, typically a qualified lawyer, handles this process. Their responsibilities include:

1. Preparing and reviewing legal documents
2. Conducting property searches
3. Dealing with the Land Registry
4. Handling the transfer of fundsEnsuring all conditions of the sale are met

The New Fee Structure

The Law Society of Zimbabwe has set out a detailed tariff of fees for various conveyancing services. Here are some key points from the new structure:

1. Transfer of Immovable Property- The fee for registering immovable property is now set at 3% of the purchase price or value of the property. This fee covers a range of services, including drawing up deeds, obtaining necessary certificates, and all attendances at the Deeds Registry.
2. Mortgage Bonds- For mortgage and notarial bonds, the fee is 2.5% of the amount of debt secured by the bond. This covers the preparation of all necessary documents and the registration process.
3. Additional Properties- If more than one property is included in the same transfer, there's an additional fee of $50 USD for each extra property.
4. Cancellations and Consents- For cancellations of bonds, releases, or consents required by law, the fee is now $75 USD.
5. Certificates of Title- Various certificates of title now attract a fee of $400 USD, with additional fees for extra properties included.

What This Means for Property Buyers and Sellers

If you are planning to buy or sell property in Zimbabwe, these new fees will directly impact your transaction costs. The 3% fee for property transfers and 2.5% for mortgage bonds are significant amounts, especially for higher-value properties. For example, if you're purchasing a property worth US$ 100,000, you can expect to pay around US$ 3,000 in conveyancing fees for the transfer alone. If you're also taking out a mortgage for the same amount, that's an additional US$ 2,500 in fees.

It's important to factor these costs into your budget when planning a property transaction. Remember, these fees are in addition to other costs associated with buying or selling property, such as estate agent fees, stamp duty, and any necessary property repairs or renovations.

Why the New Fee Structure?

The Law Society of Zimbabwe periodically reviews and updates its fee structure to ensure that conveyancers are fairly compensated for their work. The complexity of property transactions, the responsibility involved, and the time required to complete the process are all factors considered when setting these fees.

Are These Fees Negotiable?

Generally, the fees set by the Law Society are standard across the industry. However, for complex cases or services not specifically outlined in the tariff, there may be some room for negotiation. The by-laws state that in such cases, fees can be charged under the general tariff for legal practitioners or at reasonable rates.

Value for Money

While these fees may seem substantial, it's crucial to remember the value that a good conveyancer brings to a property transaction. They ensure that your interests are protected, that all legal requirements are met, and that the process runs smoothly. Their expertise can help you avoid costly mistakes or delays in your property transaction.

Conclusion

The new conveyancing fees in Zimbabwe represent a significant cost in property transactions. However, they also reflect the crucial role that conveyancers play in ensuring safe and legal property transfers. As a buyer or seller, it's important to be aware of these fees and factor them into your budget. 

Remember, while the cost is important, the quality of the conveyancing service is paramount. A skilled conveyancer can save you money in the long run by preventing legal issues and ensuring a smooth property transfer. Always choose a reputable conveyancer registered with the Law Society of Zimbabwe to handle your property transactions.

By understanding these new fees and the conveyancing process, you'll be better prepared for your next property adventure in Zimbabwe. Happy house hunting!