Lawyer drafts the sale agreement, which is exchanged between buyer and seller
Agency: Lawyer
In practice, both the seller and purchaser employ a lawyer for the transaction. The fees are negotiable, but cannot legally exceed 10%.
Time and cost: 5 days, ZMW 19,587.06 (2.5% of the property value)
The Seller requests a valuation report
Agency: Land Valuer or Land Surveyor
For properties valued at over 500,000 kwacha, it is necessary to submit a valuation report to the Zambia Revenue Authority in order to settle the property transfer tax. A copy of the title deed is required to obtain the valuation report. During the inspection, the valuer or land surveyor carries out a physical inspection of the property.
They will provide the current market value of the property in the report according to their inspection.
Time and cost: 4 days, ZMW 7,500
Lawyer obtains a non-encumbrance certificate
Agency: Registry of Lands and Deeds
The search is conducted at the Registry of Lands and Deeds. The interested parties can conduct an electronic search that provides basic information about the land, the owner of the lease, and the date of ownership of the lease. The most common search is to obtain a computer printout of the registration file. This print out includes the history of the property from the first day when it was registered as a title deed, any sub-divisions, owners, transfers, if there are any liens or mortgages, if it has been discharged and the size, and if there are any caveats.
In order to get more detailed information, a manual search needs to be conducted. For this search, the lawyer must go directly to the Lands and Deeds Registry to search for the history of the plot and the relevant documents.
Time and cost: 1 day, ZMW 41.7 (139 Fee Units x 0.3 Fee Unit Value)
The seller applies for the state’s consent to assign
Agency: Commissioner of Lands
The Commissioner of Lands will verify that the property can be transferred, by checking if ground rent has been paid, and who is buying. The land in Zambia belongs to the State, and can only be purchased by Zambians, Zambian companies, established residents or investors. This application is lodged with the Commissioner of Lands and if all ground rent has been settled and all application papers are in order, the Commissioner of Lands will issue the consent to assign. While the state’s consent to assign application is being processed, the buyer and seller can finalize the deed of assignment, but the sale price stated will be subject to the state’s consent for the sale at that price. The documentation shall include: (i) the consent application, (ii) consent fees, (iii) buyer’s details such as nationality, address, etc.
Time and cost: 8 days, ZMW 333.6 (1112 Fee units x 0.3 Fee Unit value)
The seller settles the Property Transfer Tax with the Zambian Revenue Authority (ZRA)
Agency: Zambian Revenue Authority
The Property Transfer Tax Act, CAP340, provides that Property Transfer Tax (PTT) is charged upon and collected from, the person transferring the property (transferor) on the Realizable Value (i.e. open market value or contract price, whichever is higher). The Property Transfer Tax (Amendment) Act, of 2015, has reduced the tax rate to 5% of the Realizable Value, effective from January 1st, 2016.
The Zambian Revenue Authority assesses if the value of the property is correctly stated in the deed of assignment and then it will produce a clearance certificate which is valid for six months. The tax is payable by the transferor. PTT filings require the following documentation:
- NRC/Certificate of Incorporation of both the Buyer & Seller;
- State/Council Consent (obtained in Procedure 3);
- Seller’s TPIN #;
- Contract of Sale/Deed of Gift or Transfer (obtained in Procedure 1);
- Lawyer’s Stamp (where dealing as an Advocate of either party);
- Valuation Report (for all transactions above ZMW 500,000).
Both a receipt for the payment of the Property Transfer Tax and the Tax Clearance Certificate are obtained in this step.
Time and cost: 7 days, ZMW 39,174.12 (5% of the consideration of the transaction or the value of the property, whichever is higher)
The purchaser lodges the assignment for registration at the Lands and Deeds Registry to complete the process
Agency: Registry of Lands and Deeds
The documentation shall include:
- Seller’s title deeds (Certificate of Title);
- Executed assignment in duplicate;
- State’s consent to assign (obtain in Procedure 3);
- Receipt for payment of Property Transfer Tax (obtained in Procedure 4);
- Tax Clearance Certificate (obtained in Procedure 4);
- Form DR53 (gives brief details of the transaction, such as seller, buyer, consideration, property number, rentable value, etc.);
- Receipt for payment of transfer fees.
In June 2008, the Government of Zambia, following a survey done in 2007 to understand the reason of the backlog at the Lands Registry, implemented a Customer Service Relation Centre and also fully computerized the Land Registry.
The Statutory Instrument No. 53 of 2013 on July 21st, 2013 established a maximum fee of ZMW 15,000 for the registration of assignments and transfers.
Time and cost: 25 days, ZMW 8,001.62 (1% of property value (registration fee) with a maximum of ZMW15,000 + Deed of Assignment and an authentic copy (276 Fee Units x 0,3 Fee Unit Value x 2))
