Request and obtain a VAT clearance letter from the Botswana Unified Revenue Services (BURS)
Agency: Botswana Unified Revenue Service (BURS)
All transferor companies need to obtain VAT clearance before the property transfer. This requirement was introduced through a Registrar’s Circular No 3 of February 20, 2009. If the selling company is not charging VAT in the transaction, a clearance letter issued by BURS is required (if the company is not registered for VAT, or claims the property will be used for renting which is VAT exempt). If the company is VAT registered and is charging VAT, the conveyancer is required to give an undertaking, which the VAT is accounted for and will be paid to the seller on transfer, to BURS. BURS will then issue a letter of the confirmation of the VAT details to the Deeds Registry, confirming that the transaction is subject to VAT and advising that the transfer may proceed.
Time and cost: 5 days, No cost
Obtain a rates clearance certificate at the Gaborone City Council
Agency: City Council
The seller obtains a rates clearance certificate at the Gaborone City Council, showing that there are no outstanding property taxes to be paid.
Time and cost: 3 days, BWP 50
The conveyancer prepares the deed of transfer
Agency: Conveyancer
The conveyancer must prepare the deed of transfer. According to the Deeds Registry Act, it is mandatory for conveyancers to prepare the deed of transfer and the parties cannot do it themselves.
The original deed will be in possession of the seller.
For every transaction, there is a disbursement of BWP 550 to the attorney (12% VAT is paid on professional fees).
The tariffs were gazetted in August 2004.
Time and cost: 1 day, BWP 15,280.44
The deed of transfer is lodged at the Deeds Registry
Agency: Deeds Registry of the Ministry of Lands
The deed is lodged at the Deeds Registry of the Ministry of Lands situated at the Attorney General’s Chambers (AG). After the submission of the deed, the documents are sent to the coordinator of deeds for distribution. They are distributed to the first examiner who examines and passes them to the second examiner. If all the documents are in order (no mistakes or missing documents), the deed of transfer is then endorsed by the Registrar of Deeds (or his delegate). Once endorsed, one copy is given to the parties’ conveyancer, and the other copy is kept at the Deeds Registry for public reference.
Transfer duty in the amount of 5% is payable to the Revenue officer (BURS – Botswana Unified Revenue Service) of the Deeds Registry located at the AGs revenue office immediately before registration. For citizens, the duty is paid only on the amount above BWP 200,000. Non-citizens pay the whole amount. Where a transaction is between VAT registered companies and the seller raises a VAT invoice, the transfer duty is not required for registration on the presentation of the invoice. The rate of VAT has increased to 12% as of January 2010.
Time and cost: 21 days, BWP 193,608.7
