Buyer Information - A Guide to Bond Registration

The Conveyancing Process

• The Seller agrees to sell their property to the Buyer at an agreed purchase price.  The Seller provides the Buyer with a photocopy of the title deeds. 

• Using the details on the photocopy of the title deeds, the Buyer’s advocates conduct searches at the Lands and Deeds Registry to make sure that the property belongs to the Seller.  The search will also reveal if the property is mortgaged or if there are any outstanding ground rents due on the property.

• The Seller’s advocates draft a contract of sale which the Buyer’s advocates approves, subject to any changes they may have.  

• The Seller’s advocates send final copies of the contract to the Buyer’s Advocates for signing.  The Buyer’s advocates will have the contracts signed.  The Seller’s advocates have the contracts signed and dated with two copies being sent back to the Buyer’s advocates.  On signing the contract, the Buyer pays the agreed deposit which is held in trust by the Seller’s advocates. 

• The Seller’s advocates apply for the state’s consent to assign the property.  This is an administrative procedure carried out by the Registry and consent will only be granted if the Buyer is eligible to hold property in Zambia (see below).  Once consent has been obtained, the Seller will pay property transfer tax to the Zambia Revenue Authority (ZRA) currently 3%. 

• The Buyer’s advocates draft the assignment, which transfers the legal title in the property to the Buyer.  Once approved by the Seller’s advocates, final copies are prepared by the Buyer’s advocates and sent to the Seller’s advocates. 

• Once the Seller’s advocates obtain the Tax Clearance Certificate from ZRA, state’s consent to assign and signed assignments they inform the Buyer’s advocates that they are ready to complete the transaction. 

• Completion usually takes place at the Seller’s advocates’ offices or at the office of the person holding the title deeds.  On completion  the Seller’s Advocates hand over to the Purchaser’s Advocates the following documents:
• Certificate of Title
• Duly Executed Assignment
• Consent to Assign
• Property Transfer Tax Receipt and Tax Clearance Certificate

In return the Purchaser’s Advocates pay the balance of the purchase price of the property.

• After Completion, the Buyer’s advocates lodge all the documents in 8 above at the Lands and Deeds Registry for the title deeds to be transferred into the name of the Buyer.

The Conveyancing Process is largely the same for foreigners however, foreigners or foreign entities may only hold land in Zambia under the following circumstances:

Permanent Resident

• A non-Zambian can own property if they have an entry permit which gives them permanent residency in Zambia.
• A non-Zambian can apply for an entry permit if:
• they have been in continuous employment for 12 years under a work permit
• they have held a self-employment permit for a 3 years and run a viable business
• The fee is approximately $600 and the process takes between 30 – 60 days

Company

• A non-Zambian can own property by being a minority shareholder in a company incorporated in Zambia.  Zambian citizens must own 75% of the shares in order for the company to own property. 
• The exception to this is where the company holds an investment license issued by the Zambia Development Agency and where the company is a commercial bank registered with the Bank of Zambia.
• To incorporate a company, the proposed name of the company is cleared by the registry of companies.  A minimum of 2 promoters (maximum of 50) then submit completed forms with their personal details and the details of the proposed company to the registry.   
• The fee is approximately $75 and the process is completed within 7 days.

Investment License

• A company can own property relating to its operations irrespective of its shareholding if it has an investment license.
• In order to obtain an investment license from the Zambia Development Agency, a completed application form is submitted with a business plan, proof of finance, and reference letters for shareholders and directors.  Applicants also have to get clearance from the Environmental Council of Zambia.
• A non-refundable application fee of approximately $370 is charged and a license fee of $2200.  The process normally takes between 60 – 90 days.

Cooperative

• A non-Zambian entity can own land if is a registered co-operative society and less than 25% of the members are non-Zambians
• Any ten or more people with common needs can register a co-operative.  They submit a business plan and a constitution outlining their vision, mission and by-laws to the Registrar of Societies.
• The applicants submit their personal details while foreigners have to attach their entry/work permits as well as their residential and postal addresses. 
• The application fee is approximately $10 and the registration process takes between 30 – 90 days.

National Park

• Where the non-Zambian entity is granted a concession or right under the Zambia Wildlife Act.
• Companies can apply for a tourism or safari hunting concession from the Zambia Wildlife Authority.  However, it is very rare for companies to own the land as these concession normally apply to national parks and game management areas that are state land.

Trust

• A non-Zambian can own property if it is a non-profit making charitable, religious, educational or philanthropic organisation or institution which is registered and approved by the Minister of Lands.
• The Trustees apply to the Minister of Lands stating the objectives of the trust and submit the trust deed.  The application must also include the personal details of the trustees and a description of the land that is to be held by the trust.
• The application fee is approximately $25 and the registration process takes between 14 – 30 days.

Non Permit Individuals

• A non-Zambian can hold property if the property is inherited on death or is being transferred under a right of survivorship or by operation of law.

• A non-Zambian can own property if they obtain the President’s consent in writing under his hand.  The applicant will make his request through the Minister of Lands outlining compelling reasons for their application.  The Minister forwards the request to the President with his recommendation.  There is no fee attached to this process and a decision is usually made in 30 days.