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.  Once consent has been obtained, the Seller will pay property transfer tax to the Zambia Revenue Authority (currently 3% of the sale price). 

• 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 have the tax clearance certificate, state’s consent to assign and signed assignments they inform the Seller’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 Vendor’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:

• Where the non-Zambian, as an individual, is a permanent resident

• Where the non-Zambian has an Investment License under the Investment Act or any other law relating to the promotion of investment in Zambia

• Where the non-Zambian has obtained the President’s consent in writing under his hand

• Where the non-Zambian is a company registered under the Companies Act, and less than twenty-five per centum of the issued shares are owned by non-Zambians

• Where the non-Zambian is a statutory corporation created by an Act of parliament

• Where the non-Zambian is a Commercial Bank registered under the Companies Act and the Banking and Financial Services Act; or

• Where the non-Zambian is a corporative society registered under the Co-operative Societies Act and less than twenty five per centum of the members are non-Zambians

• Where the non-Zambian is granted a concession or right under the National Parks and Wildlife Act.

• Where the non-Zambian is a body registered under the Land (Perpetual Succession) Act and is a non-profit making charitable, religious, educational or philanthropic organisation or institution which is registered and approved by the Minister of Lands

• Where the interest or right in question arises out of a lease, sub-lease, or under-lease, for a period not exceeding five years, or a tenancy agreement

• Where the interest or right in land is being inherited upon death or is being transferred under a right of survivorship or by operation of law