Who pays the costs of transferring a property in Zimbabwe?

Who pays the costs of transferring a property in Zimbabwe?

Transfer fees in Zimbabwe are known as conveyancing fees. These costs are charged by a conveyancer i.e., a registered legal practitioner who is charged with the responsibility of attending to the transfer of immovable property in terms of a tariff of fees known as the Law Society of Zimbabwe (Conveyancing Fees) By-Laws, 2024.

A Conveyancer is appointed by the Seller and represents a Seller in the transfer of the property to the Purchaser. Resultantly, it is the Purchaser (Buyer) who has an obligation to pay the costs of transferring a property in Zimbabwe. Put differently, the conveyancer is appointed by the Seller and paid by the Purchaser.

It is equally important to note that the Law Society of Zimbabwe (Conveyancing Fees) By – Laws is a fixed tariff which is applied by all law firms, whether they are well-established or small and up-coming firms. In terms of the law and practice in Zimbabwe there can be no ‘discounts’ to conveyancing fees.

The High Court in Scapelox Trading (Pvt) Ltd v Mashangwa Family Trust & Others 2014 (1) ZLR 229 (H) held that:

“…undercutting in conveyancing has become a thorny problem in this jurisdiction. Quite often legal practitioners find themselves having to undercut in conveyancing fees because of the cut-throat competitive nature of this country’s conveyancing practice, usually pitting established law firms, who have enjoyed a monopoly in that field, against small and upcoming firms. The latter firms usually fall into the temptation of accepting to undertake transfers at far less than the tariff prescribed by the Law Society of Zimbabwe, in order to attract clients. This is a shameful practice which has no place in our legal system.”

Furthermore, conveyancers in Zimbabwe are also obliged to add Value Added Tax (VAT) for conveyancing services in their invoices.