Simplified Guide to Buying Property in Zambia [Updated May 2020]
When it comes to buying property in Zambia, the process can be simple and hassle-free if you follow the proper procedures and ensure all loopholes are checked. Whether you’re interested in purchasing land, farms, houses, or any other investment property, the process doesn’t have to be complicated. By laying out everything in a written agreement and adhering to it, you can experience a smooth transaction. This article provides a simplified guide with a few steps to help ensure a seamless property purchase in Zambia, regardless of the location of the buyer or seller.
Step 1: Finding the right property
Firstly, determine what you’re looking for and plan your budget accordingly. It’s crucial to find a property that meets your requirements and aligns with your financial capacity. Consult with an experienced estate agent who can expedite the process and help you find the perfect property. By understanding your needs, the estate agent can provide insights into costs and areas that suit your budget, even through negotiations. Building a good working relationship with your chosen estate agent is essential as they possess a deeper understanding of the market and can help you secure a great deal.
Sometimes, buyers may search for properties in the wrong areas or have unrealistic expectations that don’t match their purchasing power. It’s important to ensure your financial capacity and expectations align with the current market conditions to avoid wasting time on unrealistic prospects. Negotiations should be realistic and based on prevailing market conditions, as overly aggressive negotiations are unlikely to yield positive results. Once you’ve found a suitable property and thoroughly reviewed all related documentation, proceed to the next step and request a letter of offer from the vendor, expressing their intention to sell the property to you.
Step 2: Letter of offer to sell
This step involves verbal negotiations between the buyer and the vendor, often in the presence of an estate agent. Once the verbal terms and conditions are agreed upon, the vendor or their estate agent writes a letter of offer to sell the property to the prospective buyer. The letter should include a detailed description of the property, the agreed-upon price, and the required commitment deposit upon acceptance of the offer. This non-refundable deposit, usually a percentage of the final selling price (e.g., 10%), is discussed upfront. It’s important to establish clear dates for concluding the transaction, making payments, and exchanging documents to avoid complications and delays.
Upon receiving the letter of offer to sell, the buyer makes the necessary deposits to an agreed-upon account. The buyer or their estate agent responds with an acceptance letter, attaching proof of the agreed-upon non-refundable commitment deposit. Subsequently, the vendor, either through their estate agent or legal representative, prepares a draft contract of sale in accordance with The Law Association of Zambia (LAZ) General Conditions of Sale, 2018. The draft document undergoes multiple reviews between the buyer and vendor until a final version is agreed upon. Once the contract of sale is finalized, a date is set for signing, and all parties meet at a designated time and location to complete the signing process. The signing involves the buyer and the legal property owner or their appointed administrator or representative, witnessed by third parties from each party. With the contract of sale signed, the legal conveyancing of the property can commence.
