Estate Agency Practice in Zimbabwe:

Introduction:

“Whatever your hand finds to do, do it with your might...”(Ecclesiastes 9vs10; New King James)

In Zimbabwe, every October 15th is an annual commemoration of National Real Estate Day, wherein the subject of real estate (which affects pretty much everyone and every facet of life in Zimbabwe) is highlighted in the interest of public safety and enlightenment.

Ad rem, not infrequently are the questions asked, “What does estate agency entail? What is it exactly? How may it be defined?” This brief treatment aims to explore the answer[s].

Long story short:

Succinctly, in Zimbabwe, estate agency practice simply means receiving due or just reward/enrichment (typically in the form of cash, bank credit or other valuable consideration) for facilitating, mediating, negotiating or brokering exchange of lawful interests or rights to land and the built environment (real estate). The typical lawful rights/interests exchanged or traded (again, typically for cash, bank credit or other valuable consideration) are freehold (i.e. full alienation, disposal or outright immovable property sale) and leasehold (i.e. renting out the use and occupation of a particular immovable property in exchange for an agreed upon monthly fee known as rent).

Short story long:

The more lengthy, fleshed-out answer[s] may be found in section 2 of the Estate Agents Act [Chapter 27:17] where specific terms of reference are spelt out in black-and-white. The Act is crystal clear, ergo, it will be quoted verbatim. The Act notes that:

“immovable property” includes any interest therein, but does not include mines, quarries or minerals.”

Thus, generally speaking, estate agency practice in Zimbabwe concerns itself with matters pertaining to lawful interests in and to land and the built environment, sans, “mines, quarries or minerals”, which fall under the remit of the Mines & Minerals Act (Chapter 21:05), which is administered by the Ministry of Mines and Mining Development.

Section 2 of the Valuers Act [Chapter 27:18] attests that:

“immovable property” includes a right in respect of or an interest in immovable property.”

More specifically though, estate agency practice in Zimbabwe, deals with the trading or sale of such lawful interests in and to real estate, and deriving just enrichment from such practice.

Section 2 of the Estate Agents Act [Chapter 27:17] testifies that:

“sale of immovable property’ includes -’

‘a) any lease of immovable property; and

‘b) any disposal of immovable property or any interest in immovable property for valuable consideration; and’

‘c) the sale or other disposition for valuable consideration of -’

‘(i) shares in a private company whose principal assets consist of immovable property; or’

‘(ii) any share in a private company which entitles the holder, by virtue of any agreement or arrangement, to occupy immovable property or any part thereof;”

Finally – and to its credit – the Act [again, in section 2] – goes out of its way to dispel all mystery and doubt by noting that:

“practise as an estate agent’, subject to subsection (2) and section sixty-two, means doing any of the following acts for payment or reward -’

‘(a) in connection with the sale or proposed sale of immovable property belonging to another person -’

‘(i) bringing together the parties to the sale or proposed sale, or taking steps to bring them together;’

‘ii) negotiating the terms of the sale or proposed sale;’

‘iii) acting as auctioneer in connection with the sale or proposed sale;’

‘iv) providing an estimated market value of immovable property or any part thereof for the purpose of selling or leasing it;’

‘(b) receiving or collecting, for on behalf of the person entitled to the moneys collected -’

‘(i) rents, deposits and other moneys payable in connection with a sale of immovable property; and’

‘(ii) any moneys payable in connection with any transaction relating to immovable property, including owners’ association levies and mortgage payments;”

Crisp and all-encompassing definition of terms, to say the least.

Final coverage on immovable property interests in Zimbabwe:

With the definitions of immovable property, sale of immovable property as well as estate agency practice in Zimbabwe firmly under the belt, it may prove helpful and necessary to circle once more on the lawful interests which estate agency practice in Zimbabwe concerns itself with, for the sake of public enlightenment and safety.

In short, the main lawful interests in and to immovable property which estate agency practice in Zimbabwe concerns itself with, include:

1) Freehold tenure: (i.e. all the different “flavors” or varieties or “hues” of title deed, such as deed of transfer, deed of grant, certificate of registered title, certificate of consolidated title, “sectional title” formally known as undivided shares with exclusive right of occupation, deed of rectification, deed of partition, deed of donation, deed of exchange, et cetera).

2) Any time-sharing interests.

3) Limited real rights: (such as standard leases, especially miscellaneous agreements, notarized leases, as well as the ability to sublet if allowed for in a lease agreement, which may open the door to sale of leasehold interests, placement of “key-money” and so forth.)

4) Shares in a block-share scheme.

5) Personal rights typically via cessionary arrangements: (whether local government cession, local authority cession or immovable property developer cession).

The interests which are absent from the above list (and for good-reason) are namely, inter-alia:

i) Customary land rights as outlined in the Communal Land Act (Chapter 20:04): (i.e. in local parlance, “sabhuku deals” are a “no no”).

ii) Partially-Alienated State Land Rights when it comes to agricultural state land as outlined in the Land Commission Act (Chapter 20:29) & the Gazetted Land (Consequential Provisions) Act [Chapter 20:28]: These are typically allocated to beneficiaries of agricultural state land through the tenure documents of permits, offer-letters, 99-year leases, leases, as well as lease-agreements with an option to purchase as equity is slowly, surely accreted, crescendoing to the eligibility of exercising the right to purchase and obtaining a deed of grant from the Ministry of Lands, Agriculture, Fisheries, Water & Rural Development.

iii) Partially-alienated rights en-route to becoming alienable real rights: e.g. local authority rent-to-buy schemes, State rent-to-own schemes (typically through the Ministry of National Housing & Social Amenities, which receives its mandate as set forth in the Housing & Building Act [Chapter 22:07]), in days-of-yore, housing co-operative schemes as vetted and monitored by the Ministry of Women Affairs, Community Small & Medium Enterprises Development, which is responsible for administering the Co-operative Societies Act [Chapter 24:05], local authority pay-schemes (which are deemed to be safer than housing co-operatives), and, the aforementioned lease-agreements with an option to purchase when it comes agricultural state land.

What is the good-reason for them being absent from the list? Simply because they cannot (or not yet in some cases) be assigned, ceded, hypothecated, leased out or fully-alienated/disposed of in exchange for valuable consideration.

Conclusion: Go ye forth:

Thanks very much for your precious time and attention. Go ye forth then, being enlightened, empowered, safe, secure and successful as you interact with and invest in land as well as the built environment here in Zimbabwe,

Happy national Real Estate Day 2024, and good-speed, always.

Regards.

Tatenda Kangwende is proud and honored to be a real estate professional. For serious, profitable and productive business pertaining to real estate in Zimbabwe, get in touch with him via:

Email: [email protected]

Mobile (SMS, calls, WhatsApp): +263 714 729 043