Title Deeds and Other Types of Ownership – Part 1

thompson properties

Title Deeds and Other Types of Ownership - Part 1

Most properties in Zimbabwe are in the form of buildings or houses on land, or in the form of vacant stands. These types of properties will be registered at the Title Deeds Office on a Title Deed. When the property is sold to a new owner, then the conveyancing process, also known as the transfer of Title Deeds, is carried out by a Conveyancing Lawyer. This process transfers all of the rights of ownership in the property from the Seller to the Buyer of the property. In Zimbabwe, there are other types of property ownership.

When owning a flat or a townhouse, the ownership is different than owning an individual stand. For example, there will be parts of the complex that are used by anyone, where other parts will have the right of “exclusive use”, that is the owner has the right to use that part of the property for themselves. The main gate, the driveways, and any common areas will be open to use by all of the residents. The actual flat, any enclosed areas, and the garage may be designated as “areas of exclusive use”, for the benefit of the flat or townhouse’s owner. There are two ways that this ownership is expressed in Zimbabwe.

The one way is through “Share Block” ownership. This is an older form of ownership, and is becoming less popular. A company is set up which owns the entire property, and the Title Deeds for the whole complex will be in the name of the company. The company the offers shares. Typically you will find that there will be one share issued for each flat, office, or townhouse. Often Share #1 will correspond to Flat #1, and Share #2 to Flat #2, and so on. This way is easier and cheaper to introduce, but it has its disadvantages. Firstly, because there is one Title Deed then there is only one rates bill. The rates will need to be collected from the owners as a part of the levies. Secondly, buyers are normally unable to use traditional financing to purchase, as there is no individual Title Deed. Finally, the company’s management committee could, potentially put all of the owners at risk, without their knowledge.

The second way to own a separate unit from a complex is through “Sectional Title”. The developer or original owner has to go through a process to create “Section Titles” for each unit. The property has to been surveyed, with each unit meticulously measured and diagrammed. Each flat, office, or townhouse is issued its own Title Deed. These can be sold and transferred in the same way as a normal home. There will still be “common areas” and “areas of exclusive use”, levies, and a management committee. A person wanting to buy a property which has a Sectional Title should find financing easier. Even though the process to create Sectional Titles is harder and costlier, it is becoming the more acceptable way to register ownership.

“Share Block” transfers are easier and quicker to establish, but offer a number of disadvantages. For this reason, we are seeing less and less of these in Zimbabwe, although they still remain a legal way to hold property. A safer way to purchase a flat, office or townhouse is buy one that has “Sectional Title”. The quickest way to determine how the ownership of that unit is expressed is to look at the Title Deeds. The “Share Block” will have a Title Deed which refers to the entire building or complex. The “Section Title” will only describe the individual unit. The more you know about the processes of property ownership and conveyancing, the safer your property investments will be.