COMMON MISTAKES WHEN BUYING PROPERTY IN ZANZIBAR

Common mistakes when buying property in Zanzibar are: 

Not Checking the Land Certificate

In Zanzibar, land certificates dictate the legal rights relevant to a property. Before investing in a property, make sure to check the land certificate. This is necessary for a couple of reasons. There are many properties in Zanzibar that do not have land certificates.

Not Checking Road Access

Be wary of properties with unbelievably low prices. More often than not, when a property is cheap, it is because there is no road access. In such cases, the landowner may request road access from neighboring properties. However, this is a costly process in which you will essentially buy part of your neighbor’s land to get road access. In some cases, buyers ended up paying more for the access road than the land itself.

Not Understanding Tax, Government Fees, and Lease Regulations

Per Zanzibar law, each sale and purchase of a property incurs tax for both seller and buyer. To navigate the complex tax landscape, seeking professional advice from a notary or tax advisor specializing in property transactions in Zanzibar is recommended. They can provide comprehensive guidance on the taxes applicable to your property transaction, help calculate the tax liabilities, and assist with the proper documentation and tax payments.

Using the Nominee Scheme to Obtain Land in Zanzibar

The Right of Occupancy or freehold certificate is not available to foreigners. Because of this, many foreigners mistakenly think that they cannot obtain land in Zanzibar. As such, some enter nominee schemes to buy land in Zanzibar. In such a scheme, a local person “owns” the land on paper and will enter into an agreement with the real owner.

While it may seem like a reasonable option to acquire property in Zanzibar, it carries many risks. In cases of dispute over the land, nominees often stand a better chance in court as the legal owners. Nominees can also prevent you from eventually selling your property.

Foreigners can obtain land in Zanzibar by Lease. This certificate grants the holder the right to the property up to 99 years. The process might take longer and may cost more, but it is a much safer option when investing in Zanzibar real estate. 

Not Working with the Right Agent or Broker

Not finding the right agent or broker can lead to some issues. Misunderstandings and miscommunication between you and a broker will cause delays.

Before finalizing any deals, you must first verify the real estate broker’s claims. This will ensure that the property meets all your requirements. An impartial third party can offer a second opinion on the property’s legal status.

Buying a Property Without Conducting Due Diligence

You can avoid most of the mistakes listed above by conducting property due diligence. We advise prospective buyers to conduct due diligence before making any deals.

By doing this, you will learn several things about the property including;

• The property’s potential for business
• Any possible risks or issues with the property
• Accuracy of the property’s documents
• The property’s land history
• Hidden condition

 When it comes to investing in Zanzibar's real estate market, URBAN Reality is your trusted partner to make your property journey a resounding success. Join us on the exciting journey of investing in Zanzibar's real estate market, and let us take care of the rest.