Registering Property in Botswana

This topic examines the steps, time, and cost involved in registering property in Botswana.

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Standardized property

Property Value: BWP 2,253,964
City: Gaborone

Registration Requirements Summary:


  Procedure Time to complete: Cost to complete:
*1 Obtain certificate of compliance at the Lands Department 3 days (simultaneous with procedure 1) BWP 100
*2 Obtain a rates clearance certificate at the Gaborone City council 3 days (simultaneous with procedure 2) 1 to 5 BWP
3 Notify BURS (Botswana unified revenue services) of VAT payment 5 days No cost
4 The conveyancer prepares the deed of transfer 1 day Fees: BWP 7050 + 3*250 + 550 (attorney fees) = BWP 8,350
5 The deed of transfer is lodged at the Deeds Registry 6 days 5% of value or purchase price above BWP 200,000 (transfer duty)
* Takes place simultaneously with another procedure.

Registration Requirement Details

Procedure 1.
Obtain certificate of compliance at the Lands Department
Time to complete:
3 days (simultaneous with procedure 1)
Cost to complete:
BWP 100
Name of Agency:
Lands Department
Comment:
A certificate of compliance is obtained at the Lands Department. It checks the status of the property on any pending compliance issues linked to it, i.e., compliance with conditions of a title deed like zoning and land usage. This is obligatory where the conditions of the title deed require it, such as in this case.
Procedure 2.
Obtain a rates clearance certificate at the Gaborone City council
Time to complete:
3 days (simultaneous with procedure 2)
Cost to complete:
1 to 5 BWP
Name of Agency:
City Council
Comment:
The seller obtains a rates clearance certificate at the Gaborone City Council, showing that there are no outstanding property taxes to be paid.
Procedure 3.
Notify BURS (Botswana unified revenue services) of VAT payment
Time to complete:
5 days
Cost to complete:
No cost
Name of Agency:
Botswana Unified Revenue Service (BURS)
Comment:
As a result of a stronger enforcement of the Value Added Tax Law, additional requirements for all transferor companies to obtain VAT clearance before they can transfer property have been introduced. This requirement was introduced through a Registrar's Circular No 3 of February 20 2009.
If the selling company is not charging VAT in the transaction, a Clearance Letter issued by BURS is required (if the company is not registered for VAT, or claims the property will be used for renting which is VAT exempt). If the company is VAT registered and is charging VAT, then the conveyancer is required to give an undertaking to BURS that the VAT is accounted for and will be paid to the Seller on transfer. BURS will then issue a letter to Deeds Registry, on confirmation of the VAT details, confirming that the transaction is subject to VAT and advising that the transfer may proceed.
Procedure 4.
The conveyancer prepares the deed of transfer
Time to complete:
1 day
Cost to complete:
Conveyancing fees according to the following schedule:
Property value (in BWP) Conveyance fees (in BWP)
150,000 to 200,000 3,800
From 200,000 to 300.000 4,
Name of Agency:
Comment:
The lawyer or notary public must prepare the Deed of transfer. It is mandatory for lawyers to prepare the deed of transfer. The parties cannot do it themselves.
The original deed will be in possession of the seller.
For every transaction there is a disbursement of 550 BWP to the attorney (10% VAT 10% is paid on professional fess).
The tariffs were gazetted in August 2004.
Procedure 5.
The deed of transfer is lodged at the Deeds Registry
Time to complete:
6 days
Cost to complete:
5% of value or purchase price above BWP 200,000 (transfer duty)
Name of Agency:
Deeds Registry of the Ministry of Lands
Comment:
The deed is lodged at the Deeds Registry of the Attorney General’s Chambers (AG).
The Deeds Registry has employed more staff and changed their organization system. There are now internal time limits. If the usual person is absent, then someone else will complete the step, in order to keep the process flowing. The paper will be at his desk for one day, then go to next examiner, then the next and it is then complete. If all is in order (no mistakes or missing documents), the deed of transfer is endorsed by the Registrar of Deeds (or his delegate) and done in 4 to 5 business days. Once endorsed, one copy is given to the parties' lawyer, the other is kept at the Registry for public reference.
Transfer duty in the amount of 5% is payable at the AGs revenue office immediately prior to registration. For citizens, the duty is paid only on the amount above BWP 200,000. Non-citizens pay the whole amount.
Where a transaction is on a commercial basis and the seller raises a VAT invoice, transfer duty is not required for registration, on presentation of the receipted invoice. In this transaction, VAT is treated in the normal way, which is as an input/ output setoff item. The rate of VAT is still 10%.

The Deeds Registry had changed their lodgment times for lodging transactions. It is now between 7:30 a.m to 8:30 am. If the transaction is not lodged before then, it will have to be done the next day.