Buying off-plan in Zanzibar: how to protect your deposit

Much of the new property for sale in Zanzibar is sold off-plan, which means you agree to buy before the building is finished. Off-plan can offer a lower price and a choice of units. It also means your money is at risk for months or years before you get the keys. This guide explains what the law gives you, and what you need to add in the contract.

The short answer

We found no law in Zanzibar that requires developers to hold off-plan deposits in escrow. Your main statutory protection is the Condominium Act of 2010, which requires the developer to give you key documents before the sale and lets you cancel within 10 working days of signing in some cases. Everything else, including how your deposit is held, depends on the contract you negotiate.

What does off-plan look like in Zanzibar today?

It is common. Several listings on ZanzibarFind are being built now. The Hills Nungwi 1 Bedroom Suite, at US$148,837, lists an expected handover in March 2028. The Clove 2 Bedroom Villa, at US$220,000, is also sold off-plan.

Payment plans vary widely between projects. Some ask for a large share up front. Others spread payments over the build. The structure matters more than the headline price, because it decides how much of your money is exposed at any point.

What does the law require the developer to give you?

Under section 22 of the Condominium Act, a developer may not sell or agree to sell a unit, including one not yet built, until it has given the buyer copies of:

• the sale agreement;
• the building's rules and the management agreement;
• the lease of the land;
• the certificate of title for the unit or proposed unit, and any charges registered against it;
• the condominium plan.

If a loan is secured on the unit, the developer must also tell you in writing the maximum amount, the monthly payment and the repayment terms. If a developer cannot produce these documents, treat that as a serious warning sign.

Can you cancel an off-plan purchase?

Sometimes, for a short time. The Act lets a buyer cancel the sale agreement within 10 working days of signing, without liability. The developer must then refund all the money paid within 10 working days of your written notice.

There is a catch. You lose this right if you received all the required documents at least 10 days before you signed. So the cooling-off period protects buyers who were rushed, not buyers who were given time to read. Use that time well.

What can go wrong?

Construction can run late, specifications can change, and in the worst case a project can stop. In 2022, The Citizen reported that the government had revoked the lease on a large resort project, where some buyers had already paid up to 90% of the price. Cases like this show why the order of your payments matters so much.

How do you protect your deposit?

Zanzibar law firms recommend building these protections into the contract:

1. Pay by milestone, not by calendar. Tie each instalment to a stage of construction that can be checked, such as foundations or roof, rather than to a date.
2. Fix a completion date with teeth. Include a long-stop date after which you can cancel and get your money back.
3. Ask for a bond or escrow. Where available, a performance bond or payment into escrow protects you if the developer runs into trouble.
4. Get a warranty. Ask for a defects warranty on the finished unit.

It also makes sense to keep a meaningful share of the price due at handover. That gives you leverage to get any defects fixed.

What checks should your lawyer run?

• Land title. An official search with the Commission for Lands confirms who holds the land and whether there are mortgages, caveats or court claims against it.
• Approval. Confirm that the project is approved for sale to foreign buyers. Law firms advise buying only in approved projects.
• Your title. Confirm what you will receive at completion, typically a unit title or sub-lease, and when it will be registered.
• The developer's record. Visit finished projects by the same developer and speak to people who bought there.

Our guide on what to look for when buying property in Zanzibar covers due diligence in more depth, and our guide on how to buy as a foreign buyer explains each step of the purchase.

Where to start

Before you pay a reservation fee, ask for the section 22 documents and a copy of the payment schedule. Have a lawyer review both before you sign. Then compare projects on their payment terms as well as their price. You can browse properties for sale in Zanzibar, including off-plan units, with the price shown on every listing.

This guide is general information as of September 2026, not legal advice. Laws and market practice change. Take independent legal advice from a Tanzanian lawyer licensed in Zanzibar before you pay any deposit.