The Sunday Mail
Legal matters
with
Arthur Marara
Owning a piece of real estate is a major goal for most people.
In fact, real estate is one of the surest forms of securities that financial institutions look forward to in securing their interests.
The sad reality is that some people have suffered huge losses in property deals.
You may have read stories of people who lost their properties in demolitions on allegations that they were in an illegal settlement, or on some other grounds.
Others have lost their money in fraudulent deals.
There are people who have suffered losses after going through estate agents, and, in many instances, having been assured that their interests were secured.
In this series, we are going to look at the liability of estate agents for losses that would have been suffered by their clients.
The role of the estate agent is to facilitate the meeting of buyers and sellers.
What happens if the seller is not who they are?
What is the legal liability of the estate agent?
We will look at the liability of estate agents in detail next week.
This week, I want to focus on some common forms of fraud in real estate sales.
This is meant to give you an idea of what to look out for when buying your next property.
Some of the common forms of fraud
- Fictitious sellers
A number of people were introduced by their agents to “sellers”.
They only realised, after parting with their money, that the purported seller was not the real seller.
These “sellers” even produce identification cards that match details on the title deeds.
So, ID cards are not enough for verification. You need to go an extra mile to check if the person you are dealing with is the real seller.
This might mean visiting the Registrar’s Office for confirmation of ID cards, and requesting other documents like birth and marriage certificates.
Estate agents have been conned before, hence you need to be alert.
When signing an agreement of sale, get fingerprints, in addition to the signature on the document.
Get high-resolution images of the sellers.
This may help in the future to track down the person should problems arise.
In addition, engage previous conveyancers to get further clarification on the individual you will be dealing with. That will save you a lot of trouble.
- Non-existent stands or properties
There are people who rush to buy stands after seeing them on a site map, without undertaking any physical visits to verify whether the pieces of land actually exist. Do not part with your money until you have visited the land and inspected it.
Do not fall prey to adverts on social media and some deals that are too good to be true.
Do your due diligence before committing yourself to a transaction.
- Occupied land
Some people buy land, only to realise that there are squatters on the property. Removing these people may not be easy. So, visit the stand first and ensure no one is occupying it.
There are instances when a physical visit may protect you from buying land that is already owned by someone. There are other instances, when you discover that the land you were about to buy even has some buildings on it.
- Double sales
These are very common and some unscrupulous developers are responsible for this.
Some developers sell the land knowing well that there is someone with interest in the property. I once handled a case where two innocent purchasers had to fight over the same stand.
Fortunately, we were able to get a compromise between the parties. Buy land only from reputable developers, and do your due diligence.
Avoid falling prey to empty promises. Watch out for people who make promises, but never deliver.
There are people who bought land and were promised good roads and other infrastructure.
However, to date, they are still driving on dirt roads full of potholes.
You might be aware of cases of land barons in the courts now. Sadly, recovering the money will be difficult because these unscrupulous dealers usually do not keep the cash after swindling people.
- Properties with court orders and legal disputes
You need to be careful of this. I am aware of a case where someone was innocently advertising and selling land whose ownership had been cancelled by the Supreme Court.
The advert was online.
Do not respond to online adverts from random people. The digital age has also made fraud easier. Check if there are no cases pending linked to the land or property in question.
Legal disclaimer: The material in this column is set out in good faith for general guidance, in the spirit of raising legal awareness on topical issues that affect most people on a daily basis. They are not meant to create an attorney-client relationship or constitute solicitation. No liability can be accepted for loss or expense incurred as a result of relying in particular circumstances on statements made in the article. Laws and regulations are complex and liable to change, and readers should check the current position with the relevant authorities before making personal arrangements.
Arthur Marara is a corporate law attorney practising law in Harare. He is also a notary public and conveyancer. He is passionate about labour law, commercial and family law, and promoting legal awareness as well as access to justice. He writes in his personal capacity. You can follow him on social media (Facebook Attorney Arthur Marara), or WhatsApp him on +263780055152 or email [email protected]
