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Tuesday, 4 November 2014

FINANCIAL CONSEQUENCES OF PURCHASING PROPERTY FROM A SERIOUSLY-ILL SELLER AND OTHER PURCHASES TO AVOID



Questionable contractual capacity of a seriously-ill seller

Purchasing property being sold by a seriously-ill seller can be dangerous so it must be approached with great  caution. If the seller heals, armed with medical records he can rise from the death bed with a backlash and claim that when he sold, he did so with a state of mind that was not suitable for  such  a critical undertaking. This argument holds water and justice will demand that it should be taken seriously but for the purchaser it means another extra cost because of unexpected legal expenses.


                                                                   
Bad debt
Using a loan to purchase a property can later be regretted. When considering a mortgage its important to bear in mind the essence of this which is that the purchase should be able to service its loan obligations through rental proceeds from tenants. This allows the mortgagee to ease pressure on his or her income thereby enabling it to satisfy other financial demands like bills and tuition fees. But if a mortgagee moves into the new premises as owner-occupier this will in-turn put pressure on their income and tie them to their jobs. Such a situation will later haunt the purchaser as he will be unable to move on to other opportunities or go after other pursuits that need funding because job security will take priority ahead of anything else.


Hidden defects
Signing agreements of sale without first conducting a thorough inspection of the intended purchase can have adverse financial consequences tomorrow when you discover defects that where hidden from you. Serious defects that cost much are those that compromise the structural integrity of the property meaning to say depending with their state they can qualify  the property as a demolition candidate. You will be forced to incur unexpected costs as you go through extensive renovations. The most unfortunate thing however, will be that your situation would lack legal merit in order to claim compensation since the signed agreement would carry a so called voetstoots clause that says,” The property is sold voetstoots (as it is) and the seller shall not be liable for any defects patent, latent or otherwise in the property nor for any damage occasioned to or suffered by reason of such defect.”

                                                                   
   
Article courtesy of Gift Maseko of Maseko Law Chambers. You need a lawyer to assist when purchasing or renting a house, flat, piece of land etc, especially the change of ownership / payment phase known as conveyancing, this is the stage were most home seekers are defrauded. For inquiries please call;

Physical address :  5th Flr Club Chambers Cnr 3rd Str and Nelson Mandela Way, Harare 
Cell                      :  0773 569630/ 0733243484  
Tel                        :  04 2934424
website               :  https://www.masekolawchambers.com  





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17 comments:

  1. You are welcome. Hope it finds relevance in your investing life.

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  2. thanks Isaac. Hope you hav registered to receive new information like this by email.

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  3. Replies
    1. Thanks Abigail Ntini. Hope others will also use this forum to get answers about these property matters that matter.

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  4. Replies
    1. Hi Bernard please call Tatenda Matengambiri of Rawson Properties 0772 373965.

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