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Tuesday, 6 June 2017

SELLING YOUR HOUSE? TIPS ON HOW TO SAFEGUARD SALE PROCEEDS !



Usually property fraudsters are people with extensive involvement in the selling of houses or real estate for criminal purposes. If you are a layperson selling his or her property chances are high that you are already beaten by these people's schemes from the word go. This article endeavors to help you by giving some tips based on age old practice that lawyers have effectively implemented, safeguarding sale proceeds even in the face of these hungry predators.







 Before transfer of ownership the money belongs to buyer and property to seller.


This is an important principle that must not be breached. In order to be true to it when selling property a third party must be engaged. The importance of real estate sales will in turn dictate that this third party must be well versed with the law of conveyancing (involved with the change of ownership of immovable property) and he must have a trust account that is regularly audited by an independent auditor. All these qualifications are necessary because the third party must hold in trust sale proceeds pending transfer of ownership from the seller to the buyer. The above bluntly put means you must find a lawyer to avoid the folly of reinventing the wheel.

An agreement of sale your first line of defense.


An agreement of sale gives a framework within which the buyer and seller will later act. It is therefore, your first line of defense because if it’s poorly drafted then it will in turn give you a bad deal that will haunt you for many years to come. As a framework it should specify the above mentioned role of the conveyancer and other important aspects of the sale so that if it comes to the worst you will have your agreement of sale standing for you rather than against you in a court of law. I will therefore, draw your attention to one important aspect of this document so that you have some kind of a glimpse into how it’s critical.

 Protection against breach. 


In its endeavour to be a framework for the sale of your house or property an agreement of sale includes clauses about breach. The clauses define what is breach and how the seller can recover damages suffered because of the breach. This is necessary because sometimes sale proceeds can come by way of installments and under these circumstances late payment of these installments can constitute a serious breach. Why ? Because you might have negotiated contracts elsewhere for the purchase of other assets based on the proceeds from the sale of your house. Late payment by the buyer will have a downstream effect on you in as far as these other contracts are concerned. The agreement of sale is therefore important because it gives the seller sufficient protection in the event of the buyer committing a breach of the agreement.


Article coutesy of M.S.MUSEMBURI LEGAL PRACTICE Legal Practitioners, Attorneys, Conveyancers, Notaries Public, Adminstrators of Deceased Estates, Advocates, Patents and Trademark Agents

Physical Address :   Suite 205, Second Flr, Mercury House, 24 G.Silundika Avenue, P.O.Box  8598, Harare.
Cell                       :   0773 143 982
Fax                       :   799806
Email                     :   maxwellsmusemburi@yahoo.com








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