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Thursday, 6 July 2017

BUYING STANDS IN AN UNREGISTERED DECEASED ESTATE AND OTHER “GENUINE” PROPERTY SALES CASES IN WHICH YOU CAN BE DEFRAUDED!


"It hurts a lot to lose hard earned cash!
Times are hard man ! " Image from
www.nairaland.com
One reason why many people are defrauded when purchasing property is that some sales cases in which they lose money look genuine on the surface. Using three cases we will however, dig deeper in order to uncover the underlying details and legal implications which many layman unfortunately do not readily know.  Economically, in Zimbabwe and even the entire world people are going through hard times so once one manages to save large sums of money he or she should invest them wisely.









1. BUYING LAND FROM A CONSTRUCTION COMPANY BEING PAID THROUGH STANDS BY THE DEVELOPER.


In property development sometimes a company contracted to do the physical servicing of the land like paving of roads and installation of fresh water and sewer pipes is paid through stands or pieces of land . There is nothing wrong about this arrangement but a big problem can arise when the construction company in need of operating capital decides to sell these pieces of immovable property before cession in their favour is done. Cession is the process by which property rights are transferred from one party to another primarily through an agreement of sale. Property rights are what entitle a person (individual or corporate ) the contractual capacity to sell or rent the property. So in the absence of bona fide proof of property rights like an agreement of sale the contractor can not liquidate his stands. So in desperation the construction company can use a contract of employment as legal basis for selling these stands. To you the buyer however, this is  very dangerous because if the construction company breaches this contract the developer may be entitled to retain the stands allegedly sold to you as compensation for damages incurred. What this all means is that at the end of the day you may end up without both your money and the property simply because the company was yet to get the legal right to the stands.


2. BUYING STANDS FROM A DECEASED ESTATE WHOSE REGISTRATION IS NOT YET FINALIZED.


This point is enlightened by my experience in Cold Comfort, Harare where beneficiaries of a land developing deceased estate were selling residential stands before the estate’s registration was finalized at the high court. A deceased estate refers to property that belongs to a demised person for which an appointee called the executor is authorized to kind of supervise its distribution in favour of beneficiaries. So for this particular case the beneficiaries probably had pressurized the executor to consent to the sales of the stands before finalization of registration. Apparently the beneficiaries could not wait to cash in on their inheritance.  There is a serious risk involved here if you decide to purchase this kind of property because out comes of court processes are uncertain and usually a surprise to many.


3.PURCHASING PROPERTY FROM A SERIOUSLY ILL SELLER 

     
Purchasing property from a seriously ill seller is 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 dictate that it should have its day in a court of law.  So under these circumstances you may lose your money if the court rules in favour of the seller. This case also applies when your seller is a mentally ill person or a minor. 

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