In this week’s legal discussion, Vengai Madzima, Senior Partner at Madzima Chidyausiku Museta Legal Practitioners (MCM Legal), sheds light on the challenges and risks faced by Zimbabweans in the diaspora when purchasing property back home. As property fraud continues to affect many, Madzima outlines critical steps to protect buyers from falling victim to scams.
Navigating the Risks of Property Fraud
The issue of property fraud is a significant concern for Zimbabweans abroad, with reports of double sales and non-existent properties becoming alarmingly common. When asked about the safety of purchasing property in Zimbabwe, Madzima emphasized that while the risks are real, there are systems in place to safeguard buyers. However, he warned that many fraud cases stem from the omission of essential due diligence processes.
Madzima pointed out that relying on unqualified family members to handle property transactions often leads to problems. He stressed that potential buyers must ensure their transactions are managed by registered estate agents and verified by legal professionals. “The main cause of these unfortunate transactions is our obsession with saving money,” Madzima noted, highlighting the false economy of cutting corners.
To protect themselves, Madzima advised diaspora buyers to verify that the estate agent they are dealing with is registered with the Estate Agents Council of Zimbabwe. The Council’s compensation fund serves as a safety net if a transaction goes wrong. He also recommended engaging a lawyer to oversee the purchase process, ensuring that all due diligence is conducted properly.
The Crucial Role of Due Diligence
Madzima provided a detailed overview of the due diligence process, which is essential for verifying the legitimacy of a property transaction. When dealing with properties that have title deeds, he explained that buyers should request the original title deed for verification, along with necessary permits and certificates. A key part of this process is conducting a deed search at the Deeds Office to uncover any issues, such as mortgages or servitudes, that might affect the property.
Further precautions include verifying the identity of the seller to prevent identity theft. If there is any doubt about the seller’s identity, additional proof should be requested. Madzima also mentioned that in some cases, it might be necessary to perform a search at the Master’s Office to confirm that the seller is authorized to sell the property, particularly in instances involving deceased estates.
When properties are under cession rather than having title deeds, Madzima explained that the due diligence process changes slightly. Buyers need to establish whether the cession is with the Local Government, Council, or a developer. If dealing with a developer, buyers should request documents such as the deed of grant, subdivision permit, and compliance certificates to ensure the transaction’s legitimacy.
Ensuring Safe Property Transactions
In cases where a property is being sold by someone who originally purchased it from a developer, Madzima advised that the transaction should be completed with the developer’s knowledge. He emphasized the importance of verifying the legitimacy of the development itself, ensuring that all agreements are transparent and legally binding.
Throughout the discussion, Madzima repeatedly emphasized the importance of thoroughness and legal oversight in property transactions. “The transaction must be looked at from its value,” he said, underscoring the need to protect substantial financial investments by following all necessary procedures.
By following these guidelines and involving qualified professionals in the process, Zimbabweans in the diaspora can significantly reduce the risk of falling victim to property fraud. With proper due diligence and legal safeguards, purchasing property in Zimbabwe can be a safe and secure investment.
Source: New Zimbabwe
