KEY POINTS
- Conduct thorough checks on the developer before purchasing.
- Include warranties in contracts to safeguard your rights.
- Buyers can seek legal remedies if double allocation occurs.
Buyers must be cautious to avoid losing money, as double sales are common in Zimbabwe’s new real estate developments. The first step is thorough due diligence on the developer’s track record in managing residential, commercial, or industrial projects.
Start with due diligence and professional help
Seeking professional assistance is recommended, especially since some developers have a history of court cases involving double allocation of stands.
After this initial research, it’s essential to verify the developer’s documentation, including the title and necessary permits. Buyers should also physically inspect the stand and ensure the boundaries are properly marked or pegged. Buyers need to ask for additional details, such as the developer’s internal procedures to prevent double allocation.
If the buyer decides to proceed, they should include contract terms that guarantee the stand is free from other claims or encumbrances. Regular visits to the stand are advised if the developer isn’t planning immediate construction. This can help the buyer quickly address any issues, such as someone else attempting to build on the property, before legal disputes arise.
In cases of double allocation, the buyer should first address the issue with the developer. If ownership is based on a cession agreement, the first buyer typically has superior rights. However, if one buyer has already acquired title deeds, they hold superior rights. The other buyer would need to seek remedies directly from the developer.
What to do when double allocation happens
Affected buyers may either receive a refund or be reallocated to another plot. If they choose to retain the stand, they can take the matter to court, which may involve suing for damages incurred due to the double allocation.
When a buyer has paid a deposit but fails to pay the remaining balance in an instalment sale, the seller’s right to cancel the contract depends on the terms outlined in the agreement. The seller must notify the buyer of the breach and allow time for it to be corrected. If the buyer fails to meet the deadline, the seller may cancel the agreement and claim damages. If the buyer believes the cancellation was unjust, they can seek legal recourse through dispute resolution or the courts.
According to New Zimbabwe, if developers make false or misleading statements to secure a sale, buyers have legal options. They may rescind the contract and request compensation for any expenses incurred. The courts may also compel the developer to fulfil their promises, and in cases of fraudulent misrepresentation, buyers can report the developer for fraud.
Finally, if developers fail to complete essential infrastructure—such as roads, sewer systems, or water reticulation—buyers can either cancel the contract and seek a refund or sue to compel the developer to complete the work. Buyers can also claim damages for the developer’s failure to meet their obligations. Since these relationships are governed by contracts, buyers must ensure they meet their responsibilities, such as paying development fees, to strengthen their legal standing.
