US$870,000 Gone With a Signature: The High Cost of Skipping Due Diligence
A recent report tells the story of a Harare man who allegedly lost a staggering US$870,000 in a fake land deal after purchasing a stand from someone who apparently had no legal authority to sell it. (Herald Online)
At David K Law Group, we often say this:
Land does not lie. People do.
The title deed tells a story.
The Deeds Registry tells a story.
The local authority records tell a story.
The problem is that many buyers listen only to the seller’s story.
In Zimbabwe’s property market, a convincing seller, a neatly prepared agreement, a beautiful piece of land, and a sense of urgency can be a dangerous combination. Fraudsters thrive on one thing: the buyer’s fear of missing out.
Before you part with a single dollar, ask yourself:
- Has a Deeds Search been conducted?
- Is the seller the registered owner?
- Are there any caveats, mortgages, or encumbrances?
- Has the property been verified with the relevant authorities?
- Has an independent lawyer reviewed the transaction?
If the answer to any of these questions is “No”, then the safest place for your money is still your bank account.
The irony of many property scams is that the legal fees people try to save are often a fraction of what they ultimately lose.
As lawyers, we are sometimes called after the money has disappeared, the seller has vanished, and the phone numbers have stopped working. At that stage, the question is no longer “Can I buy this property?” but “Can I recover my money?”
Those are very different conversations.
Property Rule of the Day:
Never fall in love with a property before verifying ownership.
The best property investment is not the cheapest property.
It is the property you can actually prove belongs to the person selling it.