How to protect oneself against property fraud in Zimbabwe

The need for immovable property due diligence in Zimbabwe cannot be overstated whether one is buying property directly from the Seller or through an Estate Agent. There has been a very concerning phenomenon that has emerged within the real estate section in recent years, which has resulted in property fraud.

If one is buying a property through an estate agent, it is essential to first satisfy oneself that the Estate Agent is registered with the Estate Agents Council of Zimbabwe (EACZ). It is equally important to verify whether the immovable property is held under title that is whether it has title deeds or whether it is held under cession. If the property is held under title one conducts a due diligence of the property with the Registrar of Deeds to verify the Seller’s names and check if there are any endorsements, servitudes, restrictions, and any encumbrances registered against the immovable property.

The High Court in Mariko & Another v Stohill Investments (Pvt) Ltd t/a Stohill Properties HH 279-23 page 19 – 20 held that:

• Over the past two decades a very disturbing phenomenon has emerged within the real estate sector. It is called property fraud. Property fraud is now firmly entrenched in the real estate sector and cases of fraudulent sales of properties by imposters, conmen and fraudsters are almost a daily occurrence. Such imposters and fraudsters have perfected the art to the extent that even though such cases get to be widely reported in the media, with such criminals being arrested and getting locked up in prison, the cases have still continued on the upward trajectory.
• What is worrying is the level of gullibility exhibited by victims who fall prey to these agents of the dark world. The victims include owners of properties, genuine purchasers who wish to invest in real estate, legal practitioners and real estate practitioners alike. Legal practitioners and estate agents are supposed to play the watchdog role in the fight against property fraud but they also fall victims. They are the experts in this field, and by virtue of their experience and expertise in property management, a lot is expected of them where claims such as the present, grounded on the breach of a legal duty to act reasonably, are placed before the court.