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Tom Muleya
Fraud Insight
In the previous article, we noted that the Zimbabwe Vision 2030 makes it very clear that housing is critical infrastructure and accommodation is a basic human right.
However, due to the ever-increasing demand for housing, many people are so desperate to acquire residential properties.
Desperation is thus leading many unsuspecting Zimbabwean home seekers into making hasty or thoughtless decisions and taking dangerous short-cuts resulting in them being duped.
Due to the growing market for properties for sale, home seekers are unequivocally called to exercise due diligence to avoid blowing their chances of being landlords.
We also noted that the Zimbabwe media is awash with stories about the problem of estate fraud, with the Zimbabwe Republic Police (ZRP) hunting for serial real estate fraudsters.
The chief perpetrators in real estate fraud being bogus real estate agents and lawyers working in cahoots with employees at deeds office.
The real estate fraudsters are selling land and houses they do not own or have legal right to sell through title deed fraud and sale of a single property to several people.
They are also involved through acts of fraud in selling land or houses that does not exist.
The most targeted properties are those left vacant (where owner is deceased), rented properties, properties where the lawful owner lives overseas, property which does not mortgage against it, and property not yet registered with the deeds office.
For those in the process of buying residential properties, the following are some of the tale-tale signs or red flags of real estate fraud to watch for;
When the national identity card of the owner of property is a plastic ID and seems to have been recently taken or is new.
When there is absence of original title deeds.
When seller or agent does not have a fixed abode or location and or refuses to disclose the location of their offices.
When the owner of house is said to be overseas and seller claims to have been given power of attorney.
When the selling price of the residential stand or house is too good to be true. By this I mean when the selling price almost seems to be an unreasonable offer.
When owner of property claims to be having a medical condition and is disposing the property to settle medical bills.
When owner appears too old and claims that he or she is intending to relocate to the rural areas, hence the reason to dispose the property.
When the seller exerts too much pressure on the buyer to sign agreement of sale and make payment as soon as possible otherwise seller may change mind and deal with others intending to buy the same piece of property.
When there is notable inconsistency in paperwork of the property in question such as the size of the land and the description of the seller amongst others.
When seller or agent fails to furnish all important documents which are part of the transaction.
When the seller instructs that payment should be made directly into their bank account or cash directly paid to them instead of a lawyer.
When the buyer is made to inspect the house in question in the absence of other occupants of the house.
Watch out for real estate fraudsters. Get empowered by Fraud Insight and be part of a solution to real estate fraud.
Tom Muleya is a Detective Assistant Inspector working under the Criminal Investigations Department. Harare. He is also a member of the National Cyber Security Taskforce, Zimbabwe.
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