Double Trouble: The Risk of Unregistered Property Transfers – “Double” Property Sales

Imagine buying a house, paying for it, and moving in, only to later discover that you do not actually own it. This nightmare scenario can happen if property transfers are not handled correctly.

A Real-Life Example - Mazhazi v Mukuma

In the court case of Mazhazi v Mukuma, a buyer lost their property and had to pay legal fees because the seller had sold the same property to multiple buyers. The first buyer, who had paid for the property but hadn't finalized the transfer, lost out to a later buyer who completed the transfer process.

How to Protect Yourself

To avoid this kind of disaster, it is crucial to take the following steps:

1. Choose a Reliable Attorney and Conveyancer:

· Work with professionals who have a good reputation and experience in property law.

2. Use an attorney / conveyancer’s trust account:

· Have your purchase funds held in an attorney's trust account until the property transfer is complete. This ensures that the seller only receives the money after you've legally acquired ownership. It is not advisable to pay the purchase price directly to a seller, as this can create a scenario where ownership does not pass but the seller uses the funds before the transfer of ownership is concluded.

3. Verify Ownership:

· After the transfer, obtain the original title deed (if it's not bonded) or a certified copy. Double-check that you are listed as the new owner.

By following these steps, you can significantly reduce the risk of property disputes and protect your investment.